Bill 18 - An Act to Amend the Real Property Tax Act

BILL 18

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

(a) in subsection (2)

(i) in paragraph (a.1) by striking out “and” at the end of the paragraph;

(ii) in paragraph (c) by striking out the period at the end of the paragraph and substituting “; and”;

(iii) by adding after paragraph (c) the following:

(d) each year there shall be a tax on all real property within a rural community under the Municipalities Act, at the rate fixed under section 4 for that rural community on all residential property and at one and one-half times that rate on all non-residential property.

(b) by repealing subsection (13) and substituting the following:

5(13) Despite paragraphs (2)(a), (a.1) and (d),

(a) where in a year the rate of tax referred to in paragraph (2)(a) for real property located in a municipality exceeds the average rate of tax for that year under subsection (10) and the real property is registered under the farm land identification program, the Minister of Agriculture and Aquaculture may pay for that year on behalf of the person in whose name the real property is assessed the amount of tax determined by the formula

A − B

where

A is the tax imposed under paragraph (2)(a) on that real property for that year calculated at the rate referred to in paragraph (2)(a), and

B is the tax that would be imposed on that real property for that year if the tax were calculated based on the average rate under subsection (10); and

(b) where in a year the total of the rates of tax referred to in paragraphs (2)(a.1) and (d) for real property located in a rural community exceeds the average rate of tax for that year under subsection (10) and the real property is registered under the farm land identification program, the Minister of Agriculture and Aquaculture may pay for that year on behalf of the person in whose name the real property is assessed the amount of tax determined by the formula

C − D

where

C is the total of the taxes imposed under paragraphs (2)(a.1) and (d) on that real property for that year calculated at the rates referred to in paragraphs (2)(a.1) and (d), and

D is the tax that would be imposed on that real property for that year if the tax were calculated based on the average rate under subsection (10).

Farm land identification program

5(19) Subsection (13) does not apply where the rural community in which the real property is located collects the tax under subsection 6(4).

2 Section 5.01 of the Act is amended

(a) in subsection (1) in the definition “rate” by striking out “paragraph 27.01(1)(c), 87(2)(c) or 190.081(2)(c) of the Municipalities Act” and substituting “paragraph 27.01(1)(c), 87(2)(c), 190.081(2)(c) or 190.082(5)(d) of the Municipalities Act”;

(b) in paragraph (3)(e) by striking out “paragraph 27.01(1)(b) of the Municipalities Act” and substituting “paragraph 27.01(1)(b) or 190.082(5)(b) of the Municipalities Act”;

(c) in paragraph (5)(e) by striking out “paragraph 27.01(1)(c) of the Municipalities Act” and substituting “paragraph 27.01(1)(c) or 190.082(5)(d) of the Municipalities Act”.

3 The Act is amended by adding after section 8.1 the following:

Penalties on rural community tax

8.11 Where any penalties are payable under this Act with respect to the tax imposed by a rural community under paragraph 5(2)(a.1), such penalties are due and owing to that rural community.

4 Section 8.2 of the Act is repealed and the following is substituted:

Collection of penalties by Minister

8.2 Subject to subsections 6(2) and (4), the Minister shall collect any penalties payable under this Act and, where such penalties are payable with respect to the tax imposed by a municipality under paragraph 5(2)(a) or the tax imposed by a rural community under paragraph 5(2)(a.1), the Minister shall collect such penalties for and on behalf of the municipality or rural community, as the case may be.

5 Section 10 of the Act is amended

(a) in subsection (1) by striking out “subsection 6(2)” and substituting “subsections 6(2) and (4)”;

(b) in subsection (5) by striking out “including the tax imposed by a municipality under paragraph 5(2)(a) and the penalty on such tax” and substituting “including the tax imposed by a municipality under paragraph 5(2)(a) and the tax imposed by a rural community under paragraph 5(2)(a.1) and the penalties on such taxes”.

6 Section 11 of the Act is amended

(a) in subsection (1) by striking out “paragraph 5(2)(a)” and substituting “paragraphs 5(2)(a) and (a.1)”;

(b) by adding after subsection (1.1) the following:

Liens

11(1.2) Subsection (1.1) applies with the necessary modifications to the tax imposed by a rural community under paragraph 5(2)(a.1).

(c) in subsection (2) in the portion preceding paragraph (a) by striking out “subsections (1), (1.01) and (1.1)” and substituting “subsections (1), (1.01), (1.1) and (1.2)”;

(d) in subsection (2.1) in the portion preceding paragraph (a) by striking out “subsections (1), (1.01) and (1.1)” and substituting “subsections (1), (1.01), (1.1) and (1.2)”;

(e) in subsection (3) by striking out “subsection (1.1)” and substituting “subsection (1.1) or (1.2)”.

