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St. John's, Newfoundland, Canada

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Statutes of Newfoundland 1999


CHAPTER 38

AN ACT TO AMEND THE CITY OF CORNER BROOK ACT, THE CITY OF MOUNT PEARL ACT, THE CITY OF ST. JOHNíS ACT AND THE
ST. JOHNíS ASSESSMENT ACT

(Assented to December 14, 1999)

Analysis

CITY OF CORNER BROOK ACT

1. S.2 Amdt.
Definitions

2. S.24 Amdt.
Disclosure

3. S.46 R&S
Inspection of documents

4. S.103 Amdt.
Contents of budget

5. S.116 R&S
Current account borrowing

6. S.124 Rep.
Donations

7. S.132 R&S
Interest on arrears

8. S.138 R&S
Minimum tax

9. S.142 Amdt.
Tax exempt property

10. Ss.143 and 144 R&S
Supplementary assessment

11. S.150 R&S
Minimum business tax

12. S.158 R&S
Exemption and remission

13. Ss.160 to 162 R&S
160. Lien
161. Occupied residential
property
162. Tax certificate
162.1 Notice of arrears
162.2 Right of mortgagee
162.3 Direction to sell
162.4 Advertisement
162.5 Sale by auction
162.6 Further notice of
sale
162.7 Sale set aside
162.8 Tax payment from
proceeds
162.9 Failure to pay
162.10 Future assessments
162.11 Vesting of property

14. S.172 R&S
Payment

15. S.177 Rep.
Payment

16. S.277.1 Added
Economic development

CITY OF MOUNT PEARL ACT

17. S.2 Amdt.
Definitions

18. S.24 Amdt.
Disclosure

19. S.46 R&S
Inspection of documents

20. S.103 Amdt.
Contents of budget

21. S.116 R&S
Current account borrowing

22. S.124 Rep.
Donations

23. S.131 R&S
Interest on arrears

24. S.137 R&S
Minimum tax

25. S.141 Amdt.
Tax exempt property

26. Ss.142 and 143 R&S
Supplementary assessment

27. S.149 R&S
Minimum business tax

28. S.157 R&S
Exemption and remission

29. Ss.159 to 161 R&S
159. Lien
160. Occupied residential
property
161. Tax certificate
161.1 Notice of arrears
161.2 Right of mortgagee
161.3 Direction to sell
161.4 Advertisement
161.5 Sale by auction
161.6 Further notice of
sale
161.7 Sale set aside
161.8 Tax payment from
proceeds
161.9 Failure to pay
161.10 Future assessments
161.11 Vesting of property

30. S.171 R&S
Payment

31. S.176 Rep.
Payment

32. S.277.1 Added
Economic development

CITY OF ST. JOHNíS ACT

33. S.85.1 Added
Interest on arrears

34. S.99.1 Added
Economic development

ST. JOHN'S ASSESSMENT ACT

35. S.2 Amdt.
Interpretation

36. S.4 Amdt.
Tax rate

37. S.12.1 Added
Minimum business tax

38. S.24.1 Added
Interest on arrears

CONSEQUENTIAL AMENDMENTS AND COMMENCEMENT

39. SN1999 cM-24
Amdt.

40. Commencement

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

CITY OF CORNER BROOK ACT


RSN1990 cC-15
as amended

1. Section 2 of the City of Corner Brook Act is amended by adding immediately after paragraph (a) the following:

(a.1) "business" includes

(i) a commercial, merchandising or industrial activity or undertaking,

(ii) a profession, trade, occupation, calling or employment,

(iii) an activity which provides goods or services, and

(iv) a credit union, co-operative, corporation, sole proprietorship or association of persons,

whether or not it is for profit;

 

2. Section 24 of the Act is amended by adding immediately after subsection (3) the following:

(4) Where one or more councillors have declared a conflict of interest under subsection (1) and there is no longer a quorum to vote on a matter, the minister may direct that the remaining councillors make a decision on the matter as if those remaining councillors constituted a quorum.

(5) Where all councillors have declared a conflict of interest under subsection (1), the minister may require that an official of his or her department prepare a report respecting the matter and where the report indicates that the councillors should proceed with making a decision, the minister may exempt the council from the application of section 22, and the councillors may vote on the matter.

