ontario regulation 406/06

made under the

assessment act

Made: August 23, 2006
Filed: August 25, 2006
Published on e-Laws: August 28, 2006
Printed in The Ontario Gazette: September 9, 2006


Amending O. Reg. 282/98

(General)

1. Ontario Regulation 282/98 is amended by adding the following section after the heading “Managed Forests Property Class”:

8.2 In this section and sections 9 to 9.7,

“Administrator” means the Minister of Natural Resources or the employee of the Ministry of Natural Resources to whom the Minister has delegated his or her powers under Part VI (“Disputes Relating to the Managed Forests Property Class”);

“approved managed forest plan” means a managed forest plan that is approved by a managed forest plan approver as having been prepared in accordance with the Ontario government publication published in 2006 titled “Ontario Managed Forest Tax Incentive Program Guide”;

“designated government agent” means a person described as the designated government agent in the Ontario government publication published in 2006 titled “Ontario Managed Forest Tax Incentive Program Guide”;

“managed forest plan approver” means a person designated by the Minister as a managed forest plan approver.

2. (1) Subsection 9 (1) of the Regulation is amended by adding “and sections 9.1 to 9.7” after “this section”.

(2) Paragraph 1 of subsection 9 (2) of the Regulation is amended by adding the following subparagraph:

i.1 two or more individuals as joint tenants or tenants in common if 50 per cent or more of the beneficial interest in the land is held by persons described in subparagraph i,

(3) Paragraph 2 of subsection 9 (2) of the Regulation is amended by striking out “subsection (3)” and substituting “subsections (3) and (4)”.

(4) Paragraph 4 of subsection 9 (2) of the Regulation is amended by striking out “subsection (3)” in the portion before subparagraph i and substituting “subsections (3) and (4)”.

(5) Subsections 9 (3) to (12) of the Regulation are revoked and the following substituted:

(3) An area in a parcel of land that does not contain enough trees to satisfy the requirements in paragraph 4 of subsection (2) forms part of the eligible land in the parcel,

(a) if the area does not exceed 10 per cent of the forest area on the land or parcel that satisfies the requirements described in paragraph 4 of subsection (2); and

(b) if the area contributes to the objectives set out in the approved managed forest plan for the forest.

(4) An area in a parcel of land that does not contain enough trees to satisfy the requirements in paragraph 4 of subsection (2) forms part of the eligible land in the parcel,

(a) if the area cannot support trees through normal forest management activities because of natural constraints;

(b) if the area does not exceed 25 per cent of the total area of the eligible land, excluding any area that forms part of the eligible land by virtue of subsection (3); and

(c) if the area contributes to the objectives set out in the approved managed forest plan for the forest.

(5) Eligible land is managed forests land for a taxation year if the requirements set out in subsection (6), (7) or (8) or section 9.3 are satisfied.

(6) If the eligible land was not classified as managed forests land for the previous year, the eligible land is managed forests land for a taxation year covered by the approved managed forest plan if an application under section 9.1 is approved.

(7) If the eligible land was classified as managed forests land for the previous year and if an application under section 9.2 or 9.4 to have the classification continued was required during the previous year, the eligible land is managed forests land for a taxation year covered by the approved managed forest plan if the application was approved.

(8) If the eligible land was classified as managed forests land for the previous year but no application under section 9.2 was required during the previous year, the eligible land is managed forests land for a year covered by the approved managed forest plan.

3. The Regulation is amended by adding the following sections:

9.1 (1) If the owner of eligible land wishes to have it classified as managed forests land for a taxation year and if the land was not so classified for the previous taxation year, the owner shall apply in accordance with this section to have it classified as managed forests land.

(2) For 2008 and subsequent taxation years, the owner shall submit the completed application on or before June 30 of the previous year and the application must satisfy the requirements set out in section 9.5.

(3) For the 2007 taxation year, the owner shall submit the completed application on or before August 31, 2006 and the application must satisfy the requirements set out in section 9.5.

