Bill 2 - An Act to Repeal An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal

BILL 2

An Act to Repeal An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal

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

1 An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal, chapter T-0.2 of the Acts of New Brunswick, 2005, is repealed.

2 New Brunswick Regulation 2006-12 under An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal is repealed.

TRANSITIONAL PROVISIONS

3( 1) The following definitions apply in this section and sections 4 and 5.

“LNG Terminal” means the LNG Terminal as defined in section 1 of An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal and described in Schedule A of the General Regulation – An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal, as they existed immediately before the coming into force of this section. (terminal de GNL)

“municipal tax” means the tax imposed under paragraph 5(2)(a) of the Real Property Tax Act. (impôt municipal)

3( 2) For greater certainty, but subject to this section and sections 4 and 5, the Real Property Tax Act, the Assessment Act and the Municipalities Act apply with respect to the assessment and taxation of the LNG Terminal after the coming into force of this section.

3( 3) No action, application or other proceeding lies or shall be instituted against the Crown in right of the Province as a result of the repeal of An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal.

4( 1) From January 1, 2017, to December 31, 2030, both dates inclusive, for the purposes of the calculation of the community funding and equalization grant referred to in the Community Funding Act and for the purpose of the payments made under paragraph 8(b) of the Community Funding Act, the LNG Terminal shall be deemed to be assessed for a particular taxation year at a value that will realize $500,000 as the amount of municipal tax for that year until any review or appeal of an assessment of the LNG Terminal, as assessed after the coming into force of this section, has been finally determined or the time for review or appeal of the assessment has expired.

4( 2) From January 1, 2017, to December 31, 2030, both dates inclusive, if, after any review or appeal of an assessment of the LNG Terminal, as assessed after the coming into force of this section, has been finally determined or the time for review or appeal has expired, the assessed value of the LNG Terminal for a particular taxation year is assessed at a value that will realize as the amount of municipal tax for that year an amount that is less than $500,000, The City of Saint John shall pay to the Province an amount equal to the difference between those two amounts.

5( 1) From January 1, 2017, to December 31, 2030, both dates inclusive, where the Minister of Finance collects municipal tax with respect to the LNG Terminal, the Minister of Finance shall retain the difference, if any, between the amount collected and $500,000.

5( 2) Subject to subsections (3) and (4), when any review or appeal of an assessment of the LNG Terminal for a particular taxation year, as assessed after the coming into force of this section, has been finally determined or the time for review or appeal has expired, the Minister of Environment and Local Government may recommend to the Minister of Finance to pay, on a proportional basis, the amount retained under subsection (1), including interest at a rate in accordance with subsection 8(2) of the General Regulation – Financial Administration Act, to The City of Saint John and the communities that received the equalization component of the community funding and equalization grant referred to in the Community Funding Act for that year.

5( 3) The cost of property assessment services performed by Service New Brunswick under section 24 of the Service New Brunswick Act in respect to the LNG Terminal for a particular taxation year shall be determined with reference to the assessed value of the LNG Terminal, as assessed after the coming into force of this section, and shall be deducted from the amount retained under subsection (1) and payable by the Minister of Finance to Service New Brunswick for the provision of those services less the amount payable by The City of Saint John on an assessed value of the LNG terminal for a particular taxation year that will realize $500,000 as the amount of municipal tax for that year.

5( 4) If, after a review or appeal of an assessment of the LNG Terminal for a particular taxation year, as assessed after the coming into force of this section, an amount is payable to the owners of the LNG Terminal, that amount shall be deducted from the amount retained under subsection (1).

CONSEQUENTIAL AMENDMENTS

Assessment Act

6 Section 15 of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is amended by striking out “and to subsection 3(1) of An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal”.

Real Property Tax Act

7 Subsection 23(2) of the Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is repealed.