Bill 14 - An Act Respecting Property Tax Reform Measures

BILL 14

An Act Respecting Property Tax Reform Measures

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

Assessment Act

1( 1) Section 8 of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is repealed and the following is substituted:

8( 1) To enable the Director to make a proper assessment of real property or to reconsider an assessment in respect of real property, the Director shall at all reasonable times and on reasonable requests be given free access to all real property and to all parts of every building situated on the real property and to all reports, records, financial statements, statistics or other relevant information in the possession or control of the owner, occupier or user of the real property that the Director considers necessary.

8( 2) Despite subsection (1), the Director may at all reasonable times enter on private lands for the purpose of carrying out an inspection of the lands and making an assessment or reconsidering an assessment of the real property without entry into a building.

8( 3) In assessing real property, the Director may request and may rely on reports, records, financial statements, statistics and other relevant information in the possession or control of the owner, occupier or user of the real property that the Director considers necessary and that relate to the ownership, quantity, nature, location, extent and value of the real property.

8( 4) An assessment of real property referred to in subsection (3) at its real and true value may be made by means of examining the reports, records, financial statements, statistics or other information referred to in that subsection, and the assessment shall be deemed to be a valid and proper assessment for all purposes of this Act and the Real Property Tax Act despite that no other means were used to assess the real property at its real and true value and that an inspection of the real property has not been carried out.

8( 5) Every owner, user or occupier of real property shall provide the Director, by mail or by electronic means and within 45 days of the sending of the request, all the information requested by the Director that will assist the Director in making a proper assessment of the real property or reconsidering an assessment of real property.

8( 6) A request under subsections (1), (3) and (5) shall be deemed to have been received by the owner, user or occupier of the real property on the day the request was sent by the Director.

8( 7) Proof of sending a request under subsection (1), (3) or (5) may be made by a certificate purporting to be signed by the Director naming the person to whom the request was sent and specifying the time, place and manner of the sending of the request.

8( 8) A document that purports to be a certificate of the Director under subsection (7) is admissible in evidence before any court, judge or board and when adduced is, in the absence of evidence to the contrary, proof of the facts stated in the certificate without proof of the appointment, signature or authority of the Director.

8( 9) When a person in whose name the assessment is made fails to comply with this section, the Director shall determine the real and true value of the real property in question.

8( 10) Despite any other provision of this Act, a person who, having been required to provide information under this section, fails to provide the information is not entitled to request that the Director review the real property assessment under section 25 for the year in which the information under this section was requested.

8( 11) No person shall have any right of action for trespass resulting from entry on private lands authorized under this section.

1( 2) The heading “Demand for information by Director” preceding section 9 of the Act is repealed.

1( 3) Section 9 of the Act is repealed.

1( 4) Section 10 of the Act is amended

(a) in subsection (1) by striking out “sections 8 and 9” and substituting “section 8”;

(b) in subsection (3) by striking out “sections 8 and 9” and substituting “section 8”;

1( 5) Subsection 25(4) of the Act is repealed and the following is substituted:

25( 4) Unless the person who made the request fails to provide the information required to be provided under section 8, the Director shall reconsider an assessment referred to in subsection (1) and shall vacate, confirm or vary the assessment and send a notice to the person of the Director’s decision by mailing to the person a copy of all entries in the Review Register pertaining to the request for review of assessment together with a copy of the form for giving notice of appeal to the Board.

1( 6) Paragraph 27(2)(b) of the Act is repealed and the following is substituted:

(b) when the Director has not notified the person of the Director’s decision under section 25 within 90 days after the date of mailing of the request for review of assessment, within 21 days after the expiration of that period, unless a request for information under section 8 has been made.

1( 7) Subsection 32(8) of the Act is repealed and the following is substituted:

32( 8) If the party appealing, having been required to provide information under section 8, fails to provide the information, the Board shall refuse to hear the appeal.

