First

Session, 47th General Assembly

Elizabeth II, 2012

BILL 30

AN ACT TO AMEND THE

CITY OF ST. JOHNS ACT AND

THE CITY OF ST. JOHNS MUNICIPAL TAXATION ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

KEVIN O'BRIEN

Minister of Municipal Affairs

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the City of St. John's Act to provide for

the elimination of the business tax, the city tax and the vacant land tax.

This Bill would amend the City of St. John's Municipal Taxation Act

eliminating the ability of the City

of St. John's

to impose a business tax;

providing the city with by-law

making powers;

allowing an owner of commercial

real property, other than property in which the province is a tenant, to increase

rent during the currency of a lease to recover from tenants the amount of any

increase in commercial property taxes resulting from the elimination of the

business tax;

allowing an owner of a

commercial real property to claim vacancy relief in relation to a portion of

the property in which the province is a tenant to compensate the owner for his

or her inability to increase rent due to the increase in commercial property

tax resulting from the elimination of the business tax; and

including a requirement that

the city provide, upon request, a tax certificate confirming that all taxes are

paid as of the date of the certificate.

A BILL

AN ACT TO AMEND THE CITY OF ST. JOHN S ACT AND THE CITY OF ST.

JOHNS MUNICIPAL TAXATION ACT

Analysis

CITY

OF ST. JOHN S

ACT

S.95 Amdt.

Planning by-law

S.98 Amdt.

Development areas

S.99 Amdt.

Business improvement area

Ss.226 & 227 Rep.

226. City tax

227. Crown property

S.229 Rep.

Replacement of rates

S.233 & 234 Rep.

233. Existing leases

234. Sub-let situations

Ss.236 to 238 Rep.

236. Business tax

237. Vacant land tax

238. Collection of taxes

S.240 Rep.

Reduction of tax

S.241 Amdt.

Water tax

S.259 R&S

Estimated revenue

S.260 Rep.

Discriminating rates

S.261 Amdt.

Payment of taxes

S.327 Amdt.

Duties of clerk

CITY

OF ST. JOHN S

MUNICIPAL TAXATION ACT

S.4 Amdt.

Tax rate

S.9 Amdt.

Supplementary assessment

Ss.12 & 13 Rep.

12. Business tax

13. Rate of tax

S.14 R&S

Rent increase where tax increase

S.15 R&S

Tax rate fixed annually

S.16 Amdt.

Arrangements re tax payments

S.17 R&S

Payment Review Board

S.18 Amdt.

Non-payment after arrangement

Ss.28.1 to 28.3 Added

28.1 By-laws

28.2 Notice required

28.3 Publication

S.30 Amdt.

Lien for taxes

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

CITY OF ST.

JOHN S ACT

RSNL1990 cC-17 as

amended

1. Paragraph 95(

f) of the City of St. Johns Act is repealed

and the following substituted:

(

f) to make special rules, regulations and by-laws

governing the erection of buildings on the Southside between Jobs Bridge and

Fort Amherst, in that district lying between Temperance Street and Chain Rock,

and in other districts to which the general building and sanitary regulations

are especially difficult of application, or to which the water and sewage systems

have not been extended; and

2. Subsection 98(4) of the Act is repealed and the

following substituted:

(4) The lessee under a lease of a development area

or part of a development area or the assignee of the lessee shall, for the

purpose of liability for a tax imposed on land or building or upon the owner in

respect of land or buildings under this Act, be considered to be the owner of

the land leased and all buildings on the land.

3. (1) Subsections 99(3) and (4) of the Act are

repealed and the following substituted:

(3) The council shall, before designating a

business improvement area, give notice of the intended by-laws to all persons,

groups, businesses, organizations and companies carrying on a business, trade

or profession within the proposed business improvement area.

(4) The council shall not designate a business

improvement area where within 30 days of giving notice, 1/3 of those entitled

to notice under subsection (3) give written notice to the city clerk of the

objections to the designation of a business improvement area.

(2) Paragraphs 99(9)(

a) and (

b) of the Act are repealed

and the following substituted:

(

a) in order to provide revenue to a board for

annual operating and other expenses, impose an annual levy on persons carrying

on a business, trade or profession within a business improvement area;

(

b) impose different levies for different business

improvement areas;

(3) Subsection 99(11) of the Act is repealed and

the following substituted:

(11) A levy imposed and collected under subsection

(9) is subject to the City of St. John's

Municipal Taxation Act .

(4) Paragraph 99(12)(

i) of the Act is repealed and

the following substituted:

(

i) regarding the imposition of an annual levy;

4. Sections 226 and 227 of the Act are repealed.

Section 229 of the Act is repealed.

6. Sections 233 and 234 of the Act are repealed.

7. Sections 236 to 238 of the Act are repealed.

Section 240 of the Act is repealed.

9. Paragraph 241(2)(

a) of the Act is repealed and

the following substituted:

(

a) the tax may be based upon and form the

percentage of the appraised annual rental vale of the premises or part of them

as the council may determine;

Section 259 of the Act is repealed and the

following substituted:

Estimated revenue

259. The

council shall, before December 15 in each year, estimate the probable receipts

from all sources of revenue other than ground landlord's tax, and after

deducting the amount so arrived at from the total estimated expenditure for the

next year, shall fix a rate percentage for the ground landlord's tax as will in

the total produce the amount required.

Section 260 of the Act is repealed.

12. Subsection 261(2) of the Act is repealed and

the following substituted:

(2) The ground landlord's tax and water tax shall

be payable half-yearly in advance on January 1 and July 1 in each year and may

be rendered in one account or otherwise as the council may decide.

