Third Session, 45th

General Assembly

55 Elizabeth II,

BILL 53

AN ACT RESPECTING MUNICIPAL

TAXATION IN THE

CITY OF ST. JOHN 'S

Received

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

Second

Reading ..............................................................................................

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

Third

Reading .................................................................................................

Royal

Assent ...................................................................................................

HONOURABLE JACK BYRNE

Minister of

Municipal Affairs

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

The purpose of this Bill is set out

in its

long title.

Previously the St. John's Assessment Act contained both taxation and assessment provisions. Assessment provisions would be transferred to

the Assessment Act, 2006 , which would

consolidate the law with respect to assessments for municipalities in the

province including the City of St.

John's .

A BILL

AN ACT RESPECTING MUNICIPAL TAXATION IN THE

CITY OF ST. JOHN 'S

Analysis

Short title

Interpretation

PART

TAXES

Real property tax

Tax rate

Occupier considered owner

Tenant of tax exempt property

Representative capacity

Tax exempt property

Supplementary assessment

Payment when appeal

Error or correction

Business tax

Rate of tax

Minimum business tax

Tax rates fixed annually

Arrangements re tax payments

Payment Review Board

Non-payment after arrangement

Where taxpayer without assets

Water tax

Regulation re: water tax

Collection of water tax

Interest on arrears

Licence fees

Circus licence

Deed transfer fee

Former water and sewage rates

Accommodation tax

PART

REMEDIES FOR RECOVERY OF TAXES AND EXPENSES

Action on arrears

Lien for taxes

Where sale prohibited

Notice to owners

Right of mortgagee

Direction for sale

Advertisement for sale

Sale for arrears

Where no bidder

Lien not affected

Distribution of purchase price

Sale invalid

Assessment after sale

Effect of sale

Act priority

PART

III

GENERAL

Collection despite appeal

Repayment on overpayment

Limitations on actions

Defence barred

PART

CONSEQUENTIAL, REPEAL AND COMMENCEMENT

Consequential amendments

Repeal

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the City of St.

John's Municipal Taxation Act .

Interpretation

(1) In

this Act

(a) "assessment" means an assessment as

carried out under the Assessment Act,

2006 and includes a general assessment and a supplementary assessment;

(b) "business" includes

(

i) a commercial, merchandising or industrial

activity or undertaking,

(ii) a profession, trade, occupation, calling or employment,

(iii) an activity which provides goods or services, and

(iv) a credit union, co-operative, corporation,

sole proprietorship or association of persons,

whether or not it is for profit;

(c) "city" means the City of St. John's as incorporated

by the City of St. John's Act;

(d) "commercial property" means all real

property other than residential property;

(e) "commissioner" means the

commissioner appointed by the city under

section 32 of the Assessment Act, 2006 ;

(f) "council" means the St. John's

Municipal Council as defined by the City

of St. John's Act;

(g) "financial year" means the period

from January 1 in a year to December 31 in the same year;

(h) "occupier" means the person in

actual occupation of real property who is listed in the assessment roll of the

city as the owner, lessee or tenant of that property;

(i) "real property" means

(

i) land or an interest arising from land, and

includes land under water,

(ii) land and buildings, structures, improvements,

building service systems and storage facilities and fixtures erected or placed

upon, in, over or under land or affixed to land,

(iii) where a building is erected on land under a

lease, licence or permit, that building may, for the purpose of this Act, be

treated as real property separate from the land, and

(iv) a mobile home;

(j) "residential property" means real property

that is used or designed for use as a domestic establishment in which one or

more persons usually sleep and prepare and serve meals, and includes land or

buildings that are appurtenant to that property;

(k) "sale" includes barter or exchange;

and

(l) "taxes" unless otherwise stated,

include taxes, rates, licence fees, assessments or other indebtedness to the

council.

(2) This Act shall be read as one with the City of St. John's Act and the Assessment Act, 2006.

PART I

TAXES

Real property tax

3. The

council may impose an annual tax to be known as "the real property

tax" on owners of real property within the city, including docks, quays,

wharves and structures touching the boundary of the city.

Tax rate

(1) The

rate of real property tax shall be fixed annually by resolution of the council

as a percentage of the value of the real property as set down in the last

assessment roll prepared by the city.