1( 8) Subsection 34(1) of the Act is repealed and the following is substituted:

34( 1) Subject to subsection 32(8), the Board may dispose of an appeal by

(a) dismissing it,

(b) allowing it and directing the Director

( i) to vacate the assessment, or

( ii) to make specific variations in the assessment, or

Local Governance Act

2( 1) Subsection 1(1) of the Local Governance Act, chapter 18 of the Acts of New Brunswick, 2017, is amended by adding the following definition in alphabetical order:

“community benefit agreement” means an agreement governed by the regulations under which the proponent of a project of a type, category or size prescribed by regulation provides the benefits prescribed by regulation to a local government or a rural district. (accord d’avantages communautaires)

2( 2) Subsection 10(1) of the Act is amended by adding after paragraph (m) the following:

(m.01) a vacant property levy;

2( 3) The Act is amended by adding after section 19 the following:

By-laws respecting a vacant property levy

19.01 A by-law of a local government made under paragraph 10(1)(m.01) is subject to section 101.01 and to any regulation made under section 101.02.

2( 4) The Act is amended by adding after section 101 the following:

Vacant property levy

101.01( 1) The following definitions apply in this section and section 101.02.

“owner” means the person in whose name real property is assessed under the Assessment Act. (propriétaire)

“vacant property” means unoccupied or unused real property, including buildings and premises, that meets the criteria prescribed by regulation. (bien vacant)

“vacant property levy” means a levy imposed under a by-law referred to in subsection 101.01(2). (taxe sur les biens vacants)

101.01( 2) A local government may, by by-law, impose a levy to be paid by the owners of vacant property within the territorial limits of the local government in accordance with the regulations.

101.01( 3) A by-law under subsection (2) shall state the rate of the vacant property levy or the amount of the levy payable.

101.01( 4) A local government may bring an action for the recovery of any amount imposed pursuant to a by-law under this section that remains unpaid after it is due in any court in which a debt or money demand of a similar amount may be collected.

101.01( 5) The use of one or more enforcement measures established by a by-law under this section does not prevent a local government from using any other remedy available in law to enforce the payment of amounts owing under this section.

101.01( 6) A person who is directly affected by a decision of the local government under this section may appeal the decision, in accordance with the regulations, to one or more entities established or designated, as the case may be, by regulation as being responsible for hearing appeals.

101.01( 7) A local government may only use the proceeds of the levy collected for the following purposes:

(a) supporting development and use of vacant properties;

(b) promotion of economic development;

(d) defraying the costs of administration attributable to the vacant property levy.

Regulations relating to the vacant property levy

101.02 The Lieutenant-Governor in Council may make regulations

(a) prescribing criteria for the purposes of the definition “vacant property” in subsection 101.01(1);

(b) restricting the authority to make a by-law under subsection 101.01(2) to certain local governments or categories of local governments;

(d) governing the rate or amount of a vacant property levy, including

( i) prescribing the rate or amount of the levy or the manner in which the rate or amount may be calculated, including different rates or amounts for different types of vacant property, and

( ii) prescribing the minimum and maximum levy that may be imposed;

(e) governing the application of a vacant property levy, including

( i) exempting classes of real property from payment of the levy, and

( ii) imposing the levy on different types of vacant property or in different areas within the territorial limits of a local government;

(f) governing the assessment of a vacant property levy and its collection and enforcement, including

( i) prescribing the form and manner in which a real property owner shall be notified of a vacant property levy,

( ii) establishing penalties for failing to comply with a by-law under subsection 101.01(2),

( iii) prescribing interest on outstanding levies and penalties,

( iv) respecting the assessment of outstanding levies, penalties and interest,

( v) prescribing the manner in which and times at which vacant property levies, penalties and interest shall be paid,

( vi) prescribing inspection powers,

( vii) respecting the collection of vacant property levies, penalties and interest, and

( viii) prescribing enforcement measures if an amount assessed for outstanding levies, penalties or interest remains unpaid after it is due, including the creation and registration of liens;

