BILL 63
An Act to Amend the
Residential Property Tax Relief Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section
1 of the Residential Property Tax Relief Act, chapter R-10 of the
Revised Statutes, 1973, is amended
(a) in the definition “credit”
by striking out “section 2” and substituting “section 2 or 2.1”;
(b) by adding the following definitions in
alphabetical order:
“common interest” means a common
interest as defined in the Condominium
Property Act; (quote-part)
“condominium corporation” means
a corporation as defined in the Condominium
Property Act; (association condominiale)
“condominium unit” means
a unit as defined in the Condominium
Property Act; (partie privative d’un condominium)
2 Section 2 of the Act is amended by adding after subsection (9) the
following:
2(10) Notwithstanding any other provision of this section, no person
is entitled under this section to a credit against taxes owing in
respect of real property or to a rebate of taxes paid in respect of
real property for a year that is after 2007.
3 The
Act is amended by adding after section 2 the following:
2.1(1) A person in whose name real property is assessed shall be credited
by the Minister of Finance against taxes owing in respect of that
real property for the year 2008 or any succeeding year a prescribed
amount if on January 1, 2008, or on the first day of January in any
such succeeding year,
(a) the person maintains his or her
principal residence or a principal residence for his or her spouse
or children on the real property and is a resident of New Brunswick,
or
(b) the person maintains a principal
residence for his or her spouse or children on the real property and
the spouse or children are residents of New Brunswick.
2.1(2) A person in whose name real property is assessed on January 1,
2008, or on the first day of January in any succeeding year, shall
be deemed for the purposes of subsection (1) to have maintained his
or her principal residence on the real property for the year 2008
or any succeeding year if that person
(a) maintains his or her residence on
the real property for at least 183 days during the year, and
(b) is not otherwise entitled under
subsection (1) to a credit against taxes owing in respect of real
property for that year.
2.1(3) A person in whose name real property is assessed shall be credited
by the Minister of Finance against taxes owing in respect of that
real property for the year 2008 or any succeeding year a prescribed
amount if the real property
(a) is to be used as only one residence,
whether or not it is completed, and
(b) has not been occupied by that person
or any other person or has not been leased.
2.1(4) Subject to subsection (6), where, on or after January 1, 2008,
a condominium corporation is created in relation to real property,
the person in whose name the real property is assessed is entitled,
for the period referred to in subsection (5), to a credit against
taxes owing or, if taxes have been paid, to a rebate of the taxes
paid in respect of that portion of the real property
(a) that has not been occupied by that
person or any other person or has not been leased, and
(b) that consists of
(i) condominium units, each of which is
to be used as only one residence, and
(ii) the common interests appurtenant
to those condominium units.
2.1(5) For the purposes of subsection (4), the period for which the
person referred to in that subsection is entitled to a credit or rebate
of taxes is as follows:
(a) the year during which the condominium
corporation is created, and
(b) the year or years before the year
referred to in paragraph (a) during which the real property was under
construction, to a maximum of 3 years immediately before the year
in which the condominium corporation is created.
2.1(6) Notwithstanding paragraph (5)(b), no person is entitled under
subsection (4) to a credit against taxes owing or to a rebate of taxes
paid in respect of real property or any portion of real property for
a year that is before 2008.
2.1(7) A person who, on or after January 1, 1983, becomes the owner
of real property on which he or she establishes or subsequently establishes,
in the year 2008 or any succeeding year, his or her principal residence
or a principal residence for his or her spouse or children, is, if
the person is a resident of New Brunswick at the time of the establishing
of the principal residence for himself or herself or for his or her
spouse or children and notwithstanding that he or she has received
a credit against taxes owing for that year in respect of other real
property on which he or she no longer maintains a residence for himself
or herself or his or her spouse or children, entitled to a credit
against taxes owing in respect of that real property for the year
in which he or she establishes his or her principal residence or a
principal residence for his or her spouse or children, or, if the
taxes have been paid, to a rebate of such taxes, in an amount equal
to
(a) the amount that would have been
credited in respect of that property for the year if a credit had
been authorized under subsection (1), less
(b) the amount realized by multiplying
the amount referred to in paragraph (a) by the fraction that results
from dividing the number of days in that year into the greater of
(i) the number of days that expired
prior to the date on which the principal residence was first established
by the person for himself or herself or for his or her spouse or children
on that real property, or, if such residence was maintained by the
person prior to the person becoming owner of the real property, the
date on which the person became the owner, and
(ii) the number of days that expired prior
to the date on which the person ceased to maintain a residence for
himself or herself or for his or her spouse or children on any other
real property in respect of which the person received a credit against
taxes owing for that year.