 

3. Section 46 of the Act is repealed and the following substituted:

Inspection of documents

46. (1) The following documents shall be made available by the council for public inspection during the normal business hours of the council:

(a) adopted minutes of the council;

(b) assessment rolls;

(c) regulations;

(d) municipal plans;

(e) opened public tenders;

(f) financial statements;

(g) auditor's reports;

(h) adopted budgets;

(i) contracts;

(j) orders;

(k) permits;

(l) councillor disclosure statements filed under section 26; and

(m) all other documents tabled or adopted by council at a public meeting.

(2) A person making an inspection under subsection (1)

(a) shall not remove the document from the place where it is located or interfere with an employee of the council in the performance of his or her duties; and

(b) may make extracts from the documents, and may, where the council has copying equipment, have a copy made of the documents upon payment of a fee equal to the actual cost of providing that copy.

 

4. Section 103 of the Act is amended by adding immediately after subsection (4) the following:

(5) Notwithstanding subsection (2), the city may, with the prior written approval of the minister, provide for an expenditure in its budget for a capital reserve where the city considers it necessary to establish a capital reserve for a specific capital project and that reserve shall appear in its audited financial statement.

(6) An operating reserve fund may be provided for in a budget, subject to the prior written approval of the minister, for a specific purpose, a specified annual amount and over a specified period of years that the council shall approve.

(7) A reserve fund under subsection (6) may be invested by the council.

 

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

Current account borrowing

116. (1) The council may borrow sums of money for current account purposes.

(2) The indebtedness of the 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 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 in accordance with subsection (2) beyond the year in which it is borrowed.

 

6. Section 124 of the Act is repealed.

 

7. Section 132 of the Act is repealed and the following substituted:

Interest on arrears

132. The council may charge interest on taxes that are not paid on or before the date on which they become due, if, before making that charge the council passes a resolution establishing the rate of interest to be charged and when that interest shall be applied.

 

8. Section 138 of the Act is repealed and the following substituted:

Minimum tax

138. The council may, by resolution, establish different minimum annual real property taxes in the city for residential and for commercial property.

 

9. Paragraph 142(f) of the Act is repealed and the following substituted:

(f) the rectory or other principal 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 place of residence is in active use;

 

10. Sections 143 and 144 of the Act are repealed and the following substituted:

Supplementary assessment

143. (1) The owner of real property that has been made subject to a supplementary assessment under the Assessment Act is liable for the payment of real property tax on the basis of the supplementary assessment for the remaining portion of the calendar year from the earlier of the date of substantial completion or the date of occupation of the real property.

(2) Where real property has been made subject to an original or supplementary assessment, under the Assessment Act and an appeal is taken under that Act against the assessment, the real property tax is, notwithstanding an appeal payable on the basis of that assessment.

(3) The difference between the amount of the tax collected under subsection (2) and the amount payable on the basis of the assessment as later determined on the appeal under the Assessment Act shall be paid by the owner or refunded by the council, according to the decision on the appeal.

 

11. Section 150 of the Act is repealed and the following substituted:

Minimum business tax

150. (1) The council may impose a minimum business tax on all businesses operating in the city.

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

(3) Notwithstanding sections 146 and 147, the council may impose a minimum business tax under subsection (1) as a fixed amount.

 

12. Section 158 of the Act is repealed and the following substituted:

Exemption and remission

158. (1) A person may apply to the council for, and the council may, by a vote of 2/3 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 2/3 of the councillors in office, enter into tax agreements and offer tax incentives which vary existing rates of tax.

 

13. Sections 160 to 162 of the Act are repealed and the following substituted:

Lien

160. (1) Taxes fixed, established and imposed in respect of real property, including the 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.

(2) A lien under subsection (1) attaches on the date on which the relevant tax was due to the council and continues for a period of 6 years after that attachment or 6 years after the last payment on account of the tax or acknowledgement of the tax has been made or given to the council, whichever is later.

(3) A lien under this section ranks in priority over a grant, deed, lease or other conveyance and over a judgment, mortgage or other lien or encumbrance affecting the real property or the title to the real property to which the lien applies.

(4) Where proceedings are taken to enforce a lien imposed under this section, the lien shall continue in force until the completion of the proceedings, or for 10 years, whichever is sooner.

(5) The registration of a grant, deed, lease or other conveyance or of a judgment, mortgage or other lien or encumbrance, whether it was before or after the time the lien attached, does not affect the priority of the lien.

(6) It shall not be necessary to register a lien imposed under this section in the Registry of Deeds established under the Registration of Deeds Act.

