Interpretation

1.  In this Act

"assessor" means an assessor as defined in the Assessment Act;

"collector" means a collector of taxes appointed under the Municipal Act, Vancouver Charter or the Taxation (Rural Area) Act;

"eligible property" means an area of land with improvements on it which, under the regulations, the minister considers is in actual and bona fide use for

(a) residential purposes;

(b) farming purposes;

(c) commercial purposes; or

(d) industrial purposes;

and, for the purpose of this Act, also includes

(e) a vacant parcel of land not exceeding 2.03 ha or the smallest parcel into which a municipality or regional district permits land in that municipality or regional district to be subdivided, whichever is greater, and on which the owner certifies that he intends to construct a single family dwelling to be used for residential purposes; and

(f) a manufactured home;

"improvements" means improvements as defined in the Assessment Act and includes a manufactured home;

"land" means land as defined in the Assessment Act;

"manufactured home" means any structure, whether ordinarily equipped with wheels or not, that

(a) is designed, constructed or manufactured

(i)  to be moved from one place to another by being towed or carried, and

(ii)  to provide a dwelling house, and

(b) is registered under the Manufactured Home Act;

"minister" includes a person designated in writing by the minister;

"municipality" means a municipality as defined in the Municipal Act, and includes the City of Vancouver;

"owner" means

(a) an owner as defined in the Municipal Act;

(b) the occupier of a dwelling unit

(i)  in a building, the owner of which is a corporation;

(ii)  where the occupier of the dwelling unit owns capital stock in the corporation equivalent in value to the dwelling unit; and

(iii)  that is the principal place of residence of the occupier; or

(c) the person in whose name a manufactured home is assessable and taxable under the Manufactured Home Tax Act;

"parcel" means a lot, block or other area in which land is held, or into which land is subdivided;

"tax" means tax levied by a municipality or the Crown on eligible property, but does not include tax arrears, penalties, delinquent tax or interest on them;

"tax Act" means,

(a) in relation to eligible property that is not a manufactured home,

(i)  the Municipal Act, where the eligible property is in a municipality,

(ii)  the Vancouver Charter, where the eligible property is in the City of Vancouver, and

(iii)  the Taxation (Rural Area) Act, where the eligible property is in a rural area, or

(b) in relation to eligible property that is a manufactured home, the Manufactured Home Tax Act.

Historical Note(s): 1974-6-74(1,2(a)); 1974-78-1; 1977-53-1; 1988-18-1; 1990-53-12.

Agreement to defer taxes

2.  (1) The minister may, subject to this Act and regulations, make an agreement with an owner who qualifies under this Act and regulations which permits the owner to defer payment of all or part of the tax payable by him on eligible property during the term of the agreement.

(2) Where the minister makes an agreement under subsection (1), every Act, regulation and municipal bylaw

(a) respecting taxation of the eligible property referred to in the agreement; or

(b) respecting enforcement and collection of tax on that property

is subject to the agreement until the agreement is terminated under this Act or under the agreement. Where there is a conflict or inconsistency between an Act, regulation or municipal bylaw and the agreement, the agreement prevails and the Act, regulation or bylaw is suspended and of no effect to the extent of the conflict or inconsistency.

Historical Note(s): 1974-78-2.

Limitation

3.  (1) Notwithstanding section 2, each eligible property shall be subject to a separate agreement.

(2) Without limiting the number of agreements an owner may enter into under section 2 for other eligible properties, an owner shall not be entitled to enter into an agreement respecting more than one eligible property that is a vacant parcel of land.

(3) No owner shall assign his interest in the agreement or rights or benefits under it and a purported assignment is void and of no effect.

Historical Note(s): 1974-78-3.

Termination of agreement

4.  (1) An agreement made under section 2 shall terminate

(a) on the date the eligible property described in the agreement is disposed of;

(b) 10 years after the date of the agreement, in respect of a vacant parcel of land described in the agreement that remains vacant at the end of the 10 years;

(c) where tax on eligible property described in the agreement becomes tax in arrear or delinquent tax under the appropriate tax Act for a period of 6 months, or for a longer time determined by the minister;

(d) on a date requested in writing by the owner; or

(e) on a date fixed by the minister in a notice of termination given under section 5,

whichever is the earliest date.

(2) Notwithstanding subsection (1), the agreement is not terminated under subsection (1) by reason only of a transfer of title to the eligible property to the surviving spouse on death of the owner.

(3) Notwithstanding subsection (2), a subsequent deferral of tax is contingent on the spouse qualifying under section 5.

(4) The minister may, in accordance with the regulations, extend the termination date of agreements.

Historical Note(s): 1974-78-4; 1988-18-2.

