Distress and sale for taxes that are a charge on land
400.(1)Subject to section 399, if taxes that are a lien on land remain unpaid for twenty-one days after demand or notice made or given under section 392, 395 or 399 or, where a longer period has been authorized under subsection 399 (6) such taxes remain unpaid at the expiry of that period, the collector or, where there is no collector, the treasurer may alone or by an agent, subject to the exemptions and provisos mentioned in this section, levy them with costs by distress, (a) upon the goods and chattels, wherever found within the county in which the municipality lies, belonging to or in the possession of the owner or tenant of the land whose name appears upon the collector’s roll (the owner or the tenant in this section is called “the person taxed”); (b) upon the interest of the person taxed in any goods on the land, including an interest in any goods to the possession of which the person is entitled under a contract for purchase or a contract by which the person may or is to become the owner thereof upon performance of any condition; (c) upon the goods and chattels of the owner of the land found thereon, though the owner’s name does not appear upon the roll; (d) upon any goods and chattels on the land, where title to such goods and chattels is claimed, (i) by virtue of an execution against the person taxed or against the owner, though the person’s name does not appear on the roll, (ii) by purchase, gift, transfer or assignment from the person taxed, or from such owner, whether absolute or in trust, or by way of mortgage, or otherwise, (iii) by the spouse, same-sex partner, daughter, son, daughter-in-law or son-in-law of the person taxed, or of such owner, or by any of his or her relatives, in case such relative lives on the land as a member of the family, or (iv) by virtue of any assignment or transfer made for the purpose of defeating distress, provided that, where the person taxed or such owner is not in possession, goods and chattels on the land not belonging to the person taxed or to such owner are not subject to seizure, and the possession by the tenant of such goods and chattels on the premises is proof, in the absence of evidence to the contrary, that they belong to the tenant; provided also that no distress shall be made upon the goods and chattels of a tenant for any taxes not originally assessed against him, her or it as tenant; provided also that in cities and towns no distress for taxes in respect of vacant land shall be made upon goods or chattels of the owner except upon the land. R.S.O. 1990, c. M.45, s. 400 (1); 1993, c. 27, Sched.; 1999, c. 6, s. 40 (11). (2)Repealed: 1997, c. 5, s. 59 (1). Case of goods in possession of warehouses or storer, assignee or liquidator (3)Despite subsection (1), no goods that are in the possession of the person liable to pay such taxes for the purpose only of storing or warehousing the goods or of selling the goods upon commission or as agent shall be levied upon or sold for such taxes, and provided that goods in the hands of an assignee for the benefit of creditors or in the hands of a liquidator under a winding-up order are liable only for the taxes of the assignor or of the company that is being wound up, and for the taxes upon the premises in which the goods were at the time of the assignment or winding-up order, and thereafter while the assignee or liquidator occupies the premises or while the goods remain thereon. R.S.O. 1990, c. M.45, s. 400 (3); 1997, c. 5, s. 59 (2). Goods exempt from distress (4)The goods and chattels exempt by law from seizure under execution are not liable to seizure by distress. Exemption to be claimed (5)The person claiming such exemption shall select and point out the goods and chattels as to which the person claims exemption. Levy of taxes under warrant (6)If at any time after demand has been made or notice given under section 392, 395 or 399, and before the expiry of the time for payment of the taxes, the collector or, where there is no collector, the treasurer has good reason to believe that any person in whose hands goods and chattels are subject to distress under the preceding provisions is about to remove such goods and chattels out of the municipality before such time has expired and makes affidavit to that effect before the mayor or reeve of the municipality or before any justice of the peace, the mayor, reeve or justice shall issue a warrant to the collector or treasurer authorizing him or her to levy for the taxes and costs in the manner provided by this Act although the time for payment thereof may not have expired, and the collector or treasurer may levy accordingly. City (7)A city shall for the purposes of this section be deemed to be united to and form part of the county in which it is situate. R.S.O. 1990, c. M.45, s. 400 (4-7). Costs (8)The costs chargeable in respect of any such distress and levy are those payable under the Costs of Distress Act. R.S.O. 1990, c. M.45, s. 400 (8); 1997, c. 29, s. 45. Prohibition (9)No person shall make a charge for anything in connection with any such distress or levy unless such thing has been actually done. Penalty (10)In case any person offends against subsection (9) or levies any greater sum for costs than is authorized by subsection (8), the like proceedings may be taken against him or her by the person aggrieved as may be taken by the party aggrieved in the cases provided for by sections 2, 4 and 5 of the Costs of Distress Act. Notice of taxes where goods under seizure (11)Where personal property liable to seizure for taxes as hereinbefore provided is under seizure or attachment or has been seized by the sheriff or by a bailiff of any court or is claimed by or in possession of any assignee for the benefit of creditors or any liquidator, trustee or authorized trustee in bankruptcy or where such property has been converted into cash and is undistributed, it is sufficient for the tax collector to give to the sheriff, bailiff, assignee or liquidator or trustee or authorized trustee in bankruptcy notice of the amount due for taxes, and in such case the sheriff, bailiff, assignee or liquidator or trustee or authorized trustee in bankruptcy shall pay the amount to the collector in preference and priority to any other and all other fees, charges, liens or claims. Costs of distress, when to belong to corporation (12)Where the person making any such distress and levy is a salaried employee of the municipal corporation, the costs in respect of such distress and levy belong to the corporation. R.S.O. 1990, c. M.45, s. 400 (9-12).