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S.M. 2002, c. 39
Bill 39, 3rd Session, 37th Legislature
The City of Winnipeg Charter Act
| Table of Contents |
| Sections: 1 - 127 | 128 - 282 | 283 - 450 | 451 - 539 |
PART 7
FINANCIAL ADMINISTRATION
DIVISION 1
BUDGETS
283 The fiscal year of the city is the 12 months ending on December 31 in each year.
284(1) Before March 31 of each fiscal year, or such later day in the year as may be fixed for that year by the Lieutenant Governor in Council for the purposes of this section, council must adopt an operating budget for that year.
284(2) Before December 31 of each fiscal year, council must adopt a capital budget for that year and a capital forecast for the next five fiscal years.
284(3) The minister may, where the minister considers it necessary or advisable, prescribe the manner and form in which the city's operating budgets, capital budgets and capital forecasts, or any of them, shall be prepared.
285(1) Every operating budget of the city for a fiscal year shall include estimates of
(a) all operating revenue for the year, including all
(i) amounts, that under this or any other Act, are required to be raised in the year by imposing taxes, and
(ii) transfers from the previous year's surplus or a reserve fund;
(b) all operating expenditures for the year, including all amounts
(i) to be transferred in the year to the capital budget or a reserve fund,
(ii) needed to eliminate any deficit incurred in respect of the previous fiscal year, and
(iii) needed to defray the cost of collection of taxes, the abatement of and discounts on taxes and taxes considered by council to be uncollectible; and
(c) all amounts required to pay principal and interest payments failing due within the year on any debt of the city.
Expenditures not to exceed revenues
285(2) In adopting an operating budget, council must ensure that the estimated expenditures for a fiscal year do not exceed the estimated revenues for the year.
Content of capital budget and capital forecast
286 The capital budget of the city for each fiscal year and each five year capital forecast of the city shall include estimates of
(a) the amount needed to acquire or construct each of the works proposed in the budget or forecast; and
(b) the anticipated sources of the amount needed for each of those works.
287 The Minister of Finance may, on order of the Lieutenant Governor in Council, make grants to the city from and out of the Consolidated Fund for purposes stated in the order, of amounts fixed in the order.
DIVISION 2
EXPENDITURES
288(1) Subject to subsection (2), the city may make expenditures only if they are provided for in the operating budget or capital budget of the city or otherwise approved by council under the authority of this or any other Act.
Expenditures before budget adopted
288(2) Before the city's operating or capital budget for a fiscal year is adopted, council may authorize expenditures to be made of amounts for operating or capital expenses, not exceeding in total 30% of the expenditures estimated in the city's operating and capital budgets for the previous fiscal year.
Expenditures for purposes not set out in budget
288(3) Despite subsection (1), council may by by-law establish a process for reallocating funds provided for in an operating budget or capital budget of the city for a purpose other than that set out in the budget.
289(1) Council may provide for the establishment or maintenance of a reserve fund for any purpose for which the city has authority to make expenditures.
Definition of "financial institution"
289(2) In subsection (3), "financial institution" means a bank, trust company, loan company, credit union, insurance company or other similar institution that is supervised or examined by a government or a government authority in the jurisdiction in which it carries on business.
289(3) Money allocated to a reserve fund established under subsection (1) shall be deposited as provided in clause 100(b) (duties of chief financial officer) and may be used to purchase, acquire, or hold
(a) securities issued by
(i) the government or a government agency,
(ii) the government of Canada or a province of Canada other than Manitoba,
(iii) a government of a country other than Canada or a government of a political subdivision of a country other than Canada,
(iv) a financial institution,
(v) a municipality, school board or school district in Manitoba, or
(vi) a hospital, hospital district, health district, health and social services district, personal care home or other related or similar entity funded directly or indirectly out of the Consolidated Fund of the government;
(b) securities the payment of which is guaranteed by the government, the government of Canada, the government of a province of Canada other than Manitoba, the government of a country other than Canada, or a financial institution;
(c) securities the payment of which is a charge on the Consolidated Revenue Fund of the government of Canada or a province of Canada;
(d) securities the payment of which is a charge on the revenue of a government of another country; and
(e) securities of a corporation authorized by or belonging to a class authorized by the Minister of Finance.
Restriction on use of reserve funds
289(4) Money raised for a reserve fund established under subsection (1) shall not be expended or pledged for any purpose other than that for which the fund was established, except where
(a) the chief financial officer certifies that the amount in the fund is greater than the amount required for the purpose for which the fund was established;
(b) the amount in the fund is no longer required for the purpose for which the fund was established; or
(c) the purpose for which the fund was established is terminated.
DIVISION 3
INVESTMENTS
290 Council may provide for
(a) money of the city not immediately required for its purposes to be invested or to purchase, acquire, hold or dispose of any of the securities specified in clauses 289(3)(a) to (e); and
(b) the lending of securities held by the city, under an agreement between the city and a third party, provided
(i) the agreement is first approved by the Minister of Finance, and
(ii) the loan is secured by collateral security satisfactory to the Minister of Finance.
291(1) The city may enter into agreements respecting the investment of its money or the management of its debts, including, but not limited to, agreements for the management of risks relating to currency and interest rates, swap agreements, futures agreements, option agreements and rate agreements.
Policy for financial agreements
291(2) Before entering into an agreement under subsection (1), council must
(a) establish a policy for entering into that type of agreement and, without limiting the generality of the foregoing, any such policy
(i) may delegate to a committee established by council or to designated employees the authority to make decisions or enter into agreements under the policy,
(ii) must outline the procedure to be followed in exercising authority under the policy or subclause (i), and
(iii) must establish a system of accountability to council for decisions made under the policy or subclause (i); and
(b) have the policy approved by the Minister of Finance.
Changes in the policy must be approved
291(3) Council may not make any changes to the policy established under subsection (2) without first obtaining the further approval of the Minister of Finance.
DIVISION 4
BORROWING
Definition of "relevant sinking fund account"
292 In this Division, "relevant sinking fund account" means the sinking fund account established or provided by the city as a result of the city issuing sinking fund securities.
GENERAL AUTHORITY
293 Council may pass by-laws to provide for temporary borrowing by the city, in such amounts and on such security as council may consider necessary, for operating and capital expenditures not exceeding the revenues estimated in the city's operating budget for the previous fiscal year.
294(1) Subject to subsection (2), council may pass by-laws enabling the city to borrow money in such manner, in such amounts, and on such security as council may consider necessary for any purpose for which the city is authorized to make provision, including, without limiting the generality of the foregoing, borrowing money required for local improvements.
Approval of Minister of Finance required
294(2) Before council gives second reading to a by-law under subsection (1), the city must apply for and obtain the approval of the Minister of Finance for the borrowing under the proposed by-law.
294(3) An application for approval under subsection (2) must specify the principal amount to be borrowed and give a general description of the objects for which the amount will be used, but it is not necessary to specify in the application
(a) the manner of borrowing;
(b) the particulars of any proposed securities to be issued in respect of the borrowing; or
(c) the rate of interest payable on the amount or the term within which it is repayable.
Consideration by Minister of Finance
294(4) In dealing with an application made under this section, the Minister of Finance must consider only the financial position of the city and must
(a) approve the application in whole or in part or subject to terms and conditions, including specifying the time within which the amount to be borrowed is to be repayable; or
(b) refuse to approve the application.
295(1) Before dealing with an application under section 294, the Minister of Finance may refer it to The Municipal Board, and in that event, that board shall give, to the city and such other persons as the board considers appropriate, notice of a hearing at which those wishing to make submissions in respect of the application may appear and be heard. The notice must be given not less than 14 days before the hearing begins.
295(2) After a hearing, The Municipal Board must, within such period of time as the Minister of Finance has specified, file with the Minister of Finance a report with its advice and recommendations in respect of the application.
296 Upon making a decision under subsection 294(4), the Minister of Finance shall promptly advise the city in writing of the decision.
Borrowing must complies with conditions
297 The city may borrow money under a by-law made under section 294 only if the borrowing complies with the approval of the Minister of Finance under subsection 294(4) (consideration by minister of finance).
CITY SECURITIES
Powers and duties of chief financial officer re city securities
298(1) When council provides in a by-law under subsection 294(1) that money should be raised by the issue and sale of city securities, the chief financial officer may, subject to this Act, determine
(a) the principal amount of the city securities to be issued;
(b) the rate of interest payable and the rate of any premium or discount applicable on the city securities;
(c) the currency in which the principal amount of the city securities and any interest or premium is payable;
(d) the sale price of the city securities;
(e) the form, denomination and dates of issue and maturity of the city securities; and
(f) any other terms and conditions of the city securities.
