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| This archived statute consolidation is current to November 5, 2001 and includes changes enacted and in force by that date. For the most current information, click here. |
[Updated to September 6, 2000]
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Contents |
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Section |
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1 In this Act:
"assessor" means an assessor as defined in the Assessment Act;
"collector" means a collector of taxes appointed under the Local Government Act, Vancouver Charter or the Taxation (Rural Area) Act;
"eligible property" means an area of land with improvements on it that, under the regulations, the minister considers is in genuine use for residential, farming, commercial, or industrial purposes and includes a manufactured home and a vacant parcel of land
(a) not exceeding the greater of 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, and
(b) on which the owner certifies that the owner intends to construct a single family dwelling to be used for residential purposes;
"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 Local Government Act, and includes the City of Vancouver;
"owner" means
(a) an owner as defined in the Local Government Act;
(b) the occupier of a dwelling unit in a building, the owner of which is a corporation, if
(i) the occupier of the dwelling unit owns capital stock in the corporation equivalent in value to the dwelling unit, and
(ii) the dwelling unit 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 Local Government Act, if the eligible property is in a municipality,
(ii) the Vancouver Charter, if the eligible property is in the City of Vancouver, and
(iii) the Taxation (Rural Area) Act, if 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.
2 (1) Subject to this Act and regulations, the minister may make an agreement with an owner who qualifies under this Act and regulations permitting the owner to defer paying all or part of the tax payable on the eligible property during the term of the agreement.
(2) If 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.
(3) If 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.
3 (1) Despite section 2, each eligible property must be the subject of a separate agreement.
(2) Without limiting the number of agreements an owner may make under section 2 for other eligible properties, an owner is not entitled to make an agreement respecting more than one eligible property that is a vacant parcel of land.
(3) An owner must not assign the owner's interest in the agreement or rights or benefits under it, and a purported assignment is void.
4 (1) An agreement made under section 2 terminates
(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) if 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 set by the minister in a notice of termination given under section 5,
whichever is the earliest date.
(2) Despite subsection (1), the agreement is not terminated under subsection (1) merely because title to the eligible property is transferred to the surviving spouse on death of the owner.
(3) Despite subsection (2), a subsequent deferral of tax is contingent on the spouse qualifying under section 5.
(4) The minister may extend the termination date of agreements in accordance with the regulations.
5 (1) By filing an application as prescribed by section 12 and the regulations, an owner of eligible property may request the minister to enter an agreement for the purpose referred to in section 2 for the 1974 or subsequent taxation years if
(a) the eligible property includes a building used for residential purposes as the owner's principal residence,
(b) the owner has been ordinarily resident in British Columbia for not less than one year immediately before the date the owner applies under this Act,
(c) the owner is a Canadian citizen or has been lawfully admitted to Canada under the Immigration Act (Canada) for permanent residence, and
(d) the owner is, at any time during the year the owner applies,
(i) 60 years of age or older,
(ii) a widow or widower, or
(iii) a person with disabilities as defined in the Disability Benefits Program Act.
(2) 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 the owner's principal place of residence, and
(b) meets the qualifications set out in paragraphs (b) to (d) of that subsection.
(3) 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 British Columbia 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 before the year for which the application is made, and
(e) who
(i) has been ordinarily resident in British Columbia for not less than one year immediately before the date the owner applies under this Act, and
(ii) is a Canadian citizen or has been lawfully admitted to Canada under the Immigration Act (Canada) for permanent residence, or
(f) that is a corporation incorporated solely in Canada and registered in British Columbia under the Company Act for not less than one year immediately before 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.
(4) If the minister makes an agreement under subsection (3), the amount of tax that may be deferred under it in each year
(a) must 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) must 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.
(5) Despite subsections (1) to (4), if
(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, a deferral agreement must not be made, or
(b) the minister considers that the tax that is payable, or the amount deferred under an agreement, is inadequately secured, the minister may, despite the agreement, by notice in writing to the owner, suspend further deferral of tax under subsection (3) or terminate the agreement.
(6) If eligible property is held in joint tenancy or tenancy in common,
(a) in respect of an application under subsection (3), 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.
6 (1) If 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, the minister may approve the application.
(2) On approving the application, the minister must make an agreement with the owner as prescribed.
(3) The minister's decision respecting grant of a deferral under this Act is final.
7 (1) On receiving from the minister an agreement made under section 6, the registrar of the land title office must
(a) register it as an encumbrance, as defined in the Land Title Act, in favour of the government and having preference or priority over every claim, lien, charge or encumbrance subsequently registered or filed, and
(b) 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) If an agreement is made with an owner under section 6 (2), the minister must 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) and (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 must discharge the registration.
