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Bill C-10

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AUTHORITY TO MAKE PAYMENTS

Authority to make payments

3. (1) The Minister may, on receipt of an application in a form provided or approved by the Minister, make a payment out of the Consolidated Revenue Fund to a taxing authority applying for it

    (a) in lieu of a real property tax for a taxation year, and

    (b) in lieu of a frontage or area tax

in respect of federal property situated within the area in which the taxing authority has the power to levy and collect the real property tax or the frontage or area tax.

Delayed payments

(1.1) If the Minister is of the opinion that a payment under subsection (1) or part of one has been unreasonably delayed, the Minister may supplement the payment.

Maximum payable

(1.2) The supplement shall not exceed the product obtained by multiplying the amount not paid by the rate of interest prescribed for the purpose of section 155.1 of the Financial Administration Act, calculated over the period that, in the opinion of the Minister, the payment has been delayed.

Authority to make payments

(2) Notwithstanding anything in this Act, if real property or immovables are prescribed to be included in the definition ``federal property'' under paragraph 9(1)(d) or (e), a payment may be made in respect of that property for the entire taxation year in which the prescription is made.

Application to Schedule I corporations

(3) In respect of a corporation included in Schedule I, a payment may be made under this section only in respect of the real property or immovables of the corporation specified in that Schedule or prescribed by the Governor in Council.

Taxing authority

(4) For the purpose of subsection (1), a taxing authority in respect of federal property described in paragraph 2(3)(d) means a council, band or first nation referred to in any of paragraphs (b) to (e) of the definition ``taxing authority'' in subsection 2(1).

Payments for leased property

3.1 Real property and immovables referred to in paragraph 2(3)(h) are deemed to be federal property for a taxation year if

    (a) as of the day following the last day of the taxation year, all or part of the real property tax or the frontage or area tax on the property for that taxation year remains unpaid; and

    (b) the Minister is of the opinion that the taxing authority has made all reasonable efforts to collect the tax and there is no likelihood that the authority will ever be able to collect it.

(2) Subsection 3(1.1) and section 3.1 of the Act apply only in respect of a taxation year starting on or after January 1, 2000.

6. The heading before section 4 of the Act is replaced by the following:

CALCULATION OF PAYMENTS

7. (1) Subsection 4(1) of the Act is replaced by the following:

Payments in lieu of real property tax

4. (1) Subject to subsections (2) and (3) and 5(1) and (2), a payment referred to in paragraph 3(1)(a) shall not exceed the product of

    (a) the effective rate in the taxation year applicable to the federal property in respect of which the payment may be made, and

    (b) the property value in the taxation year of that federal property.

(2) Paragraph 4(2)(b) of the French version of the Act is replaced by the following:

    b) soit à la fois selon la religion du contribuable et selon la catégorie de propriétés imposables.

(3) Subparagraph 4(3)(a)(ii) of the French version of the Act is replaced by the following:

      (ii) la valeur fiscale de toutes les propriétés imposables ressortissant à l'autorité taxatrice et constituant pour l'année d'imposition l'assiette de la partie de l'impôt foncier qui est une taxe scolaire;

(4) Paragraph 4(3)(b) of the French version of the Act is replaced by the following:

    b) dans le cas prévu à l'alinéa (2)b), au taux de la taxe scolaire qui s'applique à chaque catégorie de propriétés imposables et qui est égal au quotient du montant visé au sous-alinéa (i) par le montant visé au sous-alinéa (ii) :

      (i) la partie de l'impôt foncier qui constitue la taxe scolaire pour la catégorie en cause ,

      (ii) la valeur fiscale de toutes les propriétés imposables de cette catégorie ressortissant à l'autorité taxatrice et constituant pour l'année d'imposition l'assiette de la partie de l'impôt foncier qui est une taxe scolaire.