Terms and conditions of city securities
298(2) The terms and conditions of city securities may include any provision that in the opinion of the chief financial officer is necessary or advisable to facilitate the sale of the city securities, including, without limiting the generality of the foregoing, a provision that
(a) the interest rate payable on the securities or the amount of principal payable at maturity be calculated and paid with reference to the value of a share or commodity or with reference to an index or some other basis;
(b) the securities may be redeemed before maturity at the option of the city or the holder;
(c) the holder of the security be reimbursed by the city for withholding taxes, duties, assessments or charges imposed by law on or with respect to a payment under the security by the city to the holder; or
(d) some or all of the securities are designated as sinking fund securities.
Other powers respecting city securities
298(3) When raising money by way of the issue and sale of city securities, the chief financial officer may do all acts and things that he or she considers necessary or advisable to satisfy the requirements of any jurisdiction with respect to the offer, issue, sale and trade of city securities and other transactions relating to securities in the jurisdiction, including, without limiting the generality of the foregoing,
(a) the preparation, approval, filing or delivery of a registration statement, prospectus, offering circular or other document or any amendment or supplement to any of them;
(b) the registration, qualification or exemption from registration or qualification of the city under the laws of the jurisdiction regarding the offer, issue, sale or trade of city securities;
(c) the disclosure of financial and other information;
(d) entering into agreements with respect to the offer, issue, sale and trade of city securities and other transactions relating to city securities, including underwriting, fiscal agency, pricing, exchange rate agency, paying agency, trust, distribution, registrar or other agreements; and
(e) the execution of all documents and instruments in relation to matters described in this subsection.
298(4) No security issued by the city has or constitutes a preferential pledge, lien, mortgage, hypothec or preference over any other securities issued by the city.
Chief financial officer to report
299(1) The chief financial officer must report the issue and sale of city securities in such a manner as may be resolved by council.
Payments under city securities
299(2) After receiving a report under subsection (1), council must
(a) provide for levying and raising the amounts that are estimated to be required to pay all debts under the securities, which amounts may vary from year to year; or
(b) if the security is a sinking fund security, subject to subsection 304(2), provide for levying and raising in each year during its term an amount that, together with the amounts paid into the relevant sinking fund account in other years, and the interest and earnings from investments, is sufficient to discharge the amount due under the security on maturity.
Application re obligation to levy and raise amounts
299(3) The obligation to levy and raise the amounts payable under clause (2)(a) applies to the extent that those amounts have not been provided for by other funds of the city or by taxes or fees or charges imposed on persons or property by by-law.
299(4) The amount levied and raised in respect of a sinking fund security must be paid into the relevant sinking fund for that security.
Policy for variable interest rate securities
300(1) Before a city security bearing a variable rate of interest can be issued or sold
(a) council must, by by-law, establish a policy respecting the issuing of securities bearing a variable rate of interest and, without limiting the generality of the foregoing, any such policy
(i) may delegate to a committee established by council or to designated employees the authority to make decisions relating to the issue of such securities,
(ii) must outline the procedures to be followed in exercising any authority delegated under subclause (i), and
(iii) must establish a system of accountability to council in respect of any authority delegated under subclause (i); and
(b) the policy must be approved by the Minister of Finance.
Changes in the policy must be approved
300(2) Council may not make any changes to the policy established under subsection (1) without first obtaining the further approval of the Minister of Finance.
301(1) Subject to this section, money received from the issue and sale of city securities, including any premium, and any earnings derived from the investment of that money,
(a) must be applied only for the purposes for which the city securities were issued or for the repayment of outstanding temporary borrowing for which the city securities were deposited as security; and
(b) must not be applied to payment of other expenditures of the city.
301(2) If the money described in subsection (1) in respect of city securities exceeds the amount required, or is not required, for the purposes for which the securities were issued, the excess, or the money, as the case may be, shall be applied
(a) to repay the principal of the securities;
(b) to repay any other capital expenditures of the city if the debt charges for those expenditures are or will be raised from the same class of ratepayers from which the amounts required to repay the securities are or will be raised; or
(c) to the relevant sinking fund account.
301(3) The city may reduce an amount required to be raised for the repayment of securities to the extent that an amount applied under subsection (2) is sufficient to pay the principal and interest of the securities on the days they are payable.
301(4) The amount payable in respect of a city security is recoverable under the security even though it was issued and sold by the city at a discount.
302 Where an outstanding city security is refinanced by the issue and sale of a new city security, the principal amount of the new security may exceed the amount required to repay the outstanding security; but, if the net amount raised by the new security exceeds the amount required to repay the outstanding security, the excess must be used to reduce the levies for principal and interest, or be paid into the relevant sinking fund account, in respect of the new security.
Consolidating securities by-laws
303(1) Despite this or any other Act, if council has passed separate by-laws authorizing borrowing by the issue of city securities, council may, by a consolidating by-law, provide for the issue of one series of securities for the combined amount of the authorized borrowings.
303(2) A by-law passed under subsection (1)
(a) must recite or otherwise refer to the separate by-laws that it consolidates; and
(b) may authorize the issue of city securities in one series even if the principal and interest of some of the securities in the series is payable on different days than the principal and interest on others.
SINKING FUNDS
Limitation on use of sinking funds
304(1) Money paid into a relevant sinking fund account must be applied to the repayment of those city securities as they fall due.
304(2) If, when the debts under city securities become payable, the balance in the relevant sinking fund account is less than the amount required to pay the debts in full, the city may apply under section 294 (long-term borrowing) to the Minister of Finance for authority to borrow an amount of money which, with that balance, will be sufficient to discharge the debts in full.
Chief financial officer's duties re sinking funds
305 Where the city issues sinking fund securities, the chief financial officer must
(a) keep separate accounts to show at all times the status of every debt for which the securities are issued and the amount raised, obtained and appropriated for payment of the annual requirements of the sinking funds;
(b) deposit, in accordance with clause 100(b) (duties of chief financial officer), all income arising from investments of the sinking funds to the credit of the relevant sinking fund account; and
(c) in each year before the annual mill rate for the city for the year is struck, prepare and provide council with a statement showing the amount that will be required to be raised during the year for the sinking funds.
306(1) Unless otherwise provided in a by-law passed under subsection 307(1), the chief financial officer may
(a) invest the money in the sinking fund account
(i) in any of the securities specified in clauses 289(3)(a) to (e), or
(ii) in temporary loans or advances to the city;
(b) pursuant to an agreement entered into by the city under clause 290(b), lend securities held in the sinking fund; and
(c) subject to this section, manage those investments in any manner that may be determined to be the best advantage to the city.
Payments from sinking fund account
306(2) Immediately before or on the maturity of a sinking fund security, the chief financial officer must transfer from the relevant sinking fund account to other accounts of the city such sums as have been provided for in the by-law authorizing the issue of the security.
Surpluses in sinking fund account
306(3) If on the maturity of a sinking fund security there is a surplus in the relevant sinking fund account, the chief financial officer may provide that the surplus be applied to reduce future levies that may be unpaid in connection with any part of the funded debt of the city.
Establishment of Sinking Fund Committee
307(1) Council may, by by-law, establish a Sinking Fund Committee consisting of the chief financial officer and such other individuals as council may by resolution appoint and, where the committee is established,
(a) council must provide for the remuneration of the committee members who are not members of council or employees, and for the administrative and other expenses incurred by the committee;
(b) its members hold office until they are removed by council; and
(c) council may give the committee authority over any other fund under the direction and control of the city.
Powers and duties of Sinking Fund Committee
307(2) A Sinking Fund Committee established under subsection (1)
(a) may, except as otherwise provided by council, establish rules and procedures for the conduct of meetings of the committee; and
(b) must, in place of the chief financial officer, exercise the powers of the chief financial officer under subsection 306(1) and carry out the duty of the chief financial officer under subsection 306(2).
Chief financial officer may not delegate
307(3) The powers and duties of the chief financial officer under this section or section 306 may be delegated only to an employee designated by council.
FOREIGN CURRENCIES
Borrowing in foreign currencies
308(1) Subject to this Act, council may, by by-law, authorize the borrowing by the city by way of loan in a currency other than Canadian dollars.
308(2) Where borrowing in a currency other than Canadian dollars is authorized by by-law passed under subsection (1), the amount that may be borrowed in the other currency must be calculated in accordance with the method prescribed in section 52 (raising money in foreign currency) of The Financial Administration Act.