(1) Paragraph 327(

e) of the Act is

repealed and the following substituted:

(

e) to enforce the collection of the ground

landlord's tax, fuel oil tax, and all rates, dues, rents, fees or another

amounts payable to the city on the due dates and in the manner provided in this

Act or an agreement concerning the collection of taxes and to be the officer

whose particular duty it shall be to provide all bills for materials sold by

the city or for services provided by the city;

(2) Paragraph 327(

h) of the Act is repealed and

the following substituted:

(

h) to collect a fee of not less that $1 or an

amount agreed upon by the council for certificates which may be demanded under

subsection 281(5) and to charge, subject to revision by the council, for

particulars concerning indebtedness for ground landlord's tax which may be

required by mortgagees or their agents or persons other than those designated

as owners on the appraisement rolls;

CITY OF ST.

JOHN S MUNICIPAL

TAXATION ACT

SNL2006 cC-17.1

as amended

Section 4 of the City of St. John's Municipal Taxation Act is amended by adding

immediately after subsection (4) the following:

(5) The council may, by by-law, establish vacancy relief

for a commercial property, or a portion of a commercial property, that is vacant

or considered vacant.

(6) For the purposes of subsection (5) and

section

28.1, a commercial property, or a portion of a commercial property, occupied by

the province as a tenant is considered vacant.

15. Subsection 9(3) of the Act is repealed and the

following substituted:

(3) Notwithstanding subsection (2), the amount of

real property tax payable under this

section shall be that proportion of the

tax for the full year that the number of days from the day on which the person

completed the new construction or made the extension or started or resumed the

business at a new or additional location, as the case may be, until the last

day of the year bears to the total number of days in the year.

16. Sections 12 and 13 of the Act are repealed.

Section 14 of the Act is repealed and the

following substituted:

Rent increase

where tax increase

(1) Notwithstanding

a provision in a lease, licence or permit for commercial property that is in effect

on January 1, 2013, where that lease, licence or permit does not include a

provision enabling the owner of the commercial property to increase the rent or

require an annual deposit in relation to an increase in property tax payable by

the owner, that lease, licence or permit is considered to include such a

clause.

(2) Where a deposit is required or the rent is

increased under subsection (1), the owner shall give the tenant notice in

writing at least 90 days before the deposit is required or the rent is

increased.

(3) Notice under subsection (2) may be provided by

(

a) giving it to the tenant personally;

(

b) giving it to an agent or an employee of the

tenant on the premises;

(

c) posting it in a conspicuous place in or on

some part of the premises; or

(

d) sending it to the tenant by registered mail,

in which case notice is considered to have been given on the third day after

the date of mailing.

(4) Subsection (1) shall not apply to a commercial

property in which the province is a tenant.

Section 15 of the Act is repealed and the

following substituted:

Tax rate fixed

annually

15. The

council shall, before December 15 in each year, fix the percentage for the rate

of the real property tax for the next financial year that will, together with

the anticipated revenues of the city from all other sources, produce the amount

required to cover all expenditures of the council to be made from current funds

during that next financial year.

19. Subsection 16(1) of the Act is repealed and the

following substituted:

Arrangements re

tax payments

(1) The

council may make arrangements for the payment, reduction or remission of real

property tax on account of the poverty of a person liable for the payment of

that tax or for any other reason where that arrangement, reduction or remission

is recommended by the board and approved by at least 5 councillors.

Section 17 of the Act is repealed and the

following substituted:

Payment Review

Board

(1) The

council may appoint a board to be known as the Payment Review Board, consisting

of the city clerk and other persons whom council may determine for the purpose

of reviewing applications and making recommendations to the council under

section 16 with respect to the arrangement, reduction or remission of the

payment of real property tax.

(2) A person liable for the payment of real

property tax may file with the board an affidavit and other evidence as to the

circumstances that result in his or her application for an arrangement of or

reduction or remission of payment of the tax.

21. Subsection 18(1) of the Act is repealed and the

following substituted:

Non-payment after

arrangement

(1) Where

council has made an arrangement for the payment of the real property tax under

section 16, the lien period in respect of a postponed payment shall start to

run from the date specified in the resolution for that postponed payment.

22. The Act is amended by adding immediately after

section 28 the following:

By-laws

28.1 The

council may make by-laws not inconsistent with this Act or the regulations or

with another Act for the purpose of exercising its powers and performing the

functions and duties vested or imposed in or on the council.

Notice required

28.2 A

by-law and an amendment or repeal of a by-law shall only be considered by the

council where written notice was provided at a previous meeting at least one

week prior.

Publication

28.3

(1) Notice

of a by-law passed by the council shall be published in the Gazette and in a newspaper of general

circulation in the city.

(2) The notice referenced in subsection (1) shall

set out concisely the object of the by-law, the date of the passing of the

by-law and contain the following statement:

Take notice that a person who wishes to view

the by-law may view it at the office of the city clerk of the St. John's

Municipal Council at City Hall and that a person who wishes to obtain a copy of

it may obtain a copy of it at the office upon payment of a reasonable fee, as

established by the St. John's

Municipal Council.

(3) The by-law shall have effect from the date of

publication of the notice of the by-law or a later date that may be stated in

the by-law.

23. (1) Subsection 30(1) of the Act is repealed

and the following substituted:

Lien for taxes

(1) Taxes

fixed, established and imposed in respect of real property constitute a lien

upon that real property, except where the real property is sold for tax arrears

by the council.

(2) Section 30 of the Act is amended by adding

immediately after subsection (6) the following:

(7) Where the real property tax applicable to a

property has been paid in full, the city clerk shall, upon demand, provide to a

person entitled to the information, a certificate signed by him or her stating

that the real property tax has been paid as of the date of the certificate.

Commencement

24. Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13,

14, 15 and 17 of this Act come into force on January 1, 2013.

William E. Parsons, Queen's Printer