(2) For the purpose of establishing real property

tax there may be imposed in respect of real property used for residential

purposes one rate of tax and in respect of commercial property another rate of

tax.

(3) The council shall annually fix, establish and

impose special reduced rates of real property tax applicable to buildings in

the city to which water mains or sewer mains or both are not accessible for

servicing those buildings with water services or sewer services or both.

(4) The council may, by resolution, establish different

minimum annual real property taxes in the city for residential and for

commercial property.

Occupier considered

owner

5. Where

real property is occupied and the owner is not known, the occupier is

considered to be the owner for the purposes of the imposition and collection of

the real property tax.

Tenant of tax exempt

property

6. The

tenant of real property that is not subject to the real property tax shall,

where rent or other valuable consideration is paid by him or her in respect of

that real property, pay the real property tax as if he or she were the owner of

the real property and the real property were subject to that tax.

Representative

capacity

(1) Where

real property is under the control of a person in a representative capacity as

executor, administrator, trustee, guardian or agent, that person is liable for

the payment of the real property tax only in his or her representative

capacity.

(2) Where the owner of real property is a minor,

the person whose name has been entered on the assessment roll of the city as

the parent, guardian or other legal representative of the owner is liable for

the payment of the real property tax, where the owner defaults in the payment.

Tax exempt property

(1) The

following real property is exempt from the real property tax:

(

a) real property belonging to Canada ,

the province or the city;

(

b) real property exempted from the real property

tax by

an Act of the Legislature;

(

c) productive farm land and woodland as designated

by the Minister of the Crown responsible for the land and buildings on and used

in connection with farm or wood production from that land;

(

d) real property which may be exempted from the

real property tax by the council by by-law that is

(

i) held and occupied for public worship,

(ii) used in connection with and for the purpose of

a hospital for the care of the physically or mentally disabled or for the care

of the aged or infirm, including student residences, but not including other

residences and apartments,

(iii) held and occupied as a public college or

school or for other public educational purposes, including student residences

and playing fields and other recreational facilities owned by them, but not

including other residences and apartments,

(iv) held and occupied by a charitable organization

or institution which is so registered under the Income Tax Act ( Canada ),

(

v) used for emergency housing,

(vi) acquired from the city for the purpose of development

for public purposes,

(vii) part of a low rental housing project as

defined in the National Housing Act ( Canada ),

(viii) used for a purpose from which the city received

the net profits; and

(

e) other real property that the council may by by-law

exempt, so long as it is used for a public purpose.

(2) The Lieutenant-Governor in Council may by

order exempt from the operation of subsection (1) real property owned by the

Crown that may be specified in the order.

(3) Where real property that is exempt from the

real property tax stops being exempt on or before December 31 in a year, the

owner or occupier of that real property is liable for the real property tax in

respect of that real property for the portion of the year it is not exempt.

(4) Notwithstanding subsection (1), real property

of Canada or the province referred to in that subsection is subject to the

charge for the protection of and ordinary water services that the council may determine,

subject to the approval of the Lieutenant-Governor in Council.

Supplementary

assessment

(1) The

owner of real property that has been made subject to a supplementary assessment

under the Assessment Act, 2006 is

liable for the payment of the real property tax on the basis of the supplementary

assessment for the remaining portion of the calendar year from the earlier of

(

a) the date of substantial completion of the

construction;

(

b) the date of occupancy of the real property; or

(

c) the date the business was started or resumed.

(2) Taxes for the current year applicable to the

real property described in this

section shall be collected in the same manner

as if the real property had been on the assessment roll when it was delivered

to the clerk.

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

the real property or business tax or both payable under this

section shall be

that proportion of the relevant tax for the full year that the number of days

from the day on which the person completed that 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.

Payment when

appeal

(1) Where

real property is subject to an assessment or a supplementary assessment and an

appeal is being taken against the assessment or supplementary assessment, the

real property tax shall, pending a decision in that appeal, be payable on the

basis of the original assessment or supplementary assessment.

(2) The difference between the amount of the tax

collected under subsection (1) and the amount payable on the basis of the assessment

as later determined by the commissioner shall be paid by the owner or refunded

by the council, according to the decision in the appeal, when that decision has

been made.

