BILL 2
An Act Respecting Property Tax Reform
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
Assessment Act
1(1) Subsection 4(1) of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is amended
(a) in paragraph (k) of the English version by striking out “and” at the end of the paragraph;
(b) in paragraph (l) by striking out the period at the end of the paragraph and substituting a semicolon followed by “and”;
(c) by adding after paragraph (l) the following:
(m) real property that is a public library as defined in section 1 of the New Brunswick Public Libraries Act if
(i) the public library is part of the public library system as defined in section 1 of the New Brunswick Public Libraries Act, or
(ii) the public library is prescribed by regulation.
1(2) Section 15 of the Assessment Act is amended by striking out “15.4” and substituting “15.4, 15.5”.
1(3) The Act is amended by adding after section 15.4 the following:
Assessment of eligible residential property in 2013 and subsequent years
15.5(1) In this section, “current year” means the year for which the assessment is made.
15.5(2) This section applies in the year 2013 and every subsequent year to real property that is assessed in the name of a person who is entitled to a credit in respect of that real property or a portion of it under section 2.1 of the Residential Property Tax Relief Act, other than a credit under subsections 2.1(3) and (7) of that Act.
15.5(3) Subject to subsections (7) and (8), the amount of the assessment on real property referred to in subsection (2) for the current year is the lesser of the value of J as calculated under subsection (4) and the value of K as calculated under subsection (5).
15.5(4) The value of J is calculated as follows:
L - M + N
where
L is the real and true value as of January 1 of the current year of the portion of the real property for which the person is entitled to a credit under section 2.1 of the Residential Property Tax Relief Act;
M is the number calculated as follows:
T - U
where
T is the real and true value of the real property as of January 1, 2012; and
U is the amount of the assessment on the real property for the year 2012; and
N is the real and true value as of January 1 of the current year of the portion of the real property for which the person is not entitled to a credit under section 2.1 of the Residential Property Tax Relief Act.
15.5(5) The value of K is calculated as follows:
[(Lp - Mp) × 1.1] + P + N
where
Lp is the real and true value as of January 1 of the year previous to the current year of the portion of the real property for which the person is entitled to a credit under section 2.1 of the Residential Property Tax Relief Act;
Mp is the number calculated as follows:
V - W
where
V is the real and true value of the real property as of January 1 of the year previous to the current year; and
W is the amount of the assessment on the real property for the year previous to the current year; and
P is the real and true value as of January 1 of the current year of any new construction on and improvements to the portion of the real property for which the person is entitled to a credit under section 2.1 of the Residential Property Tax Relief Act; and
N is the real and true value as of January 1 of the current year of the portion of the real property for which the person is not entitled to a credit under section 2.1 of the Residential Property Tax Relief Act.
15.5(6) The minimum value of J or K is $100.
15.5(7) If real property referred to in subsection (2) was transferred in the year 2012, it shall be assessed for the year 2013 at its real and true value as of January 1, 2013, except in the circumstances prescribed by regulation.
15.5(8) If real property referred to in subsection (2) is transferred in the current year, it shall be assessed for the year following the current year at its real and true value as of January 1 of the year following the current year except in the circumstances prescribed by regulation.
1(4) Section 40 of the Act is amended
(a) in subsection (1)
(i) by adding after paragraph (e.42) the following:
(e.43) prescribing public libraries for the purposes of subparagraph 4(1)(m)(ii);
(ii) by adding after paragraph (e.84) the following:
(e.85) prescribing the circumstances for the purposes of subsections 15.5(7) and (8);
(b) by adding after subsection (1.25) the following:
40(1.26) A regulation made under paragraph (1)(e.43) may be retroactive in its operation to January 1, 2013, or to any date after January 1, 2013.
40(1.27) A regulation made under paragraph (1)(e.85) may be retroactive in its operation to January 1, 2013, or to any date after January 1, 2013.
Municipalities Act
2(1) The Municipalities Act, chapter M-22 of the Revised Statutes, 1973, is amended by adding after section 27.21 the following:
Police protection
27.22(1) Notwithstanding that a local service district or any area within a local service district has not been established in accordance with this Act for the provision of a police protection service, the Minister may, without following the procedure set out in section 25, provide that service in the local service district or the area.
27.22(2) Subject to subsection (3), the Minister shall raise the money required for the provision of a police protection service in accordance with section 27.
27.22(3) The Minister may raise the following percentage of the money required for the provision of a police protection service:
(a) 25% for the year 2013;
(b) 50% for the year 2014;
(c) 75% for the year 2015; and
(d) 100% for the year 2016 and any succeeding year.