2.1(8) Where real property is assessed jointly in the names of more
than one person, and one of the persons in whose names the real property
is assessed would be entitled to a credit or rebate under subsection
(1), (3) or (4) if the real property had been assessed in his or her
name alone, the credit or rebate shall be applied in respect of that
real property notwithstanding that the other persons in whose name
the real property is assessed do not qualify for the credit or rebate.
2.1(9) Where, in respect of the same real property, separate assessments
are made in the names of more than one person, and one of the persons
in whose names the real property is assessed would be entitled to
a credit or rebate under subsection (1), (3) or (4) if the real property
had been assessed in his or her name alone, that person is entitled
to a credit or rebate but only in respect of the amount of the assessment
in his or her name.
2.1(10) Where real property is assessed in the name of an estate and
is occupied by a beneficiary of that estate who is a resident of New
Brunswick under circumstances that
(a) do not make the beneficiary a tenant,
and
(b) would entitle the beneficiary to
a credit or rebate under subsection (1), (3) or (4) had the real property
been assessed in the name of the beneficiary,
the credit or rebate shall be applied in
respect of the obligation of the estate to pay taxes on the real property.
2.1(11) Where a person who is entitled to a credit under subsection
(1), (7) or (12) uses any portion of the real property for any industry,
trade, business, profession or vocation or under lease or agreement
allows any other person to so use any portion of the real property,
that person is entitled to a credit in respect only of the portion
of the real property that is used as his or her principal residence
or the principal residence of his or her spouse or children.
2.1(12) Where a person in whose name real property is assessed maintains
on January 1, 2008, or on the first day of January in any succeeding
year, his or her principal residence or a principal residence for
his or her spouse or children on the real property, and the real property
contains two or more residences including his or her own or that of
his or her spouse or children, regardless of whether on that date
the other residence or residences are occupied, that person is entitled
to a credit in respect only of that portion of the real property that
is used as his or her principal residence or the principal residence
of his or her spouse or children.
2.1(13) Where under an agreement of purchase and sale, a person who
maintained his or her principal residence on real property assessed
in the name of another person or who maintained a principal residence
for his or her spouse or children on that real property becomes the
owner of that real property, that person is entitled under this Act
to a credit against taxes owing on that real property, or if the taxes
have been paid, to a rebate of those taxes, for the period determined
under subsection (14), as if that person had been the owner during
that period, if
(a) the person was required, under the
agreement of purchase and sale, to purchase the real property within
3 years after the date the agreement was executed,
(b) the person maintained his or her
principal residence on the real property or maintained on the real
property a principal residence for his or her spouse or children after
the date the agreement of purchase and sale was executed,
(c) the agreement of purchase and sale
was registered within 90 days after it was executed
(i) in the registry office for the county
in which the real property lies, or
(ii) in the land titles office for the
land registration district in which the real property lies,
(d) the person became the owner of the
real property in accordance with the agreement of purchase and sale,
(e) no other person was entitled to
a credit against taxes owing in respect of the real property or to
a rebate of such taxes for that period, and
(f) the person was a resident of New
Brunswick during that period.
