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Statutes of Newfoundland 1998


CHAPTER 31

AN ACT TO AMEND THE MUNICIPALITIES ACT

(Assented to December 15, 1998)

Analysis

1. S.90 R&S
Current account
borrowing

2. S.98 Rep.
Donations

3. S.102 R&S
Tax payment

4. S.106 R&S
Interest on
arrears

5. S.107 R&S
Discount allowed

6. S.114 R&S
Minimum tax

7. S.116 R&S
Tenant of tax
exempt property

8. S.118 Amdt.
Tax exempt property

9. S.127 R&S
Business tax

10. S.128 Amdt.
Poll tax

11. S.129 Amdt.
Exemption from
poll tax

12. S.131 Amdt.
Water and sewage tax

13. S.135 R&S
Exemption and remission

14. S.137 Amdt.
Lien for taxes

15. S.144 Amdt.
Penalty

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:


RSN1990 cM-23
as amended

1. Section 90 of the Municipalities Act is repealed and the following substituted:

Current account borrowing

90. (1) A council may borrow sums of money for current account purposes.

(2) The indebtedness of a council incurred as a result of borrowing an amount under subsection (1) shall not exceed 20% of its estimated tax yield, grants-in-lieu and other assured revenue, other than water and sewage subsidies paid by the province to the council, in the financial year in which the borrowing takes place.

(3) All amounts borrowed under subsection (1) shall be repaid on or before the end of the fiscal year in which the borrowing takes place.

(4) Notwithstanding subsections (2) and (3), the council may, with the prior written approval of the minister,

(a) borrow money for current account purposes in an amount which is greater than 20% of its estimated tax yield, grants-in-lieu and other assured revenue; and

(b) finance the repayment of money borrowed under this subsection and subsection (2) beyond the year in which it is borrowed.

2. Section 98 of the Act is repealed.

3. Section 102 of the Act is repealed and the following substituted:

Tax payment

102. A council may determine the manner of payment of a tax imposed under the Act.

4. Section 106 of the Act is repealed and the following substituted:

Interest on arrears

106. On taxes that are not paid on or before the date on which they become due, a council may charge interest, so long as before making that charge, the council passes a resolution establishing the rate of interest to be charged and when that interest will be applied.

5. Section 107 of the Act is repealed and the following substituted:

Discount allowed

107. A council may allow a discount in respect of taxes imposed under this Act where the tax is paid within the time period which the council may establish, so long as before allowing that discount the council passes a resolution establishing the rate of discount and the time period within which the tax is to be paid.

6. Section 114 of the Act is repealed and the following substituted:

Minimum tax

114. A council may, by resolution, establish a minimum annual real property tax in a municipality.

7. Section 116 of the Act is repealed and the following substituted:

Tenant of tax exempt property

116. (1) Where real property is exempt from real property tax, a tenant who pays valuable consideration to rent that real property shall pay a tax equivalent to the real property tax that would have been payable by the owner of the real property if that property were subject to that tax.

(2) Notwithstanding subsection (1), where the owner of real property pays to the council a grant-in-lieu of taxes, a tenant who pays valuable consideration to rent that real property is not liable for a real property tax that would have been payable by the owner if that property were subject to that tax.

8. Paragraph 118(f) of the Act is repealed and the following substituted

(f) the rectory or other principal place of residence of a priest, minister or rabbi in charge of a church or other place of worship where that residence is owned by the church or other place of worship, together with the land

(i) on which it is situated, and

(ii) that in relation to the places of residence, are in active use;

9. Section 127 of the Act is repealed and the following substituted:

Business tax

127. (1) A council may impose a minimum business tax on all individuals, partnerships, associations and corporations carrying on business in the town.

(2) There may be differing minimum business taxes under subsection (1) for different classes of businesses.

10. (1) Subsection 128(1) of the Act is repealed and the following substituted:

Poll tax

128. (1) The council may impose an annual tax, to be known as "the poll tax" on

(a) a person who is 18 years of age or older and who is ordinarily resident in the town at any time during the financial year;

(b) a person who is 18 years of age or older and who is employed in the town for not fewer than 90 days in total during the financial year of the council; and

(c) an individual, partnership, association or corporation who is not ordinarily resident in the town but owns real property in the town.

(2) Subsection 128(2) of the Act is repealed.

(3) Subsection 128(3) of the Act is amended by deleting the word "live" and substituting the words "ordinarily reside".

11. Subsection 129(5) of the Act is repealed and the following substituted:

(5) A person whose income from all sources for the taxation year under the Income Tax Act (Canada) immediately before the date on which a poll tax is due is less than the basic personal exemption provided for under that Act is, upon application to the council, exempt from that poll tax.

12. Paragraph 131(2)(a) of the Act is repealed and the following substituted:

(a) where there is a building on that property that would ordinarily have water and sewage services, shall pay the water and sewage tax; and

13. Section 135 of the Act is repealed and the following substituted:

Exemption and remission

135. (1) A person may apply to council for, and the council may, by a vote of two thirds of the councillors in office, grant an exemption, remission or deferment of taxes and interest on the taxes, either in whole or in part for those periods of time that the council decides and the council may determine the evidence which it shall require to warrant that exemption, remission or deferment.

(2) The council may, by a vote of two thirds of the councillors in office, enter into tax agreements and offer tax incentives which vary existing rates of tax.

14. Subsection 137(1) of the Act is repealed and the following substituted:

Lien for taxes

137. (1) Taxes fixed, established and imposed in respect of real property, including real property tax, business tax where the owner of the business is also the owner of the real property occupied by that business and water and sewage tax where the water and sewage system services the real property owned by the person who is taxed for that service, constitute a lien upon that real property except where the real property is sold for tax arrears by the council.

(1.1) A lien under subsection (1) attaches for 6 years after

(a) the date on which the relevant tax was due to the council;

(b) the date on which the last payment on account of the tax was made; or

(c) the date on which acknowledgement of the tax owed was made to the council, whichever is later.

15. Subsection 144(1) of the Act is amended by deleting the amount "$25" and substituting the amount "$50".

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