Property Tax Deferral Act, 2008 Shurman, Peter — Bill 78 (39th Parliament, 1st Session)

Bill 78, 39-1

Ontario — Bills

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Bill 78, Property Tax Deferral Act, 2008

Shurman, Peter

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[39] Bill 78 Original (PDF)

Bill 78 2008

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

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 $10,000, 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 is,

i. a Canadian citizen,

ii. a permanent resident

under the Immigration and

Refugee Protection Act (Canada).

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 has a

disability as defined in the regulations and whose income does not exceed the

prescribed limits, as provided for in the regulations.

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 set out the amount of the

deferral and be made in the form and manner approved by the Minister.

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 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.

Amendment

(1) The definition of

"property taxes" in

section 1 of this Act is repealed and the following

substituted:

"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")

Same

(2) Subsection 6 (1) of this Act is

amended by striking out " Provincial

Land Tax Act " and substituting " Provincial Land Tax Act, 2006 ".

Commencement

(1) Subject to subsection (2),

this Act comes into force on the day it receives Royal Assent.

Same

(2) Section 11 comes into force on

January 1, 2009.

Short title

13. The

short title of this Act is the Property Tax Deferral Act, 2008 .

EXPLANATORY NOTE

new statute, the Property

Tax Deferral Act, 2008 , 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 $10,000, 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 29, 2008

Second Reading

Lost on division

May 29, 2008

Second Reading

Debate

May 15, 2008

First Reading

Carried

Debates and Progress

First Reading

May 15, 2008

Second Reading

May 29, 2008

Mr. Peter Shurman, Mr. Peter Kormos, Mr. Tony Ruprecht, Ms. Laurie Scott, Ms. Cheri DiNovo, Mr. Khalil Ramal, Mrs. Joyce Savoline, Mr. Michael Prue, Mr. Bob Delaney, Mrs. Christine Elliott

May 29, 2008

Lost on division.

Comm

Document details

Collection	Ontario — Bills
Citation	Bill 78, 39-1
Type	bill
Volume / chapter	p39 s1 bill 78 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	a9e82f145c5b3dbc7070be91478c3a49f789f5be

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