2. (1) On January 1, 1994, the land annexed to the City of London under clause 2 (1) (a) of the Act is established as a special area for the purposes of phasing-in increases in municipal realty and business taxes in accordance with Part I of this Regulation. O. Reg. 346/94, s. 1. (2) Revoked: O. Reg. 360/96, s. 1. (3) Despite Parts I and II, if the assessment of a property, as shown on the last returned assessment roll for the City of London prepared in accordance with subsection 46 (3) of the Act, reflects improvements to the property or a change in property class, in calculating the 1993 residential tax responsibility, the 1993 commercial tax responsibility or the 1993 business tax responsibility, the relevant assessment for that property and all businesses on that property, as contained on the last revised assessment roll of the City of London for the purposes of the interim tax levy in 1994 under section 156 of the Municipal Act, shall be restated as if the improvement to the property or change in property class had come into effect on January 1, 1993. (4) Despite Parts I and II, if two or more separately assessed properties, as shown on the last returned assessment roll for the City of London prepared in accordance with subsection 46 (3) of the Act, were assessed as one separate property on the last returned assessment roll for purposes of taxation in 1993, in calculating the 1993 residential tax responsibility, the 1993 commercial tax responsibility or the 1993 business tax responsibility, the relevant assessments for those properties or for all businesses on those properties, as shown on the last revised assessment roll of the City of London for the purposes of the interim tax levy in 1994 under section 156 of the Municipal Act, shall be restated as if the subdivision or severance of the property had come into effect on January 1, 1993. (5) Despite Parts I and II, if a separately assessed property is subsequently subdivided or severed on the last returned assessment roll for purposes of taxation in any year during 1995 to 2003, inclusive, the tax differential that would otherwise apply to the original property shall be allocated to each of the divided parts of the property in the same proportion as the assessment of each separately assessed parcel bears to the aggregate of all of the assessment making up the original property at the time of the division of that property but in no case shall the total of the tax differential be increased. (6) Despite Parts I and II, if two or more separately assessed properties, as shown on the last revised assessment roll of the City of London for the purposes of the interim tax levy in 1994 under section 156 of the Municipal Act, are consolidated, as shown on the last returned assessment roll for the City of London prepared in accordance with subsection 46 (3) of the Act, in calculating the 1993 residential tax responsibility, the 1993 commercial tax responsibility or the business tax responsibility, the assessments for those properties or for all businesses on those properties, as shown on the last revised assessment roll of the City of London for the purposes of the interim tax levy in 1994 under section 156 of the Municipal Act, shall be combined and restated as if the consolidation of the properties had come into effect January 1, 1993. (7) Despite Parts I and II, if two or more separately assessed properties are consolidated on the last returned assessment roll for purposes of taxation in any year during 1995 to 2003, inclusive, the tax differentials that would otherwise apply to those properties shall be consolidated to establish a new tax differential for the consolidated property. (8) Despite subsection (7), if the total assessment of the consolidated property for purposes of taxation in any year during 1995 to 2003, inclusive, is less than the aggregate of the assessments on the constituent assessed properties in the previous year, the new tax differential shall be diminished in the same proportion and at the same time as the total assessment is diminished. O. Reg. 818/94, s. 2. PART I   PHASE-IN OF TAX INCREASES IN THE ANNEXED AREA