ontario regulation 315/08
made under the
education act
Made: September 10, 2008
Filed: September 11, 2008
Published on e-Laws: September 12, 2008
Printed in The Ontario Gazette: September 27, 2008
Amending O. Reg. 400/98
(Tax Matters — Tax Rates for School Purposes)
1. (1) Subsection 9 (1.1) of Ontario Regulation 400/98 is amended by adding the following definition:
“new construction property classes” means the property classes described in section 15;
(2) Section 9 of the Regulation is amended by adding the following subsection:
(8) For 2007, the annual tax rate for school purposes for the purposes of section 257.7 of the Act for the new construction property classes is the lesser of 0.0160000 and the rate, if any, that applied to the property under this Regulation as it read on April 20, 2008.
(3) Subsection 9 (8.1) of the Regulation is amended by adding the following paragraph:
4. Despite paragraphs 1 and 3, the annual tax rate for the new construction property classes is the lesser of 0.0160000 and the rate, if any, that would otherwise apply under paragraph 1 or 3.
(4) Subsection 9 (8.2) of the Regulation is amended by adding the following paragraph:
6. Despite paragraphs 1, 2 and 5, the annual tax rate for the new construction property classes is the lesser of 0.0160000 and the rate, if any, that would otherwise apply under paragraphs 1, 2 or 5.
(5) Subsection 9 (8.3) of the Regulation is amended by adding the following paragraph:
3. Despite paragraphs 1 and 2, the annual tax rate for the new construction property classes is the lesser of 0.0160000 and the rate, if any, that would otherwise apply under paragraph 1 or 2.
2. The Regulation is amended by adding the following sections:
New Construction Property Classes
15. (1) In this section, the last revised assessment roll means the last revised assessment roll within the meaning of subsection 37 (1) of the Assessment Act.
(2) For the purposes of section 9, the following new construction property classes are prescribed:
1. The commercial (new construction) property class consists of land that would otherwise be in the commercial property class and with respect to which all of the following requirements are satisfied:
i. Improvements to the land have been made pursuant to a building permit issued under section 8 of the
Building Code Act, 1992, if an application for the building permit was made after March 22, 2007 and if the construction of the improvements was first authorized by that building permit.
ii. The improvements consist of one or more new buildings or structures erected on the land or of additions or renovations to existing buildings or structures on the land.
iii. The improvements result in an increase in the assessment of the land that is equal to or greater than 50 per cent of the assessment as set out on the last revised assessment roll before the change.
2. The industrial (new construction) property class consists of land that would otherwise be in the industrial property class and with respect to which all of the following requirements are satisfied:
i. Improvements to the land have been made pursuant to a building permit issued under section 8 of the
Building Code Act, 1992, if an application for the building permit was made after March 22, 2007 and if the construction of the improvements was first authorized by that building permit.
ii. The improvements consist of one or more new buildings or structures erected on the land or of additions or renovations to existing buildings or structures on the land.
iii. The improvements result in an increase in the assessment of the land that is equal to or greater than 50 per cent of the assessment as set out on the last revised assessment roll before the change.
3. The office building (new construction) property class consists of land that would otherwise be in the office building property class and with respect to which all of the following requirements are satisfied:
i. Improvements to the land have been made pursuant to a building permit issued under section 8 of the
Building Code Act, 1992, if an application for the building permit was made after March 22, 2007 and if the construction of the improvements was first authorized by that building permit.
ii. The improvements consist of one or more new buildings or structures erected on the land or of additions or renovations to existing buildings or structures on the land.
iii. The improvements result in an increase in the assessment of the land that is equal to or greater than 50 per cent of the assessment as set out on the last revised assessment roll before the change.
4. The shopping centre (new construction) property class consists of land that would otherwise be in the shopping centre property class and with respect to which all of the following requirements are satisfied:
i. Improvements to the land have been made pursuant to a building permit issued under section 8 of the
Building Code Act, 1992, if an application for the building permit was made after March 22, 2007 and if the construction of the improvements was first authorized by that building permit.
ii. The improvements consist of one or more new buildings or structures erected on the land or of additions or renovations to existing buildings or structures on the land.
iii. The improvements result in an increase in the assessment of the land that is equal to or greater than 50 per cent of the assessment as set out on the last revised assessment roll before the change.