LIABILITY
309(1) After a debt has been contracted under a by-law, council must not, until the debt and interest on it have been paid,
(a) repeal the by-law or any by-law appropriating money from any source for payment of the debt or interest, including any surplus income from any work financed by the debt; or
(b) amend any by-law referred to in clause (a) to reduce the amount to be raised annually to pay the debt or interest.
Unused borrowing authority may be rescinded
309(2) Council may amend a by-law referred to in subsection (1) in order to rescind unused borrowing authority.
Liability on local improvement securities
310 The city is liable for, and must pay to the holders of, the whole of the principal of city securities issued for local improvements, and interest on those securities, as they fall due, including not only the share assumed by the city but also the share repayable from special assessments.
311 City securities authorized by a by-law under this or any other Act are valid and binding on the city despite any insufficiency in form or otherwise of the by-law, in the securities or in the authority of the city in respect of the securities.
MISCELLANEOUS
Application of section 86 of Municipal Board Act
312 Section 86 (validation of acts of local authorities) of The Municipal Board Act applies to the city, with necessary changes.
Evidence respecting city securities
313 If there is no original written record of, or related to, a city security, any writing produced in a readily understandable form, from an electronic or magnetic medium that is established and stored in accordance with a by-law passed under the authority of section 109 (admissibility of record in converted form) is admissible in evidence to the same extent and with the same probative value as an original written record.
FINANCIAL STATEMENTS
314 The city must prepare annual financial statements of the city for the immediately preceding year.
PART 8
ASSESSMENT, TAXATION AND OTHER LEVIES ON PROPERTY
315(1) In this Part,
"business assessment" means the assessment of premises made under Division 1 for the purposes of business tax; (« évaluation commerciale »)
"business tax roll" means the business tax roll prepared under Division 2; (« rôle de la taxe d'entreprise »)
"licence fee" means the fee for a licence that a person is required under a by-law passed under
(a) section 320 (licence in lieu of business tax) to have in lieu of business tax, and
(b) section 321 (mobile home licences) to have for a mobile home; (« droit de licence »)
"personal property tax roll" means the personal property tax roll prepared under Division 2; (« rôle de la taxe sur les biens personnels »)
"premises" means land or buildings in the city, or both, or any part of land or a building, occupied or used by a person for the purpose of carrying on a business; (« locaux commerciaux »)
"real property tax roll" means the real property tax roll prepared under Division 2; (« rôle de la taxe foncière »)
"tax roll" means a real property tax roll, a business tax roll or a personal property tax roll, or a combination of two or more of those tax rolls combined in a single roll under subsection 337(1) (tax rolls may be combined). (« rôle d'imposition »)
Definitions in Municipal Assessment Act apply
315(2) In this Part, words and expressions that are
(a) used in this Part but not defined in this Act; and
(b) defined in The Municipal Assessment Act or regulations made under that Act;
have the meanings assigned by that Act or those regulations.
DIVISION 1
ASSESSMENT
BUSINESS ASSESSMENT
Municipal Assessment Act applies
316(1) The provisions of The Municipal Assessment Act, except those in section 3 and subsections 17(15) and (16) of that Act, apply to business assessment in the city.
316(2) Subject to subsection (3) and section 317 (specific exemptions), premises used or occupied by a person for carrying on a business in the city, whether or not the person resides in the city, must be assessed for business assessment at a sum equal to the annual rental value of the premises.
316(3) Subsection (2) does not apply to premises
(a) used or occupied by a person for carrying on a business if the city assessor finds it impractical to determine the annual rental value of the premises; or
(b) the use of which is not for the preponderant purpose of earning a profit.
317 Business assessments must not be made for
(a) halls or other places used for social gatherings or activities by political, religious, friendly or other groups, including incorporated charitable, fraternal and social organizations;
(b) boarding houses; and
(c) theatrical performances or concerts by students of the University of Manitoba or any of its affiliated colleges, the University of Winnipeg, or a public school or private school, as those terms are defined in The Education Administration Act.
Annual rental value to include cost of services
318(1) For the purposes of this Act, the annual rental value of premises is deemed to include the cost of providing heat and other services necessary for the comfortable use or occupancy of the premises, whether provided by the occupant or the registered owner.
318(2) In determining the annual rental value of premises, the city assessor must take all factors into account so that, as far as possible, premises similar in size, suitability, advantage of location, and the like, are equally assessed at a fair annual rental value, based in general on the rents being paid for similar premises.
Determining annual rental value
318(3) In determining the annual rental value of a premises, the city assessor is not bound to determine the amount of rent that the premises would probably earn in any year, but may fix that value in any reasonable manner that is fair and just to all other registered owners or occupiers of premises.
319(1) Where the occupier of premises sublets all or part of it, an assessor may issue the assessment for the premises, or the part, to the occupier and the subtenant, or either of them.
319(2) The business assessment for premises used for gasoline filling stations may be made under the name of
(a) the occupant; or
(b) the person the sale of whose products is the principal business of the occupant.
319(3) The premises of the owner of a gas distribution system that is assessed as personal property, as provided in The Municipal Assessment Act, are liable to business assessment for business tax.
LICENCE IN LIEU OF BUSINESS TAX
320(1) Council may pass by-laws
(a) requiring a person who, in carrying on a business for the preponderant purpose of earning a profit,
(i) occupies premises or a class of premises for which an assessor finds it impractical to determine the annual rental value, to have a licence in lieu of business tax on the premises,
(ii) does not occupy premises for the purpose of carrying on business, to have a licence in lieu of business tax, or
(iii) is the owner of an advertising sign, billboard or similar device described in the by-law, to have a licence in lieu of business tax for each such sign, billboard or similar device; and
(b) fixing, or providing for the manner of determining and fixing, the licence fee payable for a licence referred to in clause (a) in respect of
(i) a person or a class of persons,
(ii) a premises or a class of premises,
(iii) a business or a class of businesses, or
(iv) each sign, billboard or similar device or each sign, billboard or similar device of a class of them.
Collection of licence in lieu fees
320(2) The fee for a licence in lieu of business tax shall be collected in the same manner and with the same priorities as business taxes.
MOBILE HOME LICENCES
By-law requiring licence of mobile homes
321(1) Council may pass by-laws
(a) defining what is a mobile home;
(b) requiring a person who owns or occupies a mobile home in the city to obtain a licence for it;
(c) fixing, or providing for the manner of determining and fixing, the licence fee payable for a licence referred to in clause (b); and
(d) prohibiting the removal of a mobile home from land on which it is situated without the prior approval of the tax collector, if a licence fee in respect of the mobile home is unpaid.
321(2) A by-law passed under subsection (1) must not require a licence to be obtained in respect of a mobile home if the tax collector is satisfied that its occupant is a tourist and that it is being used for vacation or holiday purposes.
Collection of mobile home licence fees
321(3) Mobile home licence fees shall be collected in the same manner and with the same priorities as business taxes.
ADJUSTMENTS IN BUSINESS TAX
Adjustment of business tax on reassessment
322(1) Council may, by by-law, on such terms and conditions as it considers appropriate, limit the amount of the increase or decrease in the business tax or licence fee in respect of the premises of a class or group of businesses that council determines has resulted because of a reassessment.
Limitation on by-law under subsection (1)
322(2) A by-law passed under subsection (1) may apply to limit the amount of an increase or decrease in the business tax or licence fee in one or more of the years of a general assessment and the years before the next general assessment.
UTILITY CORPORATIONS' PROPERTY
Utility corporations' property assessments
323(1) For the purpose of assessment and taxation, the property of a corporation providing telephone services fixed or placed in a street is deemed to be real property. The city assessor must not value that property but rather must assess it by entering in each year's real property assessment roll the amount of $1,200,000. for each corporation that provides telephone services.
Liability of corporation for other tax
323(2) A corporation that has property assessed under subsection (1) is not exempt from real property tax on other real property owned by the corporation on the ground that it is liable for tax on that assessment.
324 A corporation providing telephone service that pays real property tax for property fixed or placed in a street, and deemed by section 323 to be real property, is not subject to business tax for premises, or a part of them, used or occupied by the corporation for housing its telephone exchange and switching equipment.
ASSESSMENT ROLLS
Completion of assessment rolls
325(1) The assessment rolls for a year must be completed as early as the city assessor considers practicable.
325(2) Council may by by-law provide that the city's assessment rolls be in any form, including an electronic form.
326 On completion of each assessment roll, the city assessor must
(a) certify it;
(b) notify council and the board of revision in writing that it is completed and certified; and
(c) deliver a copy of the roll to the tax collector.