(4) Subject to subsection 9.7 (2), the Administrator shall approve an application that satisfies the requirements set out in section 9.5.

9.2 (1) If the owner of eligible land that is classified as managed forests land wishes to have the classification continued after the expiry of the approved managed forest plan that was submitted with the most recent prior application for classification of the land as managed forests land, the owner shall apply in accordance with this section to have the classification continued.

(2) The owner shall submit the completed application on or before July 31 of the year preceding the year in which the approved managed forest plan expires, and the application must satisfy the requirements set out in section 9.5.

(3) Subject to subsection 9.7 (2), the Administrator shall approve an application that satisfies the requirements set out in section 9.5.

(4) This section applies with respect to 2008 and subsequent taxation years.

9.3 (1) This section applies, despite subsections 9 (7) and (8), if eligible land was classified as managed forests land pursuant to an application that was submitted before January 1, 2006.

(2) If the land was classified as managed forests lands pursuant to an application that was submitted prior to 2001, the land is not classified as managed forests land for 2006 unless the owner submits a completed application on or before August 31, 2006, and the application satisfies the requirements set out in section 9.5.

(3) If the land was classified as managed forests land pursuant to an application that was submitted after 2000, the approved managed forest plan in effect for 2005 is deemed to expire at the end of the fifth year after the year in which the application was made, and the land shall continue to be classified as managed forests land for the extended term of the plan.

(4) Despite subsection (3), the approved managed forest plans in effect for 2005 are deemed to expire at the end of the tenth year after the year in which the application referenced in subsection (3) was made and the land shall continue to be classified as managed forests land for the extended term of the plan if the owner applies in accordance with subsection (5).

(5) The owner shall submit the completed application on or before August 31, 2006, and the application must satisfy the requirements set out in section 9.5.

(6) Subject to subsection 9.7 (2), the Administrator shall approve an application under this section that satisfies the requirements set out in section 9.5.

9.4 (1) If managed forests land changes owners, the land ceases to be classified as managed forests land.

(2) The new owner of the land may submit an application to continue the classification of the land as managed forests land, and the application must satisfy the requirements set out in section 9.5.

(3) The deadline for making an application under subsection (2) is the earlier of December 31 of the year in which the land is transferred to the new owner or 90 days after the land is transferred to the new owner.

(4) Subject to subsection 9.7 (2), the Administrator shall approve an application that satisfies the requirements set out in section 9.5.

(5) If the application is approved,

(a) the classification of the land is deemed, despite subsections (1) and 9 (7), to have continued without interruption for the entire year in which the application was made; and

(b) the approved managed forest plan in effect immediately before the land was transferred to the new owner applies for the entire year in which the application was made.

9.5 For the purposes of subsections 9.1 (2), 9.2 (2), 9.3 (2) and (5) and 9.4 (2), the application must satisfy the following requirements:

1. The application must be made in a form approved by the Administrator and must be submitted to a designated government agent.

2. In the application, the owner must state that the land is eligible land.

3. In the application, the owner must agree to the following:

i. To provide,

A. an approved forest management plan for the land for a term of 10 years commencing the year after the year in which the application is made, or to provide such portions of the plan as the designated government agent may require, in an application under subsection 9.1 (2), 9.2 (2), 9.3 (2) or 9.4 (2), or

B. a copy of the approved forest management plan in effect for 2005, or to provide such portions of the plan as the designated government agent may require, in an application under subsection 9.3 (5).

ii. To manage the forest in accordance with the plan.

iii. To allow a person selected by the Minister of Natural Resources to inspect the land and to inspect documents relating to the land to ensure that the land remains eligible land and to ensure that the forest is and has been managed in accordance with the plan.

iv. To co-operate with the person in the course of the inspection.

