Property Tax Deferral Act, 2009 Shurman, Peter Kormos, Peter Sergio, Mario — Bill 171 (39th Parliament, 1st Session)

Bill 171, 39-1

Ontario — Bills

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Bill 171, Property Tax Deferral Act, 2009

Shurman, Peter

Kormos, Peter

Sergio, Mario

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[39] Bill 171 Original (PDF)

Bill 171 2009

An Act to provide property tax deferrals to low-income

seniors and low-income persons with disabilities

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

1. In

this Act,

"eligible

owner" means an owner who is an eligible owner under

section 3; ("propriétaire

admissible")

"Minister" means the Minister of Finance or whatever other member of the

Executive Council to whom the administration of this Act is assigned under the Executive Council Act ;

("ministre")

"owner" means the person assessed as the owner of real property under

the Assessment Act ;

("propriétaire")

"principal residence" means premises that are occupied by an individual

as the individual's primary place of residence; ("résidence principale")

"property taxes" means the amount of taxes levied on real property under

the Municipal Act, 2001 ,

the Provincial Land Tax

Act , 2006 and the Education Act ; ("impôts fonciers")

"regulations" mean the regulations made under this Act unless the

context requires otherwise; ("règlements")

"residential property class" means the residential property class

prescribed under the Assessment

Act ; ("catégorie des biens résidentiels")

"spouse" has the same meaning as in

Part III of the Family Law Act .

("conjoint")

Tax deferral

(1) An

owner of property in the residential property class who is an eligible owner

with respect to the property is entitled to a deferral of property taxes on the

property for which the owner would otherwise be liable for a taxation year

beginning after this Act comes into force if the owner makes an application for

the tax deferral in accordance with this Act and the Minister approves the

application.

Amount of deferral

(2) The amount of the tax deferral for an eligible owner

for a taxation year shall not exceed $5,000, subject to such other amount as

may be prescribed by the regulations.

Eligible owner

3. An

individual is an eligible owner under this Act with respect to a property if

the following criteria are satisfied:

1. The

owner or the owner's spouse occupies the property as their principal residence.

2. The

owner or the owner's spouse has been ordinarily resident in Ontario for not

less than one year immediately before the date an application is made under

this Act.

3. The

owner or the owner's spouse,

i. is

a Canadian citizen,

ii. is

a permanent resident under the Immigration and Refugee Protection Act (Canada), or

iii. has legally been

ordinarily resident in Canada for not less than 10 years immediately before the

date an application is made under this Act.

4. 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 an income 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.

5. The

owner or the owner's spouse has not less than 25 per cent equity in the

property.

Application for deferral

(1) An

application for a tax deferral under this Act shall,

(

a) set

out the amount of the deferral;

(

b) be

made in the form and manner approved by the Minister; and

(

c) be

accompanied by the application fee prescribed by the regulations.

Same

(2) The application must be given to the Minister by July

1 of the taxation year or by such other date as may be prescribed by the

regulations.

Approval

(3) The Minister shall approve the application if the

Minister is satisfied that the applicant is an eligible owner under this Act.

Notice

(4) The Minister shall give the applicant written notice

of the decision whether or not to approve the application and the notice shall

contain such information relating to the application as may be prescribed by

the regulations.

Appeal

(5) The applicant may appeal a decision of the Minister to

refuse an application in whole or in part and shall do so in accordance with

the regulations.

Effect of deferral

(1) Despite

any other Act, regulation or municipal by-law, if an amount is deferred by an

eligible owner with respect to a property under this Act, no taxes are payable

by the eligible owner with respect to the amount deferred until payment is due

under this Act.

Same

(2) No penalty or interest is payable in relation to the

amount deferred other than the interest payable under this Act.

Lien on property

(1) If

an amount that is payable to the Crown under the Provincial Land Tax Act, 2006 is

deferred by an eligible owner under this Act, the Minister may register in the

proper land registry office a notice claiming a lien on any interest the

eligible owner or his or her spouse has in the property described in the

notice.

Same

(2) If an amount that is payable to an entity under the Municipal Act, 2001

or the Education Act

is deferred by an eligible owner under this Act, the Minister shall, on behalf

of the entity, register in the proper land registry office a notice claiming a

lien on any interest the eligible owner or his or her spouse has in the

property described in the notice.

Amounts included and priority

(3) The lien conferred by subsection (1) or (2) is in

respect of all amounts deferred under this Act at the time of registration of

the notice and all amounts deferred afterwards while the notice remains registered

and, upon registration of a notice of lien, the lien has priority over any

encumbrance or other claim that is registered against or that otherwise arises

and affects the property of the eligible owner or his or her spouse after the

notice is registered.

Initiation of sale proceedings prohibited

(4) The Minister shall not initiate sale proceedings in

respect of any property against which he or she has registered a lien under

subsection (1) or (2).

Discharge of lien

(5) Within 10 days after the Minister has knowledge of the

payment in full of the deferred amount, the Minister shall register a discharge

of the notice of lien under subsection (1) or (2).

Payment due

(1) All

amounts deferred under this Act become due on the earliest of,

(

a) the

death of the eligible owner, subject to subsection (3);

(

b) transfer

of the property, other than between the eligible owner and the spouse; or

(

c) July

1 of the first year for which the eligible owner is not entitled to a deferral

of taxes.

Interest

(2) The amounts under subsection (1) shall be paid with

interest as prescribed by the regulations.

Death of owner

(3) If the owner dies but the owner's spouse is still

alive, the amounts that are deferred are not due as long as,

(

a) the

spouse is still alive;

(

b) the

property is still the spouse's principal residence; and

(

c) the

property is not transferred, other than to the spouse.

Death of owner's spouse

(4) 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

were made in accordance with

section 4, the amounts that are deferred 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.

Offence

8. A

person who knowingly makes a false or misleading statement to obtain a tax

deferral under this Act to which he or she is not entitled is guilty of an

offence and, on conviction, is liable,

(

a) for

a first offence, to a fine of not more than $1,000; and

(

b) for

a subsequent offence, to a fine of not less than $1,000 and not more than

$5,000.

Regulations

(1) The

Minister may make regulations,

(

a) prescribing

anything that must or may be prescribed by regulation;

(

b) prescribing

fees for applications made under

section 4;

(

c) prescribing

rules governing repayment of amounts deferred under this Act;

(

d) prescribing

rules pursuant to which an individual may appeal a decision of the Minister

under this Act and restricting the matters about which an individual may

appeal;

(

e) respecting

any matter considered necessary or advisable to carry out effectively the

purposes of this Act.

Classes

(2) A regulation may create different classes, including

different classes of persons, fees or payments, and may establish different

entitlements or requirements with respect to each class.

Priority of this Act

(1) This

Act applies despite provisions of the Municipal Act, 2001 , or any by-law made

under it, relating to property tax deferrals for low-income seniors or

low-income persons with disabilities.

Same

(2) This Act applies despite provisions of the City of Toronto Act, 2006 ,

or any by-law made under it, relating to property tax deferrals for low-income

seniors or low-income persons with disabilities.

Commencement

11. This Act comes into force on the day it

receives Royal Assent.

Short title

12. The

short title of this Act is the Property Tax Deferral Act, 2009 .

EXPLANATORY NOTE

new statute, the Property

Tax Deferral Act, 2009 , is enacted. The new Act allows eligible

owners to defer property taxes payable on properties used as their principal

residences beginning in the taxation year after the Act comes into force. An

individual is an eligible owner if he or she, or his or her spouse, is a

low-income senior or a low-income person with a disability and satisfies the

other criteria in

section 3 of the Act.

receive the deferral, the eligible owner must apply to the Minister of Finance

by July 1 of the taxation year or by such other date as may be prescribed by

the regulations made under this Act. The maximum amount that can be deferred

in a taxation year is $5,000, unless otherwise prescribed by regulation.

the deferred amount is payable to the province, the Minister may register a lien

on the property that is subject to the taxation. If the deferred amount is

payable to other entities, the Minister must register a lien on behalf of those

entities. In both cases, the Minister must register a discharge of the lien

within 10 days of his or her knowledge of the repayment of the deferred amount.

Taxes

deferred under the Act must be repaid, with interest, on the earliest of: the

death of the eligible owner, unless the property is still the principal

residence of the surviving spouse; transfer of the property, other than between

the eligible owner and his or her spouse; and July 1 of the first year for

which the eligible owner is not entitled to a deferral under the Act.

is an offence to knowingly make a false or misleading statement to obtain a tax

deferral to which an individual is not entitled.

The

Act has priority over provisions in the Municipal Act, 2001 and in the City of Toronto Act, 2006

that provide for property tax deferrals for low-income seniors and low-income

persons with disabilities to be established under municipal by-laws.

Date Bill stage Activity Committee

May 6, 2009

Ruled out of order and removed from the Orders and Notices Paper

April 23, 2009

First Reading

Carried

Debates and Progress

First Reading

April 23, 2009

May 6, 2009

Ruled out of order and removed from the Orders and Notices Paper.

Committee

Second Reading

Committee

Third Reading

Royal Assent :

Coming into force :

Royal Assent.

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Document details

Collection	Ontario — Bills
Citation	Bill 171, 39-1
Type	bill
Volume / chapter	p39 s1 bill 171 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	3731f76a90df8f247d5db21bacbda1389868bce7

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