327 An assessment shown on an assessment roll is not invalidated by a defect or error committed in the assessment or any part of the roll, or by an error in, or a failure to mail, deliver or publish, any notice.
Assessment rolls valid and binding
328 Despite any amendment of, or any application for revision and resulting appeal from, an assessment shown in the assessment rolls, the assessment rolls, on being certified by the city assessor are valid and binding, but any necessary amendment or variation to conform with the final decision in any application for revision or appeal must be made without affecting their validity and binding effect.
REVISION OF ASSESSMENT
329 Assessment rolls are subject to revision in accordance with Part 8 of The Municipal Assessment Act, except that,
(a) if under section 340, taxes are cancelled or reduced and an amended tax notice is sent; or
(b) if under section 341, supplementary taxes are imposed and a supplementary tax notice is sent under section 342;
an application for revision in accordance with Part 8 of the Municipal Assessment Act may be made within 20 days after the day the amended or supplementary tax notice based on the amended assessment was received by the person to whom it was sent.
330(1) If, as a consequence of a revision of an assessment roll, there is an increase or decrease in the taxes imposed in respect of a property or premises for a year, the tax collector must send by ordinary mail to the person in whose name the property or premises is assessed an amended tax notice, which must show
(a) the amount at which the affected property or premises has been newly reassessed;
(b) the portion of the year or years to which the change relates; and
(c) the reason for the change.
330(2) If, as a consequence of a revision of an assessment roll, there is an increase or decrease in any tax,
(a) any increase in the tax must be paid promptly to the city by the person in whose name the property or premises is assessed; and
(b) any decrease must be refunded promptly by the city to the person in whose name the property or premises is assessed.
VARYING PORTIONS
Regulations re varying portions
331 The Lieutenant Governor in Council may make regulations authorizing council, by by-law, to
(a) vary a percentage described under clause 6(1)(c) of The Municipal Assessment Act by an amount or within a range, fixed in the regulation; and
(b) prescribed the class or classes of assessable property that the variation may apply to.
DIVISION 2
TAXATION
LIABILITY FOR TAXES
Liability for real property taxes
332(1) Each person in whose name real or personal property in the city is assessed is liable to pay to the city real or personal property taxes imposed under this Act in respect of the property, except where the person or the property is exempted under this or any other Act from payment of such taxes.
Liability for business tax or fee
332(2) Each person in whose name business is carried on in the city or in whose name business premises are assessed is liable to pay to the city business tax or a licence fee, except where the person or the premises are exempted under this or any other Act from payment of business tax or the licence fee.
Liability of owner for business tax
332(3) A person is not exempt from business tax in respect of premises on the grounds that the person is also liable to taxation as the person in whose name property is assessed in the realty assessment roll.
332(4) Where a partnership is liable for business tax,
(a) if the partnership is a limited partnership, the general partner is liable for the tax; and
(b) if the partnership is not a limited partnership, every partner in the partnership is liable for the tax.
332(5) If taxes imposed under this Act are payable by two or more persons, any payment of the taxes by one of them discharges the liability of the others for the taxes to the extent of the payment.
Business tax not a charge on real property
332(6) Nothing in this Act makes business tax or a licence fee imposed under this Act in respect of a business a charge on the real property that is used or occupied for the purpose of the business or in which the business is carried on.
LIABILITY OF CITY FOR TAXES
333(1) Despite any other Act, but subject to subsections (2) and (3), the city, and all property belonging to the city, are exempt from taxes or rates levied and licence fees imposed by municipalities, including school taxes.
333(2) The city and a municipality may enter into an agreement under which the city binds itself to make a grant to the municipality annually in lieu of paying taxes, and the city may pay the amount that it has agreed to pay under the agreement.
Taxes payable in certain cases
333(3) Instead of taxes, rates and licence fees, the city shall in each year pay
(a) to The Rural Municipality of Springfield, $15,000.;
(b) to The Rural Municipality of Taché, $3,750.; and
(c) to The Rural Municipality of Reynolds, $2,500.
IMPOSING TAXES
Fixing property, personal and business tax rates
334(1) After the city's operating budget for a fiscal year is adopted, council must by by-law set and impose the following rates of tax sufficient to raise the revenue required in the operating budget to be raised by imposing taxes:
(a) a single rate of real property tax for the year;
(b) a single rate of business tax for the year, which must be not more than 15% of the business assessment of any premises; and
(c) a single rate of personal property tax for the year.
Fixing local improvement and frontage tax rates
334(2) Council may by by-law set and impose
(a) rates of local improvement taxes for the year imposed under Division 5; and
(b) rates of frontage taxes for the year imposed under Division 6.
334(3) Council may pass by-laws in respect of real and personal property taxes and business taxes
(a) setting a due date for the payment of the taxes imposed;
(b) providing that, in the fiscal year in which they are imposed, taxes may be paid in instalments as permitted in the by-law, subject to such terms and conditions as are specified and, if so provided, fixing the date or dates on which the instalments are due, or prescribing the manner in which such date or dates are to be fixed;
(c) providing that, when taxes are paid other than by instalments, discounts at rates prescribed in the by-law may be allowed on amounts that are prepaid on account of those taxes by dates specified in the by-law; and
(d) providing that, when taxes are paid by instalments, discounts at the rates prescribed in the by-law may be allowed on instalments that are prepaid.
By-law may specify purpose of instalment
334(4) A by-law passed under clause (3)(b) may provide that each instalment consist of the whole or a part of the taxes imposed for a particular purpose specified in the by-law and, if it does so provide, may authorize the tax collector to send by ordinary mail before July 31 of the year for which the taxes are payable, notices containing a statement and demand for payment of instalments of taxes imposed for the particular purpose so specified.
334(5) A prepayment of taxes or an instalment of taxes must not be accepted in respect of a tax account if there are taxes in arrears on that account.
334(6) A person who prepays taxes must specify the tax account to which the prepayment is to be applied and the tax collector must not apply the prepayment to any other account.
335 Taxes imposed for a year are deemed to be imposed on January 1 of that year.
TAX ROLLS
336 After the taxes for a year have been imposed under subsection 334(1), the tax collector must prepare
(a) a real property tax roll for the year, which must contain all the properties in the city that are subject to real property tax;
(b) a personal property tax roll for the year, which must contain all the personal property in the city that is subject to personal property tax; and
(c) a business tax roll for the year, which must contain all the premises in the city that are subject to business tax.
337(1) The real property tax roll, the business tax roll and the personal property tax roll may be combined.
Tax roll may be combined with assessment roll
337(2) A tax roll may be combined with the corresponding assessment roll.
338 Council may by by-law provide that the city's tax rolls be in any form, including an electronic form.
339 The tax rolls must show the following for each property or premises in respect of which taxes are imposed:
(a) the roll number;
(b) the name of the person whose property or premises is assessed on the corresponding assessment roll;
(c) the description of the property or premises and its assessed value;
(d) the amounts levied for every purpose, including those which are required by the law or by-law imposing them to be kept distinct and accounted for separately.
Cancellation or reduction of taxes
340(1) The tax collector must correct the tax rolls for the year and cancel or reduce taxes before or after the tax rolls have been prepared, if the city assessor reports one of the following changes has occurred:
(a) real or personal property has become entitled to an exemption from taxation because of a change in its owner or its use;
(b) the assessment of real or personal property is required to be reduced because of a change in its physical condition;
(c) the business assessment of a business is required to be reduced because of a reduction in the size of the premises occupied or used for the purpose of the business;
(d) a change has been made in the classification of property under The Municipal Act or a regulation made under that Act;
(e) a business has become entitled to an exemption from taxation because of a change in its proprietor or the use of its premises;
(f) a business has ceased to be operated and is no longer subject to business assessment.
340(2) If a correction to a tax roll results in a decrease in taxes imposed on real or personal property or a business for a year, the city must send the person in whose name the property or premises is assessed an amended tax notice that
(a) shows the taxes payable after the correction; and
(b) includes a reference to the right to apply for revision of assessment as provided in section 329 (revision of assessment).
340(3) If taxes for the year on the property or business in excess of the amount shown on the amended notice are paid, the city must refund to the person in whose name the property or premises is assessed the excess, with interest at the rate prescribed under clause 343(1)(c) (repayment of taxes paid under protest) of The Municipal Act calculated for the period from the day the excess was paid to the day the refund is made.
340(4) The period for which the city must pay a refund under subsection (3) begins on the later of
(a) the day a change referred to in subsection (1) occurred; and
(b) January 1 of the year before the year in which the city assessor reports a change referred to in subsection (1) occurred.