Application for agreement

5.  (1) An owner of eligible property that includes a building used for residential purposes as his principal place of residence who

(a) has been ordinarily resident in the Province for not less than one year immediately preceding the date he applies under this Act;

(b) is a Canadian citizen or has been lawfully admitted to Canada under the Immigration Act (Canada) for permanent residence; and

(c) is, at any time during the year he applies,

(i)  of the full age of 60 years or older;

(ii)  a widow or widower; or

(iii)  a handicapped person as defined in the Guaranteed Available Income for Need Act

may, by filing an application as prescribed by section 12 and the regulations, request the minister to enter an agreement for the purpose referred to in section 2 for the 1974 or subsequent taxation years.

(1.1) Subsection (1) applies also to an owner of eligible property that is or that includes a manufactured home if the owner

(a) uses the manufactured home as his principal place of residence, and

(b) meets the qualifications set out in paragraphs (a) to (c) of that subsection.

(2) An owner of eligible property

(a) whose 1974 net tax on the eligible property increased by more than 20% over the 1973 net tax;

(b) whose total land and improvements in the Province had a market value on December 3l, 1973 of not more than $500,000;

(c) who was the owner of the eligible property on December 31, 1973, and continues as owner;

(d) who has paid the tax in full up to and including the taxation year prior to the year for which the application is made; and

(e) who

(i)  has been ordinarily resident in the Province for not less than one year immediately preceding the date he applies under this Act; and

(ii)  is a Canadian citizen or has been lawfully admitted to Canada under the Immigration Act 1976 (Canada) for permanent residence; or

(f) that is a corporation incorporated solely in Canada and registered in the Province under the Company Act for not less than one year immediately preceding the date it applies under this Act and qualifies under paragraphs (a) to (d)

may, by filing an application as prescribed by section 12 and the regulations, request the minister to enter an agreement for the purpose referred to in section 2.

(3) Where the minister makes an agreement under subsection (2), the amount of tax that may be deferred under it in each year

(a) shall not exceed,

(i)  in 1974, 85%;

(ii)  in 1975, 70%;

(iii)  in 1976, 55%;

(iv)  in 1977, 40%;

(v)  in 1978, 25%; and

(vi)  in 1979, 10%

of the amount by which the 1974 net tax payable on the eligible property exceeds 120% of the 1973 net tax paid on that property; and

(b) shall not include an increase in tax over the amount of tax in the 1973 taxation year caused by a change in the physical characteristics of the eligible property, or by new construction or development in, on or to the eligible property.

(4) Notwithstanding subsections (1) to (3), where

(a) the actual value of the eligible property determined by the assessor is less than the total outstanding tax liability and charges against the eligible property, no deferral agreement shall be made; or

(b) the minister, in his discretion, considers that the tax that is payable, or the amount deferred under an agreement, is inadequately secured, he may, despite the agreement, by notice in writing to the owner, suspend further deferral of tax under subsection (2), or terminate the agreement.

(5) Where eligible property is held in joint tenancy or tenancy in common,

(a) in respect of an application under subsection (2), all owners must qualify under that subsection; and

(b) in respect of an application under subsection (1), the principal supporter of the family must qualify under that subsection.

Historical Note(s): 1974-78-5; 1976-19-27(1,2(a)); 1988-18-3; 1989-7-1; 1990-53-12.

Approval of application and agreement

6.  (1) Where the minister is satisfied that the owner qualifies under this Act, and determines the amount of tax that may be deferred and the terms of the deferral, he may approve the application, and on approval shall make an agreement with the owner as prescribed.

(2) The minister's decision respecting grant of a deferral under this Act is final.

Historical Note(s): 1974-78-6.

Registration of agreement

7.  (1) On receipt from the minister of an agreement made under section 6, the registrar of the land title office shall register it as an encumbrance, as defined in the Land Title Act, in favour of the Crown and having preference or priority over every claim, lien, charge or encumbrance subsequently registered or filed, and shall note on every indefeasible or absolute title covering land described in the agreement an endorsement that the title is subject to an agreement under this Act.

(2) Where the minister has made an agreement with an owner under section 6 (1), the minister shall register a financing statement in the personal property registry established under the Personal Property Security Act in the form and manner prescribed under that Act.

(3) Sections 18, 43 (1) to (3), (6) to (8), (12) to (15), 46 to 48, 51, 52 and 54 of the Personal Property Security Act apply to a registration under subsection (2).

(4) Registration of a financing statement as provided in subsection (2) is effective until discharged

(a) by registration of a financing change statement, or

(b) as provided in subsection (5) or (6).

(5) When the unpaid taxes, interest and penalties, if any, charged against the manufactured home in respect of which a registration has been made under subsection (2) have been paid, the minister shall discharge the registration.