Occupied residential property

161. Notwithstanding section 160, real property that is occupied for full time residential purposes by the owner shall not be sold for tax arrears by the council while it is occupied in that manner.

Tax certificate

162. The city clerk shall, on payment of a fee set by the council, give a tax certificate to the owner or mortgagee of real property or his or her solicitor certifying the tax position of the property and other charges imposed by the council on the real property and that tax certificate is binding upon the council as to all taxes and other charges then imposed with respect to the real property.

Notice of arrears

162.1 (1) Where taxes on real property owed under this Part are in arrears, the clerk shall serve upon the owner and encumbrancers of the real property to which the taxes apply a notice signed by the city clerk which shall contain

(a) a general description of the real property affected;

(b) the amount of arrears of taxes owing in respect of the real property, the year in which the arrears of taxes were imposed and the person in whose name the real property was then assessed; and

(c) a statement that the real property is liable to be sold under this Act for the arrears, with interest and the expenses of and incidental to the arrears, unless they are paid within 60 days from the date of the notice.

(2) Service of the notice upon a person under subsection (1) is sufficient where it is sent by registered mail to the last known address of the person, or, where the address of the person is not known, by leaving the notice with the tenant or occupant of the real property affected or by posting a copy of the notice in a conspicuous place on the property.

(3) Where the owner of the real property taxed under this Part is unknown or the city clerk has not been able to obtain information respecting ownership or encumbrances, the notice shall be posted in a conspicuous place on the real property affected.

Right of mortgagee

162.2 (1) A mortgagee, judgment creditor or other person having a lien, charge or encumbrance upon or against real property liable to be sold for taxes, or in respect of which taxes are due, may, after the lien for taxes has attached and before sale, pay to the city clerk the amount of the taxes, together with all interest and expenses incurred in respect of the real property affected.

(2) Where a person pays taxes under subsection (1), the person may add the amount paid to his or her mortgage, judgment or other security, notwithstanding a clause or condition to the contrary contained in the security and shall have the same rights, remedies and privileges against the real property that he or she has under the security held by him or her and may sue for and recover in an action for debt the amount paid, together with interest, against the person liable under this Part to pay that amount.

(3) Notwithstanding subsections (1) and (2), it shall be considered to be a condition of all mortgages of real property within the city that the mortgagee may pay money owing to the council and unpaid in respect of the mortgaged property and add the money to the mortgagee's security, notwithstanding a clause or condition to the contrary contained in the mortgage.

Direction to sell

162.3. After the time limit indicated in the notice required to be given under section 162.1, the council on the application of the city clerk shall, by resolution, direct that the real property be sold.

Advertisement

162.4 (1) The city clerk shall immediately upon receipt of a copy of the resolution referred to in section 162.3 proceed to advertise the real property referred to in the resolution for sale by public auction at a time and place that shall be stated in the advertisement.

(2) Notice of the sale shall be published, at least 30 days immediately before the sale, in a daily or weekly newspaper in circulation in the city by one insertion each week, and it shall be sufficient in the notice to put the street and number of the real property advertised, or to put another short reference by which the real property may be identified, together with a statement that a full description may be seen at the office of the city clerk.

Sale by auction

162.5 (1) At the time and place mentioned in the notice of sale the city clerk shall, unless the arrears of taxes and interest and the expenses incidental to those proceedings and sale are then, or have been previously, paid to him or her, proceed to sell at public auction the real property or portions of the real property that in his or her judgment are sufficient to pay those taxes, interest and expenses.

(2) Where the real property described or referred to in the notice of sale is only a portion of real property for which a tax is owed and the portion does not sell for a sufficient sum to satisfy the taxes, interest and expenses due with respect to the real property of which it forms a part, the city clerk may immediately, and without further notice, sell the whole or a portion of the remainder of the real property to satisfy the taxes, interest and expenses.

(3) The city, by an official or agent, may bid for and purchase real property being sold to satisfy taxes, interest and other expenses due.

Further notice of sale

162.6 (1) Where at the time appointed for the sale of real property no bidder appears, or where the city clerk fails at the sale to sell that real property for the full amount of the arrears of taxes, interest and expenses due, he or she shall adjourn the sale until a day to be publicly named by him or her, not earlier than one week and not later than 2 weeks after the time originally appointed for the sale.