8. (1) Subsection 5(1) of the Act is replaced by the following:

Full amount of payment not budgeted

5. (1) If , for any taxation year,

    (a) a real property tax rate is established by a taxing authority without taking into account all federal property situated within the area in which the taxing authority has the power to levy and collect a real property tax, and

    (b) the property value of the federal property not taken into account exceeds 25 per cent of the total assessed value of taxable property situated within the area in which the taxing authority has the power to levy and collect a real property tax,

the Minister may, in determining the amount of any payment to that taxing authority, make an adjustment in the effective rate or in any portion of it so that the payment will not ex ceed the amount described in subsection (2).

(2) Subsection 5(2) of the French version of the Act is replaced by the following:

Montant du paiement

(2) Le paiement visé au paragraphe (1) ne peut dépasser le montant qui aurait été déterminé par le ministre si la valeur effective des propriétés imposables , dans le cas visé à l'alinéa (1)b), avait été prise en considération par l'autorité taxatrice dans l'établissement du taux d'impôt foncier pour l'année d'imposition.

9. Sections 6 to 8 of the Act are replaced by the following:

Payments in lieu of frontage or area tax

6. (1) A payment referred to in paragraph 3(1)(b) shall not exceed the product of

    (a) the effective rate applicable to federal property in respect of which the payment may be made, and

    (b) the property dimension of that federal property.

Option

(2) If a frontage or area tax is payable over a period of more than one year, the Minister may make a payment in lieu of that tax in annual instalments, together with interest, or in a lump sum without interest.

Deductions

7. In determining the amount of a payment for a taxation year under paragraph 3(1)(a), there may be deducted

    (a) if there is in effect a special arrangement for the provision or financing of an educational service by Her Majesty in right of Canada, the amount established by that arrangement ;

    (b) if there is in effect a special arrangement for an alternative means of compensating a taxing authority, or a body on behalf of which the authority collects a real property tax, for providing a service, the amount established by that arrangement ;

    (c) if a taxing authority, or a body on behalf of which the authority collects a real property tax, is, in the opinion of the Minister, unable or unwilling to provide federal property with a service, and no special arrangement exists, an amount that, in the opinion of the Minister, does not exceed reasonable expenditures incurred or expected to be incurred by Her Majesty in right of Canada to provide the service ; and

    (d) an amount that, in the opinion of the Minister, is equal to any cancellation, reduction or refund in respect of a real property tax that the Minister considers would be applicable to the taxation year in respect of federal property if it were taxable property.

Deductions

8. In determining the amount of a payment under paragraph 3(1)(b), there may be deducted an amount that, in the opinion of the Minister, does not exceed reasonable expenditures incurred or expected to be incurred by Her Majesty in right of Canada to provide federal property with the service or work to which the frontage or area tax is related.

10. (1) Paragraph 9(1)(a) of the Act is replaced by the following:

    (a) adding to or deleting from Schedule I any corporation established by or under an Act of Parliament or performing a function on behalf of the Government of Canada that is included in Schedule III and prescribing the real property or immovables of that corporation that are to be included in Schedule I;

(2) Paragraph 9(1)(c) of the Act is replaced by the following:

    (c) adding to or deleting from Schedule II any structure, work, machinery or equipment to be excluded from the definition ``federal property'' under subsection 2(3);

(3) Paragraphs 9(1)(d) to (g) of the Act are replaced by the following:

    (e) prescribing the real property and immovables referred to in paragraph 2(3)(h) that are to be included in the definition ``federal property'' in subsection 2(1);

    (f) respecting any payment that may be made in lieu of a real property tax or a frontage or area tax by any corporation included in Schedule III or IV and, without limiting the generality of the foregoing, providing that any payment that may be made shall be determined on a basis at least equivalent to that provided in this Act;

    (g) respecting any payment that may be made in lieu of a business occupancy tax by every corporation included in Schedule IV;

    (g.1) providing that section 11.1 applies to corporations included in Schedule III or IV, with any modifications that the circumstances require; and

11. Paragraphs 10(a) to (c) of the Act are replaced by the following:

    (a) establishing a form of application for a payment under this Act;

    (b) respecting the making of an interim payment in respect of a payment under this Act; and

    (c) respecting the recovery of any overpayments made to a taxing authority, including recovery by way of set-off against other payments under this Act to the taxing authority.