(6) If the minister fails to discharge the registration as required in subsection (5), the person registered under section 27 of the Manufactured Home Act as owner of the manufactured home to which the registration relates may require the registrar of the personal property registry to give a notice in writing to the minister stating that the registration will be discharged by the registrar on the expiry of 40 days after the day the registrar gives the notice to the minister, unless in the meantime the minister gives to the registrar an order of a court maintaining the registration.

(7) Where the minister has been given a notice under subsection (6) and fails to

(a) register a financing change statement discharging the registration, or

(b) obtain a court order maintaining the registration and fails to give the order to the registrar

before the expiry of the 40 days referred to in subsection (6), the registrar of the personal property registry may discharge the registration to which the notice relates.

(8) On application to a court by the minister, the court may order that the registration referred to in subsection (6) be maintained or discharged.

Historical Note(s): 1974-78-7; 1978-25-332,334; 1982-60-108, proclaimed effective August 1, 1983; 1988-18-4; 1990-11-67; 1990-53-12.

Payment on termination

8.  (1) On termination of the agreement under section 4 or 5, all tax levied on the eligible property described in the agreement, payment of which was deferred under the agreement, shall, without further notice or demand, immediately become due and payable together with interest compounded yearly at

(a) the rate fixed under the agreement, or

(b) 8% a year if no rate is fixed under the agreement,

but less any amount paid on account of the tax.

(1.1) Notwithstanding subsection (1), on and after April 1, 1986 the interest rate shall be a simple interest rate prescribed by the minister and, in respect of taxes deferred before April 1, 1986, the prescribed interest rate shall be applied only to the balance of principal as at March 31, 1986.

(1.2) The interest rate prescribed by the minister under subsection (1.1)

(a) during the 6 month period beginning on April 1, 1986 shall not exceed 8% a year, and

(b) during each successive 6 month period beginning on October 1 and April 1 in every year shall not exceed a yearly rate that is 2% below the prime lending rate of the principal banker to the Province on the 15th day of the fourth month immediately preceding that 6 month period.

(2) Notwithstanding this section, a widow or a widower who has made an agreement under section 5 (1) and subsequently remarries shall not, by reason only of remarriage, be required to repay the amounts referred to in subsection (1) until the agreement is terminated under section 4 or 5.

(3) Notwithstanding subsection (1), where an owner of a vacant parcel of land who has entered into an agreement under section 5 (2) constructs a single family dwelling on that parcel during the term of the agreement, the outstanding tax, and interest on it deferred up to and including December 31, 1975, required to be repaid under the agreement shall be reduced, if the single family dwelling is constructed and occupied not later than

(a) December 31, 1975, by a percentage of 100%;

(b) December 31, 1976, by a percentage of 80%;

(c) December 3l, 1977, by a percentage of 60%;

(d) December 31, 1978, by a percentage of 40%; or

(e) December 3l, 1979, by a percentage of 20%.

Historical Note(s): 1974-78-8; 1981-15-118, proclaimed effective November 26, 1981; 1986-23-9, effective April 1, 1986.

Repayment of deferred tax

9.  (1) The owner may, at any time before the termination of the agreement and without notice or prepayment penalty, pay to the minister any or all deferred tax by tendering payment together with interest compounded yearly at

(a) the rate fixed under the agreement, or

(b) 8% a year if no rate is fixed under the agreement.

(1.1) Notwithstanding subsection (1), on and after April 1, 1986 the interest rate shall be a simple interest rate prescribed by the minister and, in respect of taxes deferred before April 1, 1986, the prescribed interest rate shall be applied only to the balance of principal as at March 31, 1986.

(1.2) The interest rate prescribed by the minister under subsection (1.1)

(a) during the 6 month period beginning on April 1, 1986 shall not exceed 8% a year, and

(b) during each successive 6 month period beginning on October 1 and April 1 in every year shall not exceed a yearly rate that is 2% below the prime lending rate of the principal banker to the Province on the 15th day of the fourth month immediately preceding that 6 month period.

(2) Notwithstanding other provisions of this Act, in the case of a corporation referred to in section 5 (2) (f) and unless the agreement has been earlier terminated, repayment of the amount of the deferred tax shall commence on July 3l, 1981, and, subject to section 9 (1), shall be paid in full in annual instalments over a 10 year period after that date in the manner prescribed.

Historical Note(s): 1974-78-9; 1981-15-119, proclaimed November 26, 1981; 1986-23-9, effective April 1, 1986.

Satisfaction of agreement

10.  (1) Where the terms of an agreement under section 2 have been fully observed and performed and all deferred tax and the interest on it have been paid, the minister shall

(a) notify the owner of the eligible property of the satisfaction of the agreement, and

(b) deliver a copy of the notice to each registrar who, under section 7, registered the agreement.

(2) On receiving a copy of the notice under subsection (1), the Registrar of Mobile Homes or the registrar of the land title office, as the case may be, shall cancel the registration of the agreement in his records.

Historical Note(s): 1988-18-5.