341(1) The tax collector may correct the tax rolls and impose supplementary taxes before or after the tax rolls have been prepared, if the city assessor reports one of the following has occurred:
(a) real or personal property or a business is liable to taxation but no assessment was made of the property or the business premises;
(b) real or personal property or a business has become liable to taxation because of a change
(i) in the owner or use of the property, or
(ii) in the proprietor of the business or the use of the business premises;
(c) the assessment of an improvement on real or personal property or of business premises is required to be increased because of a change in the physical condition of the improvement or premises;
(d) a change has been made in the classification of property under The Municipal Act or a regulation made under that Act;
(e) real property has been improved or subdivided.
341(2) Supplementary taxes imposed under subsection (1) in respect of real or personal property or a business for a year or part of a year must be calculated using the applicable rates set by by-law for the year.
341(3) Supplementary taxes imposed under subsection (1) are payable for the period that begins on the later of
(a) the day the circumstances referred to in subsection (1) occurred; and
(b) January 1 of the year before the year in which the city assessor reports the circumstances referred to in subsection (1) occurred.
Liable for supplementary taxes only while owner
341(4) To be liable to pay supplementary taxes under this section a person must be the person in whose name the property or premises was assessed for the period for which supplementary taxes are being imposed.
342 Where supplementary taxes are imposed, the tax collector must send to the person in whose name the property or premises is assessed by ordinary mail a supplementary tax notice that includes, in addition to the information required to be shown in a regular tax notice, a reference to the right to apply for revision of assessment as provided in section 329 (revision of assessment).
343(1) Subject to amendments made under subsection (2), the tax rolls for a year and all tax notices and demands for taxes issued by the tax collector have the same validity as if the tax rolls had been prepared after the final disposition of all applications for revision and resulting appeals of assessments for the year.
343(2) The tax rolls must be amended to conform with
(a) the final decision in any application for revision or resulting appeal of assessment;
(b) the cancellation or reduction of taxes under subsection 340(1); or
(c) the imposition of supplementary taxes under section 341 (supplementary taxes);
and the tax collector shall then make such adjustments in the collection of taxes as are required by those amendments.
TAX NOTICES AND COLLECTION
344(1) On or before July 1 in each year, the tax collector shall send by ordinary mail to the person whose name appears on the tax roll a notice which must
(a) be in a form approved by the minister responsible for The Municipal Assessment Act;
(b) contain a statement of, and demand for payment of, taxes and arrears of taxes; and
(c) contain or be accompanied by information as to when the taxes are required to be paid, when discounts will be allowed and when penalties will be charged.
344(2) The tax collector shall enter the date when each notice was mailed in the tax roll.
344(3) Tax notices or statements of, and demands for, taxes sent out under subsection (1) shall include or be accompanied by any tax-related printed information or material supplied by the minister.
TAXES RE SUBDIVISIONS
If land in tax arrears subdivided
345(1) If satisfied that a parcel of land on which taxes are due has been divided or subdivided, the city may
(a) receive the proportionate amount of tax chargeable on any of the divisions or subdivisions and leave the other divisions or subdivisions chargeable with the remainder; and
(b) in the records of the city, divide the parcel of land as is necessary for the purposes of clause (a).
If plans of subdivision cancelled
345(2) If a plan subdividing land is cancelled in whole or in part, the land that before cancellation comprised any lot or lots, block or blocks, is liable for and chargeable with the total amount of the arrears of taxes charged against the lot or lots, block or blocks, included in the area affected by the cancellation, and it may be sold for non-payment of the taxes.
TAXES PAID BY MISTAKE
346 Where a person by mistake pays an amount as taxes to the city on real or personal property or premises in which the person has no interest and the amount is refunded,
(a) the city may charge back the amount on the property on which it was paid; and
(b) if in the meantime a tax certificate was issued showing taxes on the property to have been paid and a subsequent change in ownership of the property occurred, the city may charge the taxes against any other property assessed in the name of the person by whom the taxes should have been paid, and may in any event collect the taxes from that party by action, distress and sale of personal property of the party, or otherwise.
CANCELLATION OF TAXES
347 Council may by by-law cancel in whole or in part any taxes or any debt or money owing to the city, other than local improvement taxes.
PENALTIES AND INTEREST
348(1) Council may by by-law
(a) fix a rate of interest to be paid as a penalty on taxes that are due and unpaid, or prescribe the manner in which the interest rate is to be fixed;
(b) in respect of real property sold for unpaid taxes,
(i) establish a penalty calculated as a percentage of the amount for which the property was sold at tax sale, and
(ii) fix a rate of interest on the amount for which the property was sold at tax sale to be paid as a penalty;
(c) provide for compounding the interest and prescribing the manner of compounding it; and
(d) provide that the penalties be added to the taxes at a specified time or times.
348(2) Penalties on taxes must be collected in the same manner and with the same priorities as the taxes on which they are payable.
Penalty applies in spite of appeal
348(3) Despite any decision on an application for revision of an assessment or an appeal, the penalties provided by by-law apply to all unpaid taxes whether paid before or after the final disposition of the application or the appeal.
349 If, as a consequence of a revision of an assessment roll, the amount of taxes for a year payable by a person is reduced after the taxes have been paid, the city must pay interest on the refund of any excess paid, at a rate prescribed under clause 343(1)(c) (repayment of taxes) of The Municipal Act, calculated from the day the excess was paid to the day the refund is made.
DIVISION 3
COLLECTION OF TAX ARREARS AND DEBTS
GENERAL
350 Where real or personal property taxes in respect of property are in arrears, any payment in respect of taxes in respect of the property must be applied first on the year's taxes longest in arrears, except that where there is a dispute as to taxes for a particular year, a payment may be applied on taxes for the first year that is not in dispute.
351(1) The city may attempt to collect or enforce payment of taxes in accordance with any or all remedies provided in this or any other Act, and, except as otherwise provided, the use of one remedy does not prevent the use, separately or concurrently, of another remedy in respect of the same taxes; but the city is not under any compulsion to exercise any right to collect taxes by any remedy.
351(2) Every amount payable to the city under this Act, whether it is a tax, a penalty, a recoverable cost of seizure or sale payable by a taxpayer, an amount authorized under this or any other Act to be added to taxes, or an amount payable by a third party in respect of the tax arrears of a taxpayer, is a debt owing to the city by the person liable to pay the amount and recoverable in a court of competent jurisdiction.
351(3) Production of a copy of a tax roll or a part of a tax roll as it relates to taxes payable in respect of a property or a business, purporting to be certified by the tax collector as a true copy, is sufficient proof
(a) of the amount of taxes payable or in arrears in respect of the property or business and payable by the person in whose name the property or premises is assessed; and
(b) if it contains an entry respecting the mailing of a tax notice as required under subsection 344(2) (entry of date of notice), of the mailing of the tax notice.
352(1) On request and payment of a fee prescribed by by-law, the tax collector must issue a tax certificate showing
(a) the taxes for the year in respect of the property or business specified in the request, and any amount paid as of the date of the certificate;
(b) any tax arrears owing in respect of the property or business as of the date of the certificate; and
(c) in respect of real property taxes, whether the property has been
(i) sold for unpaid taxes, and, if it has, the date when it was sold, or
(ii) advertised for sale for unpaid taxes, and, if it has, the date when the sale will take place.
352(2) A tax certificate issued under subsection (1) is binding on the city but does not prevent the city from imposing
(a) supplementary taxes after the date of the certificate;
(b) additional taxes resulting from an application for revision, or resulting appeal, commenced before the date of the certificate; or
(c) other fees, levies, charges or amounts that, under this or another Act, the city is required to or may collect in the same manner as taxes.
LIENS FOR TAXES
Special lien on land and improvements
353(1) The city has a special lien on real property for the amount of taxes imposed in respect of the real property.
Special lien on personal property
353(2) The city has a special lien
(a) on all personal property in the possession of a person, wherever it may be found, for the amount of the taxes imposed in respect of any personal property or business of the person; and
(b) in regard to a corporation providing telephone services, on the property that is deemed to be real property under subsection 323(1) (utility corporations' property assessment);
for the amount of taxes imposed in respect of the $1,200,000. assessed value of that property.
