2nd Session, 36th Parliament,
48 Elizabeth II, 1999

The House of Commons of Canada

BILL C-10

An Act to amend the Municipal Grants Act

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

R.S., c. M-13

MUNICIPAL GRANTS ACT

1. The long title of the Municipal Grants Act is replaced by the following:

An Act respecting payments in lieu of taxes to municipalities, provinces and other bodies exercising functions of local government that levy real property taxes

2. Section 1 of the Act is replaced by the following:

Short title

1. This Act may be cited as the Payments in Lieu of Taxes Act.

1991, c. 50, s. 32(1)

3. (1) The definitions ``immeuble fédéral'' and ``immeuble imposable'' in subsection 2(1) of the French version of the Act are repealed.

(2) The definitions ``assessed dimension'', ``assessed value'', ``assessment authority'', ``business occupancy tax'', ``frontage or area tax'', ``other attribute'' and ``real property tax'' in subsection 2(1) of the Act are replaced by the following:

``assessed dimension''
« dimensions fiscales »

``assessed dimension'' means the frontage, area, other dimension or other attribute of real property or immovables established by an assessment authority for the purpose of computing a frontage or area tax;

``assessed value''
« valeur fiscale »

``assessed value'' means the value established for any real property or immovable by an assessment authority for the purpose of computing a real property tax;

``assessment authority''
« autorité évaluatrice »

``assessment authority'' means an authority that has power by or under an Act of Parliament or the legislature of a province to establish the assessed dimension or assessed value of real property or immovables;

``business occupancy tax''
« taxe d'occupation commerciale »

``business occupancy tax'' means a tax levied on occupants in respect of their use or occupation of real property or immovables for the purpose of or in connection with a business;

``frontage or area tax''
« impôt sur la façade ou sur la superficie »

``frontage or area tax'' means any tax levied on the owners of real property or immovables that is computed by applying a rate to all or part of the assessed dimension of the property and includes any tax levied on the owners of real property or immovables that is in the nature of a local improvement tax, a development tax or a redevelopment tax, but does not include a tax in respect of mineral rights;

``other attribute''
« autre élément »

``other attribute'' includes

      (a) in relation to a tax levy for the purpose of financing all or part of the capital cost of a service to real property or immovables,

        (i) the actual or estimated cost of constructing a new building,

        (ii) the number of rooms, living units or beds in a building, or

        (iii) the number of persons in occupancy of a building, and

      (b) in relation to a tax levy for the purpose of financing all or part of the operating cost of a service to real property or immovables, any prescribed criteria;

``real property tax''
« impôt foncier »

``real property tax'' means a tax of general application to real property or immovables or any class of them that is

      (a) levied by a taxing authority on owners of real property or immovables or, if the owner is exempt from the tax, on lessees or occupiers of real property or immovables, other than those lessees or occupiers exempt by law, and

      (b) computed by applying a rate to all or part of the assessed value of taxable property;

1991, c. 50, s. 32(1)

(3) The definitions ``federal property'' and ``taxable property'' in subsection 2(1) of the English version of the Act are replaced by the following:

``federal property''
« propriété fédérale »

``federal property'' means, subject to subsection (3),

      (a) real property and immovables owned by Her Majesty in right of Canada that are under the administration of a minister of the Crown,

      (b) real property and immovables owned by Her Majesty in right of Canada that are, by virtue of a lease to a corporation included in Schedule III or IV, under the management, charge and direction of that corporation,

      (c) immovables held under emphyteusis by Her Majesty in right of Canada that are under the administration of a minister of the Crown,

      (d) a building owned by Her Majesty in right of Canada that is under the administration of a minister of the Crown and that is situated on tax exempt land owned by a person other than Her Majesty in right of Canada or administered and controlled by Her Majesty in right of a province, and

      (e) real property and immovables occupied or used by a minister of the Crown and administered and controlled by Her Majesty in right of a province;

``taxable property''
« propriété imposable »

``taxable property'' means real property and immovables in respect of which a person may be required by a taxing authority to pay a real property tax or a frontage or area tax;

(4) The definitions ``dimensions effectives'', ``taux effectif'' and ``valeur effective'' in subsection 2(1) of the French version of the Act are replaced by the following:

« dimensions effectives »
``property dimension''

« dimensions effectives » Façade, superficie ou autre dimension ou élément qui, selon le ministre, serviraient de base au calcul, par l'autorité évaluatrice, de l'impôt sur la façade ou sur la superficie qui serait applicable à une propriété fédérale si celle-ci était une propriété imposable.

