Bill 2 - An Act to Amend the Real Property Tax Act

BILL 2

An Act to Amend the Real Property Tax Act

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

1 Section 12 of the Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is amended

(a) by repealing subsection (3.5) and substituting the following:

12( 3.5) The Minister shall post an Expression of Interest Notice on the real property for four consecutive weeks and publish it in accordance with subsection (3.7) if the Minister is not able to serve a notice referred to in subsection (3) by personal service under paragraph (3.1)(a) for one of the following reasons:

(a) the person in whose name the real property is assessed or the owner of the real property cannot be found or dies intestate; or

(b) the Minister determines that all reasonable efforts to personally serve the notice under subsection (3) have been exhausted.

(b) by adding after subsection (3.5) the following:

12( 3.51) Despite subsection (3.5), the Minister is not required to post an Expression of Interest Notice on real property if, in the opinion of the Minister, posting on real property is not possible or practical because the real property is not easily accessible.

(d) in subsection (3.8) by striking out “Proof of the posting and publication” and substituting “Proof of the posting of an Expression of Interest Notice under subsection (3.5) and the publication of an Expression of Interest Notice in accordance with subsection (3.7)”;

(e) by repealing subsection (4) and substituting the following:

12( 4) No sale of real property is to be held under this Act unless

(a) notice for the sale is published in one regular issue of The Royal Gazette containing the following information:

( i) the time, date and place of sale;

( ii) the name of the person in whose name the real property was last assessed;

( iii) the name of the owner of the real property, if the real property was assessed under subsection 14(7.3) of the Assessment Act;

( iv) the location and description of the real property as set out in the real property tax roll; and

( v) the property account number by which the real property is identified on the real property tax roll; and

(b) all of the information referred to in subparagraphs (a)(i) to (v), or any portion of that information that is determined by the Minister, is published at least once in each of two consecutive weeks in a newspaper having general circulation in the area where the real property is located, if any.

(f) by repealing subsection (4.001) and substituting the following:

12( 4.001) The Minister may publish on the website of the Department of Finance and Treasury Board the information referred to in subparagraphs (4)(a)(i) to (v) or any portion of that information that is determined by the Minister.

(g) by adding after subsection (4.001) the following:

12( 4.002) The Minister may authorize the holding of a sale of real property under this Act at the location stated in the notice or through an electronic medium and set forth the conditions under which the sale may be held.

(h) in subsection (4.02) by striking out “posted and published under subsection (3.5)” and substituting “published, or posted and published, as the case may be, under subsection (3.5)”;

(i) by adding after subsection (5.6) the following:

12( 5.61) When real property under subsection (5.6) cannot be sold for a price that is equal to or more than the total of the costs referred to in paragraphs (5.6)(a), (b), (b.1) and (c), the Minister may at any time reinstitute proceedings to sell the real property for an amount that is not less than 50% of the assessed value of the real property by giving notice as required under subsection (4), and the sale may proceed in accordance with this Act and regulations.

12( 5.62) When real property under subsection (5.61) is sold, the Minister may, after giving notice to the purchaser by registered mail and at any time before the deed or bill of sale has been registered under the Registry Act, by certificate under the Minister’s hand, set aside the sale if, in the opinion of the Minister, the real property was purchased by the owner of the real property or a person not at arm’s length to the owner of the real property.

12( 5.63) When the Minister has determined that a tax sale ought to be set aside under subsection (5.62), section 14.1 applies with the necessary modifications.

12( 5.64) Section 13 does not apply to real property sold under subsection (5.61).

(j) in subsection (6) by striking out “at the sale”;

(k) by repealing subsection (11) and substituting the following:

12( 11) All money received as the proceeds of any sale of real property under this Act is to be disbursed in the following order or priority:

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

(b) second, in pro rata payment of all

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

( ii) debt remaining unpaid with respect to the amount of the payments under subsection 5(13) and any interest on that amount payable under subsection 5(15), and

( iii) unpaid taxes imposed on the real property before January 1, 1967;

(c) third, tax arrears and penalties on other real property that are due and unpaid by the same person in whose name the real property is assessed;

(d) fourth, on application by a local government as defined in the Local Governance Act or a business improvement corporation as defined under the Business Improvement Areas Act to the Minister within 30 days of the sale of the real property,

( i) debt remaining unpaid for water and wastewater disposal services, and

( ii) outstanding business improvement levies imposed under the Business Improvement Areas Act; and

(e) fifth, to the person in whose name the real property is assessed.

(l) in subsection (12) by striking out “paragraph (11)(c)” and substituting “paragraph (11)(e)”;

(m) in subsection (13) by striking out “paragraph (11)(c)” and substituting “paragraph (11)(e)”;

(n) in subsection (14) by striking out “in accordance with paragraph (11)(c) but has not been so disbursed within five years” and substituting “in accordance with paragraph (11)(e) but has not been so disbursed within two years”;

(o) by adding after subsection (20) the following:

12( 21) In subsections (3), (3.7), (4), (5.5) and (15), the meaning of publish or published includes all forms of publication, whether paper or electronic.

2 Section 13 of the Act is amended

(a) in subsection (1) by striking out “within ninety days” and substituting “within 30 days”.