No registration and priority of lien
353(3) A special lien created under this section
(a) is not required to be registered to preserve it;
(b) is not defeated by judicial proceedings, changes in ownership or other acts or things; and
(c) unless otherwise provided in this Act or any other Act, and subject to the Bankruptcy and Insolvency Act (Canada), has priority over claims, liens, charges and encumbrances of every person, including registered and unregistered mortgages, encumbrances, assignments, debentures and other security interests, whether made, given, accepted, issued or arising before or after the coming into force of this Act, other than
(i) a claim, lien, charge or encumbrance in favour of the Crown,
(ii) a claim for wages or salary, for a period not exceeding three months immediately preceding the day when the first steps to collect under the lien are taken, of an individual who has provided services or labour to the person liable to pay the taxes, and
(iii) a claim for the costs of a seizure or sale, or of any proceeding in respect of a distress, seizure or sale to enforce the lien.
No lien on land for business tax etc.
353(4) There is no lien or charge on real property for business tax, personal property tax, licence fees, or the special lien specified in clause (2)(b).
No lien on goods on consignment or in storage
353(5) Where personal property is in the possession of a person solely for the purpose of storing or warehousing it for another person or for sale on consignment, on commission or as agent,
(a) there is no lien or charge on the property; and
(b) the personal property shall not be distrained or sold;
for taxes payable by the person in possession.
354(1) Except as otherwise provided, on an assignment for the benefit of creditors made by or on a bankruptcy of a person liable to pay taxes, or on a receiving or winding-up order being made in respect of a corporation liable to pay taxes, a special lien created under subsection 353(2) is on all the personal property passing under the assignment or bankruptcy or affected by the winding-up order, and the city has priority over any and all other fees, charges, liens and claims whatsoever; and any disposal of such property may be made by the assignee, trustee, receiver or liquidator only on payment to the city of the amount of the taxes.
Personal property of bankrupt liable
354(2) Personal property that is in the hands of an assignee, trustee in bankruptcy, receiver or liquidator and that is subject to a lien for business taxes or licence fees payable by the assignor or bankrupt or by the corporation that is in receivership or being liquidated is liable only for those taxes or licence fees imposed in respect of the premises in which the property was situated at the time of the assignment, application for bankruptcy or the appointment of the receiver or liquidator was made and thereafter imposed in respect of the premises while the assignee, trustee in bankruptcy, receiver or liquidator occupies the premises or while the property remains in the premises.
DISTRAINT AND SALE OF PERSONAL PROPERTY
Sale or distraint for lien under subsection 353(2)
355 Subject to subsection 353(5) (goods on consignment or in storage), the city may collect taxes in respect of which a lien is created under subsection 353(2), by distraint or sale of the personal property.
356(1) When a person who is liable for payment neglects to pay personal or real property taxes within 30 days, or business taxes or a licence fee immediately, after the day the payment is due, the city may, by distraint and sale of personal property that is subject to a lien for the payment thereof, collect the taxes or licence fee, together with the costs and charges for or in respect of the distress and sale on the same scale as those that may be charged and collected under The Distress Act.
356(2) In the event of the sale of a business by a person liable for unpaid business tax or licence fees in respect of the business, all the personal property passing by the sale continues, as against the immediate purchaser, to be liable to distraint and sale under subsection (1).
Distress and sale to be by tax collector
356(3) The tax collector, or a person appointed in writing by the tax collector, may carry out the distraint and sale under subsection (1).
Right of entry of person levying distress
356(4) Where under this section a person is authorized to distrain personal property and the personal property is enclosed, or purported to be enclosed, in a building or closed place, the person may, in the presence of two witnesses, cause the building or place to be opened with all force necessary to effect the opening.
357(1) Subject to subsection 356(2) and subsection (2), no distraint or sale to collect taxes shall be made under this Part of personal property of a person who is not liable to pay the taxes or fee if that person claims the property.
Where subsection (1) not to apply
357(2) The restriction under subsection (1) on distraint and sale of personal property to collect taxes does not apply to the interest of the person liable to pay the taxes or fee in the property where the property is in the possession of that person under a contract
(a) for purchase of the property; or
(b) under which the person may or is to become the owner of the property on the performance of a condition.
Persons in possession to pay taxes
358(1) Where personal property that is subject to a lien for taxes, or liable to distraint and sale for taxes, as provided in this Part
(a) is in the possession of any person because the property
(i) is under execution or attachment, or
(ii) has been seized by
(A) the sheriff of the Court of Queen's Bench,
(B) a landlord or landlord's bailiff,
(C) a person, or the bailiff of a person, who has taken possession of the property because of default under a security agreement, or
(D) any other person;
(b) is in the possession of a receiver or assignee for the benefit of creditors or a trustee in bankruptcy;
(c) is claimed by or in the possession of a corporation in respect of which a liquidator has been appointed; or
(d) in any of the circumstances described in this subsection, has been converted into cash and the cash is undistributed and in the possession of any person;
it is sufficient for the tax collector to give to that person notice of the amount of taxes that are due, and in that case that person shall, subject to subsection (3), pay the amount to the city, in preference and priority to any and all other fees, charges, liens and claims whatsoever.
Distraint for real property taxes
358(2) Where real property taxes in respect of real property are due and unpaid, the city may collect, or enforce the payment of, the taxes by distraint and sale of personal property of the person in whose name the property is assessed.
358(3) Where personal property has been distrained by a landlord's bailiff, the legal fees of the bailiff, based on a distraint for an amount equal to the amount of the taxes, may be deducted from any amount that the bailiff is required under subsection (1) to pay to the city.
359 An acknowledgment by a person that the person's personal property has been distrained under this Act for unpaid taxes is of the same force and effect as an actual distraint or seizure of the property.
360 Where a person's personal property has been distrained under this Act for unpaid taxes, the city may, on payment of part of the taxes in arrears, release some or all of the property without prejudice to its right to use any remedy, including distraint and sale, to recover the balance of the arrears.
Limit on liability for distrained property
361 The city is not liable for any damage, loss or destruction of personal property that has been distrained under this Act except to the extent that the damage, loss or destruction resulted from the negligence of the city or its employees or agents.
362(1) Personal property that has been distrained under this Act may be sold by the city by public auction, public tender or other public competition.
362(2) The city must give public notice of any sale of personal property to be conducted under this Part and the notice must set out
(a) a description of the property to be sold;
(b) the time when and the place where the sale will take place or tenders must be submitted, as the case requires; and
(c) the manner in which the sale will be conducted.
Proceeds of sale of seized property
363(1) Where the city sells all or part of property seized or removed by the city under this Act or a by-law, the proceeds of the sale must be used
(a) to pay the expenses and costs of the seizure or removal;
(b) to pay any taxes owing to the city; and
(c) to pay any debt owing to the city;
and the city must pay the surplus, if any
(d) to the person in whose possession the property was when it was distrained; or
(e) if another person claims the balance, into the Court of Queen's Bench to be paid out as the court orders.
Where person entitled not known
363(2) Where the whereabouts of the person entitled under subsection (1) to any balance arising from the sale of personal property under this Part are unknown to the tax collector at the time of the sale, the surplus shall remain in the hands of the city and
(a) if, within six years after the sale, that person claims the surplus with evidence of the entitlement, the city must pay to that person the surplus, with interest on it at the rate prescribed by regulation for the purposes of clause 343(1)(c) (repayment of taxes) of The Municipal Act calculated from the day of the sale to the day of payment; and
(b) if the person entitled to the surplus does not claim the surplus within six years after the sale, the surplus becomes part of the general revenues of the city and is not recoverable from the city.
Application to court re seizure
364(1) Any person whose property is seized by the city under this Act or a by-law may, within 30 days, or such longer period as the court may allow, apply to the Court of Queen's Bench for an order under subsection (2).
364(2) On an application under subsection (1),
(a) where the property was seized for the purpose of recovering a debt owing to the city, if the court is satisfied that
(i) the applicant does not owe the debt, or
(ii) the value of the property is excessive having regard to the amount of the debt; or
(b) where the property was seized as a remedial action in respect of a contravention or alleged contravention of this Act or a by-law, if the court is satisfied that
(i) the alleged contravention did not occur, or
(ii) some or all of the property was not a factor in the contravention;
the court may
(c) order the return, if possible, of some or all of the property to the applicant;
(d) order the city to make restitution to the applicant in an appropriate amount, including any money expended by the applicant in making the application; or
(e) make such other order as the court considers just in the circumstances.
MISCELLANEOUS REMEDIES
Assets insufficient to cover taxes
365 A person shall not, in any year, carry on a business that is subject to business tax or a licence fee if
(a) the person is in default in the payment of any business taxes or licence fees for the previous year or part of the previous year; and
(b) the city has issued a warrant of distress for the business taxes or licence fees due by the person and the value of the property distrained is not sufficient to pay the total of the taxes or fees in arrears and the costs of the distress and sale of the property.