2.1(14) For the purposes of subsection (13), the period for which a
person is entitled to a credit or a rebate of taxes is as follows:
(a) in respect of the year in which
the person becomes the owner of the real property under the agreement
of purchase and sale, the portion of that year, immediately before
he or she became the owner, during which the person maintained his
or her principal residence on the real property or maintained on that
real property a principal residence for his or her spouse or children;
and
(b) in respect of any year or years
before the year referred to in paragraph (a), to a maximum of 3 years
immediately before the person became the owner of the real property,
the portion of that year or those years after the date the agreement
of purchase and sale was executed during which the person maintained
his or her principal residence on the real property or maintained
on that real property a principal residence for his or her spouse
or children.
2.1(15) Notwithstanding subsection (1) or (3), the person in whose name
real property is assessed is not entitled to a credit with respect
to more than 0.5 hectare of real property on which a residence is
maintained.
Principal
residence and New Brunswick residency
2.2(1) For the purposes of section 2.1, a person or the spouse or children of a person shall not have more
than one principal residence at a time.
2.2(2) For the purposes of section 2.1, the Administrator shall, subject to subsection (1), determine,
with respect to any period,
(a) whether any residence of a person
was his or her principal residence during that period,
(b) whether any residence of a person’s
spouse or children was the spouse’s or children’s principal
residence during that period,
(c) whether a person was a resident
of New Brunswick during that period, and
(d) whether the spouse or children of
a person were residents of New Brunswick during that period.
2.2(3) In making a determination under paragraph (2)(a), the Administrator
shall consider the criteria prescribed and any other matter the Administrator
considers relevant.
2.2(4) In making a determination under paragraph (2)(b), the Administrator
shall consider the criteria prescribed and any other matter the Administrator
considers relevant.
2.2(5) The Administrator shall determine, under paragraph (2)(c), that
a person was a resident of New Brunswick during any period if the
Administrator
(a) is satisfied, based on information
contained in the databases prescribed and any other information that
the Administrator considers relevant, that the person resided in New
Brunswick during the period, and
(b) is satisfied that the person did
not have a principal residence located outside New Brunswick during
the period.
2.2(6) The Administrator shall determine, under paragraph (2)(d), that
the spouse or children of a person were residents of New Brunswick
during any period if the Administrator
(a) is satisfied, based on information
contained in the databases prescribed and any other information that
the Administrator considers relevant, that the spouse or children
resided in New Brunswick during the period, and
(b) is satisfied that the spouse or
children did not have a principal residence located outside New Brunswick
during the period.
2.2(7) With respect to the period in question, the Administrator shall
determine
(a) for the purposes of paragraph (5)(b),
whether any residence located outside New Brunswick was the principal
residence of a person, and
(b) for the purposes of paragraph (6)(b),
whether any residence located outside New Brunswick was the principal
residence of the spouse or children of a person.
2.2(8) Subsection (3) applies with the necessary modifications to a
determination under paragraph (7)(a) and subsection (4) applies with
the necessary modifications to a determination under paragraph (7)(b).
4 Section
4 of the Act is repealed and the following is substituted:
4 Notwithstanding section 2 or 2.1 except for a credit under subsection 2(1.1) or (1.2) or subsection 2.1(3), (4) or (7), no person is entitled
to receive more than one credit in any year.
5 Section
4.1 of the Act is repealed and the following is substituted:
4.1 Notwithstanding section 2 or 2.1, where two spouses occupy a residence together during all or a portion
of any year not more than one credit under subsection 2(1) or 2.1(1) shall be applied for that year in respect of real property owned
by either or both of the spouses, and such credit, if any, shall be
applied only with respect to the real property on which the principal
residence of the spouses is maintained.
6 Paragraph
6(c) of the Act is amended by striking out “subsection 2(7)
or (8)” and substituting “subsection 2(7) or (8) or subsection 2.1(11) or (12)”.
7 Section 6.1 of the Act is amended
(a) in subsection (1) in
the portion preceding paragraph (a) by striking out “section
2” and substituting “section 2 or 2.1”;
(b) in subsection (3) by
striking out “section 2” and substituting “section 2 or 2.1”.