Error or

correction

11. Notwithstanding

the lapse of time, an assessor may assess and a council may tax retrospectively,

real property or other subject of taxation, the assessment or taxing of which

has been omitted from the general assessment by accident or by error, or is

invalid because of an error or irregularity and may impose a tax so omitted or

invalid upon an estate or person upon whom it should first have been imposed.

Business tax

(1) The

council may impose an annual tax to be known as "the business tax".

(2) The business tax shall apply and be assessed

and imposed notwithstanding an assessment and taxation of real property for

another tax or an exemption from that assessment or taxation under this Act.

Rate of tax

(1) The

rate for the business tax shall be fixed by resolution of the council as a

percentage of the assessed value of the real property used by the person in

carrying on the business, trade or profession in respect of which the tax is

imposed.

(2) The council may vary the rate of tax referred

to in subsection (1), in its application to different kinds or classes of businesses,

trades or professions.

(3) Assessed value shall be determined by the

assessors under the Assessment Act, 2006

but where there is an existing valid assessment in respect of that real

property for the purpose of imposing the real property tax, that assessment may

be used for the purposes of this section.

Minimum business

tax

(1) The

council may impose a minimum business tax on all businesses operating in the

city.

(2) There may be differing minimum business taxes

under subsection (1) for different classes of businesses.

(3) Notwithstanding subsection 13(1), the council

may impose a minimum business tax under subsection (1) as a fixed amount.

Tax rates fixed

annually

15. The

council shall before December 15 in each year fix the percentages for the rates

of the real property tax and business tax for the next financial year that will

in total, 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.

Arrangements re

tax payments

(1) The

council may make arrangements for payment of, reduce or remit payment of real

property tax or business tax on account of the poverty of a person liable for

the payment of those taxes or for reasons where that arrangement, reduction or

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

(2) The decision of the council in respect of that

arrangement, reduction or remittance shall be final.

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 or business tax.

(2) A person liable for the payment of real

property tax or business 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.

Non-payment after

arrangement

(1) Where

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

business 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.

(2) Where the postponed payment for a portion of

taxes remains unpaid for a period after the time when that payment became due,

the city may exercise the lien conferred on the city by this Act in the manner

provided and other remedies for recovering taxes contained in this Act.

Where taxpayer

without assets

19. Where

the council is satisfied that the owner or person liable for real property

taxes has no assets available for execution other than the real property on

which the taxes are due and

(

a) it is established by evidence to the

satisfaction of the council that real property upon which taxes are charged is

of insufficient value to pay the costs of an action; or

(

b) an action has been taken for the recovery of

taxes due on real property and the property upon execution has not realized the

whole of the taxes and the costs of action,

the council may remit payment of the taxes

or the unpaid balance and write that amount off from its books.

Water tax

(1) The

council shall have power by resolution to fix and impose upon the owner or

occupier of real property within the city an annual tax to be known as "the

water tax" in respect of water supplied to that real property.

(2) The water tax shall be payable in a manner and

at a time that council shall determine.

(3) The council may impose the water tax by the

following methods and may fix a minimum or maximum amount for water tax and

vary the amount of tax in application to different classes of real property,

buildings or premises:

(

a) the water tax may be based upon the percentage

of the value of real property that the council may determine, or, may be levied

in the form of a surtax on the real property tax payable in respect of it;

(

b) the water tax may be based upon the quantity

of water used in the real property as measured and determined by water meters,

which the council may install in that real property, and charged at a rate per

4,546 litres, or that part of it that the council may determine; and

(

c) the water tax may be based upon and determined

by reference to a scale specifying separate classifications or categories of

values of real property and assigning to each classification or category a

specific amount or charge as the water tax under this section.

(4) For the purposes of paragraph (3)(b), the council

shall have power to contract with a person for the supply or installation of

water meters and to secure the payment of the cost of those meters or the installation

of them by a first charge upon all water taxes received in respect of premises

in which the meters are installed and to issue debentures of the city securing

payment of the cost of those meters.

Regulation re:

water tax

21 . Notwithstanding

section 20, the minister may make regulations to establish a water tax rate

applicable to and a maximum allowable amount of water tax payable by the owner

of real property located inside or outside the city that is connected to the

water system of the city where that real property is the location of a

(

a) school operated under the Schools Act, 1997 ;

(

b) scheduled hospital as defined in the Hospitals Act ; and

(

c) building owned by the Crown,

and a tax rate imposed in accordance with

this

section shall be considered to have been imposed, with the necessary

changes, under

section 20.

