Phase-in of tax changes resulting from reassessments
372.2 (1) On or before December 31 of the taxation year, the council of a municipality, other than a lower-tier municipality, may pass a by-law to phase in tax increases or decreases for eligible properties for a taxation year in respect of which there is a general reassessment. 2000, c. 25, s. 27. Definitions (2) In this section, “eligible property” means property classified in any property class prescribed under the Assessment Act; (“bien admissible”) “first taxation year” means a taxation year in respect of which there is a general reassessment; (“première année d’imposition”) “preceding year” means the taxation year immediately preceding the first taxation year. (“année précédente”) 2000, c. 25, s. 27. Tax increase to be phased in (3) If the total taxes for municipal and school purposes for the first taxation year for an eligible property, but for the application of this section, exceed its total taxes for municipal and school purposes for the preceding year, the maximum amount of the tax increase to be phased in is the amount of the difference. 2000, c. 25, s. 27. Tax decrease to be phased in (4) If the total taxes for municipal and school purposes for the preceding year for an eligible property exceed its total taxes for municipal and school purposes for the first taxation year, but for the application of this section, the maximum amount of the tax decrease to be phased in is the amount of the difference. 2000, c. 25, s. 27. Amounts to be phased in in 2001 and subsequent years (5) For properties subject to Part XXII.3 and for the purposes of subsections (3) and (4), (a) if the preceding year is 2000, the taxes for municipal and school purposes for that year shall be determined under subsection 447.65 (2); or (b) if the preceding year is after 2000, the taxes for municipal and school purposes for that year shall be determined under subsection 447.68 (2). 2000, c. 25, s. 27. Same (6) For properties that are not subject to Part XXII.3 and for the purposes of subsections (3) and (4), the taxes for municipal and school purposes for the preceding year shall be determined as follows: 1. Determine the taxes for municipal and school purposes that were levied on the property in the year. 2. If a supplementary assessment or change in classification was made under section 34 of the Assessment Act during that year or if an assessment or change in classification could have been made under section 34 of that Act and the appropriate change is made to the assessment roll for taxation in the first taxation year, recalculate the taxes determined under paragraph 1 as if the increase in the assessment or change in classification, as the case may be, had applied to the property for all of the year. 3. If the council of a municipality cancels, reduces or refunds taxes under section 442 for the year on an application under clause 442 (1) (a), (c), (d) or (f) or under section 443 for the year, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1 of that year. 2000, c. 25, s. 27. Application to lower-tiers (7) A by-law under subsection (1) of an upper-tier municipality also applies with respect to the taxes of its lower-tier municipalities. 2000, c. 25, s. 27. Copy (8) An upper-tier municipality shall provide a copy of the by-law under subsection (1) to each lower-tier municipality as soon as is practicable. 2000, c. 25, s. 27. By-law requirements (9) A by-law under subsection (1) is subject to the following: 1. The by-law may apply to the first taxation year and up to the next seven taxation years. 2. The by-law may replace a by-law made under section 372 or this section so long as the first-mentioned by-law applies for at least the same number of years as remains outstanding under the by-law made under section 372 or this section. 3. The by-law may modify the phase-in on individual properties subject to a phase-in under a by-law made under section 372 or this section in order to reflect tax increases or decreases determined under subsection (3) or (4). 4. The amount to be phased in in a year, other than in the first taxation year, must be the same or less than the amount phased in in the previous year. 5. The amount phased in in the last year in which a tax increase or decrease is phased in plus the total amounts phased in in the previous years must equal the tax increase or decrease for each property as determined under subsection (3) or (4). 6. The by-law may treat different property classes differently and it may provide for no phase-ins for some classes but if the by-law applies to property in a property class it must apply to all properties in the property class. 7. For the purposes of paragraph 6, the residential/farm property class, the farmlands property class and the managed forests property class shall be treated as a single property class. 8. In the first taxation year, the amounts recovered from all properties in the property class whose tax decreases are being phased in shall not exceed the revenues foregone from all properties in the property class whose tax increases are being phased-in for the municipality referred to in subsection (1). 9. The by-law may provide for a threshold amount in each taxation year, determined in dollars or as a percentage. 10. For the purposes of paragraph 9, the threshold amount for eligible properties in a property class in the municipality to which subsection (3) applies may be different from the threshold amount for eligible properties in the property class in the municipality to which subsection (4) applies. 