(2) The city clerk shall give notice in the paper in which the sale was originally advertised, or where not then in circulation, in another newspaper circulating in the city, of the time and place to which the sale is adjourned and he or she shall again put up the real property at public auction and may sell the real property for any sum that can be realized.

Sale set aside

162.7 Where real property is sold for taxes and the sale is set aside for an error, irregularity or other cause, the lien on the real property shall not as a result be discharged but shall continue for the same time as if the date of the setting aside were the date on which the sale took place and the property may again be sold unless the taxes, interest and expenses against it are paid.

Tax payment from proceeds

162.8 (1) The city clerk shall, out of the money received on the sale of real property, deduct the amount of taxes, interest and expenses owing to the city, at the time of the sale.

(2) Where there is a balance of the purchase price remaining after making the deductions under subsection (1), the city shall pay the person entitled to it, or, where there is a dispute as to who is entitled, as determined by an order of the Trial Division on application by the city.

Failure to pay

162.9 Where the purchaser of real property at a sale under this Act fails to immediately, after the sale being knocked down to him or her,

(a) pay the city clerk or his or her agent the amount of the purchase money; or

(b) deposit with the city clerk an amount equal to the amount of the taxes, interest and expenses of sale for which the real property has been sold,

the city clerk shall immediately put up the real property for sale again.

Future assessments

162.10 (1) Where real property has been sold under this Act for arrears of taxes, it shall be assessed to the purchaser, his or her executors, administrators or assigns.

(2) Where the city is the purchaser, the real property shall be assessed to the city.

(3) Where real property has been sold under this Act for arrears of taxes, the council shall give to the purchaser a valid conveyance in the name of the city signed by the mayor and the city clerk or the person appointed by council and sealed by the city.

Vesting of property

162.11 The conveyance referred to in section 162.10 shall be conclusive evidence that the provisions of this Act with reference to the sale of the real property described in that conveyance have been fully complied with, and everything necessary for the legal perfection of that sale has been performed, and shall have the effect of vesting the real property in the purchaser, his or her executors, administrators or assigns absolutely free from encumbrances of the city.

 

14. Section 172 of the Act is repealed and the following substituted:

Payment

172. A local service assessment imposed under section 168 and a service levy imposed under section 174 shall be paid by the owner of real property at the time and in the manner which the council may determine.

 

15. Section 177 of the Act is repealed.

 

16. The Act is amended by adding immediately after section 277 the following:

Economic development

277.1 (1) The council may encourage economic development as it considers appropriate, and for that purpose may enter into an agreement with another city, municipality, local service district, agency, person or the government of the province.

(2) In this section, "economic development" means the continuation, expansion or establishment of a business or industry.

CITY OF MOUNT PEARL ACT

RSN1990 cC-16
as amended

17. Section 2 of the City of Mount Pearl Act is amended by adding immediately after paragraph (a) the following:

(a.1) "business" includes

(i) a commercial, merchandising or industrial activity or undertaking,

(ii) a profession, trade, occupation, calling or employment,

(iii) an activity which provides goods or services, and

(iv) a credit union, co-operative, corporation, sole proprietorship or association of persons,

whether or not it is for profit;

 

18. Section 24 of the Act is amended by adding immediately after subsection (3) the following:

(4) Where one or more councillors have declared a conflict of interest under subsection (1) and there is no longer a quorum to vote on a matter, the minister may direct that the remaining councillors make a decision on the matter as if those remaining councillors constituted a quorum.

(5) Where all councillors have declared a conflict of interest under subsection (1), the minister may require that an official of his or her department prepare a report respecting the matter and where the report indicates that the councillors should proceed with making a decision, the minister may exempt the council from the application of section 22, and the councillors may vote on the matter.

 

19. Section 46 of the Act is repealed and the following substituted:

Inspection of documents

46. (1) The following documents shall be made available by the council for public inspection during the normal business hours of the council:

(a) adopted minutes of the council;

(b) assessment rolls;

(c) regulations;

(d) municipal plans;

(e) opened public tenders;

(f) financial statements;

(g) auditor's reports;

(h) adopted budgets;

(i) contracts;

(j) orders;

(k) permits;

(l) councillor disclosure statements filed under section 26; and

(m) all other documents tabled or adopted by council at a public meeting.

(2) A person making an inspection under subsection (1)

(a) shall not remove the document from the place where it is located or interfere with an employee of the council in the performance of his or her duties; and

(b) may make extracts from the documents, and may, where the council has copying equipment, have a copy made of the documents upon payment of a fee equal to the actual cost of providing that copy.