« taux effectif »
``effective rate''

« taux effectif » Le taux de l'impôt foncier ou de l'impôt sur la façade ou sur la superficie qui, selon le ministre, serait applicable à une propriété fédérale si celle-ci était une propriété imposable.

« valeur effective »
``property value''

« valeur effective » Valeur que, selon le ministre, une autorité évaluatrice déterminerait, compte non tenu des droits miniers et des éléments décoratifs ou non fonctionnels, comme base du calcul de l'impôt foncier qui serait applicable à une propriété fédérale si celle-ci était une propriété imposable.

(5) Subsection 2(1) of the French version of the Act is amended by adding the following in alphabetical order:

« propriété fédérale »
``federal property''

« propriété fédérale » Sous réserve du paragraphe (3) :

      a) immeuble ou bien réel appartenant à Sa Majesté du chef du Canada dont la gestion est confiée à un ministre fédéral;

      b) immeuble ou bien réel appartenant à Sa Majesté du chef du Canada et relevant, en vertu d'un bail, d'une personne morale mentionnée aux annexes III ou IV;

      c) immeuble dont Sa Majesté du chef du Canada est emphytéote et dont la gestion est confiée à un ministre fédéral;

      d) bâtiment appartenant à Sa Majesté du chef du Canada, dont la gestion est confiée à un ministre fédéral mais qui est situé sur un terrain non imposable qui n'appartient pas à Sa Majesté du chef du Canada ou qui est contrôlé et administré par Sa Majesté du chef d'une province;

      e) immeuble ou bien réel occupé ou utilisé par un ministre fédéral et administré et contrôlé par Sa Majesté du chef d'une province.

« propriété imposable »
``taxable property''

« propriété imposable » Immeuble ou bien réel pouvant être assujetti par une autorité taxatrice à un impôt foncier ou un impôt sur la façade ou sur la superficie.

1991, c. 50, s. 32(2); 1992, c. 1, s. 97(1)

(6) Subsection 2(3) of the Act is replaced by the following:

Property not included in the definition ``federal property''

(3) For the purposes of the definition ``federal property'' in subsection (1), federal property does not include

    (a) any structure or work, unless it is

      (i) a building designed primarily for the shelter of people, living things, fixtures, personal property or movable property,

      (ii) an outdoor swimming pool,

      (iii) a golf course improvement,

      (iv) a driveway for a single-family dwelling,

      (v) paving or other improvements associated with employee parking, or

      (vi) an outdoor theatre;

    (b) any structure, work, machinery or equipment that is included in Schedule II;

    (c) any real property or immovable developed and used as a park and situated within an area defined as ``urban'' by Statistics Canada, as of the most recent census of the population of Canada taken by Statistics Canada, other than national parks, national historic sites, national historic parks, national battlefields, heritage canals or national marine conservation areas;

    (d) any Indian reserve, or any land referred to in any of paragraphs (c) to (e) of the definition ``taxing authority'' in subsection 2(1), except for the part

      (i) that is occupied for residential purposes by an employee of Her Majesty in right of Canada who would not, but for that employment, live on that reserve or land, or

      (ii) that is occupied by a minister of the Crown;

    (e) any real property or immovable for which an original Crown grant has not issued, except to the extent that it

      (i) is designated for a specific use by or under an Act of Parliament, or

      (ii) is used by an Indian within the meaning of the Indian Act or an Inuk and is prescribed under paragraph 9(1)(e);

    (f) any real property for which an original Crown grant has not issued, except to the extent that it

      (i) is reserved in the records of the Department of Indian Affairs and Northern Development at Whitehorse or Yellowknife for the use of a department or an agency of the Government of Canada, and is either situated within a municipality or, in the case of real property that is not situated within a municipality, used in accordance with the reservation, or

      (ii) is situated within a municipality and is reserved in the records of the Department of Indian Affairs and Northern Development at Whitehorse or Yellowknife for the use of an Indian within the meaning of the Indian Act or an Inuk;

    (g) any real property or immovable developed or used as a public highway that, in the opinion of the Minister, does not provide, as its primary function, immediate access to real property or immovables owned by Her Majesty in right of Canada; or

    (h) unless otherwise prescribed, any real property or immovable leased to or occupied by a person or body, whether incorporated or not, that is not a department.

Effective rate - experimental farms

(4) In determining the effective rate in respect of an experimental farm station, agricultural research station or other similar facility on federal property, the Minister shall take into account the rates of tax applicable to farms operated by agricultural enterprises.

4. The Act is amended by adding the following after section 2:

PURPOSE OF ACT

Purpose

2.1 The purpose of this Act is to provide for the fair and equitable administration of payments in lieu of taxes.

5. (1) Section 3 of the Act and the heading before it are replaced by the following: