BILL 45

An Act to Amend the Real Property Tax Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 4 of the Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is amended

(a)  by renumbering the section as subsection 4(1);

(b)  by adding after subsection (1) the following:

4(2) For the year 2010 or any subsequent year, the rate to be used in subsection (1) shall be the rate determined under subsection 5.01(2) or fixed under paragraph 5.01(3)(e), as the case may be.

2 Section 5 of the Act is amended by adding after subsection (4.4) the following:

5(4.5) Despite paragraphs (1)(a) and (b) and subsections (2.01) and (4.1), the rates determined under subsection 5.01(2) shall be used for the year 2010 or any subsequent year instead of the rates referred to in paragraphs (1)(a) and (b) and subsections (2.01) and (4.1).

5(4.6) If paragraph 5.01(3)(a) applies for a particular year, the rates referred to in paragraph 5.01(5)(f) for the previous year shall be used for that particular year instead of the rates referred to in paragraphs (1)(a) and (b) and subsections (2.01) and (4.1).

3 The Act is amended by adding after section 5 the following:

Accountability for real property tax rates and other rates

5.01(1) The following definitions apply in this section.

“assessment base” means the local service district tax base, the municipal tax base, the rural community tax base or the provincial tax base, as the case may be. (assiette fiscale)

“local service district tax base” means a local service district tax base as defined in the Municipalities Act and adjusted in accordance with subsection 5(4) of the Municipal Assistance Act. (assiette fiscale de district de services locaux)

“municipal tax base” means a municipal tax base as defined in the Municipalities Act and adjusted in accordance with subsection 87(2.2) of that Act. (assiette fiscale municipale)

“provincial tax base” means the amount that is the sum of the following: (assiette fiscale provinciale)

(a)  the total assessed value of all real property liable to taxation under the Assessment Act, excluding

(i) real property owned by the Crown in right of New Brunswick,

(ii) real property referred to in paragraph (b.1) of the definition “real property” in section 1 of the Assessment Act, and

(iii) real property that is exempt from taxation under subsections 4(4), (5), (6), (8) and (9) and section 4.1 of the Assessment Act, and

(b)  the assessed value of real property owned by the Crown in right of Canada.

“rate” means a rate of tax referred to in section 4, paragraph 5(1)(a) or (b) or subsection 5(2.01) or (4.1) of this Act, the rate of tax referred to in subparagraph 19(9)(c)(iii) or paragraph 27.01(1)(c), 87(2)(c) or 190.081(2)(c) of the Municipalities Act, the tax rates referred to in paragraph 32(4)(c) of the Edmundston Act, 1998, the rate of the levy referred to in subsection 3(2) of the Business Improvement Areas Act, the rate of the residential tenancy administration fee referred to in subsection 8.2(3) of The Residential Tenancies Act or the rate that determines the amounts referred to in paragraphs 15.1(2)(a) and (b) of the Service New Brunswick Act, as the case may be. (taux)

“rural community tax base” means a rural community tax base as defined in the Municipalities Act and adjusted in accordance with subsection 190.081(5) of that Act. (assiette fiscale de la communauté rurale)

5.01(2) For the purpose of determining the rates to be used for the year 2010 or any subsequent year, each rate shall be adjusted so that the rate to be used for the year is the amount determined by the formula

A × C/B

where

A is the rate for the previous year;

B is the value of the assessment base for the current year; and

C is the sum of the value of the assessment base for the previous year, the value of new construction for the current year and the amount determined by the formula

D × E

where

D is the value of the assessment base for the previous year; and

E is the Consumer Price Index for Canada for the 12 month period that ended on September 30 in the previous year.

5.01(3) Subsection (2) does not apply if

(a)  the value for B is less than or equal to the value for C,

(b)  a municipality adopts for the year another rate at which the amount referred to in subparagraph 19(9)(c)(ii) or paragraph 87(2)(b) of the Municipalities Act is to be raised,

(c)  the city of Edmundston adopts for the year other tax rates at which the amount referred to in paragraph 32(4)(b) of the Edmundston Act, 1998 is to be raised,

(d)  a rural community adopts for the year another rate at which the amount referred to in subparagraph 19(9)(c)(ii) or paragraph 190.081(2)(b) of the Municipalities Act is to be raised,

(e)  the Minister of Local Government fixes another rate for the year for the purposes of section 4 of this Act or fixes for the year another rate at which the amount referred to in paragraph 27.01(1)(b) of the Municipalities Act is to be raised,

(f)  a municipal council or rural community council fixes for the year another rate for the levy on non-residential property imposed under subsection 3(1) of the Business Improvement Areas Act, or

(g)  Service New Brunswick, with the approval of the Board of Management, fixes for the year another rate that determines the amounts referred to in paragraphs 15.1(2)(a) and (b) of the Service New Brunswick Act.

5.01(4) On or before the date fixed by regulation, the Minister shall file with the Clerk of the Legislative Assembly a report that contains every rate determined under subsection (2) for the year.

