Tax Deferrals for Low-Income Seniors and Persons with Disabilities
7. (1) In this section, “owner” means the person assessed as the owner; “spouse” means a person, (a) to whom the person is married, or (b) with whom the person is living outside marriage in a conjugal relationship, if the two persons, (i) have cohabited for at least one year, (ii) are together the parents of a child, or (iii) have together entered into a cohabitation agreement under section 53 of the Family Law Act. O. Reg. 509/98, s. 7 (1); O. Reg. 78/99, s. 3 (1); O. Reg. 106/00, s. 1 (1); O. Reg. 310/05, s. 1 (1, 2). (2) The owner of a property in the residential/farm property class, prescribed under the Assessment Act, is entitled to a deferral of taxes if, (a) there is a 1998 assessment-related tax increase, within the meaning of section 3, that exceeds $30; (b) the owner or the owner’s spouse occupies the property as their principal residence on January 1 of the taxation year; (c) the owner or the owner’s spouse is, at any time during the taxation year, (i) a person who is 65 years of age or older and who receives a supplement under Part II of the Old Age Security Act (Canada), or (ii) a person who receives income support under the Ontario Disability Support Program Act, 1997; (d) the owner or the owner’s spouse was assessed as the owner of the property on the 1998 assessment roll; (e) if the taxation year is after 1998, there was a deferral of taxes on the property under this section for the 1998 taxation year; and (f) a written application for the deferral, together with sufficient documentation to establish entitlement to the deferral, is given to the secretary of the levying board, (i) for the 1998 taxation year, before March 31, 1999, or (ii) for a taxation year after 1998, by July 1 of the taxation year. O. Reg. 509/98, s. 7 (2); O. Reg. 622/98, s. 1; O. Reg. 78/99, s. 3 (2, 3); O. Reg. 106/00, s. 1 (2); O. Reg. 310/05, s. 1 (3-5). (3) The amount of a tax deferral under this section shall be determined in accordance with the following: 1. Subject to paragraph 2, the amount of the tax deferral is the amount of the 1998 assessment-related tax increase, within the meaning of section 3, reduced by the amount of the tax increase that is not yet phased-in. 2. The sum of a tax deferral, the taxes already deferred and the interest on such amounts shall not exceed 75 per cent of the assessed value of the property. O. Reg. 509/98, s. 7 (3); O. Reg. 78/99, s. 3 (4). (4) Taxes deferred under this section shall bear interest. The rate of interest for each year shall be equal to the average prime rate, within the meaning of section 21 of Regulation 1013 of the Revised Regulations of Ontario, 1990, determined as of January 15 of the year. O. Reg. 509/98, s. 7 (4). (5) Amounts deferred and the interest on such amounts become due, (a) upon the death of the owner, subject to subsection (6); (b) upon the transfer of the property; or (c) on July 1 of the first year for which the owner is not entitled to a deferral of taxes, subject to subsections (7) and (8). O. Reg. 509/98, s. 7 (5). (6) If the owner dies but the owner’s spouse is still alive, amounts deferred and the interest on such amounts are not due as long as, (a) the spouse is alive; (b) the property is the spouse’s principal residence; and (c) the property is not transferred, other than to the spouse. O. Reg. 310/05, s. 1 (6). (7) If the owner’s spouse dies and, but for the spouse’s death, the owner would be entitled to a deferral of taxes if an application was made in accordance with clause (2) (f), the amounts deferred and the interest on such amounts are not due as long as, (a) the owner is alive; (b) the property is the owner’s principal residence; and (c) the property is not transferred. O. Reg. 310/05, s. 1 (6). (8) If the owner would be entitled to a deferral of taxes in the taxation year if an application was made in accordance with clause (2) (f) but such an application is not made, the amounts already deferred and the interest on such amounts are not due if a written application to continue the deferral of the amounts already deferred and the interest on such amounts, together with sufficient documentation to establish entitlement to a deferral of taxes in the taxation year, is given to the secretary of the levying board, by July 1 of the taxation year. O. Reg. 509/98, s. 7 (8). (9) Section 382 of the Municipal Act applies, with necessary modifications, with respect to taxes deferred under this section and interest on such taxes. O. Reg. 509/98, s. 7 (9). Rebates to Charities