Building not to be removed if taxes unpaid
366(1) No person shall, without the prior consent of the tax collector, remove a building from land on which it is situated if taxes on the building or land, or any penalties in respect thereof, are unpaid.
366(2) If
(a) taxes on a building or the land on which it is situated are unpaid; and
(b) the building is removed from that land to other land without the prior consent of the tax collector;
the tax collector may transfer the unpaid taxes to the other land, and this Act applies, with necessary changes as the circumstances require, in respect of that other land and those taxes on the other land as if they had originally been levied on that other land.
Tenant required to pay rent to city
367(1) Where a tenant occupies property on or in respect of which taxes are due and unpaid, the tax collector may give notice to the tenant requiring the tenant to pay to the city the rent as it becomes due from time to time to the amount of the total of the unpaid taxes and costs incurred by the city in attempting to collect them; and, if the tenant fails or neglects to pay the rent to the tax collector,
(a) the amount of the rent may be recovered with costs in a court of competent jurisdiction as a debt due from the tenant to the city; and
(b) the city may, subject to The Landlord and Tenant Act, levy the amount of the rent, with costs, by distress and sale of the personal property of the tenant.
367(2) Payment of an amount by a tenant under a demand given under subsection (1) for payment of rent to the city has the same effect, as between the tenant and the landlord, as if the amount had been paid by the tenant directly to the landlord, or other person entitled to the amount.
Action by tenant to recover taxes paid
368 If a tenant of property pays taxes levied on that property, the tenant has, unless the contrary has been agreed to by the tenant and the landlord, a right of action against the landlord for the recovery of the amount so paid, with interest and costs, or the amount may be retained and deducted by the tenant from any rent or other amount due or accruing due for the use or occupation of the property.
Insurance money applied to taxes
369(1) Subject to subsections (2) and (4), when real property is damaged or destroyed and
(a) taxes on the property are unpaid; or
(b) the property has been sold for taxes and the city holds the tax sale certificate;
any amount payable to any person in respect of the damage or destruction under a policy of insurance covering the property shall, to the extent of the unpaid taxes or the amount necessary to redeem the property from the tax sale, be paid by the insurer to the city.
Limitation on application of subsection (1)
369(2) Subsection (1) applies only to the extent that the money payable under an insurance policy is not used, or to be used, in or toward
(a) the rebuilding, reconstruction or repair of the property damaged or destroyed; or
(b) the acquisition, setting up or repairing of another building on the same site to take the place of the building that was damaged or destroyed.
Application of insurance money
369(3) Subject to subsection (4), when personal property that is subject to a lien for business tax or licence fees is damaged or destroyed and the business taxes or licence fees are unpaid, any amount payable to any person in respect of the damage or destruction under a policy of insurance covering the property shall, to the extent of the unpaid taxes or licence fees, be paid by the insurer to the city on demand.
Insurers to notify tax collector
369(4) Where the insurer under a policy of insurance on any property in the city that is subject to a lien for taxes receives notice of loss under the policy, the insurer shall, within 48 hours after receiving the notice, inform the tax collector by registered mail of the notice of loss, and, unless a written demand for the taxes within 14 days after the information is mailed, the insurer is not liable as provided in subsection (1) or (3).
DIVISION 4
TAX SALES FOR REAL PROPERTY TAXES
370 In this Division,
"costs", in relation to real property that is being or has been sold for unpaid taxes, means the total of
(a) the expenses incurred by the city in connection with the collection of unpaid taxes in respect of the property, including a sale or proposed sale of the property for unpaid taxes, and
(b) any fees paid by the city to the land titles office in respect of the sale or proposed sale of the property for unpaid taxes or in respect of the redemption of the property from the tax sale; (« frais »)
"date of sale", in relation to real property that is being or has been sold for unpaid taxes, means the day on which a public auction of the property, advertised under section 374 (preliminary steps to tax sale),
(a) took place or will take place, or
(b) would take place or would have taken place if the city had not, before that day, purchased the real property for unpaid taxes; (« date de la vente »)
"tax purchaser" means a person, including a municipality, who purchases real property at a tax sale under this Division, and includes the city if the city exercises its right under subsection 377(1) (prior right of city to purchase) to purchase real property for unpaid taxes; (« adjudicataire »)
"taxes", in relation to real property, means
(a) real property taxes on the property, whether or not the property has been sold for unpaid taxes,
(b) all other amounts, including penalties, that, under this or any other Act, may be added to or collected in the same manner, and with the same priorities, as real property taxes on the property, and
(c) costs in relation to the sale of the property for unpaid taxes. (« taxes »)
371 When any taxes on real property in the city have been due and unpaid for more than one year after December 31 in the year in which the taxes were imposed, the property is liable to be sold for unpaid taxes as provided in this Division.
372 For the purposes of this Division, a parcel of real property may be described by stating the number of the registered instrument from which a description of the parcel can be obtained.
373 The city must maintain a list that
(a) identifies each parcel of real property that is liable to be sold for unpaid taxes; and
(b) for each such parcel, shows the unpaid taxes for each year for which taxes are unpaid.
374 The city must at least annually arrange for the sale of real property in the city that is liable to be sold for unpaid taxes, and shall
(a) prepare a list of the parcels to be sold; and
(b) publish in one issue of The Manitoba Gazette, at least 30 days but not more than 60 days before the date of sale, a notice setting out
(i) the list,
(ii) a statement that, unless the unpaid taxes are sooner paid, each of the parcels on the list will be sold for unpaid taxes, and
(iii) the place where and day and time when a public auction for the sale will be held if required under subsection 378(1) (sale by auction).
375 Where title to real property to be sold for unpaid taxes is vested in the Crown, the sale conveys only such right to or interest in the property as the Crown
(a) may have conveyed or disposed of; or
(b) is willing to recognize or admit is possessed by another person, however it may have been acquired.
First notice to registered owner
376(1) At least 120 days before the date of sale of real property, the city must give notice to the registered owner of the property liable to be sold that
(a) the taxes on the property are unpaid, and the amount of those unpaid taxes; and
(b) unless the property is redeemed as provided in this Division, the property may be sold for unpaid taxes.
Second notice to registered owner
376(2) At least 60 days before the date of sale of real property, but at least 14 days after giving notice under subsection (1), the city must again give notice of the information described in subsection (1) to the registered owner of the property liable to be sold.
376(3) A notice under this section may be sent by ordinary mail.
Prior right of city to purchase
377(1) Subject to the right of the registered owner to redeem the property from tax sale, instead of offering real property on the list of parcels to be sold by public auction for unpaid taxes, the city may purchase the property for the amount of the unpaid taxes; but if the city intends to exercise its right under this subsection, the notice published under clause 374(b) (preliminary steps) must contain a statement to that effect and must identify the parcels in respect of which the city intends to exercise that right.
377(2) Where the city
(a) exercises its right under subsection (1) to purchase real property; or
(b) bids and is successful in purchasing real property sold at a public auction for unpaid taxes;
it is not necessary for the city to pay the purchase money for the property; but the provisions of this Division respecting redemption of real property from tax sale continue to apply as though the property had been purchased at the auction by a person other that the city.
378(1) Unless the property is redeemed from tax sale, or the city exercises its right to purchase the parcel under subsection 377(1), real property identified in the list set out in the notice published under clause 374(b) (preliminary steps) must be offered for sale by public auction at the place, day and time set out in the notice and sold to the highest bidder.
378(2) A public auction of real property to be sold for unpaid taxes may be adjourned from time to time for any reason, but unless the date, time and place of the continuation of the auction is announced at the time of the adjournment, notice of that information must be given as though the continuation were a new auction.
Where bidder doesn't pay immediately
378(3) If the person making the highest bid for the purchase of real property at an auction held under this section fails to pay, immediately after the bid is accepted, the amount of the unpaid taxes, or such lesser sum as may have been accepted as the highest bid, the property may be put up for sale again at the auction.
379 The following persons must not bid for, or buy, or act as an agent for anyone but the city, in the buying of, real property at an auction held under subsection 378(1):
(a) the auctioneer conducting the auction;
(b) a member of council;
(c) a statutory officer;
(d) a member of a class or group of employees designated by by-law;
(e) the spouse or a dependant family member of an individual described in clause (a) to (d) who resides with that individual;
(f) a person in which an individual described in any of clauses (a) to (d) has a pecuniary interest.
380 Within one month after exercising the prior right under subsection 377(1) or holding an auction under subsection 378(1), or as soon as is reasonably practicable after that, the city must forward to the district registrar a return setting out all the parcels of real property that were sold at the auction or in respect of which the city exercised its prior right to purchase, and the district registrar must make entries in the records of the land titles office to indicate that the parcels have been sold.