 

20. Section 103 of the Act is amended by adding immediately after subsection (4) the following:

(5) Notwithstanding subsection (2), the city may, with the prior written approval of the minister, provide for an expenditure in its budget for a capital reserve where the city considers it necessary to establish a capital reserve for a specific capital project and that reserve shall appear in its audited financial statement.

(6) An operating reserve fund may be provided for in a budget, subject to the prior written approval of the minister, for a specific purpose, a specified annual amount and over a specified period of years that the council shall approve.

(7) A reserve fund under subsection (6) may be invested by the council.

 

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

Current account borrowing

116. (1) The council may borrow sums of money for current account purposes.

(2) The indebtedness of the 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 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 in accordance with subsection (2) beyond the year in which it is borrowed.

 

22. Section 124 of the Act is repealed.

 

23. Section 131 of the Act is repealed and the following substituted:

Interest on arrears

131. The council may charge interest on taxes that are not paid on or before the date on which they become due, if, before making that charge the council passes a resolution establishing the rate of interest to be charged and when that interest shall be applied.

 

24. Section 137 of the Act is repealed and the following substituted:

Minimum tax

137. The council may, by resolution, establish different minimum annual real property taxes in the city for residential and for commercial property.

 

25. Paragraph 141(f) of the Act is repealed and the following substituted:

(f) the rectory or other principal 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 place of residence is in active use;

 

26. Sections 142 and 143 of the Act are repealed and the following substituted:

Supplementary assessment

142. (1) The owner of real property that has been made subject to a supplementary assessment under the Assessment Act is liable for the payment of real property tax on the basis of the supplementary assessment for the remaining portion of the calendar year from the earlier of the date of substantial completion or the date of occupation of the real property.

(2) Where real property has been made subject to an original or supplementary assessment, under the Assessment Act and an appeal is taken under that Act against the assessment, the real property tax is, notwithstanding an appeal payable on the basis of that assessment.

(3) The difference between the amount of the tax collected under subsection (2) and the amount payable on the basis of the assessment as later determined on the appeal under the Assessment Act shall be paid by the owner or refunded by the council, according to the decision on the appeal.

 

27. Section 149 of the Act is repealed and the following substituted:

Minimum business tax

149. (1) The council may impose a minimum business tax on all businesses operating in the city.

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

(3) Notwithstanding sections 145 and 147, the council may impose a minimum business tax under subsection (1) as a fixed amount.

 

28. Section 157 of the Act is repealed and the following substituted:

Exemption and remission

157. (1) A person may apply to the council for, and the council may, by a vote of 2/3 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 2/3 of the councillors in office, enter into tax agreements and offer tax incentives which vary existing rates of tax.

 

29. Sections 159 to 161 of the Act are repealed and the following substituted:

Lien

159. (1) Taxes fixed, established and imposed in respect of real property, including the 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.

(2) A lien under subsection (1) attaches on the date on which the relevant tax was due to the council and continues for a period of 6 years after that attachment or 6 years after the last payment on account of the tax or acknowledgement of the tax has been made or given to the council, whichever is later.

(3) A lien under this section ranks in priority over a grant, deed, lease or other conveyance and over a judgment, mortgage or other lien or encumbrance affecting the real property or the title to the real property to which the lien applies.

(4) Where proceedings are taken to enforce a lien imposed under this section, the lien shall continue in force until the completion of the proceedings, or for 10 years, whichever is sooner.

(5) The registration of a grant, deed, lease or other conveyance or of a judgment, mortgage or other lien or encumbrance, whether it was before or after the time the lien attached, does not affect the priority of the lien.

(6) It shall not be necessary to register a lien imposed under this section in the Registry of Deeds established under the Registration of Deeds Act.

Occupied residential property

160. Notwithstanding section 159, real property that is occupied for full time residential purposes by the owner shall not be sold for tax arrears by the council while it is occupied in that manner.

Tax certificate

161. The city clerk shall, on payment of a fee set by the council, give a tax certificate to the owner or mortgagee of real property or his or her solicitor certifying the tax position of the property and other charges imposed by the council on the real property and that tax certificate is binding upon the council as to all taxes and other charges then imposed with respect to the real property.

