16 (1) This section applies with respect to the tax rates levied to raise the general local municipality levy under section 312 of the Municipal Act, 2001.  1999, c. 14, Sched. B, s. 16 (1); 2002, c. 17, Sched. F, Table. Interpretation (2) A reference in this section to the assets or liabilities of a merged area is a reference to, (a) in the case of a merged area comprised of an old municipality, the assets or liabilities on December 31, 2000 of the municipality and its local boards; and (b) in the case of a merged area comprised of part of a divided municipality, the assets or liabilities on December 31, 2000 of the municipality and its local boards that are allocated to the town under section 34.  1999, c. 14, Sched. B, s. 16 (2). Decrease in tax rates (3) Subject to the restrictions set out in this section, the town may, by by-law, decrease the tax rates that would otherwise apply on the assessment within a merged area, (a) if the town council considers that it would be unfair that the taxpayers in the merged area not receive direct benefit from the assets or any class of assets of the merged area; and (b) if the amount of taxes lost by decreasing the tax rates does not exceed the value of the assets referred to in clause (a).  1999, c. 14, Sched. B, s. 16 (3). Increase in tax rates (4) Subject to the restrictions set out in this section, the town may, by by-law, increase the tax rates that would otherwise apply on the assessment within a merged area, (a) if the town council considers that it would be unfair that the taxpayers outside the merged area be responsible for the liabilities or any class of liabilities of the merged area; and (b) if the amount of taxes gained by increasing the tax rates does not exceed the value of the liabilities referred to in clause (a).  1999, c. 14, Sched. B, s. 16 (4). Restriction (5) The town cannot pass a by-law under this section for 2009 or a subsequent year.  1999, c. 14, Sched. B, s. 16 (5). Same (6) The town cannot pass a by-law under this section for a particular year (the “applicable year”) after 2002 with respect to a merged area unless the following conditions are met: 1. The town passed a by-law under this section in 2002 with respect to the merged area. 2. The town passed a by-law under this section with respect to the merged area for every year after 2002 and before the applicable year.  1999, c. 14, Sched. B, s. 16 (6). Same (7) In any year, increases or decreases, as the case may be, in the tax rates on different classes of property in a merged area must bear the same proportion to each other as the proportion of the applicable tax ratios established under section 308 of the Municipal Act, 2001 for the property classes for the year.  1999, c. 14, Sched. B, s. 16 (7); 2002, c. 17, Sched. F, Table. Budget (8) The town shall include in its budget (as adopted under section 290 of the Municipal Act, 2001) for a year the amounts resulting from an increase or decrease in tax rates under this section for the year.  1999, c. 14, Sched. B, s. 16 (8); 2002, c. 17, Sched. F, Table. Regulations (9) The Minister may, by regulation, require the town to exercise its powers under this section and may require the town to do so with respect to such assets and liabilities as may be specified in the regulation and to do so in the manner specified in the regulation.  1999, c. 14, Sched. B, s. 16 (9). General or specific (10) A regulation under subsection (9) may be general or specific in its application.  1999, c. 14, Sched. B, s. 16 (10). Retroactivity (11) A regulation under subsection (9) may be made retroactive to January 1 of the year in which it is made.  1999, c. 14, Sched. B, s. 16 (11). Effect on by-laws (12) A by-law of the town passed under this section, whether it is passed before or after a regulation is made under subsection (9), is of no effect to the extent that it does not comply with the regulation.  1999, c. 14, Sched. B, s. 16 (12). Definitions (13) In this section, “assets” means reserves, reserve funds and such other assets as may be prescribed; (“éléments d’actif”) “liabilities” means debts and such other liabilities as may be prescribed. (“éléments de passif”)  1999, c. 14, Sched. B, s. 16 (13). Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003