Contents
Whereas a copy of the proposed regulation was published in the Canada Gazette Part I on December 5, 1980 and a reasonable opportunity was thereby afforded to interested persons to make representations with respect thereto.Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Public Works, pursuant to subsection 8(1) of the Municipal Grants Act, 1980, is pleased hereby to make the annexed Regulations respecting grants in lieu of real property tax, frontage or area tax and business occupancy tax to be made by corporations included in Schedule III or IV to the Municipal Grants Act, 1980, that are exempt from such taxes.
Interpretation
2#
In these Regulations,
Act means the Payments in Lieu of Taxes Act; (Loi)
corporation effective rate means the rate of real property tax or of frontage or area tax that a corporation would consider applicable to its corporation property if that property were taxable property; (taux effectif applicable à une société)
corporation property means
(a)except in Part II, any real property or immovable owned by Her Majesty in right of Canada that is under the management, charge and direction of a corporation included in Schedule III or IV to the Act, or that has been entrusted to such corporation;
(a.1)except in Part II,
(i)any real property or immovable that is owned by Her Majesty in right of Canada and that is managed by a port authority included in Schedule III to the Act, and
(ii)any real property or immovable, other than any real property or immovable owned by Her Majesty in right of Canada, that is held by a port authority included in Schedule III to the Act, on which the port authority engages in port activities referred to in paragraph 28(2)(a) of the Canada Marine Act and in respect of which the port authority is exempt from real property tax; and
(b)in Part II, any real property or immovable occupied or used by a corporation included in Schedule IV to the Act in respect of which occupancy or use the corporation is exempt from business occupancy tax; (propriété d’une société)
corporation property dimension means the frontage, area, other dimension or other attribute that a corporation would consider would be established by an assessment authority in respect of its corporation property as the basis for computing the amount of any frontage or area tax that would be applicable to that property if it were taxable property; (dimensions effectives de la propriété d’une société)
corporation property value means the value that a corporation would consider to be attributable by an assessment authority to its corporation property, without regard to any mineral rights or any ornamental, decorative or non-functional features thereof, as the basis for computing the amount of any real property tax that would be applicable to that property if it were taxable property. (valeur effective de la propriété d’une société)
note
No Special Arrangements
3#
In regulation 2 (Interpretation)—
(1)On the coming into force of these Regulations, no corporation included in Schedule III or IV to the Act that is exempt from real property tax or a business occupancy tax shall enter into a special arrangement with a local government, province or other authority to pay an amount in lieu of such a tax that would be less than the amount that it would pay in accordance with these Regulations.
(2)Notwithstanding subsection (1), where, on the coming into force of these Regulations, a corporation included in Schedule III or IV to the Act is a party to a special arrangement referred to in that subsection, that arrangement may continue until the expiration of the term of that existing arrangement.
(3)[Repealed, SOR/2006-324, s. 1] (repealed)
Part I · Payments in Lieu of a Real Property Tax or a Frontage or Area Tax
General
5#
In this Part, corporation means, in respect of any payment that may be made by it, every corporation included in Schedule III or IV to the Act.note
6#
The payment made by a corporation in lieu of a real property tax or frontage or area tax in respect of any corporation property that would be federal property if it were under the management, charge and direction of a minister of the Crown is made without any condition, in an amount that is not less than the amount referred to in sections 7 to 11.note
Calculation of Payments
7#
(1)Subject to subsection (2), a payment made by a corporation in lieu of a real property tax for a taxation year shall be not less than the product of
(a)the corporation effective rate in the taxation year applicable to the corporation property in respect of which the payment may be made; and
(b)the corporation property value in the taxation year of that corporation property.
(2)Where all or part of the real property tax levied by a taxing authority in a taxation year is for school purposes and is levied at different rates
(a)for taxpayers of different religious denominations, or
(b)for taxpayers of different religious denominations and for different classes of taxable property,
(c)that part of the corporation effective rate in the taxation year that is used in determining the amount of the real property tax that is levied for purposes other than school purposes,
(d)if paragraph (a) applies, a rate for school purposes obtained by dividing
(i)the portion of the real property tax levied for school purposes by the taxing authority in the taxation year,
(ii)the assessed value of all taxable property under the jurisdiction of the taxing authority in respect of which such portion of the real property tax for school purposes is levied in the taxation year, or
by
(e)if paragraph (b) applies, a rate for school purposes for each class of taxable property determined by dividing
(i)the portion of the real property tax levied for school purposes by the taxing authority in respect of property of such class in the taxation year,
(ii)the assessed value of all taxable property of such class under the jurisdiction of the taxing authority in respect of which such portion of the real property tax for school purposes is levied in the taxation year.
by
there shall be substituted for the corporation effective rate referred to in paragraph (1)(a), a rate equal to the aggregate ofand
8#
(1)A payment made by a corporation in lieu of a frontage or area tax shall be not less than the product of
(a)the corporation effective rate applicable to the corporation property in respect of which the payment may be made; and
(b)the corporation property dimension of that corporation property.
(2)Where a frontage or area tax is payable over a period of more than one year, a corporation may make a payment in lieu of such tax in annual instalments together with interest or in a lump sum without interest.
