Rules re Operating Costs
24. (1) The following are prescribed as rules for making findings related to extraordinary increases in the cost for municipal taxes and charges or utilities or both: 1. Subject to subsection (2), the amount of the allowance for an extraordinary increase in the cost for municipal taxes and charges is calculated as follows: i. Adjust the reference year costs for municipal taxes and charges by the three-year moving average for municipal taxes and charges set out in the Table referred to in section 129 of the Act for the calendar year in which the effective date of the first intended rent increase referred to in the application falls. ii. If municipal taxes and charges for a tax year are increased as a result of an appeal of a tax assessment, add to the base year costs for municipal taxes and charges the amount of the increase resulting from the appeal. iii. If a tax notice respecting the reference year municipal taxes and charges is issued on or after November 1 in the base year, A. add to the base year costs for municipal taxes and charges the amount, if any, by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year, and B. if the reference year municipal taxes and charges are increased as a result of an appeal of a tax assessment, the amount of the increase resulting from the appeal, 1. shall be included in determining the amount by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year for the purpose of sub-subparagraph A, and 2. shall not be added under subparagraph ii. iv. Subtract the reference year costs for municipal taxes and charges, as adjusted under subparagraph i, from the base year costs for municipal taxes and charges, as adjusted under subparagraphs ii and iii. v. Multiply the amount determined in subparagraph iv by the factor determined under subsection 17 (2). 2. The amount of the allowance for an extraordinary increase in the cost for utilities shall be calculated as follows: i. Adjust the reference year costs for each of heat, hydro and water by the three-year moving averages for the operating cost categories of heat, hydro and water set out in the Table referred to in section 129 of the Act for the calendar year in which the effective date of the first intended rent increase referred to in the application falls. ii. Subtract the amount determined in subparagraph i for heat from the base year costs for heat and do the same for hydro and water. iii. Multiply the amount determined in subparagraph ii for heat by the factor for heat determined under subsection 17 (2) and do the same for hydro and water. iv. Add together the amounts determined under subparagraph iii. O. Reg. 194/98, s. 24 (1); O. Reg. 455/98, s. 1 (1, 2); O. Reg. 143/00, s. 3 (1); O. Reg. 204/00, s. 1 (1). (2) Where the three-year moving average for the operating cost category of municipal taxes and charges set out in the Table referred to in section 129 of the Act is negative, the amount of the allowance for an extraordinary increase in the cost for municipal taxes and charges shall be calculated as follows: 1. If municipal taxes and charges for a tax year are increased as a result of an appeal of a tax assessment, add to the base year costs for municipal taxes and charges the amount of the increase resulting from the appeal. 2. If a tax notice respecting the reference year municipal taxes and charges is issued on or after November 1 in the base year, i. add to the base year costs for municipal taxes and charges the amount, if any, by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year, and ii. if the reference year municipal taxes and charges are increased as a result of an appeal of a tax assessment, the amount of the increase resulting from the appeal, A. shall be included in determining the amount by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year for the purpose of subparagraph i, and B. shall not be added under paragraph 1. 3. Subtract the reference year costs for municipal taxes and charges from the base year costs for municipal taxes and charges, as adjusted under paragraphs 1 and 2. 4. Multiply the amount determined under paragraph 3 by the factor determined under subsection 17 (2). O. Reg. 194/98, s. 24 (2); O. Reg. 455/98, s. 1 (3, 4); O. Reg. 143/00, s. 3 (2); O. Reg. 204/00, s. 1 (2). (3) An increase in municipal taxes and charges as a result of an appeal of a tax assessment shall not be considered under subparagraph 1 ii or iii of subsection (1) or paragraph 1 or 2 of subsection (2) if, (a) the increase is for a tax year before 1996; or (b) the application for the rent increase was filed more than 12 months after the decision on the appeal was issued. O. Reg. 143/00, s. 3 (3).