Bill 75 2006
An Act to amend
the Assessment Act
with respect to homesteads
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1. (1) Subsection 19.1 (1) of the Assessment Act is amended by striking out "subsections (2) and (3)" and substituting "subsections (2) to (6) and section 19.1.1".
(2) Section 19.1 of the Act is amended by adding the following subsections:
(4) If an owner of land in the residential property class has repairs, alterations, improvements or additions made to the land during the 12 months immediately preceding the valuation day for a taxation year after 2006 as determined under subsection 19.2 (1) and if there is an increase in the current value of the land attributable to the repairs, alterations, improvements or additions, the assessment of the land for the taxation year shall be based on the current value of the land less the amount set out in subsection (6) if the owner submits receipts for the repairs, alterations, improvements or additions to the clerk of the municipality in which the land is located within 180 days after the valuation day.
Disallowance of claims
(5) The municipality mentioned in subsection (4) may, in the assessment roll returned to the clerk under section 36, disallow, in whole or in part, a receipt submitted under that subsection.
Reduction in current value
(6) The amount for the purpose of subsection (4) is the lesser of,
(a) $25,000; and
(b) the value of the repairs, alterations, improvements or additions less,
(i) the amount that the municipality disallows under subsection (5), if the assessment is not appealed to the Assessment Review Board, or
(ii) the amount that the Assessment Review Board disallows in the assessment roll that the registrar of the Board certifies under subsection 36 (4), if the assessment is appealed to the Board.
2. The Act is amended by adding the following section:
Residential property assessment
19.1.1 (1) In subsection (2),
"child" and "spouse" each have the same meaning as in subsection 1 (1) of the Family Law Act; ("conjoint", "enfant")
"valuation day" means the day as of which land is valued for a taxation year as determined under section 19.2. ("jour de l'évaluation")
Maximum taxable assessed value
(2) For a taxation year after 2006, subject to this section, if the owner of land in the residential property class on the valuation day for the taxation year is the same as the owner of the land on the valuation day for the immediately preceding taxation year or is a child or spouse of that owner, the land shall not be assessed at more than an amount that is 5 per cent greater than the assessment of the land for the immediately preceding taxation year.
Reductions for seniors and disabled persons
(3) After applying subsection (2), whether or not that subsection results in a decrease in the assessment of land for a taxation year after 2006, if the land is the principal residence of the owner as defined in subsection 8 (1) of the Income Tax Act, the assessment shall be reduced by an amount equal to the lesser of,
(a) the assessment; and
(b) $10,000 times one-twelfth of the number of months, or part of a month, in the taxation year in which the owner of the land is at least 65 years of age or is disabled.
3. Section 36 of the Act is amended by adding the following subsection:
Record of current value assessment
(3.1) The assessment corporation shall maintain a record of the assessment of all parcels of land if the assessment is based on the current value of the parcel and shall provide a copy of the record with respect to a parcel of land to the owner of the parcel within 24 hours at no charge upon request.
4. This Act comes into force on the day it receives Royal Assent.
5. The short title of this Act is the Homestead Act, 2006.
The Bill amends the Assessment Act with respect to assessments for a taxation year after 2006.
The Bill provides that the first $25,000 in repairs, alterations, improvements or additions that an owner of residential land has made will not be considered to increase the current value of the land for assessment purposes if the municipality in which the land is located or the Assessment Review Board does not disallow, in the assessment roll, the value of the work done.
The Bill also imposes a cap of 5 per cent on the increase that can occur in the assessment of residential land if the owner of the land is the same as the owner of the land in the immediately preceding taxation year or is a child or spouse of that owner.
The assessment of a principal residence is reduced by an amount up to $10,000 for the number of months of a taxation year during which the owner is at least 65 years of age or is disabled.
The Municipal Property Assessment Corporation is required to maintain a record of the assessment of land based on its current value and to provide a copy of the record to land owners within 24 hours at no charge upon request.