8.1#
In respect of a taxation year starting on or after January 1, 2000, subsections 3(1.1) and (1.2) and paragraph 3.1(b) of the Act apply to a corporation as if any reference in those provisions to “the Minister” were a reference to “a corporation” and any reference to “federal property” were a reference to “corporation property”.note
Deductions
9#
In determining the amount of a payment for a taxation year under section 7, there may be deducted
(a)if there is in effect a special arrangement for the provision or financing of an education service by the corporation, the amount established by that arrangement;
(b)if there is in effect a special arrangement for an alternative means of compensating a taxing authority, or a body on behalf of which the authority collects a real property tax, for providing a service, the amount established by that arrangement;
(c)if a taxing authority, or a body on behalf of which the authority collects a real property tax, is, in the opinion of the corporation, unable or unwilling to provide the corporation property with a service, and no special arrangement exists, an amount that, in the opinion of the corporation, does not exceed reasonable expenditures incurred or expected to be incurred by the corporation to provide the service; and
(d)an amount that, in the opinion of the corporation, is equal to any cancellation, reduction or refund in respect of a real property tax that the corporation considers would be applicable to the taxation year in respect of its corporation property if it were taxable property.
note
10#
Despite section 8, in determining the amount of a payment referred to in that section, a corporation may deduct an amount that does not exceed reasonable expenditures incurred or expected to be incurred by Her Majesty in right of Canada or that corporation or any other corporation to provide corporation property with the service or work to which the frontage or area tax is related.note
Time and Manner of Payments
12#
(1)Subject to subsection (2), where a corporation makes a payment in accordance with section 6, it shall be made
(a)only to the taxing authority for the area in which the corporation property is situated; and
(b)within 50 days after receipt of an application for the payment.
(2)Where a corporation is unable to make a final determination of the amount of a payment made in accordance with section 6 within the time referred to in paragraph (1)(b), the corporation shall make, within that time, an interim payment that corresponds to the estimated total payment to be made.
Advisory Panel
12.1#
Section 11.1 of the Act applies to a corporation with respect to payments in lieu of a real property tax or a frontage or area tax, as if the reference to “the Minister” were a reference to “a corporation” and any reference to “federal property” were a reference to “corporation property”.note
Disputes Between Corporations
13#
Where a dispute arises between two corporations in respect of the making of a payment referred to in section 7 or 8 in respect of particular corporation property, the matter shall be referred for a decision, within a reasonable time, as follows:
(a)where both corporations are responsible to the same Minister, to that Minister; and
(b)in any other case, to the Minister of Public Works and Government Services.
note
Part II · Payments in Lieu of a Business Occupancy Tax
General
14#
In this Part, corporation means, in respect of any payment that may be made by it, every corporation included in Schedule IV to the Act.note
15#
The payment made by a corporation in lieu of a business occupancy tax in respect of any corporation property occupied by it that would be federal property if it were under the management, charge and direction of a minister of the Crown is made without any condition, in an amount that is not less than the amount it would be required to pay if it were not exempt from the tax.note
15.1#
In respect of a taxation year starting on or after January 1, 2000, subsections 3(1.1) and (1.2) and paragraph 3.1(b) of the Act apply to a corporation with respect to business occupancy taxes as if any reference in those provisions to “the Minister” were a reference to “a corporation”, any reference to “federal property” were a reference to “corporation property” and the reference to “the real property tax or the frontage or area tax on the property” were a reference to “the business occupancy taxes payable with respect to the property”.note
16#
Despite section 15, in determining the amount of a payment referred to in that section for a taxation year, a corporation may deduct an amount that is equal to any cancellation, reduction or refund in respect of a business occupancy tax that would be applicable to the taxation year in respect of corporation property if it were taxable property.note
Time and Manner of Payments
17#
(1)Subject to subsection (2), where a corporation makes a payment in accordance with section 15 it shall be made
(a)only to the authority that collects that tax in the area in which the corporation property is situated whether it collects the tax on its own behalf or on behalf of another authority; and
(b)within a reasonable time after receipt of an application for the payment.
(2)Where a corporation is unable to make a final determination of the amount of a payment made in accordance with section 15 within the time referred to in paragraph (1)(b), the corporation shall make an interim payment within that time of the estimated total payment to be made.
Advisory Panel
17.1#
Section 11.1 of the Act applies to a corporation with respect to payments in lieu of business occupancy taxes, with the following modifications:
(a)the reference to “the Minister” shall be read as a reference to “a corporation” and the reference to “federal property” shall be read as a reference to “corporation property”; and
(b)the advisory panel shall give advice to the corporation in the event that a taxing authority disagrees with any assessment, value or rate used in calculating the amount paid in lieu of business occupancy tax, or if it claims that a payment in lieu of business occupancy tax should be supplemented because of unreasonable delay.
note
Disputes Between Corporations
18#
Where a dispute arises between two corporations in respect of the making of a payment referred to in section 15 in respect of particular corporation property, the matter shall be referred for a decision, within a reasonable time, as follows:
(a)where both corporations are responsible to the same Minister, to that Minister; and
(b)in any other case, to the Minister of Public Works and Government Services.
note
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.