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Second Session, Thirty-Ninth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.   It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications or view the online bilingual version (PDF).

Bill 46

THE COMMUNITY REVITALIZATION TAX INCREMENT FINANCING ACT


Table of Contents Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

INTRODUCTORY PROVISIONS

Definitions

1           The following definitions apply in this Act.

"community revitalization levy" means the levy imposed under subsection 11(1) on a community revitalization property. (« taxe de revitalisation urbaine »)

"community revitalization property" means real property that is designated by regulation as a community revitalization property. (« propriété visée par un projet de revitalisation »)

"current assessment roll" means the assessment roll that precedes the assessment roll being prepared by an assessor under subsection 9(3) or (4) of The Municipal Assessment Act. (« dernier rôle d'évaluation »)

"designation date", in relation to a community revitalization property, means the date on which the regulation designating the property comes into force. (« date de désignation »)

"education support levy" means a levy imposed under section 184 of The Public Schools Act by the council of a municipality to raise part of the annual revenues of The Public Schools Finance Board. (« taxe d'aide à l'éducation »)

"fund" means the Community Revitalization Fund established in section 15. (« Fonds »)

"incremental assessed value" of a community revitalization property means the incremental assessed value as determined under section 9. (« valeur fiscale additionnelle »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Act. (« ministre »)

"pre-designation assessed value" of a community revitalization property means the pre-designation assessed value as determined under section 8. (« valeur fiscale antérieure »)

"school taxes" means the education support levy and the special levy. (« taxes scolaires »)

"special levy" means the levy imposed under section 188 of The Public Schools Act by the council of a municipality to raise the amount that is set out in the statement referred to in section 187 of that Act. (« taxe spéciale »)

Definitions in Municipal Assessment Act and City of Winnipeg Charter apply

2           Terms and expressions that

(a) are used but not defined in this Act; and

(b) are defined

(i) in The City of Winnipeg Charter, or

(ii) in The Municipal Assessment Act;

have the same meaning in this Act as they have in those Acts.  If a term or expression is defined in or under both those Acts, the definition in The City of Winnipeg Charter applies to community revitalization properties situated in the city.

Application of other Acts

3           Unless this Act or the regulations provide otherwise, The Municipal Act, The Municipal Assessment Act and The City of Winnipeg Charter apply to the assessment and taxation of community revitalization properties under this Act.

COMMUNITY REVITALIZATION PROPERTIES

Designation

4(1)        The Lieutenant Governor in Council may, by regulation, designate real property as a community revitalization property if it is satisfied that

(a) significant improvements to the property are to occur; and

(b) it is in the public interest that the improvements be made.

Designation of properties in close proximity

4(2)        A regulation under subsection (1) may also designate as a community revitalization property real property that is in close proximity to the real property that is to be improved.

Designation period

5(1)        A designation as a community revitalization property expires on the earliest of the following:

(a) December 31 of the 25th year of the designation period;

(b) December 31 of an earlier year prescribed by regulation;

(c) December 31 of the year in which the designation is revoked.

Renewal

5(2)        A designation may be renewed at any time before it expires, but the total designation period of a property cannot exceed 25 years.

Revocation

5(3)        The Lieutenant Governor in Council may, by regulation, revoke a designation made under section 4.

Municipality and school board to be notified

6           The minister must notify a municipality and a school board when a community revitalization property situated in the municipality or school division is designated or its designation expires or is revoked.

ASSESSMENT

Amending the assessment roll

7           When a community revitalization property is designated, the assessor must amend the current real property assessment roll to allocate the property's assessment into two portions, of which

(a) one is attributable to the property's pre-designation assessed value, as determined under section 8; and

(b) the other is attributable to its incremental assessed value, as determined under section 9.

Determining pre-designation assessed value

8(1)        The pre-designation assessed value of a community revitalization property is

(a) subject to subsection (2) and until the first general assessment after its designation date, its assessed value as entered on the current real property assessment roll; and

(b) for each general assessment after its designation date, its assessed value as determined under subsection (3).

Changes to pre-designation assessed value

8(2)        The municipality must amend the pre-designation assessment entered on the current real property assessment roll if that assessment is changed as a result of

(a) an order of a board of revision, the Municipal Board or a court;

(b) an amendment made by an assessor under subsection 14(1) or (2) of The Municipal Assessment Act; or

(c) a change in the applicable tax roll under section 300 or 326 of The Municipal Act or section 340 or 341 of The City of Winnipeg Charter.

Change to pre-designation assessed value for general assessment

8(3)        For the purposes of a general assessment, the assessor must change the property's pre-designation assessed value by a rate that is equal to the average rate of change, since the last general assessment, in the assessed value of properties that are in the same class or classes and in the same municipality as the community revitalization property.