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

13( 2) Within ten days of receipt of the notice under subsection (1), the purchaser shall certify to the Minister a statement of the following sums paid or received, as the case may be, during the period from the date of sale to the date of the certificate:

(a) all sums paid by the purchaser for insurance premiums to insure the purchaser’s interest in the real property, such interest to be the sum paid by the purchaser at the sale;

(b) all sums paid by the purchaser for repairs necessary to protect the integrity of the real property;

(d) all sums paid by the purchaser toward payment of the debt with respect to the amount of the payments under subsection 5(13) and any interest on that amount payable under subsection 5(15);

(e) all sums paid by the purchaser for services necessary to protect the integrity of the real property; and

(f) all sums received by the purchaser as rents or other income from the real property.

( i) in paragraph a) by striking out “sommes qui y sont indiquées” and substituting “montants qui y sont indiqués”;

( ii) in paragraph b) by striking out “qu’une somme y indiquée est inexacte, modifier cette somme” and substituting “qu’un montant qui y est indiqué est inexact, le modifier”;

( iii) in paragraph c) by striking out “requérant visé au paragraphe (1) des sommes attestées en application du paragraphe (2) ou modifiées” and substituting “demandeur visé au paragraphe (1) des montants attestés en application du paragraphe (2) ou modifiés”;

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

13( 3.01) When the Minister determines that the sums referred to in paragraphs (2)(b) and (e) were not, in the Minister’s opinion, paid for repairs or services necessary to protect the integrity of the real property, the Minister may estimate those sums and the sums so estimated shall be deemed to be sums certified by the purchaser under subsection (2), and the Minister shall so advise the applicant.

(e) by repealing subsection (3.1) of the French version and substituting the following:

13( 3.1) Lorsqu’un acheteur fait défaut ou refuse de lui fournir, dans le délai prescrit, un certificat indiquant l’état des montants exigés en vertu du paragraphe (2), le Ministre peut estimer ceux-ci, les montants ainsi estimés étant réputés être ceux attestés par l’acheteur en application du paragraphe (2), auquel cas il en avise le demandeur.

(f) in subsection (3.2) by striking out “under subsection (3) or (3.1)” and substituting “under subsection (3), (3.01) or (3.1),”;

(g) in subsection (3.3) by striking out “under subsection (3) or (3.1)” and substituting “under subsection (3), (3.01) or (3.1),”;

(h) by repealing subsection (4) and substituting the following:

13( 4) When, within ten days of receipt of the advice under subsection (3), (3.01) or (3.1), the applicant under subsection (1) pays to the Minister the following, less the sums described under paragraph (2)(f) as contained in the advice under paragraph (3)(c) or subsection (3.01) or (3.1), the Minister shall issue a receipt to the applicant for the amounts as evidence of the redemption of the real property:

(a) the sum paid by the purchaser at the sale;

(b) 15 per cent of such sum;

(d) any of the debt remaining unpaid with respect to the amount of the payments under subsection 5(13) and any interest on that amount payable under subsection 5(15) in respect of the real property; and

(e) the sums described under paragraphs (2)(a), (b), (c), (d), (e) and (f) as contained in the advice under paragraph (3)(c) or subsection (3.01) or (3.1).

(i) in subsection (9) of the French version by striking out “requérant” and substituting “demandeur”.

3 Subsection 14(3) of the Act is amended by striking out “freed of all claims and encumbrances whatsoever” and substituting “freed of all claims, mortgages or other financial encumbrances”.

4 Section 14.1 of the Act is amended

(a) by repealing subsection (3) and substituting the following:

14.1( 3) Within ten days after receipt of the notice given under subsection (1), the purchaser shall certify to the Minister a statement of the following sums paid or received, as the case may be, during the period from the date of the sale to the date of the request by the Minister:

(a) all sums paid by the purchaser for insurance premiums to insure the purchaser’s interest in the real property, such interest to be the sum paid by the purchaser at the sale;

(b) all sums paid by the purchaser for repairs necessary to protect the integrity of the real property;

(d) all sums paid by the purchaser toward payment of the debt with respect to the amount of the payments under subsection 5(13) and any interest on that amount payable under subsection 5(15);

(e) all sums paid by the purchaser for services necessary to protect the integrity of the real property; and

(f) all sums received by the purchaser as rents or other income from the property.

(b) in subsection (4) of the French version

( i) in paragraph a) by striking out “sommes qui y sont indiquées” and substituting “montants qui y sont indiqués”;

( ii) in paragraph b) by striking out “toute somme inexacte, modifier ces sommes,” and substituting “tout montant inexact, le modifier”;

( iii) in paragraph d) by striking out “lors de la vente, ainsi que le total des montants” and substituting “lors de la vente ainsi que celle représentant le total des montants”;

14.1( 4.1) Lorsque l’acheteur fait défaut ou refuse de lui fournir, dans le délai prescrit, un certificat indiquant l’état des montants exigés en vertu du paragraphe (3), le Ministre peut estimer ceux-ci, les montants ainsi estimés étant réputés être ceux attestés par l’acheteur en vertu du paragraphe (3).

5 Subsection 26(1) of the Act is amended

(a) in paragraph (g.1) by striking out “under section 14.1” and substituting “under subsection 12(5.61) and section 14.1”;