7 Section 11.1 of the Act is amended by adding after subsection (4) the following:

11.1(4.1) Subsection (4) applies with the necessary modifications to real property located in a rural community.

8 Section 12 of the Act is amended

(a) by repealing subsection (1);

(b) by repealing subsection (1.001);

(d) in subsection (1.02) by striking out “subsection (1)” and substituting “subsection (2)”;

(e) by repealing subsection (1.03);

(f) by repealing subsection (1.04);

(g) by repealing subsection (1.05);

(h) by repealing subsection (1.06);

(i) in subsection (1.1) by striking out “the notice under subsection (1) or (1.001), whichever is the later” and substituting “the notice under subsection (2)”;

(j) by repealing subsection (2) and substituting the following:

Notice of sale

12(2) Subject to subsection (20), where taxes or penalties on real property are due and unpaid on the first day of January in the year following the year in which the taxes were imposed, the Minister shall, on or after that date, mail a notice to the following persons stating that the real property will be sold in accordance with the regulations:

(a) the person in whose name the real property is assessed; and

(b) the owner of the real property, if the real property was assessed under subsection 14(7.3) of the Assessment Act.

(k) in subsection (2.1) of the French version by striking out “par courrier” and substituting “par la poste”;

(l) in subsection (2.2) of the French version by striking out “par courrier” and substituting “par la poste”;

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

Publication of notice of sale

12(4.001) The Minister may publish on the website of the Department of Finance a notice of the sale of real property.

(n) in subsection (4.01)

(i) by striking out “subsection (1)” and substituting “subsection (2)”;

(ii) by striking out “subsections (1), (2) and (3)” and substituting “subsections (2) and (3)”;

(o) in subsection (4.1) by striking out “subsections 11(1), (1.01) and (1.1)” and substituting “subsections 11(1), (1.01), (1.1) and (1.2)”;

(p) in subsection (4.3) by striking out “subsections (1), (2) and (3)” and substituting “subsections (2) and (3)”;

(q) in subsection (5.6)

(i) by repealing paragraph (a) and substituting the following:

(a) the costs associated with the tax sale proceedings;

(ii) by repealing paragraph (b) and substituting the following:

(b) subject to subsection (20), all taxes and penalties due and unpaid,

(r) in subsection (11)

(i) by repealing paragraph (a) and substituting the following:

(a) first, in payment of the costs associated with the tax sale proceedings;

(ii) by repealing subparagraph (b)(i) and substituting the following:

(i) subject to subsection (20), tax arrears and penalties,

(s) by adding after subsection (19) the following:

Exception where tax imposed and collected by municipality or rural community

12(20) Subsection (2), paragraph (5.6)(b) and subparagraph (11)(b)(i) do not apply to the tax imposed by a municipality under paragraph 5(2)(a) or the tax imposed by a rural community under paragraph 5(2)(a.1) and the penalties on such taxes unless the Minister approved a request by the municipality or rural community under section 12.1 or 12.2, as the case may be, before a tax sale proceeding was instituted under this section.

9 The Act is amended by adding after section 12.1 the following:

Section 12 not applicable to rural community tax and penalties collected by a rural community

12.2 Section 12.1 applies with the necessary modifications to a rural community.

10 Section 13 of the Act is amended

(a) by repealing paragraph (2)(c) and substituting the following:

(b) in subsection (3.2) of the French version by striking out “Un avis expédié à un requérant par courrier par le Ministre” and substituting “L’avis que le Ministre expédie par la poste à un requérant”;

(d) by repealing paragraph (4)(c) and substituting the following:

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

Exception where tax imposed and collected by municipality or rural community

13(10) Paragraphs (2)(c) and (4)(c) do not apply to the tax imposed by a municipality under paragraph 5(2)(a) or the tax imposed by a rural community under paragraph 5(2)(a.1) and the penalties on such taxes unless the Minister approved a request by the municipality or rural community under section 12.1 or 12.2, as the case may be, before a tax sale proceeding was instituted under section 12.

11 Section 14 of the Act is amended by adding after subsection (4) the following:

Effect of delivery of deed to purchaser

14(4.01) Despite subsection (3), the lien constituted under subsection 11(1.1) or (1.2), as the case may be, continues to be a second charge on the real property with respect to taxes imposed in the year in which the sale is held.