Determining incremental assessed value

9(1)        The incremental assessed value of a community revitalization property that is designated under subsection 4(1) is determined as follows:

(a) if, after its designation date, improvements are made to the community revitalization property, then the incremental assessed value is the difference between its assessed value, including the improvements, and its pre-designation assessed value;

(b) if, after its designation date, the community revitalization property becomes ineligible for an exemption from taxation for school purposes, then the incremental assessed value is the assessed value of the assessable property on the current assessment roll.

Incremental assessed value of property in close proximity

9(2)        The incremental assessed value of a property that is in close proximity to a community revitalization property designated under subsection 4(1) is the difference between its assessed value and its pre-designation assessed value.

Exemption re school taxes

10          The incremental assessed value of a community revitalization property is exempt from taxation for school purposes.

COMMUNITY REVITALIZATION LEVY

Community revitalization levy

11(1)       In each year, a municipality must impose the community revitalization levy on the portioned value of the incremental assessed value of each community revitalization property situated in the municipality.

Levy in lieu of school taxes otherwise payable

11(2)       The community revitalization levy is to be imposed and is payable in lieu of school taxes that would be payable in respect of the property if it had not been designated as a community revitalization property.

Levy rate

11(3)       The rate of the community revitalization levy must equal the total of the following tax rates imposed by the municipality on real property located in the same school division as the community revitalization property:

(a) if applicable, the tax rate imposed by the municipality in respect of the education support levy;

(b) the tax rate imposed by the municipality in respect of the special levy.

Levy collection and priority

11(4)       The community revitalization levy is to be collected in the same manner, and with the same priorities,

(a) in the case of a community revitalization property situated in the city, as a real property tax imposed under The City of Winnipeg Charter;

(b) in the case of a community revitalization property situated in any other municipality, as a real property tax imposed under The Municipal Act.

Liability to pay levy

12(1)       Each person in whose name a community revitalization property is assessed is liable to pay the community revitalization levy in respect of the property.

Joint liability

12(2)       If the community revitalization levy is payable by two or more persons, payment by one of them on account of the levy discharges the liability of the others for the levy to the extent of the payment.

Levy amount remitted to the province

13          Each year, a municipality must, at the same time it remits the special levy to school divisions under section 189 of The Public Schools Act, remit to the Minister of Finance the amount of the community revitalization levy in respect of all community revitalization properties situated in the municipality.

Municipality's calculation of school taxes

14          In calculating school taxes under The Public Schools Act, the total school assessment is to be determined without reference to the incremental assessed value of the community revitalization properties situated in the municipality.

COMMUNITY REVITALIZATION FUND

Fund established

15(1)       A fund to be known as the "Community Revitalization Fund" is hereby established.

Purpose of fund

15(2)       The purpose of the fund is to promote and support significant improvement projects in order to

(a) revitalize communities or neighbourhoods;

(b) encourage economic development;

(c) enhance social and cultural development;

(d) preserve heritage properties.

Control and supervision of fund

15(3)       The fund is under the control and supervision of the minister, and is to be deposited with the Minister of Finance and held in trust in a separate account in the Consolidated Fund.

Credits to fund

15(4)       The amounts remitted to the Minister of Finance by a municipality under section 13 (community revitalization levy) are to be credited to the fund.

Investment of excess money

15(5)        If the balance to the credit of the fund is more than the amount that is required for immediate purposes, the Minister of Finance may invest the excess. All earnings from the investment must be credited to the fund.

Payments from fund

15(6)        On the requisition of the minister, the Minister of Finance may make a grant from the fund, for a purpose mentioned in subsection (2), to

(a) the person in whose name a community revitalization property is assessed;

(b) an occupier of a community revitalization property;

(c) the municipality in which a community revitalization property is situated; or

(d) a person or organization carrying on activities or projects that are consistent with the purposes of the fund and that are in the same community or neighbourhood as a community revitalization property.

REGULATIONS

Regulations

16(1)       The Lieutenant Governor in Council may make regulations

(a) designating real property as a community revitalization property;

(b) amending or revoking a designation made under clause (a);

(c) prescribing the year in which a designation expires;

(d) respecting the application of any provision of The Municipal Act, The Municipal Assessment Act, The Public Schools Act or The City of Winnipeg Charter, with or without modification, to a community revitalization property or a community revitalization levy, or both;

(e) respecting any other matter necessary or advisable to carry out the intent and purpose of this Act.