(g) governing appeals under section 101.01, including

( i) establishing or designating, as the case may be, one or more entities responsible to hear appeals,

( ii) prescribing grounds for an appeal,

( iii) prescribing timelines for appealing a decision,

( iv) prescribing fees for appeals,

( v) establishing procedures for appeals,

( vi) respecting the effect of a decision of the local government pending the outcome of an appeal, and

( vii) prescribing the duties and powers of an entity responsible to hear appeals;

(h) providing for refunds of a vacant property levy, including the amount and the circumstances in which a refund shall be made;

(i) governing matters permitted or required to be included in a by-law referred to in subsection 101.01(2);

(j) defining words or expressions used in but not defined in section 101.01.

2( 5) The Act is amended by adding after section 104 the following:

Local government community benefit agreements

104.1( 1) A local government may enter into a community benefit agreement.

104.1( 2) A local government shall, by a resolution of its council, state its intention to enter into an agreement under subsection (1).

104.1( 3) Sums received by a local government under an agreement referred to in subsection (1) shall be deposited to the credit of the accounts established under paragraph 76(1)(b) and, subject to subsection (4), shall be administered by the local government exclusively in the exercise and performance of its powers, duties and functions.

104.1( 4) The benefits received by a local government under an agreement referred to in subsection (1) shall be used by the local government solely for municipal purposes.

2( 6) The Act is amended by adding after section 176.51 the following:

Rural district community benefit agreements

176.52( 1) The Minister, after consulting with its rural district advisory committee, may enter into a community benefit agreement on behalf of a rural district.

176.52( 2) Subject to any parameters, terms, conditions or restrictions prescribed by regulation, the benefits received by the Minister under an agreement referred to in subsection (1) may be used for the purposes and in the manner prescribed by regulation.

2( 7) The Act is amended in subsection 191(1)

(a) by adding before paragraph (a) the following:

(0.a) prescribing the type, category or size of projects and the type of benefits for the purposes of the definition “community benefit agreement”;

(b) by adding after paragraph (v) the following:

(v.1) governing community benefit agreements for the purposes of sections 104.1 and 176.52, including

( i) governing processes and procedures to be followed by the parties to enter into, amend or terminate an agreement,

( ii) prescribing matters, including terms and conditions, that are permitted, required or prohibited in an agreement, and

( iii) prescribing the purposes for and manner in which benefits under a community benefit agreement under section 176.52 may be used and the parameters, terms, conditions or restrictions to which the use is subject;

Residential Property Tax Relief Act

3( 1) Section 1 of the Residential Property Tax Relief Act, chapter R-10 of the Revised Statutes, 1973, is amended in the definition “credit” by striking out “section 2 or 2.1” and substituting “section 2, 2.1 or 2.11”.

3( 2) Section 2.1 of the Act is amended by adding after subsection (15) the following:

2.1( 16) Despite any other provision of this section, no person is entitled under this section to a credit against taxes owing in respect of real property or to a rebate of taxes paid in respect of real property for a year that is after 2026.

3( 3) The Act is amended by adding after section 2.1 the following:

Idem

2.11( 1) A person in whose name real property is assessed and who is a resident of New Brunswick shall be credited by the Minister of Finance and Treasury Board against taxes owing in respect of that real property for the year 2027 or any succeeding year a prescribed amount if on January 1, 2027, or on the first day of January in any succeeding year, the person maintains

(a) their principal residence on the real property,

(b) their principal residence and a principal residence for an eligible individual on the real property who is a resident of New Brunswick, or

2.11( 2) A person in whose name real property is assessed on January 1, 2027, or on the first day of January in any succeeding year, shall be deemed for the purposes of subsection (1) to have maintained their principal residence on the real property for the year 2027 or any succeeding year if that person

(a) maintains their residence on the real property for at least 183 days during the year, and

(b) is not otherwise entitled under subsection (1) to a credit against taxes owing in respect of real property for that year.