4. In the application the owner must state,

i. in an application under subsection 9.1 (2), if the land was classified as a managed forests for a year other than the previous taxation year and if the ownership of the land has not changed since then, that the land was managed in accordance with the approved managed forest plan during the term of the plan and that the owner did not fail to do anything which the owner agreed to do in the previous application,

ii. in an application under subsection 9.2 (2) or 9.3 (2) or (5), that the land has been managed in accordance with the approved managed forest plan during the period since the date of the most recent prior application for classification of the land as managed forests land, and that the owner has not failed to do anything which the owner agreed to do in that application.

9.6 (1) The owner of managed forests land must submit a progress report between January 1 and July 31 of the fifth year after the year in which the owner submitted the most recent prior application under section 9.1, 9.2 or 9.4 for classification of the land as managed forests land.

(2) If the land was continued as managed forests land under subsection 9.3 (4), the owner must submit a progress report between January 1 and July 31 of the fifth year after the year in which the owner submitted the application referred to in subsection 9.3 (3), but only if the fifth year is 2008 or a subsequent year.

(3) The owner must submit the progress report to the Minister and the report must be prepared in a form acceptable to the Minister.

(4) The owner shall notify the designated government agent if any of the following events occurs and shall give the designated government agent the particulars of the event:

1. A change that relates to the eligibility of the land for classification as managed forests land.

2. A sale of any portion of the land, including the proposed date of the transfer.

3. A change in any of the information contained in the most recent application for classification.

4. An increase or decrease in the size of the forest. 

9.7 (1) Land ceases to be classified as managed forests land if,

(a) it is not managed in accordance with the approved managed forest plan;

(b) the owner fails to do anything which the owner agreed to do in the application under section 9.5; or

(c) the requirements described in section 9.6 are not satisfied.

(2) The Administrator may refuse to approve an application to classify land as managed forests land,

(a) if the land ceased under subsection (1) to be classified as managed forests land after the date of the most recent prior application by the same owner in respect of the land; and

(b) if the Administrator has determined that there is reason to believe that the owner would not manage the land in accordance with the approved managed forest plan, or would fail to satisfy the owner’s obligations described in section 9.5 or 9.6.

4. (1) Subsection 34 (1) of the Regulation is amended by striking out “assessment commissioner” at the end and substituting “assessment corporation”.

(2) Subsection 34 (3) of the Regulation is revoked and the following substituted:

(3) Section 39.1 of the Act applies with respect to a request described in subsection (1) with the following modifications:

1. References to the assessment corporation or the assessor are deemed to be references to the Administrator.

2. If the Administrator is required to give notice of a settlement to the municipality under subsection 39.1 (5) of the Act, the Administrator shall also give notice of the settlement to the assessment corporation.

3. Section 35 applies, with necessary modifications, with respect to the application of section 40 of the Act under subsection 39.1 (8) of the Act.

4. If, in the settlement, it is agreed that the land will be classified in the managed forests property class, the person who requested the reconsideration is deemed to have requested the assessment corporation to re-determine the current value of the land in accordance with subsection 19 (5.2) of the Act.

5. The heading before section 36 of the Regulation and section 36 are revoked and the following substituted:

Special Consideration if Deadline Missed

36. (1) The Administrator shall agree to a settlement classifying land in the managed forests property class if all of the following conditions are satisfied:

1. The Administrator receives a request for reconsideration described in subsection 34 (1) on or before December 31 of the taxation year.

2. The requirements for the land to be classified in the managed forests property class have been complied with except that the applicable deadline under section 9.1, 9.2, 9.3 or 9.4 for submitting an application for the taxation year was missed.

3. The land would have been eligible to be classified in the managed forests property class if the deadline had not been missed.

4. In the Administrator’s opinion, there are mitigating circumstances explaining why the deadline was missed.

(2) On a complaint described in section 35, the Commissioner shall make a determination that the land should be classified in the managed forests property class if the conditions described in paragraphs 2 and 3 of subsection (1) are satisfied and if, in the Commissioner’s opinion, there are mitigating circumstances explaining why the deadline was missed.

(3) This section applies with respect to 2006 and subsequent taxation years.

Made by:

Gregory Sorbara

Minister of Finance

Date made: August 23, 2006.