8 Subsection
10(5) of the Act is repealed and the following is substituted:
10(5) The decision of the Director as to
(a) whether a person is entitled to
a credit or an allowance,
(b) the amount of a credit or an allowance,
(c) the portion of real property that
is used as a residence and the assessment to be placed on that portion,
and
(d) the existence or non-existence of
any other matter that is set out in this Act or the regulations as
a condition of ineligibility for a credit or an allowance,
is final and may not be questioned or reviewed
in any court.
9 Section
11 of the Act is amended
(a) by renumbering the
section as subsection 11(1);
(b) by adding after subsection
(1) the following:
11(2) Without limiting the generality of subsection (1), the Administrator
or Director may require the following information from an applicant
for the purposes of section 2.1:
(a) evidence showing that the applicant
filed a return of income under the New Brunswick Income Tax Act as a New Brunswick resident;
(b) information showing that the applicant
was employed within New Brunswick during any relevant period;
(c) information concerning the applicant’s
eligibility to vote under the Municipal
Elections Act or the Elections
Act during any relevant period; and
(d) any other information that the Administrator
or Director considers relevant for the purposes of determining whether
any residence was the principal residence of the applicant or his
or her spouse or children during any relevant period or whether the
applicant or his or her spouse or children were residents of New Brunswick
during any relevant period.
10 Section
14 of the Act is amended by adding after paragraph (a) the following:
(a.1) defining “children”
for the purposes of this Act and the regulations;
(a.2) prescribing criteria for the purposes
of subsection 2.2(3) or (4);
(a.3) prescribing databases for the purposes
of paragraph 2.2(5)(a) or (6)(a);
CONSEQUENTIAL AMENDMENTS
Assessment Act
11 Section
15.3 of the Assessment Act, chapter A-14 of the Revised Statutes,
1973, is amended
(a) in subsection (8) by
striking out “section 2 of the Residential Property Tax Relief
Act” and substituting “section 2 or 2.1 of the Residential Property Tax Relief Act”;
(b) in subsection (9) by striking out “section
2 of the Residential Property Tax Relief Act” and substituting “section 2 or 2.1 of
the Residential Property Tax Relief
Act”;
(c) in subsection (17)
by striking out “section 2 of the Residential Property Tax Relief
Act” and substituting “section 2 or 2.1 of the Residential Property Tax Relief Act”;
(d) in paragraph (18)(c) by striking out “section
2 of the Residential Property Tax Relief Act” and substituting “section 2 or 2.1 of
the Residential Property Tax Relief
Act”.
Regulation under the Assessment Act
12 Paragraph
2.4(d) of New Brunswick Regulation 84-6 under the Assessment Act is
amended by striking out “section 2 of the Residential Property
Tax Relief Act” and substituting “section 2 or 2.1 of the Residential Property Tax Relief Act”.
Municipalities Act
13(1) Paragraph 87(5)(b) of the Municipalities Act, chapter M-22 of the
Revised Statutes, 1973, is amended by striking out “section
2 of the Residential Property Tax Relief Act” and substituting “section 2 or 2.1 of
the Residential Property Tax Relief
Act”.
13(2) Paragraph 190.081(10)(b) of the Act is
amended by striking out “section 2 of the Residential Property
Tax Relief Act” and substituting “section 2 or 2.1 of the Residential Property Tax Relief Act”.
Real Property Tax Act
14 Subsection
5(4) of the Real Property Tax Act, chapter R-2 of the Revised Statutes,
1973, is amended in the portion preceding paragraph (a) by striking
out “section 2 of the Residential Property Tax Relief Act”
and substituting “section
2 or 2.1 of the Residential Property
Tax Relief Act”.
The
Residential Tenancies Act
15 Section
8.2 of The Residential Tenancies Act, chapter R-10.2 of the Acts of
New Brunswick, 1975, is amended
(a) in subsection (1) by
striking out “section 2” and substituting “section 2 or 2.1”;
(b) in subsection (3) by
striking out “section 2 of the Residential Property Tax Relief
Act” and substituting “section 2 or 2.1 of the Residential Property Tax Relief Act” .
COMMENCEMENT
16 This
Act shall be deemed to have come into force on January 1, 2008.