5. The residual commercial (new construction) property class consists of land that would otherwise be in the residual commercial property class and with respect to which all of the following requirements are satisfied:
i. Improvements to the land have been made pursuant to a building permit issued under section 8 of the
Building Code Act, 1992, if an application for the building permit was made after March 22, 2007 and if the construction of the improvements was first authorized by that building permit.
ii. The improvements consist of one or more new buildings or structures erected on the land or of additions or renovations to existing buildings or structures on the land.
iii. The improvements result in an increase in the assessment of the land that is equal to or greater than 50 per cent of the assessment as set out on the last revised assessment roll before the change.
6. The large industrial (new construction) property class consists of land that would otherwise be in the large industrial property class and with respect to which all of the following requirements are satisfied:
i. Improvements to the land have been made pursuant to a building permit issued under section 8 of the
Building Code Act, 1992, if an application for the building permit was made after March 22, 2007 and if the construction of the improvements was first authorized by that building permit.
ii. The improvements consist of one or more new buildings or structures erected on the land or of additions or renovations to existing buildings or structures on the land.
iii. The improvements result in an increase in the assessment of the land that is equal to or greater than 50 per cent of the assessment as set out on the last revised assessment roll before the change.
(3) The assessment and increased assessment referred to in subsection (2) do not include any assessment relating to land that is classified in the residential property class, the multi-residential property class or the new multi-residential property class.
Determination of Assessment Increase for Future Years
16. (1) This section applies to land on which construction is begun on or after March 22, 2007 and is completed within five taxation years.
(2) For the purposes of section 15, the increased assessment of the land shall be determined according to the following rules:
1. Only construction that is begun on or after March 22, 2007 and is completed within five taxation years shall be taken into consideration in determining the increase.
2. If the construction takes place over a period that includes a taxation year or years before a general reassessment and a taxation year or years after a general reassessment, the increase shall be determined as follows:
i. Determine the assessed value of the land for the taxation year before the year that the construction began.
ii. Determine the increase in the assessed value of the land for the period from the end of the taxation year referred to in subparagraph i to the end of the taxation year before the next general reassessment.
iii. Determine the fraction that the value determined under subparagraph i plus the increase determined under subparagraph ii is of the value determined under subparagraph i.
iv. Determine the assessed value of the land for the taxation year in which the next general reassessment occurs.
v. Determine the increase in the assessed value of the land for the period beginning at the end of the taxation year referred to in subparagraph iv and including any of the three subsequent taxation years during which there is construction on the land.
vi. Determine the fraction that the value determined under subparagraph iv plus the increase determined under subparagraph v is of the value determined under subparagraph iv.
vii. Multiply the fraction determined under subparagraph iii by the fraction determined under subparagraph vi.
viii. Deduct 1.00 from the product determined under subparagraph vii and multiply by 100.
(3) If portions of a parcel of land are classified in one of the commercial classes and in one of the industrial classes and the increased assessment in those classes on the parcel of land is equal to or greater than 50 per cent of the assessment as set out on the assessment roll for those classes for the parcel of land before the increase, each portion of the parcel of land shall be deemed to have an increased assessment equal to or greater than 50 per cent of the assessment as set out in the assessment roll for each portion of the parcel of land.
(4) For the purposes of this section, an increase in assessment made under section 33 of the Assessment Act for the taxation year and either or both of the last two preceding years shall be deemed to have occurred in the first of the taxation years and not in any later taxation year.
(5) For the purposes of this section if improvements to the land are made in taxation years in respect of which no general reassessment occurs, the increases in assessment in each year, if any, shall be cumulated arithmetically.
3. This Regulation comes into force on the day it is filed.
Made by:
Dwight Douglas Duncan
Minister of Finance
Date made: September 10, 2008.