Collection of

water tax

(1) Where

a water tax imposed under

section 20 or an instalment of that tax is unpaid within

30 days from the date on which the water tax or an instalment is due, the city

may discontinue the supply of water to the real property in respect of which

the water tax is imposed.

(2) An occupier of or other person with an

interest in real property referred to in subsection (1) who is or may be

affected by the discontinuance of water may pay the water tax or instalment to

the council, and that occupier or other person may recover by action in a court

the amount paid by him or her from the person liable for that water tax or

instalment.

(3) A water tax payable under

section 20 by a

person who is the owner of or who has an interest in the real property in

respect of which the water tax is imposed for water supplied to that real

property shall attach to and be a charge upon the real property or the interest

of that person, in the same manner as other taxes under this Act and may be

recovered by the remedies provided by this Act for the recovery of taxes.

(4) Where a water tax or instalment of that tax imposed

upon and payable by the occupier of real property is not paid to the council by

the occupier within one month after the water tax or instalment is payable by

the occupier, the water tax or instalment shall become payable immediately to

the council by the owner of the real property in the same manner as other taxes

under this Act and may be recovered by the council from that owner by the

remedies provided by this Act for the recovery of taxes.

(5) Upon payment of the tax or instalment to the

council under subsection (4), the owner may recover from the occupier by action

in a court, the amount paid by the owner.

(6) Where the water tax is imposed on or payable

by the owner of real property under

section 20, the owner may, a statute or

provision of law to the contrary notwithstanding, add the amount of the water

tax to the rent payable to him or her by a tenant or lessee of the real property

to which water is supplied and the owner shall have the same rights and

remedies for recovery of the water tax from the tenant or lessee as are

available to him or her in law with respect to the recovery of rent.

(7) The Public

Utilities Act shall not apply to or be considered to apply to the water tax

or to rates or charges levied, imposed or charged under this Act or under the

authority of this Act in respect of water supplied by the city.

Interest on

arrears

23. The

council may charge interest on taxes that are not paid on or before the date on

which they become due, if, before making that charge, the council passes a

resolution establishing the rate of interest to be charged and when that

interest shall be applied.

Licence fees

(1) The

council may charge annual licence fees for all persons doing those types of

business in the city that may be provided for in a regulation of the council

and the fees shall be due at the office of the city clerk before January 2 of

each year.

(2) A person starting a business shall pay the prescribed

licence fee on or before the day of beginning of business.

(3) Where a person, not being a commercial traveller,

starts business after June 30 in a year, that person is liable only to pay 1/2

of the licence fees in respect of that year.

(4) The council shall issue to the party paying

the licence fees required under this section, a licence permitting the business

in respect of which the fee is payable, and a person shall not have a business

until a licence has been obtained.

Circus licence

(1) A

person shall not operate or start to operate, as owner, manager or agent, a

circus in the city until he or she has obtained from the council a licence for

the operation of the circus.

(2) The council may refuse a licence for a circus

or grant a licence for a limited period of time and in a location which the

council may determine.

(3) An owner, lessee or possessor of land or

premises in the city shall not permit that land or premises to be used for the

operation of a circus unless a licence for that operation is granted by the

council under this section.

(4) The council may impose on a person operating

as owner, manager or agent of a circus within the city a licence fee prescribed

by the council for each day the circus is in operation, and the licence fee

shall be paid in advance for each day of operation or intended operation.

(5) It is a condition of a licence issued to a

person under this

section that the licence shall automatically be cancelled

upon failure of the licensee to make payment in advance on a day of the amount

payable under subsection (4).

(6) The licence fee payable under this

section

shall be recoverable in a court in an action by the city against that operator

and the property and equipment employed in the operation of the circus shall be

liable to attachment and to execution in satisfaction of a judgment in an

action, whether or not the property or equipment is owned by the person liable

for those licence fees.

(7) Where a person contravenes this section, he or

she is guilty of an offence under this Act.

Deed transfer fee

(1) The

council may impose a deed transfer fee not exceeding $25 in respect of the

transfer, sale, assignment or conveyance of real property within the city or,

where real property is partly within the city, in respect of the portion within

the city.

(2) Where the council imposes a deed transfer fee

under subsection (1), a document in relation to which the fee is liable to be

paid shall not be registered in the Registry of Deeds without prior proof to

the satisfaction of the Registrar of Deeds of payment of that fee.

(3) For the purpose of subsection (2), the council

may authorize the use of some form of receipt or stamp that is, in the absence

of evidence to the contrary, proof of payment.

Former water and

sewage rates

27. Where

in an agreement, lease, charter or contract it is provided that in relation to

real property within the city water and sewage rates are payable by a person or

company, it shall be considered that the real property tax required to be paid

by this Act shall be instead of those water and sewage rates which were previously

agreed upon or ordered to be paid.

Accommodation tax

(1) The

council may impose a tax to be known as the "accommodation tax" upon

a person who, for a daily charge, fee or remuneration is accommodated, lodges

or stays in a room in a building in the city which is

(

a) licensed under the Tourist Establishments Act ;

(

b) owned by the Memorial University of Newfoundland;

(

c) located at the Littledale Conference Centre.

(2) A tax imposed under subsection (1) shall be

not more than 3% of the amount charged for the accommodation, lodging or stay referred

to in that subsection.

(3) Subsections (1) and (2) shall not apply to

(

a) a person who pays for accommodation, lodging

or a stay in a room for which the daily charge or remuneration is not more than

$20;

(

b) a student who is accommodated, lodges or stays

in a room in a building referred to in paragraph (1)(

b) or (

c) while he or she

is registered at and attending a post-secondary educational institution; and

(

c) a person who is accommodated, lodges or stays

in a room for more than 30 consecutive days.

(4) A tax collected under this

section shall be

paid into an account established for that purpose, and that account shall be

audited and money paid out of the account in the manner required by the Memorandum

of Understanding executed on October 23, 1998 by the Government of Newfoundland

and Labrador, the City of St. John's and the Avalon Convention and Visitor's

Bureau, and amendments to that memorandum.

(5) The council may, in the manner required by

law, prescribe those resolutions and by-laws which are necessary to implement a

tax under this

section in accordance with the Memorandum of Understanding

referred to in subsection (4).

PART II

REMEDIES FOR RECOVERY OF TAXES AND EXPENSES

Action on arrears

(1) The

council may immediately after January 1 and July 1 in each year take

proceedings to recover all amounts due for taxes, assessments, rents and

licence fees then owing and unpaid, including those due for the immediate past

half year.

(2) Where a tax, fee, levy, assessment, fine or

charge imposed by the council is in arrears, in addition to other remedies that

the council has to enforce payment, the council may disconnect the service of a

water system, sewage system or water and sewage system provided to the person

who owes the tax, fee, levy, assessment, fine or charge to the council.

(3) Where it is necessary for the purposes of

subsection (2), the employees or agents of the council may enter upon real

property, whether publicly or privately owned, and at reasonable times enter

into the buildings or structures on the real property.

Lien for taxes

(1) Taxes

fixed, established and imposed in respect of real property, including business

tax where the owner of the business is also the owner of the real property in

or on which the business is located, constitute a lien upon that real property,

except where the real property is sold for tax arrears by the council.

(2) The lien attaches on the date on which the

relevant tax was due to the council and continues for a period of 6 years after

or after the last payment on account of the tax or acknowledgement in respect

of the tax has been made or given to the council, whichever is the later.

(3) The lien described in subsection (1) is considered

to rank in priority over a grant, deed, lease or other conveyance, and over a

judgment, mortgage or other lien or encumbrance affecting the real property

affected, or the title to the real property.

(4) Where proceedings are taken to enforce the

lien within the period of 12 years, the lien shall continue in force until the

completion of the proceedings.

(5) The registration of a grant, deed, lease or

other conveyance, or of a judgment, mortgage or other lien or encumbrance,

whether it was before or after the time the lien for rates attached, in no way

affects the priority of the lien.

(6) It shall not be necessary to register the lien

in the Registry of Deeds.

Where sale prohibited

31. Notwithstanding

section 30, real property that is occupied for full-time residential purposes

by the owner, not including a person considered to be an owner under

section 5,

shall not be sold for tax arrears by the council so long as it is occupied in

that manner.

Notice to owners

(1) The

city clerk shall inquire into the ownership of and encumbrances affecting real

property and the names of the present owner and encumbrancers in order to serve

each of them with the notice and information required by this section.

(2) For property to be sold for arrears of taxes,

the city clerk shall serve upon the owner and encumbrancers of the real

property, where known, a notice signed by the city clerk which shall contain

(

a) a general description of the real property affected;

(

b) the amount of arrears of taxes owing in respect

of the real property; and

(

c) a statement that the real property is liable

to be sold under this Act for the arrears, with interest and with the expenses

of and incidental to the arrears unless they are paid within 60 days from the

date of the notice.

(3) Service of the notice upon a person mentioned

in this

section is sufficient for this Act, where it is sent by registered mail

to the last known address of the person, or where the address of the person is

not known, then by leaving the notice with the tenant or occupant of the real

property affected or by posting a copy of the notice in some conspicuous place

on the property.

(4) Where real property has been assessed

"owner unknown" or the chief assessor has not provided information

respecting ownership or encumbrances and the city clerk has not been able to obtain

information respecting ownership, the notice shall be posted in a conspicuous

place on the real property affected.

Right of

mortgagee

(1) A

mortgagee, judgment creditor or other person having a lien, charge or

encumbrance upon or against real property liable to be sold for taxes, or in

respect of which taxes are due, may after the lien for taxes has attached and

before sale, pay to the city clerk the amount of the taxes, together with all

interest and expenses incurred in respect of the real property affected.

(2) Where a person pays taxes under subsection

(1), that person may add the amount paid to his or her mortgage, judgment or

other security, notwithstanding a clause or condition to the contrary contained

in the security, and shall have the same rights, remedies and privileges

against that real property as he or she has under the security held by him or

her and he or she may sue for and recover in an action for debt the amount

paid, together with interest, against the person liable under this Act to pay

that amount.

Direction for

sale

34. After

the time limit in the notice required to be given by

section 32 the city shall,

on the application of the city clerk, by resolution direct that the real property

be sold.

Advertisement for

sale

(1) The

city clerk shall immediately upon receipt of a copy of the resolution referred

to in

section 34 proceed to advertise the real property referred to in the

resolution for sale at public auction at a time and place that shall be stated

in the advertisement.

(2) Notice of the sale shall be published for at

least 30 days immediately before the sale, in a daily or weekly newspaper in

circulation in the city by one insertion each week, and it shall be sufficient

in the notice to put the street and number of real property advertised, or to

put other short reference by which the real property may be identified, together

with a statement that a full description may be seen at the office of the city

clerk.

Sale for arrears

(1) At

the time and place mentioned in the notice of sale the city clerk shall, unless

the arrears of taxes and interest and the expenses incidental to those

proceedings and sale are then, or have been previously, paid to him or her,

proceed to sell at public auction the real property or portions of the real

property that in his or her judgment are sufficient to pay those taxes,

interest and expenses.

(2) Where the real property described or referred

to in the notice of sale is only a portion of real property, and the portion

does not sell for a sufficient sum to satisfy the taxes, interest and expenses

due with respect to the real property of which it forms a part, the city clerk

may immediately, and without further notice, sell the whole or a portion of the

remainder of the real property of which the portion sold formed a part to

satisfy the taxes, interest and expenses.

(3) The city, by an official or agent, may bid for

and purchase real property being sold to satisfy taxes, interest and other

expenses due.

Where no bidder

(1) Where

at the time appointed for the sale of real property no bidder appears, or where

the city clerk fails at the sale to sell that real property for the full amount

of the arrears of taxes, interest and expenses due, he or she shall adjourn the

sale until a day then to be publicly named by him or her, not earlier than one

week and not later than 2 weeks after.

(2) The city clerk shall give notice in the paper

in which the sale was originally advertised, or where not then in circulation,

in another newspaper circulating in the city, of the time and place to which

the sale is adjourned and he or she shall again put up the real property at

public auction and may sell the real property for any sum that can be realized.

Lien not affected

38. Where

real property is sold for taxes and the sale is set aside for an error,

irregularity or other cause, the lien on the real property shall not as a

result be discharged but shall continue for the same time as if the date of the

setting aside were the date on which the sale took place and the property may

again be sold unless the taxes, interest and expenses against it are paid.

Distribution of

purchase price

(1) The

city clerk shall, out of the purchase money received on the sale of real

property, deduct the amount of taxes, interest and expenses owing to the city,

and taxes that are due at the time of the sale.