12 Section 14.1 of the Act is amended

(a) by repealing paragraph (3)(c) and substituting the following:

(b) by adding after subsection (3) the following:

14.1(3.1) Paragraph (3)(c) does not apply to the tax imposed by a municipality under paragraph 5(2)(a) or the tax imposed by a rural community under paragraph 5(2)(a.1) and the penalties on such taxes unless the Minister approved a request by the municipality or rural community under section 12.1 or 12.2, as the case may be, before a tax sale proceeding was instituted under section 12.

13 Section 15 of the Act is amended by striking out “subsections 11(1), (1.01) and (1.1)” and substituting “subsections 11(1), (1.01), (1.1) and (1.2)”.

14 Section 16 of the Act is amended

(a) in paragraph (1)(a)

(i) by repealing subparagraph (i) and substituting the following:

(i) the costs associated with the tax sale proceedings,

(ii) by repealing subparagraph (ii) and substituting the following:

(ii) subject to subsection (3), all tax arrears on the real property and penalties payable under subsection 10(3), and

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

16(3) Subparagraph (1)(a)(ii) does not apply to the tax imposed by a municipality under paragraph 5(2)(a) or the tax imposed by a rural community under paragraph 5(2)(a.1) and the penalties on such taxes unless the Minister approved a request by the municipality or rural community under section 12.1 or 12.2, as the case may be, before a tax sale proceeding was instituted under section 12.

15 Paragraph 19(1)(a) of the Act is repealed and the following is substituted:

(a) at the date of the certificate, the total of

(i) the taxes and penalties upon real property owing to the Province,

(ii) the taxes and penalties upon real property owing to a municipality if the Minister collects them for and on behalf of the municipality, and

(iii) the taxes and penalties upon real property owing to a rural community if the Minister collects them for and on behalf of the rural community, and

16 The Act is amended by adding after section 19.1 the following:

Issuance of tax certificate by a rural community that collects tax and penalties under subsection 6(4)

19.2 Section 19.1 applies with the necessary modifications to a rural community.

17 Section 20 of the Act is amended by adding after subsection (1) the following:

Insurance policy

20(1.1) For the purposes of subsection (1), if real property is located in a rural community, the references to “municipality” and “paragraph 5(2)(a)” in subsection (1) shall be read as references to “rural community” and “paragraph 5(2)(a.1)”, respectively.

18 The Act is amended by adding after section 20.1 the following:

Payment by insurer to a rural community that collects tax and penalties under subsection 6(4)

20.2 Section 20.1 applies with the necessary modifications to real property located in a rural community that collects tax and penalties under subsection 6(4).

19 The Act is amended by adding after section 21.1 the following:

Tax adjustments and rebate of rural community tax

21.2 Section 21.1 applies with the necessary modifications to a rural community.

20 Section 22 of the Act is amended by striking out “subsection 6(2)” and substituting “subsections 6(2) and (4)”.

21 Subsection 23(1) of the Act is amended by adding “or rural community” after “municipality”.

22 Section 25 of the Act is amended by adding “, subsection 20.1(2) or (4) as adopted by section 20.2,” after “20.1(2) or (4)”.

23 Section 26 of the Act is amended

(a) by adding after paragraph (a) the following:

(a.01) respecting the manner in which a rural community may collect tax and penalties under subsection 6(4);

(b) in paragraph (h) by striking out “prescribing” and substituting “respecting”.

TRANSITIONAL PROVISIONS

24 Nothing in paragraphs 8(a) to (h) of this Act affects a proceeding to sell real property instituted under subsection 12(3) of the Real Property Tax Act before the commencement of paragraphs 8(a) to (h).

CONSEQUENTIAL AMENDMENTS

Municipalities Act

25 Section 190.082 of the Municipalities Act, chapter M-22 of the Revised Statutes, 1973, is amended

(a) in paragraph (5)(d) by adding “subject to subsection (6),” before “fix”;

(b) by adding after subsection (5) the following:

190.082(6) For the year 2010 or any subsequent year, the rate to be used in paragraph (5)(d) 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.

COMMENCEMENT

26(1) Paragraph 1(a) of this Act shall be deemed to have come into force on July 15, 2005.

26(2) Sections 2 and 25 of this Act shall be deemed to have come into force on June 19, 2009

Chapter Outline Update

8(a) - (c), (e) - (h)

Strike out the entry for s.12(1) -12(1.06) and substitute the following:

Repealed12(1), (1.001), (1.01), (1.03) - (1.06)

8(d)

Add the following to the Chapter Outline

Penalties to be added before notice of sale sent12(1.02)

Strike out the entry for s.23 and substitute the following:

Limitation on municipality and rural community23