5.01(5) On or before the date fixed by regulation, the Minister shall file with the Clerk of the Legislative Assembly a report that contains the following information for the year:

(a)  every rate fixed under subparagraph 19(9)(c)(iii) and paragraph 87(2)(c) of the Municipalities Act;

(b)  the tax rates fixed under paragraph 32(4)(c) of the Edmundston Act, 1998;

(c)  every rate fixed under subparagraph 19(9)(c)(iii) and paragraph 190.081(2)(c) of the Municipalities Act;

(d)  every rate fixed under section 4;

(e)  every rate fixed under paragraph 27.01(1)(c) of the Municipalities Act;

(f)  the rates determined under subsection (2) or any amended rates, that replace the rates referred to in paragraphs 5(1)(a) and (b) and subsections 5(2.01) and (4.1);

(g)  the rates fixed under subsection 3(2) of the Business Improvement Areas Act;

(h)  the rate determined under subsection (2) or any amended rate, that replaces the rate referred to in subsection 8.2(3) of The Residential Tenancies Act; and

(i)  the rate that determines the amounts referred to in paragraphs 15.1(2)(a) and (b) of the Service New Brunswick Act.

4 Section 26 of the Act is amended by adding after paragraph (b) the following:

(b.1)  for the purposes of section 5.01, respecting the calculation of the value of new construction in municipalities, local service districts, rural communities and business improvement areas;

CONSEQUENTIAL AMENDMENTS

Amendments to the Business Improvement Areas Act

5 Section 3 of the Business Improvement Areas Act, chapter B-10.2 of the Acts of New Brunswick, 1985, is amended

(a)  in subsection (2) by striking out “A levy” and substituting “Subject to subsection (2.1), a levy”;

(b)  by adding after subsection (2) the following:

3(2.1) For the year 2010 or any subsequent year, the rate to be used in subsection (2) shall be the rate determined under subsection 5.01(2) of the Real Property Tax Act or fixed under paragraph 5.01(3)(f) of that Act, as the case may be, and the rate shall not exceed twenty cents for each one hundred dollars of assessed value.

Amendments to the Edmundston Act, 1998

6 Section 32 of the Edmundston Act, 1998, chapter E-1.111 of the Acts of New Brunswick, 1998, is amended

(a)  in paragraph (4)(c) by striking out “subject to subsection” and substituting “subject to subsections (4.1) and”;

(b)  by adding after subsection (4) the following:

32(4.1) For the year 2010 or any subsequent year, the rates to be used in paragraph (4)(c) shall be the rates determined under subsection 5.01(2) of the Real Property Tax Act or adopted under paragraph 5.01(3)(c) of that Act, as the case may be.

Amendments to the Municipalities Act

7(1) Section 19 of the Municipalities Act, chapter M-22 of the Revised Statutes, 1973, is amended

(a)  in subparagraph (9)(c)(iii) by adding “subject to subsection (9.01),” before “the rate”;

(b)  by adding after subsection (9) the following:

19(9.01) For the year 2010 or any subsequent year, the rate to be used in subparagraph (9)(c)(iii) shall be the rate determined under subsection 5.01(2) of the Real Property Tax Act or adopted under paragraph 5.01(3)(b) of that Act, as the case may be.

7(2) Section 27.01 of the Act is amended

(a)  in paragraph (1)(c) by adding “subject to subsection (3),” before “fix”;

(b)  by adding after subsection (2) the following:

27.01(3) For the year 2010 or any subsequent year, the rate to be used in paragraph (1)(c) shall be the rate determined under subsection 5.01(2) of the Real Property Tax Act or fixed under paragraph 5.01(3)(e) of that Act, as the case may be.

7(3) Section 87 of the Act is amended

(a)  in paragraph (2)(c) by adding “subject to subsection (2.001),” before “the rate”;

(b)  by adding after subsection (2) the following:

87(2.001) For the year 2010 or any subsequent year, the rate to be used in paragraph (2)(c) shall be the rate determined under subsection 5.01(2) of the Real Property Tax Act or adopted under paragraph 5.01(3)(b) of that Act, as the case may be.

7(4) Section 190.081 of the Act is amended

(a)  in paragraph (2)(c) by adding “subject to subsection (2.1),” before “the rate”;

(b)  by adding after subsection (2) the following:

190.081(2.1) For the year 2010 or any subsequent year, the rate to be used in paragraph (2)(c) shall be the rate determined under subsection 5.01(2) of the Real Property Tax Act or adopted under paragraph 5.01(3)(d) of that Act, as the case may be.

Amendment to Regulation under The Residential Tenancies Act

8 Section 9.1 of New Brunswick Regulation 82-218 under The Residential Tenancies Act is repealed and the following is substituted:

9.1(1) Subject to subsections (2) and (3), the rate of the residential tenancy administration fee is 0.05%.

9.1(2) For the year 2010 or any subsequent year, the rate to be used in subsection (1) shall be the rate determined under subsection 5.01(2) of the Real Property Tax Act.

9.1(3) If paragraph 5.01(3)(a) of the Real Property Tax Act applies for a particular year, the rate to be used in subsection (1) for that particular year shall be the rate referred to in paragraph 5.01(5)(h) of that Act for the previous year.

Amendments to the Service New Brunswick Act

9 Section 15.1 of the Service New Brunswick Act, chapter S-6.2 of the Acts of New Brunswick, 1989, is amended

(a)  in subsection (2) in the portion preceding paragraph (a) by striking out “The Corporation” and substituting “Subject to subsection (2.1), the Corporation”;

(b)  by adding after subsection (2) the following:

15.1(2.1) For the year 2010 or any subsequent year, the rate that determines the amounts referred to in paragraphs (2)(a) and (b) shall be the rate determined under subsection 5.01(2) of the Real Property Tax Act or fixed under paragraph 5.01(3)(g) of that Act, as the case may be.