Notice of arrears

161.1 (1) Where taxes on real property owed under this Part are in arrears, the clerk shall serve upon the owner and encumbrancers of the real property to which the taxes apply a notice signed by the city clerk which shall contain

(a) a general description of the real property affected;

(b) the amount of arrears of taxes owing in respect of the real property, the year in which the arrears of taxes were imposed and the person in whose name the real property was then assessed; and

(c) a statement that the real property is liable to be sold under this Act for the arrears, with interest and the expenses of and incidental to the arrears, unless they are paid within 60 days from the date of the notice.

(2) Service of the notice upon a person under subsection (1) is sufficient where it is sent by registered mail to the last known address of the person, or, where the address of the person is not known, by leaving the notice with the tenant or occupant of the real property affected or by posting a copy of the notice in a conspicuous place on the property.

(3) Where the owner of the real property taxed under this Part is unknown or the city clerk has not been able to obtain information respecting ownership or encumbrances, the notice shall be posted in a conspicuous place on the real property affected.

Right of mortgagee

161.2 (1) A mortgagee, judgment creditor or other person having a lien, charge or encumbrance upon or against real property liable to be sold for taxes, or in respect of which taxes are due, may, after the lien for taxes has attached and before sale, pay to the city clerk the amount of the taxes, together with all interest and expenses incurred in respect of the real property affected.

(2) Where a person pays taxes under subsection (1), the person may add the amount paid to his or her mortgage, judgment or other security, notwithstanding a clause or condition to the contrary contained in the security and shall have the same rights, remedies and privileges against the real property that he or she has under the security held by him or her and may sue for and recover in an action for debt the amount paid, together with interest, against the person liable under this Part to pay that amount.

(3) Notwithstanding subsections (1) and (2), it shall be considered to be a condition of all mortgages of real property within the city that the mortgagee may pay money owing to the council and unpaid in respect of the mortgaged property and add the money to the mortgagee's security, notwithstanding a clause or condition to the contrary contained in the mortgage.

Direction to sell

161.3 After the time limit indicated in the notice required to be given under section 161.1, the council on the application of the city clerk shall, by resolution, direct that the real property be sold.

Advertisement

161.4 (1) The city clerk shall immediately upon receipt of a copy of the resolution referred to in section 161.3 proceed to advertise the real property referred to in the resolution for sale by public auction at a time and place that shall be stated in the advertisement.

(2) Notice of the sale shall be published, at least 30 days immediately before the sale, in a daily or weekly newspaper in circulation in the city by one insertion each week, and it shall be sufficient in the notice to put the street and number of the real property advertised, or to put another short reference by which the real property may be identified, together with a statement that a full description may be seen at the office of the city clerk.

Sale by auction

161.5 (1) At the time and place mentioned in the notice of sale the city clerk shall, unless the arrears of taxes and interest and the expenses incidental to those proceedings and sale are then, or have been previously, paid to him or her, proceed to sell at public auction the real property or portions of the real property that in his or her judgment are sufficient to pay those taxes, interest and expenses.

(2) Where the real property described or referred to in the notice of sale is only a portion of real property for which a tax is owed and the portion does not sell for a sufficient sum to satisfy the taxes, interest and expenses due with respect to the real property of which it forms a part, the city clerk may immediately, and without further notice, sell the whole or a portion of the remainder of the real property to satisfy the taxes, interest and expenses.

(3) The city, by an official or agent, may bid for and purchase real property being sold to satisfy taxes, interest and other expenses due.

Further notice of sale

161.6 (1) Where at the time appointed for the sale of real property no bidder appears, or where the city clerk fails at the sale to sell that real property for the full amount of the arrears of taxes, interest and expenses due, he or she shall adjourn the sale until a day to be publicly named by him or her, not earlier than one week and not later than 2 weeks after the time originally appointed for the sale.

(2) The city clerk shall give notice in the paper in which the sale was originally advertised, or where not then in circulation, in another newspaper circulating in the city, of the time and place to which the sale is adjourned and he or she shall again put up the real property at public auction and may sell the real property for any sum that can be realized.

Sale set aside

161.7 Where real property is sold for taxes and the sale is set aside for an error, irregularity or other cause, the lien on the real property shall not as a result be discharged but shall continue for the same time as if the date of the setting aside were the date on which the sale took place and the property may again be sold unless the taxes, interest and expenses against it are paid.

Tax payment from proceeds

161.8 (1) The city clerk shall, out of the money received on the sale of real property, deduct the amount of taxes, interest and expenses owing to the city, at the time of the sale.