(2) Where there is a balance of the purchase price

remaining after making the deductions in subsection (1), the city shall pay the

person entitled to it, or, where there is a dispute as to who is entitled, as

determined by an order of the Trial Division on application by the city.

Sale invalid

40. Where

the purchaser of real property at a sale under this Act fails to immediately,

after the sale being knocked down to him or her,

(

a) pay the city clerk or his or her agent the

amount of the purchase money; or

(

b) deposit with the city clerk an amount equal to

the amount of the taxes, interest and expenses of sale for which the real

property has been sold,

the city clerk shall immediately put up

the real property for sale again.

Assessment after

sale

(1) Where

real property has been sold under this Act for arrears of taxes, it shall be

assessed to the purchaser, his or her executors, administrators or assigns.

(2) Where the city is the purchaser, the real property

shall be assessed to the city.

(3) Where real property has been sold under this

Act for arrears of taxes, the council shall give to the purchaser a valid

conveyance in the name of the city signed by the mayor and city clerk or the

person appointed by council and sealed with the seal of the city.

Effect of sale

42. The

conveyance referred to in

section 41 shall be conclusive evidence that the

provisions of this Act with reference to the sale of the real property

described in that conveyance have been fully complied with, and everything

necessary for the legal perfection of that sale has been performed, and shall

have the effect of vesting the real property in the purchaser, his or her

executors, administrators or assigns, in fee simple, free from encumbrances.

Act priority

(1) A

tax shall not be imposed or collected under the City of St. John's Act in respect of an assessment which has

occurred after December 1, 1980 .

(2) Where taxes or fees are provided for in this

Act and in the City of St. John's Act ,

those taxes or fees with respect to services, licences or taxable subjects

shall be imposed and collected only under this Act.

PART III

GENERAL

Collection

despite appeal

44. Taxes

levied or imposed upon a person under this Act after a decision by the commissioner

may be collected or recovered notwithstanding an appeal to the Trial Division.

Repayment on

overpayment

(1) Where

a person has paid taxes based on an assessment that is subsequently quashed,

reversed or varied on appeal, and as a result of which his or her taxes have

been overpaid, he or she shall be repaid by the city out of its general

revenues the amounts overpaid but where an appeal is taken against that order,

the person is not entitled to repayment until the disposition of the appeal.

(2) No interest shall accrue or be payable where a

repayment is made under subsection (1).

Limitations on

actions

(1) An

action or other proceeding, except an action or other proceeding brought by the

city for the collection of taxes, shall not be brought in a court with respect

to taxes based on an assessment under the Assessment

Act, 2006

(

a) except within 6 months after the date upon

which the assessment roll is required by this Act to be forwarded to the city

clerk or within 6 months after the forwarding of the assessment roll in case

the assessment roll is not forwarded within the time fixed for that purpose; or

(

b) where an appeal has been taken to the court,

except within 15 days after the date of the decision of the Trial Division.

(2) Where an appeal has been taken to the Court of

Appeal, an action or proceeding shall not be brought in another court with

respect to the assessment except an action or other proceeding brought by the

city for the collection of taxes.

Defence barred

47 . An

issue or matter that could have been raised by way of appeal to the commissioner

or the Trial Division within the times limited for that appeal shall not be

raised by way of defence in an action or other proceeding brought by or on

behalf of the city.

PART IV

CONSEQUENTIAL, REPEAL AND COMMENCEMENT

Consequential

amendments

48. (1) Subsection 99(11) of the City of St. John's Act is amended by

deleting the reference " St. John's Assessment Act " and substituting the reference " City of St. John's Municipal Taxation Act" .

(2) Subsection 403.2(4) of the Act is amended by

deleting the reference " St. John's

Assessment Act " and substituting the reference " City of St. John's Municipal Taxation Act

(3) Subsection 39.2(4) of the Urban and Rural Planning Act, 2000 is amended by deleting the

reference " St. John's Assessment Act "

and substituting the reference " City

of St. John's Municipal Taxation Act ".

Repeal

49. The St. John's Assessment Act is repealed.

Commencement

50. This Act shall come into force on a date to be

proclaimed by the Lieutenant-Governor in Council.

Earl G. Tucker, Queen's Printer