Third

Session, 45th General Assembly

Elizabeth II, 2006

BILL 31

AN ACT TO AMEND THE

ASSESSMENT ACT AND

THE ST. JOHN 'S ASSESSMENT ACT

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 NOTE

This Bill would amend the Assessment Act and the St. John's Assessment Act to create for assessment purposes a category of property called

special purpose property and to provide that those properties would be assessed

at their reproduction cost, a term which the Bill would also define.

A BILL

AN ACT TO AMEND THE ASSESSMENT ACT AND THE ST. JOHN 'S

ASSESSMENT ACT

Analysis

ASSESSMENT

ACT

S.17.2 Added

Special purpose property

2. S.38 Amdt.

Powers of commission

ST. JOHN 'S

ASSESSMENT ACT

S.49.2 Added

Special purpose property

4. S.77 Amdt.

Powers of court

Be it enacted by

the Lieutenant-Governor and House of Assembly in Legislative Session convened,

as follows:

ASSESSMENT ACT

RSNL1990 cA-18

as amended

1. The Assessment

Act is amended by adding immediately after

section 17.1 the following:

Special purpose

property

17.2

(1) In

this

section

(a) "reproduction cost of a property"

means the cost, less physical depreciation, required to construct a reasonably

identical replacement of the property using the same or similar materials,

construction standards, design and quality of work, calculated on the basis of

prevailing prices and on the assumption of normal competency and normal

conditions; and

(b) "special purpose property" means a

property that has a design or lay out or is constructed of special materials or

in a manner that restricts its use.

(2) Notwithstanding

section 17, an assessor shall

assess a special purpose property based on the reproduction cost of the

property.

Section 38 of the Act is amended by adding

immediately after subsection (1) the following:

(1.1) Where the property is a special purpose

property as defined in

section 17.2, a commission, after hearing the evidence,

shall confirm the assessment appealed against or amend it by increasing or

decreasing it where the commission believes that it is above or below the reproduction

cost of the property.

ST. JOHN 'S ASSESSMENT ACT

RSNL1990 cS-1

as amended

3. The St. John's Assessment Act is amended by adding immediately after

section 49.1 the following:

Special purpose

property

49.2

(1) In

this

section

(a) "reproduction cost of a property"

means the cost, less physical depreciation, required to construct a reasonably

identical replacement of the property using the same or similar materials,

construction standards, design and quality of work, calculated on the basis of

prevailing prices and on the assumption of normal competency and normal

conditions; and

(b) "special purpose property" means a

property that has a design or lay out or is constructed of special materials or

in a manner that restricts its use.

(2) Notwithstanding

section 49, an assessor shall

assess a special purpose property based on the reproduction cost of the

property.

4. The Act is amended by adding immediately after

subsection 77(3) the following:

(4) Where the property is a special purpose

property as defined in

section 49.2, the court shall only amend an assessment

on the basis that it is above or below the reproduction cost of the property.

Earl G. Tucker, Queen's Printer