2(2) Section 190.073 of the Act is amended by adding after subsection (5.2) the following:
190.073(5.3) If a rural community has not enacted a by-law under subsection 190.079(1) authorizing it to provide a police protection service, and notwithstanding that the rural community or any area within the rural community has not been established in accordance with this Act for the provision of a police protection service by the Minister, the Minister may, without following the procedure set out in a regulation made under paragraph 190.09(1)(s), provide that service in the rural community or in any area within the rural community.
190.073(5.4) Subject to subsection (5.5), the Minister shall raise the money required for the provision of a police protection service in accordance with section 190.082.
190.073(5.5) The Minister may raise the following percentage of the money required for the provision of a police protection service:
(a) 25% for the year 2013;
(b) 50% for the year 2014;
(c) 75% for the year 2015; and
(d) 100% for the year 2016 and any succeeding year.
Real Property Tax Act
3(1) Section 5 of the Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is amended
(a) in subsection (1) in the portion preceding paragraph (a) by striking out “Subject to subsections (1.01) and (4)” and substituting “Subject to subsections (1.01) to (1.06) and (4)”;
(b) in subsection (1.01) in the portion preceding paragraph (a) by striking out “For the year 2011 and every subsequent year” and substituting “For the years 2011 and 2012”;
(c) by adding after subsection (1.01) the following:
Real property tax rates
5(1.02) For the year 2013, the rates of tax to be used in subsection (1) are:
(a) $1.3973 on each $100 valuation of real property being residential property; and
(b) $2.1035 on each $100 valuation of real property being non-residential property.
Real property tax rates
5(1.03) For the year 2014, the rates of tax to be used in subsection (1) are:
(a) $1.3373 on each $100 valuation of real property being residential property; and
(b) $2.0210 on each $100 valuation of real property being non-residential property.
Real property tax rates
5(1.04) For the year 2015, the rates of tax to be used in subsection (1) are:
(a) $1.2773 on each $100 valuation of real property being residential property; and
(b) $1.9385 on each $100 valuation of real property being non-residential property.
Real property tax rates
5(1.05) For the year 2016 and every subsequent year, the rates of tax to be used in paragraph (1)(a) are:
(a) $1.1233 on each $100 valuation of real property being residential property referred to in paragraphs (a) to (f) of the definition “residential property” in section 1 of the Assessment Act; and
(b) $1.2173 on each $100 valuation of real property being residential property referred to in paragraphs (g) to (n) of the definition “residential property” in section 1 of the Assessment Act.
Real property tax rates
5(1.06) For the year 2016 and every subsequent year, the rate of tax to be used in paragraph (1)(b) is $1.8560 on each $100 valuation of real property being non-residential property.
(d) in paragraph (4.1)(c) by striking out “subsections (4.11) to (4.4)” and substituting “subsections (4.11) to (4.41)”;
(e) in subsection (4.11) by striking out “the year 2011 and every subsequent year” and substituting “the years 2011 and 2012”;
(f) by adding after subsection (4.11) the following:
Tax rates for real property not within a municipality
5(4.12) For the year 2013, the rate of tax to be used in paragraph (4.1)(c) is $0.5765 on each $100 valuation in respect of real property referred to in subsection (4) that are in those areas of the Province not being within a municipality.
Tax rates for real property not within a municipality
5(4.13) For the year 2014, the rate of tax to be used in paragraph (4.1)(c) is $0.5215 on each $100 valuation in respect of real property referred to in subsection (4) that are in those areas of the Province not being within a municipality.
Tax rates for real property not within a municipality
5(4.14) For the year 2015, the rate of tax to be used in paragraph (4.1)(c) is $0.4665 on each $100 valuation in respect of real property referred to in subsection (4) that are in those areas of the Province not being within a municipality.
Tax rates for real property not within a municipality
5(4.15) For the year 2016 and every subsequent year, the rate of tax to be used in paragraph (4.1)(c) is $0.4115 on each $100 valuation in respect of real property referred to in subsection (4) that are in those areas of the Province not being within a municipality.
(g) by adding after subsection (4.2) the following:
Tax rates for real property not within a municipality
5(4.21) For the year 2013 and every subsequent year and despite subsection (4.2), if a rural community is responsible under subsection 3(1.1) of the Police Act for providing police services to the rural community or an area of the rural community, the rate of tax to be used in paragraph (4.1)(c) shall be $0.4115 on each $100 valuation in respect of real property situated in the rural community or any area of the rural community for which the rural community is responsible for providing the service.
