Penalties, discounts or interest
5.(1)In lieu of imposing a percentage charge as a penalty for non-payment of taxes under subsection 399 (3) or (4) of the Municipal Act or allowing a discount or interest for advance payment of taxes under subsection 399 (5) of that Act, a municipality may impose penalties and allow discounts or interest in accordance with this section. Alternate penalty for non-payment of taxes (2)A municipality may by by-law impose a percentage charge as a penalty for non-payment of taxes or any class or instalment thereof not exceeding one-twelfth of the prime rate percentage on the day the by-law is passed or, alternatively, on such other day within the authorized period as is specified in the by-law, plus one-eighth of 1 per cent and the by-law shall provide that the percentage charge shall be imposed on the first day of default and on the first day of each calendar month thereafter in which default continues, but not after the end of the year in which the taxes are levied. Idem (3)As an alternative to a by-law passed under subsection (2), the municipality may by by-law impose a percentage charge as a penalty for non-payment of taxes or all or any class or instalment thereof not exceeding the prime rate of the bank that has the highest prime rate on the day the by-law is passed or, alternatively, on such other day within the authorized period as is specified in the by-law, plus 1½ per cent per year from the date payment is due until it is made or until the 31st day of December of the year in which the taxes were levied, whichever is earlier. Alternate discount or interest on payment in advance (4)The municipality may by by-law authorize the treasurer or collector to receive in any year payments on account of taxes for that year in advance of the day that may be fixed by by-law for the payment of any instalment of such taxes and, (a) to allow a discount on any taxes so paid in advance at a rate not exceeding the prime rate of the bank having the highest prime rate on the day the by-law is passed or, alternatively, on such other day within the authorized period as is specified in the by-law, plus 1½ per cent per year and may allow interest at a rate not exceeding the aforementioned maximum rate on account of taxes so paid in advance for any portion of the period for which no discount is allowed; or (b) to allow interest on taxes paid in advance of the day fixed by by-law for the payment of any instalment of such taxes at a rate not exceeding the prime rate of the bank having the highest prime rate on the day the by-law is passed or, alternatively, on such other day within the authorized period as is specified in the by-law, plus 1½ per cent per year, even if the taxes for such year have not been levied or that the assessment roll on which such taxes are to be fixed and levied has not been revised and certified by the Assessment Review Board when any such advance payment is made. Limitation (5)Subject to subsections (6) and (7), a by-law passed under this section applies only to taxes levied in the year in which it was passed. By-law for next following year (6)A by-law may be passed under subsection (2), (3) or (4) in December of any year to provide that it shall come into effect on a specified day in the next following year and that it shall apply to taxes to be levied in the next following year. Idem (7)A by-law authorized by subsection (6) shall not specify a day that is prior to the 1st day of December for purposes of establishing the maximum percentage charge or discount or interest rate that may be imposed or allowed by the by-law. Amendments to by-law (8)A by-law passed, (a) under subsection (2) or (3) may not be amended so as to specify a percentage charge that is higher than the percentage charge originally specified in the by-law; (b) under clause (4) (a) may not be amended so as to specify a discount rate that is lower than the discount rate originally specified in the by-law; and (c) under clause (4) (b) may not be amended so as to specify an interest rate that is lower than the interest rate originally specified in the by-law. Publication (9)Where a by-law passed by a municipality under subsection (2), (3) or (4) is amended so as to change the percentage charge or discount or interest rate set out in the by-law, notice of the new charge or rate shall be given by having it published in a newspaper that in the opinion of the clerk has general circulation in the municipality and notice of the new charge or rate shall not be required to be given in accordance with subsection 399 (6) of the Municipal Act and the amending by-law setting out the new percentage charge or discount or interest rate comes into effect on the 1st day of the month next following the month in which notice of the new charge or rate was published, or on such other day following the day the notice was published as may be specified in the amending by-law. Idem (10)Notice of a percentage charge or discount or interest rate, whether given under subsection (9) or under subsection 399 (6) of the Municipal Act, may be given at any time on or after the day of the passing of the by-law authorizing the percentage charge or discount or interest rate even if the by-law provides that it will not come into force until a date subsequent to its passing. References in other Acts (11)Where in any Act there is a reference to subsection 399 (3), (4) or (5) of the Municipal Act and where a by-law has been passed under this section, the reference to the said subsection (3), (4) or (5) shall be deemed to be a reference to subsection (2), (3) or (4), respectively, of this section. R.S.O. 1990, c. M.58, s. 5.