Purchaser to pay all unpaid taxes
381 If at an auction held under subsection 378(1) real property is sold for more than the unpaid taxes on the property, the tax purchaser must pay at the time of the sale the amount of the unpaid taxes, and if the property is not redeemed from the tax sale, the balance of the purchase price must be paid to the city within one month after the district registrar notifies the tax purchaser that a certificate of title for the property may be issued to the tax purchaser, as provided in this Division.
382(1) Where real property is sold for taxes, a designated employee must issue to the tax purchaser a tax sale certificate in a form prescribed by the district registrar.
382(2) Where real property is sold for taxes and the purchase price is more than the unpaid taxes on the property, the certificate issued under subsection (1) must indicate
(a) the total purchase price;
(b) the amount of the unpaid taxes for which the property was sold and which was paid to the city by the tax purchaser at the time of the sale; and
(c) that the balance of the purchase price must be paid to the city within one month after the district registrar notifies the tax purchaser that a certificate of title for the property may be issued to the tax purchaser.
Statement of payment of balance
383(1) Where the balance of the purchase price of real property sold for unpaid taxes is paid within the one month period referred to in section 381, the city must give the person paying the balance a statement showing the payment.
383(2) Where the balance of the purchase price of real property sold for unpaid taxes is not paid within the one month period referred to in section 381, the tax purchaser of the property forfeits all claim to the property and to any amount paid at the time of the sale, or later for taxes, and the property ceases to be affected by the sale in the same manner as if it had been redeemed from tax sale.
384(1) The tax purchaser of real property, on receipt of the tax sale certificate issued under section 382, becomes the owner of the parcel so far as to have all rights of action and powers that are necessary to protect the property from waste for the period during which the property may be redeemed from tax sale, and has the right to pay taxes on the property after the expiry of 60 days after the day they are demanded by the tax collector and to be reimbursed, as provided in this Division, for all taxes so paid, but the tax purchaser
(a) must not injure or commit waste of, or permit others to injure or commit waste of, the property; and
(b) is not liable for damage done to the property during that period without the tax purchaser's knowledge.
Right of city to enter unoccupied real property
384(2) Where real property of which the city is the tax purchaser becomes wholly unoccupied at any time after the date of sale of the property and before the property is redeemed from tax sale, the city may enter into possession of the property and, subject to any right to redeem it from tax sale, may exercise all powers of an owner in respect of the property.
Assignment of tax sale certificate
385(1) The tax purchaser of real property may at any time assign the tax sale certificate.
385(2) Production of a tax sale certificate in respect of real property entitles the assignee to all the rights of the original tax purchaser, both in respect of the property and any redemption amount as provided in this Division, and for the purposes of this Act, an assignee of a tax sale certificate in respect of the property is deemed to be the tax purchaser of the property.
Tax purchaser may be required to assign
385(3) At any time before a certificate of title is issued to the tax purchaser of real property that has been sold for unpaid taxes, a person who has an interest in, or a charge on, the property may require the tax purchaser to assign to the person the tax sale certificate in respect of the property on payment to the tax purchaser of
(a) the amount required, as of the day of the assignment, to redeem the land from tax sale; and
(b) the amount of the expenses that the tax purchaser incurred incidental to the assignment.
385(4) As between persons having different interests in or charges on real property, a requisition made under subsection (3) for an assignment of a tax sale certificate in respect of the property of a person who has a prior interest or charge prevails over a requisition of a person who has an interest or charge that is subject to that prior interest or charge.
No requisition to person with prior right
385(5) A person who has an interest in, or a charge on, real property that is subject to a prior interest in, or charge on, the property, may not require, under subsection (3), an assignment of a tax sale certificate from the person who has the prior interest or charge.
385(6) Whether or not the amounts mentioned in subsection (3) have been tendered, a tax purchaser of real property or a person who has an interest in, or a charge on, the property may apply to a judge of the Court of Queen's Bench in respect of a requisition made, or a question arising, under this section.
REDEMPTION THROUGH CITY
386(1) Any person who has an interest in real property that has been sold for unpaid taxes, or any other person on his or her behalf, may, within one year after the date of sale of the property, redeem the property from tax sale by paying to the city
(a) the full amount of all unpaid taxes on the property, including taxes levied after the property was sold for taxes; and
(b) where the tax purchaser of the property is not the city, a sum by way of penalty calculated at the rate prescribed by regulation for the purpose of clause 343(1)(c) (repayment of taxes) of The Municipal Act multiplied by the total of the full amount that was paid by the tax purchaser at the tax sale.
386(2) Where, under subsection (1), the amount required to redeem the property from tax sale is paid, the city must
(a) issue to the person who paid the amount a statement of redemption of the property from tax sale, which is evidence of the redemption and may be registered in the land titles office without an affidavit of execution;
(b) give to the tax purchaser of the property, if it is not the city, notice of the redemption; and
(c) pay to the holder of the tax sale certificate for the property, if it is not the city, the total of
(i) the amount of the purchase money paid on the purchase of the property at the tax sale,
(ii) the amount, if any, of any subsequent taxes on the property that were paid by the tax purchaser, and
(iii) the amount of the penalty paid under clause (1)(b).
Payment without tax sale certificate
386(3) Where real property is redeemed under subsection (1) and the tax sale certificate for the property is lost or destroyed, the city may, on such security as the city may reasonably require, make the payment under clause (2)(c) to a person who the city is satisfied is entitled to the payment.
Continuing assessment and taxation
387 From the time real property is sold for unpaid taxes until the time for redeeming it from tax sale has expired, the property continues to be liable to assessment and taxation in the name of the person who was the registered owner of the property immediately before the sale.
When rights of tax purchaser cease
388 Where real property is redeemed from tax sale under subsection 386(1), all rights of the tax purchaser of the property cease from the time the redemption money is paid.
REDEMPTION THROUGH LAND TITLES OFFICE
389 Upon the expiration of one year after the date of sale of real property for unpaid taxes, the city must forward to the district registrar a return showing, in respect of each parcel of real property that was sold and that has not been redeemed,
(a) the person to whom the parcel was sold;
(b) the amount for which the parcel was sold;
(c) the taxes paid by the tax purchaser since the sale and before the expiration of the year; and
(d) such other information as the district registrar may require.
Redeeming by payment to district registrar
390 Any person who has an interest in real property that has been sold for unpaid taxes, or a person on their behalf, may, after the expiration of one year after the date of sale of the property and before a certificate of title is issued to the tax purchaser of the property, redeem the property from tax sale by paying to the district registrar
(a) the full amount of all unpaid taxes owing on the property, including taxes levied after the property was sold for taxes;
(b) all expenses incurred by the tax purchaser in proceeding to obtain title to the property, including solicitor's fees, if any, which costs and fees may be fixed and taxed by the district registrar;
(c) all fees charged under section 404 (forms and fees for L.T.O.) by the district registrar in respect of the redemption;
(d) the amount of any taxes on the property for the current year paid by the tax purchaser since the sale; and
(e) where the tax purchaser of the property is not the city, an amount by way of penalty calculated at the rate prescribed by regulation for the purpose of clause 343(1)(c) (repayment of taxes) of The Municipal Act multiplied by the total of the full amount that was paid by the tax purchaser at the tax sale.
391(1) Where real property is redeemed from tax sale under section 390, the district registrar must
(a) record the redemption in the records of the land titles office;
(b) provide a statement to the city advising of the redemption and the amount paid in respect of it;
(c) retain from the amount paid on the redemption any fees due to the district registrar; and
(d) pay the balance of the amount paid on the redemption to the city.
Money not subject to attachment
391(2) While money paid to the district registrar for the redemption of real property from tax sale remains in the hands of the district registrar, it is not subject to attachment or garnishment proceedings.
Payment by city to tax purchaser
392 Upon receiving payment of the amount under clause 391(1)(d) in respect of the redemption of real property from tax sale, the city must pay to the tax purchaser of the property on demand, and on surrender of the tax sale certificate for the property or if the tax sale certificate is lost or destroyed, on provision of such security as the city may reasonably require,
(a) the amount of the purchase price paid by the tax purchaser for the property;
(b) the amount of taxes on the property paid by the tax purchaser after the tax sale; and
(c) the amount referred to in clause 390(b) paid on the redemption.
REDEMPTION BY INSTALMENTS
393(1) Council may by by-law authorize the city to enter into an agreement with a person (in this section referred to as "the contracting party") who is the registered owner of, or who has an interest or estate in, or a charge on, real property that has been sold for taxes for the redemption of the property from the tax sale