(6) If the registration is not discharged as required by subsection (5), the person registered under section 15 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 written notice 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 the registrar a court order maintaining the registration.
(7) If 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 by the minister, a court may order that the registration referred to in subsection (6) be maintained or discharged.
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, without further notice or demand, must immediately become due and payable together with interest compounded yearly at
(a) the rate set under the agreement, or
(b) 8% a year if no rate is set under the agreement,
but less any amount paid on account of the tax.
(2) Despite subsection (1), on and after April 1, 1986 the interest rate is the simple interest rate prescribed by the minister and, in respect of taxes deferred before April 1, 1986, the prescribed interest rate must be applied only to the balance of principal as at March 31, 1986.
(3) The interest rate prescribed by the minister under subsection (2)
(a) during the 6 month period beginning on April 1, 1986 must not exceed 8% a year, and
(b) during each successive 6 month period beginning on October 1 and April 1 in every year must not exceed a yearly rate that is 2% below the prime lending rate of the principal banker to the government on the 15th day of the fourth month immediately preceding that 6 month period.
(4) Despite this section, a widow or a widower who has made an agreement under section 5 (1) and subsequently remarries must not, merely because of remarriage, be required to repay the amounts referred to in subsection (1) until the agreement is terminated under section 4 or 5.
(5) Despite subsection (1), if an owner of a vacant parcel of land who has made an agreement under section 5 (3) 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 must 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%.
9 (1) At any time before the termination of an agreement made under section 6, the owner may, 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 set under the agreement, or
(b) 8% a year if no rate is set under the agreement.
(2) Despite subsection (1), on and after April 1, 1986 the interest rate must be the simple interest rate prescribed by the minister and, in respect of taxes deferred before April 1, 1986, the prescribed interest rate must be applied only to the balance of principal as at March 31, 1986.
(3) The interest rate prescribed by the minister under subsection (2)
(a) during the 6 month period beginning on April 1, 1986 must not exceed 8% a year, and
(b) during each successive 6 month period beginning on October 1 and April 1 in every year must not exceed a yearly rate that is 2% below the prime lending rate of the principal banker to the government on the 15th day of the fourth month immediately preceding that 6 month period.
(4) Despite other provisions of this Act, in the case of a corporation referred to in section 5 (3) (f) and unless the agreement has been earlier terminated, repayment of the amount of the deferred tax must commence on July 31, 1981, and, subject to subsection (1), must be paid in full in annual installments over a 10 year period after that date in the prescribed manner.
10 (1) If 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 must
(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 Manufactured Homes or the registrar of the land title office, as the case may be, must cancel the registration of the agreement in their records.
11 (1) If 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,
(b) every such claim, charge or encumbrance is subject to the agreement and to the amount deferred under it, and
(c) unless permitted by the regulations, a registrar must not 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) If a financing statement is filed in the personal property registry under section 7 (2), the registrar of the manufactured home registry office must not, except with the consent of the minister or in prescribed circumstances,
(a) issue a transport permit under section 25 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 October 1, 1990 is deemed to be registered in the personal property registry.
(6) A deemed registration under subsection (5) expires on October 1, 1993, but may be continued by registration under section 7 (2) before the expiry date.
12 An application under section 5 must be filed with the collector of taxes for the municipality or the government, as the case may be, after the owner receives the tax notice for the current tax year, but not later than December 31 in that year.
13 On receiving the properly completed application, the collector of taxes must
(a) obtain the information, particulars and documents respecting the owner and the eligible property that are required,
(b) within 30 days after receiving 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.
14 (1) If an agreement is made under this Act, despite any tax Act, no penalty or interest is payable for tax deferred under the agreement from the date the application is filed with the collector, other than the interest payable under this Act, the regulations or the agreement.
(2) Despite subsection (1), if 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.
15 (1) The minister must pay each collector of taxes the amount required to reimburse the municipality for tax deferred under this Act.
(2) Despite the appropriate tax Act, the amount paid to the collector under this section must 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.
16 On or before April 30 in each year, the minister must 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.
17 (1) If a person completes, and delivers or has delivered to a collector of taxes, an application to make an agreement under this Act containing information the person knows is false or misleading for the purpose of deferring the person's tax, and the minister makes an agreement as a result of the application, that person commits an offence.
(2) A person who commits an offence under subsection (1) is liable on conviction
(a) for a first offence, to a fine not more than $500, and
(b) for a subsequent offence, to a fine of not less than $100 and not more than $1 000.
18 (1) The Lieutenant Governor in Council may make regulations including regulations referred to in section 41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:
(a) defining any expression used in this Act or the 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;
(d) prescribing the manner of repayment by a corporation under section 9.
Copyright (c) 2001: Queen’s Printer, Victoria, British Columbia, Canada