(2) Where there is a balance of the purchase price remaining after making the deductions under subsection (1), the city shall pay the person entitled to it, or, where there is a dispute as to who is entitled, as determined by an order of the Trial Division on application by the city.

Failure to pay

161.9 Where the purchaser of real property at a sale under this Act fails to immediately, after the sale being knocked down to him or her,

(a) pay the city clerk or his or her agent the amount of the purchase money; or

(b) deposit with the city clerk an amount equal to the amount of the taxes, interest and expenses of sale for which the real property has been sold,

the city clerk shall immediately put up the real property for sale again.

Future assessments

161.10 (1) Where real property has been sold under this Act for arrears of taxes, it shall be assessed to the purchaser, his or her executors, administrators or assigns.

(2) Where the city is the purchaser, the real property shall be assessed to the city.

(3) Where real property has been sold under this Act for arrears of taxes, the council shall give to the purchaser a valid conveyance in the name of the city signed by the mayor and the city clerk or the person appointed by council and sealed by the city.

Vesting of property

161.11 The conveyance referred to in section 161.10 shall be conclusive evidence that the provisions of this Act with reference to the sale of the real property described in that conveyance have been fully complied with, and everything necessary for the legal perfection of that sale has been performed, and shall have the effect of vesting the real property in the purchaser, his or her executors, administrators or assigns absolutely free from encumbrances of the city.

 

30. Section 171 of the Act is repealed and the following substituted:

Payment

171. A local improvement assessment imposed under section 167 and a service levy imposed under section 173 shall be paid by the owner of real property at the time and in the manner which the council may determine.

 

31. Section 176 of the Act is repealed.

 

32. The Act is amended by adding immediately after section 277 the following:

Economic development

277.1 (1) The council may encourage economic development as it considers appropriate, and for that purpose may enter into an agreement with another city, municipality, local service district, agency, person or the government of the province.

(2) In this section, "economic development" means the continuation, expansion or establishment of a business or industry.

CITY OF ST. JOHNíS ACT

RSN1990 cC-17
as amended

33. The City of St. Johnís Act is amended by adding immediately after section 85 the following:

Interest on arrears

85.1 The council may charge interest on assessments imposed under this Act that are not paid on or before the date on which they become due, if, before making that charge, the council passes a resolution establishing the rate of interest to be charged and when that interest shall be applied.

 

34. The Act is amended by adding immediately after section 99 the following:

Economic development

99.1 (1) The council may encourage economic development as it considers appropriate, and for that purpose may enter into an agreement with another city, municipality, local service district, agency, person or the government of the province.

(2) In this section, "economic development" means the continuation, expansion or establishment of a business or industry.

ST. JOHNíS ASSESSMENT ACT

RSN1990 cS-1
as amended

35. Subsection 2(1) of the St. Johnís Assessment Act is amended by adding immediately after paragraph (b) the following:

(b.1) "business" includes

(i) a commercial, merchandising or industrial activity or undertaking,

(ii) a profession, trade, occupation, calling or employment,

(iii) an activity which provides goods or services, and

(iv) a credit union, co-operative, corporation, sole proprietorship or association of persons,

whether or not it is for profit;

 

36. Section 4 of the Act is amended by adding immediately after subsection (3) the following:

(4) The council may, by resolution, establish different minimum annual real property taxes in the city for residential and for commercial property.

 

37. The Act is amended by adding immediately after section 12 the following:

Minimum business tax

12.1 (1) The council may impose a minimum business tax on all businesses operating in the city.

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

(3) Notwithstanding subsection 12(1), the council may impose a minimum business tax under subsection (1) as a fixed amount.

 

38. The Act is amended by adding immediately after section 24 the following:

Interest on arrears

24.1 The council may charge interest on taxes that are not paid on or before the date on which they become due, if, before making that charge, the council passes a resolution establishing the rate of interest to be charged and when that interest shall be applied.

CONSEQUENTIAL AMENDMENTS AND COMMENCEMENT

SN1999 cM-24
Amdt.

39. (1) Subsection 107(1) of the Municipalities Act, 1999 is amended by adding immediately after the word "paid" the words "on or".

(2) Section 147 of the Act is amended by adding immediately after the word "encumbrances" the words "of the municipality".

Commencement

40. This Act shall come into force on January 1, 2000.

©Earl G. Tucker, Queen's Printer