Retroactive effect

16(2)       A regulation made under clause (1)(a) or (b) may be given retroactive effect. But it may not come into force on a date before January 1 of the year in which it was made.

CONSEQUENTIAL AND CONDITIONAL AMENDMENTS

Consequential amendment, C.C.S.M. c. M225

17          The Municipal Act is amended by adding the following after subsection 300(4):

Assessed value re community revitalization property

300(4.1)    In respect of real property that is designated as a community revitalization property under The Community Revitalization Tax Increment Financing Act, the tax roll must indicate separately the portions of the property's assessed value that are attributable to its pre-designation assessed value and its incremental assessed value, as determined under section 8 or 9 of that Act.

Consequential amendments, C.C.S.M. c. M226

18(1)        The Municipal Assessment Act is amended by this section.

18(2)       Subsection 1(1) is amended

(a) in the definition "total school assessment", by adding "and the aggregate of the incremental assessed value of real property in the municipality that has been designated as community revitalization property" at the end; and

(b) by adding the following definitions:

"community revitalization levy" means the levy imposed under section 11 of The Community Revitalization Tax Increment Financing Act on a community revitalization property; (« taxe de revitalisation urbaine »)

"community revitalization property" means real property that is designated by regulation as a community revitalization property under The Community Revitalization Tax Increment Financing Act; (« propriété visée par un projet de revitalisation »)

"designation date" means designation date as defined in The Community Revitalization Tax Increment Financing Act; (« date de désignation »)

"incremental assessed value" means the incremental assessed value of a community revitalization property as determined under section 9 of The Community Revitalization Tax Increment Financing Act; (« valeur déterminée additionnelle »)

18(3)       The following is added after subsection 9(6):

Community revitalization property breakdown

9(6.1)       Where applicable, an assessor must, in a notice of assessment sent under subsection (6), indicate

(a) the portion of the property's assessed value that is its pre-designation assessed value as determined under section 8 of The Community Revitalization Tax Increment Financing Act; and

(b) the portion of the property's assessed value that is its incremental assessed value.

18(4)       The following is added after subsection 23(2):

Community revitalization property

23(3)       The incremental assessed value of a community revitalization property is exempt from taxation for school purposes.

18(5)        The following is added after subsection 54(7):

Revising the assessed value of a community revitalization property

54(8)        If an order is made increasing or decreasing the total assessed value of a community revitalization property, when revising the assessment roll under subsection (7), the assessor must, to the extent possible, change the property's incremental assessed value.

18(6)       The following is added after subsection 61(2):

Revising the assessed value of a community revitalization property

61(3)       If an order is made increasing or decreasing the total assessed value of a community revitalization property, the municipal administrator of the subject municipality or, in the case of the City of Winnipeg, the City Assessor, must, to the extent possible, change the property's incremental assessed value when revising the assessment roll under subsection (2).

Consequential amendment, S.M. 2002, c. 39

19          Section 339 of The City of Winnipeg Charter is amended by renumbering it as subsection 339(1) and adding the following as subsection 339(2):

Assessed value re community revitalization property

339(2)      For the purpose of clause (1)(c), the assessed value of a community revitalization property designated under The Community Revitalization Tax Increment Financing Act must indicate separately the portions of the property's assessed value that are attributable to its pre-designation assessed value and its incremental assessed value, as determined under sections 8 and 9 of that Act.

Conditional amendment

20          If section 9 of Bill 36, introduced in the Second Session of the 39th Legislature, entitled The Municipal Assessment Amendment Act, comes into force, then subsection 8(2) of this Act is amended by adding the following after clause (a):

(a.1) an agreement entered into under section 15.1 of The Municipal Assessment Act that changes the assessment of the property;

C.C.S.M. REFERENCE AND COMING INTO FORCE

C.C.S.M. reference

21           This Act may be referred to as chapter C166 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

22(1)        Subject to subsection (2), this Act comes into force on a day to be fixed by proclamation.

Coming into force: section 20

22(2)       Section 20 comes into force

(a) when section 9 of Bill 36, introduced in the Second Session of the 39th Legislature, entitled The Municipal Assessment Amendment Act, comes into force; or

(b) when subsection 8(2) of this Act comes into force;

whichever is later.

Explanatory Note

Under this Bill, regulations may be made designating properties as community revitalization properties.  While a property is so designated, increases in its assessed value are subject to a community revitalization levy that is imposed at the same rate as, but in lieu of, taxation for school purposes.

Money raised by the community revitalization levy is to be paid into a new Community Revitalization Fund.  This fund is to be used to make grants to help revitalize communities and neighbourhoods, to encourage economic, social and cultural development, and to preserve heritage properties.