11. If an assessment is made for a property under subsection 32 (2) or 33 (1) of the Assessment Act in or after the first taxation year but the assessment applies to a year prior to the first taxation year, i. the by-law made under subsection (1) shall apply to the property, and ii. the taxes for municipal and school purposes on the property shall be recalculated for the first taxation year and for any subsequent taxation year that is subject to the by-law under subsection (1). 2000, c. 25, s. 27. If change in use, character, classification of property (10) If there has been a change in the use or character of any eligible property or in its classification under the Assessment Act that, in the opinion of the council of the municipality, makes a phase-in or the continuation of a phase-in in respect of the property inappropriate, the council may in the by-law under subsection (1) or in another by-law exclude such property from the application of the phase-in. 2000, c. 25, s. 27. Improvements replaced after scheme begins (11) If an improvement to an eligible property is substantially destroyed before a by-law under subsection (1) is passed and, before the end of the last year in which a tax increase or decrease is phased in, the improvement is replaced, the council of the municipality may amend the by-law under subsection (1) so that the by-law applies to the property as though the improvement had not been substantially destroyed. 2000, c. 25, s. 27. Same (12) Subsection (11) does not apply with respect to an improvement if the destruction of the improvement is by the owner, is permitted by the owner or is done by a person who had a right to destroy the improvement. 2000, c. 25, s. 27. No lower tier surplus or shortfall (13) The council of an upper-tier municipality shall, in a by-law under subsection (1), provide that adjustments shall be made between the upper-tier municipality and lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the phase-in of the tax increases or decreases. 2000, c. 25, s. 27. Upper-tier shortfall (14) If the upper-tier municipality experiences a shortfall as a result of the application of subsection (13), the by-law made under subsection (1) shall provide that any shortfall shall be shared by the upper-tier municipality and lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes. 2000, c. 25, s. 27. Information on tax bill (15) A notice of demand of taxes payable in respect of which there is a phase-in shall indicate the amount of taxes that would have been payable without the phase-in, the amount of taxes that are payable and the difference. 2000, c. 25, s. 27. List to be kept (16) The treasurer of the local municipality shall maintain a list of the tax increases or decreases for each eligible property to which the by-law under subsection (1) applies. 2000, c. 25, s. 27. Application to payments in lieu of taxes (17) This section applies to payments in lieu of taxes, other than an amount referred to in subparagraph 24 ii of subsection 3 (1) of the Assessment Act or an amount received under section 157 or subsection 158 (4) of this Act, as though they were taxes but a by-law under subsection (1) may provide that it does not apply to payments in lieu of taxes. 2000, c. 25, s. 27. Taxes for school purposes (18) No phase-in of a tax increase or decrease under this section shall affect the amount a local municipality is required to pay a school board. 2000, c. 25, s. 27. Certain changes in first taxation year assessments (19) The following apply if the assessment of an eligible property for the first taxation year changes as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act or an application under section 46 of that Act: 1. The tax increase or decrease for the property shall be redetermined under subsection (3) or (4) using the new assessment for the property. 2. The taxes on the property shall be recalculated using the amount determined under paragraph 1 for each year in which there is a tax increase or decrease. 3. The collector’s rolls shall be amended to reflect the recalculated taxes. 2000, c. 25, s. 27. Certain changes in assessment in preceding year (20) The following apply if the assessment of an eligible property for the preceding year changes as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act or an application under section 46 of that Act: 1. The tax increase or decrease for the property shall be redetermined under subsection (3) or (4) using the new assessment for the property to determine the taxes for the preceding year. 2. The taxes on the property shall be recalculated using the amount determined under paragraph 1 for each year in which there is a tax increase or decrease. 3. The collector’s rolls shall be amended to reflect the recalculated taxes. 2000, c. 25, s. 27. Mixed use (21) If portions of an eligible property are classified in different property classes on the assessment roll for the first taxation year, each portion shall be deemed to be a separate property for the purposes of this section. 2000, c. 25, s. 27. Regulations (22) The Minister of Finance may make regulations, (a) prescribing a later deadline for the purposes of subsection (1), either before or after the deadline has passed; and (b) governing by-laws under this section and the calculation of tax increases and decreases to be phased in under such by-laws. 2000, c. 25, s. 27. Restructuring orders (23) Despite subsection 25.2 (11), a by-law under this section may be made instead of any phase-in authority or requirement set out in an order of the Minister under section 25.2 or a commission under section 25.3, but the by-law under this section must apply for at least the same number of years as remains outstanding under the phase-in authority or requirement. 2000, c. 25, s. 27. General or specific (24) A regulation under this section may be general or specific in its application and may be limited to specific municipalities. 2000, c. 25, s. 27.