(h) by adding after subsection (4.3) the following:
Tax rates for real property not within a municipality
5(4.31) For the year 2013 and every subsequent year and despite subsection (4.3), if a rural community has enacted a by-law under subsection 190.079(1) of the Municipalities Act with respect to the provision of the service of road and street maintenance, the rate under paragraph (4.1)(c) shall be reduced by $0.4115 for real property situated in the rural community.
(i) by adding after subsection (4.4) the following:
Tax rates for real property not within a municipality
5(4.41) For the year 2013 and every subsequent year and despite subsection (4.4), if a rural community is required by a regulation under paragraph 14.1(5)(f) of the Municipalities Act to provide the service of road and street maintenance to an area of a rural community, the rate under paragraph (4.1)(c) shall be reduced by $0.4115 for real property situated in that area of the rural community.
(j) in subsection (10) by striking out “paragraph 4(a)” and substituting “paragraph 4(1)(a)”;
(k) in subsection (11) by striking out “section 4” wherever it appears and substituting “paragraph 4(1)(a)”;
(l) by adding after subsection (11) the following:
Farm land identification program
5(11.1) For the purposes of subsection (11) and for the year 2013 and every subsequent year,
(a) where in a year the rate of tax fixed under paragraph 4(1)(a) for real property within a local service district 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 amount of tax that is not payable in respect of that real property for that year shall be determined by the following formula:
F - G + E
where
F is the amount of the tax imposed under paragraph (2)(c) on that real property for that year at the rate referred to in that paragraph,
G is the amount of the tax that would be imposed on that real property for that year at the average rate of tax calculated under subsection (10), and
E is the amount determined by the formula:
X × Y
where
X is 0.0600 for the year 2013, 0.1200 for the year 2014, 0.1800 for the year 2015 and 0.2400 for the year 2016 and every subsequent year, and
Y is the quotient resulting from dividing the amount of the assessment on the real property registered under the farm land identification program by $100; and
(b) where in a year the rate of tax fixed under paragraph 4(1)(a) for real property within a local service district is less than or equal to the average rate of tax for that year under subsection (10) and the real property is registered under the farm land identification program, the amount of tax that is not payable in respect of that real property for that year shall be determined by the following formula:
X × Y
where
X is 0.0600 for the year 2013, 0.1200 for the year 2014, 0.1800 for the year 2015 and 0.2400 for the year 2016 and every subsequent year, and
Y is the quotient resulting from dividing the amount of the assessment on the real property registered under the farm land identification program by $100.
(m) by adding after subsection (13) the following:
Farm land identification program
5(13.1) For the purposes of paragraph (13)(a) and for the year 2013 and every subsequent year,
(a) if the value for A is greater than the value for B under that paragraph, the amount of tax for the purposes of that paragraph shall be determined by the formula:
A - B + E
where
E is the amount determined by the formula:
X × Y
where
X is 0.0600 for the year 2013, 0.1200 for the year 2014, 0.1800 for the year 2015 and 0.2400 for the year 2016 and every subsequent year, and
Y is the quotient resulting from dividing the amount of the assessment on the real property registered under the farm land identification program by $100; and
(b) if the value for A is less than or equal to the value for B under that paragraph, the amount of the tax for the purposes of that paragraph shall be determined by the formula:
X × Y
where
X is 0.0600 for the year 2013, 0.1200 for the year 2014, 0.1800 for the year 2015 and 0.2400 for the year 2016 and every subsequent year, and
Y is the quotient resulting from dividing the amount of the assessment on the real property registered under the farm land identification program by $100.
Farm land identification program
5(13.2) For the purposes of paragraph (13)(b) and for the year 2013 and every subsequent year,
(a) if the value for C is greater than the value for D under that paragraph, the amount of tax for the purposes of that paragraph shall be determined by the formula:
C - D + E
where
E is the amount determined by the formula:
X × Y
where
X is 0.0600 for the year 2013, 0.1200 for the year 2014, 0.1800 for the year 2015 and 0.2400 for the year 2016 and every subsequent year, and
Y is the quotient resulting from dividing the amount of the assessment on the real property registered under the farm land identification program by $100; and
(b) if the value for C is less than or equal to the value for D under that paragraph, the amount of the tax for the purposes of that paragraph shall be determined by the formula:
X × Y
where
X is 0.0600 for the year 2013, 0.1200 for the year 2014, 0.1800 for the year 2015 and 0.2400 for the year 2016 and every subsequent year, and
Y is the quotient resulting from dividing the amount of the assessment on the real property registered under the farm land identification program by $100.