12. The heading before section 11 of the English version of the Act is replaced by the following:

PAYMENTS BY CROWN CORPORATIONS

13. Paragraphs 11(1)(a) and (b) of the Act are replaced by the following:

    (a) every corporation included in Schedule III or IV shall, if it is exempt from real property tax, comply with any regulations made under paragraph 9(1)(f) respecting any payment that it may make in lieu of a real property tax or a frontage or area tax; and

    (b) every corporation included in Schedule IV shall, if it is exempt from business occupancy tax, comply with any regulations made under paragraph 9(1)(g) respecting any payment that it may make in lieu of a business occupancy tax.

14. The Act is amended by adding the following after section 11:

ADVISORY PANEL

Appointment of members

11.1 (1) The Minister shall appoint an advisory panel of at least two members from each province and territory with relevant knowledge or experience to hold office during pleasure for a term not exceeding three years, which term may be renewed for one or more further terms. The Minister shall name one of the members as Chairperson.

Mandate

(2) The advisory panel shall give advice to the Minister in the event that a taxing authority disagrees with the property value, property dimension or effective rate applicable to any federal property, or claims that a payment should be supplemented under subsection 3(1.1).

Duties of Chairperson

(3) The Chairperson shall supervise and direct the operation and functioning of the advisory panel.

Establish-
ment of divisions

(4) The Chairperson may establish divisions of the advisory panel, and all or any of the powers, duties and functions of the panel may be exercised or performed by all or any of those divisions.

Payments to members

(5) Each member of the advisory panel is entitled to be paid, unless the member is employed in the public service of Canada,

    (a) remuneration in an amount fixed by the Minister for each day or part of a day that the member is performing duties under this Act; and

    (b) reasonable travel and other expenses incurred in the course of their duties under this Act while absent from their ordinary place of residence.

15. Sections 12 to 15 of the Act are replaced by the following:

Agreements respecting leased properties

12. The Minister may enter into an agreement with the government of a province respecting the making of payments under this Act on any real property or immovable situated in the province that is prescribed under paragraph 9(1)(e) to be federal property.

Community pasture payment

13. Notwithstanding anything in this Act, federal property that, under an agreement with a province, is used as a community pasture may be excluded from the calculation of a payment in lieu of a real property tax if , with respect to that property, an alternative means of making a payment to a taxing authority in lieu of a real property tax is in effect.

Newly acquired property

14. Notwithstanding anything in this Act, when Her Majesty in right of Canada acquires taxable property, no payment shall be made under this Act in respect of that property for any part of the taxation year during which it was acquired.

No right conferred

15. No right to a payment is conferred by this Act.

1998, c. 10, s. 182.1

16. Section 16 of the Act is replaced by the following:

Phase-in of payments in lieu

16. Notwithstanding anything in this Act or any regulation made under this Act, a payment in lieu of a real property tax that may be made under this Act in respect of any real property or immovable managed or held by a port authority mentioned in subsection 10(1) or 12(2) of the Canada Marine Act shall not exceed the following:

    (a) for a taxation year beginning in 1999, 25 per cent of the payment that may, but for this section, be made under this Act;

    (b) for a taxation year beginning in 2000, 50 per cent of the payment that may, but for this section, be made under this Act; and

    (c) for a taxation year beginning in 2001, 75 per cent of the payment that may, but for this section, be made under this Act.

17. Schedule I to the Act is amended by replacing the expression ``real property'' with the expression ``real property or immovables'' wherever it occurs, with any modifications that the circumstances require.

18. Item 10 of Schedule II to the Act is replaced by the following:

10. Reservoirs, storage tanks, fish-rearing ponds, fishways

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