2.11( 3) A person in whose name real property is assessed shall be credited by the Minister of Finance and Treasury Board against taxes owing in respect of that real property for the year 2027 or any succeeding year a prescribed amount if the real property

(a) is to be used as only one residence, whether or not it is completed, and

(b) has not been occupied by that person or any other person or has not been leased.

2.11( 4) Subject to subsection (6), where, on or after January 1, 2027, a condominium corporation is created in relation to real property, the person in whose name the real property is assessed is entitled, for the period referred to in subsection (5), to a credit against taxes owing or, if taxes have been paid, to a rebate of the taxes paid in respect of that portion of the real property

(a) that has not been occupied by that person or any other person or has not been leased, and

(b) that consists of

( i) condominium units, each of which is to be used as only one residence, and

( ii) the common interests appurtenant to those condominium units.

2.11( 5) For the purposes of subsection (4), the period for which the person referred to in that subsection is entitled to a credit or rebate of taxes is as follows:

(a) the year during which the condominium corporation is created; and

(b) the year or years before the year referred to in paragraph (a) during which the real property was under construction, to a maximum of three years immediately before the year in which the condominium corporation is created.

2.11( 6) Despite paragraph (5)(b), no person is entitled under subsection (4) to a credit against taxes owing or to a rebate of taxes paid in respect of real property or any portion of real property for a year that is before 2027.

2.11( 7) A person who, on or after January 1, 2027, becomes the owner of real property on which they establish or subsequently establish, in the year 2027 or any succeeding year, their principal residence, a principal residence for an eligible person or both their principal residence and a principal residence for an eligible individual, is, if the person is a resident of New Brunswick at the time of the establishing of the principal residence for themselves or an eligible individual and despite that they received a credit against taxes owing for that year in respect of other real property on which they no longer maintain a principal residence for themselves or an eligible individual, entitled to a credit against taxes owing in respect of that real property for the year in which they establish their principal residence, a principal residence for an eligible individual or their principal residence and a principal residence for an eligible individual, or, if the taxes have been paid, to a rebate of those taxes, in an amount equal to the difference between

(a) the amount that would have been credited in respect of that property for the year if a credit had been authorized under subsection (1), and

(b) the amount realized by multiplying the amount referred to in paragraph (a) by the fraction that results from dividing by the number of days in that year the greater of

( i) the number of days that expired before the date on which the principal residence was first established by the person for themselves or for an eligible individual on that real property, or, if the principal residence was maintained by the person before the person became owner of the real property, the date on which the person became the owner, and

( ii) the number of days that expired before the date on which the person ceased to maintain a principal residence for themselves or for an eligible individual on any other real property in respect of which the person received a credit against taxes owing for that year.

2.11( 8) When real property is assessed jointly in the names of more than one person, and one of the persons in whose name the real property is assessed would be entitled to a credit or rebate under subsection (1), (3) or (4) if the real property had been assessed in their name alone, the credit or rebate shall be applied in respect of that real property despite that the other persons in whose name the real property is assessed do not qualify for the credit or rebate.

2.11( 9) When real property is assessed in the name of an estate and is occupied by a beneficiary of that estate who is a resident of New Brunswick, the credit or rebate shall be applied in respect of the obligation of the estate to pay taxes on the real property if

(a) the circumstances do not make the beneficiary a tenant, and

(b) it would entitle the beneficiary to a credit or rebate under subsection (1), (3) or (4) had the real property been assessed in the name of the beneficiary.

2.11( 10) When a person who is entitled to a credit under subsection (1), (7) or (11) uses any portion of the real property for any industry, trade, business, profession or vocation or under lease or agreement allows any other person to so use any portion of the real property, that person is entitled to a credit in respect only of the portion of the real property that is used as their principal residence or the principal residence of an eligible individual.

2.11( 11) When a person in whose name real property is assessed maintains on January 1, 2027, or on the first day of January in any succeeding year, their principal residence and a principal residence for an eligible individual on the real property and the real property contains two or more residences, regardless of whether on that date the other residence or residences are occupied, that person is entitled to a credit in respect of only that portion or portions of the real property that are used as their principal residence and the principal residence of an eligible individual.

2.11( 12) When under an agreement of purchase and sale, a person who maintained their principal residence on real property assessed in the name of another person or who maintained a principal residence for an eligible person on that real property becomes the owner of that real property, that person is entitled under this Act to a credit against taxes owing on that real property, or, if the taxes have been paid, to a rebate of those taxes for the period determined under subsection (13), as if that person had been the owner during that period, if

(a) the person was required, under the agreement of purchase and sale, to purchase the real property within three years after the date the agreement was executed,

(b) the person maintained their principal residence on the real property or maintained on the real property a principal residence for an eligible individual after the date the agreement of purchase and sale was executed,

( i) in the registry office for the county in which the real property lies, or

( ii) in the land titles office for the land registration district in which the real property lies,

(d) the person became the owner of the real property in accordance with the agreement of purchase and sale,

(e) no other person was entitled to a credit against taxes owing in respect of the real property or to a rebate of the taxes for that period, and

(f) the person was a resident of New Brunswick during that period.

2.11( 13) For the purposes of subsection (12), the period for which a person is entitled to a credit or a rebate of taxes is as follows:

(a) in respect of the year in which the person becomes the owner of the real property under the agreement of purchase and sale, the portion of that year, immediately before they became the owner, during which the person maintained their principal residence on the real property or maintained on that real property a principal residence for an eligible individual; and

(b) in respect of any year or years before the year referred to in paragraph (a), to a maximum of three years immediately before the person became the owner of the real property, the portion of that year or those years after the date the agreement of purchase and sale was executed during which the person maintained their principal residence on the real property or maintained on that real property a principal residence for an eligible individual.

2.11( 14) Despite subsections (1) to (13), the person in whose name real property is assessed is not entitled to a credit with respect to more than 0.5 hectare of real property on which a principal residence is maintained.

3( 4) Section 2.2 of the Act is amended

(a) by repealing subsection (1) and substituting the following:

2.2( 1) For the purposes of sections 2.1 and 2.11, a person or the spouse or children of a person or an eligible individual, as the case may be, shall not have more than one principal residence at a time.

(b) in subsection (2)

( i) in the portion preceding paragraph (a) by striking out “section 2.1” and substituting “sections 2.1 and 2.11”;

( ii) by repealing paragraph (b) and substituting the following:

(b) whether any residence of a person’s spouse or children or an eligible individual, as the case may be, was the spouse’s or children’s or eligible individual’s principal residence during that period,

( iii) by repealing paragraph (d) and substituting the following:

(d) whether the spouse or children of a person or an eligible individual, as the case may be, were residents of New Brunswick during that period.

( i) in the portion preceding paragraph (a) by striking out “spouse or children of a person” and substituting “spouse or children of a person or an eligible individual, as the case may be,”;

( ii) in paragraph (a) by striking out “spouse or children” and substituting “spouse or children or an eligible individual, as the case may be,”;

( iii) in paragraph (b) by striking out “spouse or children” and substituting “spouse or children or an eligible individual, as the case may be,”;

(d) in paragraph (7)(b) by striking out “spouse or children of a person” and substituting “spouse or children of a person or an eligible individual, as the case may be”.

3( 5) Section 4 of the Act is amended by striking out “Notwithstanding section 2 or 2.1” and “or subsection 2.1(3), (4) or (7)” and substituting “Despite section 2, 2.1 or 2.11” and “, subsection 2.1(3), (4) or (7) or subsection 2.11(3), (4) or (7)”, respectively.

3( 6) Section 4.1 of the Act is amended by striking out “section 2 or 2.1” and “subsection 2(1) or 2.1(1)” and substituting “section 2, 2.1 or 2.11” and “subsection 2(1), 2.1(1) or 2.11(1)”, respectively.

3( 7) Paragraph 6(c) of the Act is repealed and the following is substituted:

(c) who is allowed a credit in respect only of a portion of their real property under subsection 2(7) or (8), 2.1(11) or (12) or subsection 2.11(11) or (12) and disputes the apportionment,

3( 8) Section 6.1 of the Act is amended

(a) in subsection (1) in the portion preceding paragraph (a) by striking out “under section 2 or 2.1” and substituting “under section 2, 2.1 or 2.11”;

(b) in subsection (3) by striking out “section 2 or 2.1” and substituting “section 2, 2.1 or 2.11”.

3( 9) Subsection 11(2) of the Act is amended

(a) in the portion preceding paragraph (a) by striking out “section 2.1” and substituting “section 2.1 or 2.11”;

(b) in paragraph (d) by striking out “his or her spouse or children” wherever it appears and substituting “their spouse or children or an eligible individual, as the case may be,”.

3( 10) Section 14 of the Act is amended by adding after paragraph (a.1) the following:

(a.11) defining “eligible individual” for the purposes of this Act and the regulations;

Regulation under the Residential Property Tax Relief Act

4( 1) Section 2.1 of New Brunswick Regulation 84-191 under the Residential Property Tax Relief Act is amended

(a) by renumbering the section as subsection 2.1(1);

(b) by adding after subsection (1) the following:

2.1( 2) In the Act and this Regulation, “eligible individual” means, in respect of a person in whose name real property is assessed, their adult child, their children, their parent, their spouse or their common law partner, their grandparent or an adult eligible for a Disability Tax Credit under the Income Tax Act (Canada).

4( 2) Subsection 2.2(2) of the Regulation is repealed and the following is substituted:

2.2( 2) For the purposes of subsection 2.2(4) of the Act, the following criteria are to be considered by the Administrator in determining whether any residence of the spouse or children of a person or an eligible individual was the principal residence of the spouse or children of a person or the eligible individual during any period:

(a) whether the residence was the residence to which, during the period, the spouse or children of a person or the eligible individual intended to return when away;

(b) whether the residence was the residence where, during the period, the spouse or children of a person or the eligible individual ordinarily dwelled;

(c) whether the residence was the residence where the spouse or children of the person or the eligible individual ate, drank and slept during the period;

(d) whether the address of the residence appeared, during the period, on the driver’s licence, if any, of the spouse or children of the person or of the eligible individual or on the registration certificate issued for any vehicle owned by the spouse or children of the person or the eligible individual;

(e) in the case of a spouse, whether the residence was the residence where any children of the spouse dwelled while attending school during the period; and

(f) whether the address of the residence was an address where mail was received by the spouse or any children of the person or an eligible individual during the period.

Service New Brunswick Act

5 Paragraph 24(2)(a) of the Service New Brunswick Act, chapter 44 of the Acts of New Brunswick, 2015, is amended by striking out “subject to the approval of the Treasury Board,”.

TRANSITIONAL PROVISIONS AND COMMENCEMENT

Transitional provisions

6( 1) A notice or demand for information delivered or mailed by the Director before January 1, 2027, under section 9 of the Assessment Act as it read immediately before the commencement of this section shall be dealt with and completed in accordance with the law as it existed immediately before January 1, 2027.

6( 2) A request for review of assessment under section 25 of the Assessment Act as it read immediately before the commencement of this section received by the Director before January 1, 2027, shall be dealt with and completed in accordance with the law as it existed immediately before January 1, 2027.

6( 3) A community benefit agreement entered into before the commencement of section 2 of this amending Act is deemed valid and continues to be effective.

Commencement

7( 1) Subject to subsection (2), this Act comes into force on January 1, 2027.

7( 2) Section 2 or any provision of it comes into force on a day or days to be fixed by proclamation.