(n) in subsection (14) by striking out “subsection (13)” and substituting “subsections (13), (13.1) and (13.2)”;
(o) in subsection (15) by striking out “subsection (13)” and substituting “subsection (13), (13.1) or (13.2)”;
(p) in subsection (16) by striking out “subsection (13)” and substituting “subsection (13), (13.1) or (13.2)”;
(q) in subsection (17) by striking out “subsection (13)” and substituting “subsection (13), (13.1) or (13.2)”;
(r) in subsection (18) by striking out “Subsection (13)” and substituting “Subsection (13), (13.1) or (13.2)”;
(s) in subsection (19) by striking out “Subsection (13)” and substituting “Subsection (13), (13.1) or (13.2)”.
3(2) The Act is amended by adding after section 10 the following:
Equalized payment plan
10.1(1) Despite section 10, a person in whose name real property is assessed who wishes to pay the amount of the taxes on the real property in 12 equal monthly payments and who meets the following criteria may, on a form provided by the Minister and in accordance with the regulations, apply to the Minister to be registered under the equalized payment plan:
(a) the person is entitled to a credit in respect of the real property or a portion of it under section 2.1 of the Residential Property Tax Relief Act, other than a credit under subsections 2.1(3) and (7) of that Act;
(b) at the time of the application, the person does not owe any tax arrears on the real property for the year preceding the year for which registration is sought;
(c) the person is registered for direct withdrawal from a chequing account in a Canadian financial institution; and
(d) any other criteria prescribed by regulation.
10.1(2) The Minister shall determine that a person meets the criteria referred to in subsection (1) if the Minister is satisfied, based on any information the Minister considers relevant, that the person meets those criteria.
10.1(3) The monthly payments shall be withdrawn on the dates selected by the person referred to in subsection (1) unless that person is deregistered under subsection (6).
10.1(4) Despite subsections (1) and (3), if an application is received by the Minister after the assessment and tax notice for the real property has been mailed to the person referred to in subsection (1), the amount of the initial payment shall be the sum of the payments due before the application is processed.
10.1(5) The provisions in this Act and the regulations under this Act relating to penalties do not apply while the person referred to in subsection (1) is registered under the equalized payment plan.
10.1(6) The person referred to in subsection (1) shall be deregistered from the equalized payment plan if any of the following occurs:
(a) he or she no longer meets the criteria referred to in paragraph (1)(a);
(b) he or she fails to make two consecutive monthly payments;
(c) he or she applies to the Minister to be deregistered;
(d) he or she transfers the real property except in the circumstances prescribed by regulation; or
(e) any other circumstances prescribed by regulation.
10.1(7) On deregistration, the amount of taxes remaining unpaid under this section is due and payable immediately and the provisions in this Act and the regulations under this Act relating to penalties apply on the first day of the month following the month in which deregistration occurred.
10.1(8) A determination or decision of the Minister under this section is final and may not be questioned or reviewed in any court.
3(3) Subsection 20(5.1) of the Act is amended
(a) in paragraph (a.1) by striking out “and” at the end of the paragraph;
(b) in paragraph (b) by striking out the period at the end of the paragraph and substituting “, and”;
(c) by adding after paragraph (b) the following the following:
(c) the person in whose name the real property is assessed is registered under section 10.1.
3(4) Subsection 20.1(6) of the Act is amended
(a) in paragraph (a) by striking out “and” at the end of the paragraph;
(b) in paragraph (b) by striking out the period at the end of the paragraph and substituting “, and”;
(c) by adding after paragraph (b) the following the following:
(c) the person in whose name the real property is assessed is registered under section 10.1.
3(5) Section 26 of the Act is amended
(a) in subsection (1) by adding after paragraph (f.1) the following:
(f.2) respecting the application for the purposes of subsection 10.1(1);
(f.3) prescribing the criteria for the purposes of paragraph 10.1(1)(d);
(f.4) prescribing the circumstances for the purposes of paragraph 10.1(6)(d);
(f.5) prescribing the circumstances for the purposes of paragraph 10.1(6)(e);
(b) by adding after subsection (2) the following:
26(3) Regulations made under paragraphs (1)(f.2) to (f.5) may be made retroactive to January 1, 2013, or to any date after that date.
Residential Property Tax Relief Act
4 Section 3 of the Residential Property Tax Relief Act , chapter R-10 of the Revised Statutes, 1973, is repealed.
5 This Act comes into force on January 1, 2013.