Effect of registration

11.  (1) Where an agreement is registered in the land title office under this Act,

(a) the agreement and any deferred tax and interest on it are a lien and have priority and preference over any claim, charge or encumbrance subsequently registered or filed in respect of the eligible property; and every such claim, charge or encumbrance is subject to the agreement and to the amount deferred under it; and

(b) unless permitted by the regulations, no registrar shall register a transfer or other conveyance of any part of the eligible property described in the agreement without written consent of the minister.

(2) The registration of a financing statement in the personal property registry under section 7 (2) creates a lien on the manufactured home to which the registration relates for the deferred taxes and the lien continues as long as the registration is effective.

(3) The lien under subsection (2) has priority over any subsequently perfected security interest and any other subsequent charge or claim.

(4) Where a financing statement is filed in the personal property registry under section 7 (2), the registrar of the manufactured home registry office shall not, except with the consent of the minister or in prescribed circumstances,

(a) issue a transport permit under section 41 of the Manufactured Home Act, or

(b) file a transfer, or an agreement for sale, of a manufactured home.

(5) A lien referred to in subsection (2) (a) of this section as it was immediately before the coming into force of this subsection is deemed to be registered in the personal property registry.

(6) A deemed registration under subsection (5) expires 3 years from the date this subsection comes into force, but may be continued by registration under section 7 (2) before the expiry of the 3 years.

Historical Note(s): 1974-78-11; 1978-25-332,334; 1982-10-25; 1988-18-6; 1990-11-68; 1990-53-12.

Application procedure

12.  An application under section 5 must be filed with the collector of taxes for the municipality or the Crown, as the case may be, after receipt by the owner of the tax notice for the current tax year, but not later than December 31 in that year.

Historical Note(s): 1974-78-12.

Duties of collector

13.  On receipt of the properly completed application, the collector of taxes shall

(a) obtain the information, particulars and documents respecting the owner and the eligible property that are required;

(b) within 30 days after receipt of the application, send the minister

(i)  the application;

(ii)  the information, particulars and documents referred to in paragraph (a); and

(iii)  a report of the owner's qualifications under this Act; and

(c) make a certified statement in a form prescribed by the minister of the tax due and owing for the eligible property.

Historical Note(s): 1974-78-13; 1988-18-7.

Effect of deferral

14.  (1) Where the minister makes an agreement under this Act, notwithstanding the provisions of any tax Act, no penalty or interest is payable for the tax deferred under it from the date the application is filed with the collector, other than the interest payable under this Act, the regulations or the agreement.

(2) Notwithstanding subsection (1), where the minister does not accept an application under this Act, the tax for which the application is made is subject to penalties and interest under the appropriate tax Act as if the application had not been made.

Historical Note(s): 1974-78-14.

Payment to municipality

15.  (1) The Minister of Finance shall pay each collector of taxes the amount required to reimburse the municipality for tax deferred under this Act.

(2) Notwithstanding the appropriate tax Act, the amount paid to the collector under this section shall be applied to each eligible property, in accordance with the agreement, toward payment of the current year's tax levied against the owner of that property.

Historical Note(s): 1974-78-15.

Records

16.  The minister shall, on or before April 30 in each year, furnish to the owner who is a party to an agreement under this Act a statement of outstanding deferred taxes, plus accrued interest, as of March 31 of that year.

Historical Note(s): 1974-78-16; 1987-43-50.

Offences and penalties

17.  Where a person completes, and delivers or causes to be delivered to a collector of taxes, an application to enter an agreement under this Act containing information he knows is false or misleading for the purpose of deferring his tax and the minister enters into an agreement as a result of the application, that person commits an offence and is liable on conviction

(a) for a first offence, to a fine not exceeding $500; and

(b) for a subsequent offence, to a fine of not less than $100 and not more than $1,000.

Historical Note(s): 1974-78-17.

Regulations

18.  The Lieutenant Governor in Council may make regulations including regulations

(a) defining any expression used in this Act or regulations and not defined in this Act;

(b) extending the termination date of an agreement made under this Act, or the time within which a provision of this Act must be complied with;

(c) prescribing the conditions consistent with this Act to permit a person who qualifies as an owner under paragraph (b) of the definition of "owner" by ownership of capital stock in a corporation to defer tax; and

(d) prescribing the manner of repayment by a corporation under section 9.

Historical Note(s): 1974-78-18.

Retroactive regulation

18.1  A regulation made under section 8 (1.1) or section 9 (1.1) may be made retroactive to April 1, 1986 and, where made retroactive, shall be deemed to have come into force at that time.

Historical Note(s): 1986-23-10.

Commencement

19.  This Act is retroactive to January 1, 1974 to the extent necessary to give full force and effect to its provisions on and after that date.

Historical Note(s): 1974-78-20.