F-2.1, r. 2 - Regulation respecting compensations in lieu of taxes

Updated to 13 November 2013

This document has official status.

chapter F-2.1, r. 2

Regulation respecting compensations in lieu of taxes

Act respecting municipal taxation

(chapter F-2.1, ss. 262 and 263.1).

DIVISION 1 IMMOVABLES AND BUSINESS ESTABLISHMENTS NOT SUBJECT TO A COMPENSATION

O.C. 1086-92, Div. 1; O.C. 1170-2001, s. 1.

1. The following immovables are excluded from the class of immovables contemplated in section 255 of the Act respecting municipal taxation (chapter F-2.1):

(1)  roadside rest areas, constructions or facilities forming part of the road network, with the exception of structures intended to lodge persons, shelter animals or store things and their bed;

(2)  lands constituting or intended to constitute the bed of a public thoroughfare or of a work forming a part of such thoroughfare;

(3)  the bed of watercourses or lakes, submerged lands or beach lots;

(4)  lands in parks established under a statute of Québec;

(5)  lands in wildlife sanctuaries or controlled zones established under the Act respecting the conservation and development of wildlife (chapter C-61.1);

(6)  lands in ecological reserves established under the Natural Heritage Conservation Act (chapter C-61.01);

(7)  other lands in the domain of the State.

Notwithstanding the foregoing, the following are not excluded:

(1)  lands contemplated in subparagraph 2 of the first paragraph that are used by the State or by the Société québécoise des infrastructures for purposes other than as the bed of a public thoroughfare or of a work forming a part of such thoroughfare;

(2)  lands contemplated in subparagraphs 4 to 7 of the first paragraph that constitute the bed of a buildings.

In a case where land in the domain of the State does not constitute the bed of a building, but is situated in a sector of the territory of a local municipality where buildings are concentrated and is served by municipal road, waterworks and sewer services, the only land excluded is any part of that land exceeding the average dimensions of the lots upon which the buildings in the sector are constructed.

O.C. 1086-92, s. 1; O.C. 1055-95, s. 1; O.C. 313-99, s. 1; O.C. 1170-2001, s. 2.

2. Business establishments comprised in an immovable excluded under section 1 of this Regulation and other business establishments where an activity similar to the normal activities of a person mentioned in any of paragraphs 13 to 16 of section 204 of the Act, is carried out are excluded from the class of business establishments contemplated in the first paragraph of section 255 of the Act.

O.C. 1086-92, s. 2; O.C. 1055-95, s. 2; O.C. 1170-2001, s. 3.

DIVISION 2 WEIGHTED AGGREGATE TAXATION RATE

O.C. 1086-92, Div. 2; O.C. 126-2010, s. 1.

3. The provisions of this Division provide rules for the establishment of a municipality’s weighted aggregate taxation rate for the purposes of the comparison provided for in the third paragraph of section 256 of the Act with the effective aggregate taxation rate, as the case may be, established under Subdivisions 4 and 5 of Division III of Chapter XVIII.1 of the Act.

In the case of a central municipality within the meaning of section 15 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations (chapter E-20.001), the provisions must be applied so as to establish an urban agglomeration weighted aggregate taxation rate and a regular weighted aggregate taxation rate in order to take into account the distinction made by sections 100 to 102 of that Act.

O.C. 1086-92, s. 3; O.C. 126-2010, s. 1.

4. A municipality’s weighted aggregate taxation rate is established, after the deposit of the municipality’s property assessment roll, for all the fiscal years to which the roll applies.

That roll is called “current roll” and the first property assessment roll preceding the newly deposited roll is called “preceding roll”.

O.C. 1086-92, s. 4; O.C. 1055-95, s. 3; O.C. 1170-2001, s. 4; O.C. 126-2010, s. 1.

4.1. (Replaced).

O.C. 1170-2001, s. 5; O.C. 126-2010, s. 1.

5. The weighted aggregate taxation rate of a local municipality is the quotient obtained by dividing, by the divisor applicable for the fiscal years to which the current roll applies, the municipality’s weighted aggregate taxation rate that was established for the last fiscal year to which the preceding roll applied.

Subject to sections 5.3 and 5.4, the divisor applicable for the fiscal years to which the current roll applies is the product obtained by multiplying the quotient obtained in accordance with section 5.1 by the increase factor obtained in accordance with section 5.2.

For the purposes of the first paragraph, where the expenditures incurred by a central municipality in the exercise of an urban agglomeration power, for a fiscal year, are financed by aliquot shares paid by the related municipalities of the urban agglomeration, the local municipality’s weighted agglomeration taxation rate that was established for the last fiscal year to which the preceding roll applies corresponds to the total of the urban agglomeration’s weighted aggregate taxation rate and the municipality’s, as a related municipality, that were established for that fiscal year.

O.C. 1086-92, s. 5; O.C. 126-2010, s. 1.

5.1. The quotient referred to in the second paragraph of section 5 is the quotient obtained by dividing

(1)  the total established according to the current roll, as it exists on the day of the roll’s deposit, by adding the products obtained by multiplying the non-taxable values of the immovables referred to in the second, third and fourth paragraphs of section 255 of the Act by the percentage mentioned in that fourth paragraph; by

(2)  the total established according to the preceding roll, as it exists on the day before the current roll’s deposit, by making the addition provided for in subparagraph 1.

For the purposes of subparagraph 2 of the first paragraph, the values used are those that, if a summary of the current roll reflecting its state on the day of its deposit was accompanied by the summary of the preceding roll reflecting its state on the day before, would appear in lines 605 to 615 under the heading “VALEURS” in the section “INVENTAIRE PAR DISPOSITION FISCALE” of the form provided for in the regulation made under paragraph 1 of section 263 of the Act and is related to such a summary.

The assessor who has deposited the current roll gives the quotient obtained under this section to the municipality, upon request.

O.C. 126-2010, s. 1.

5.2. The increase factor referred to in the second paragraph of section 5 is equivalent to the highest between 1 and the quotient obtained as follows:

(1)  multiply the divisor total established in accordance with subparagraph 2 of the first paragraph of section 5.1 by the effective aggregate taxation rate established for the last fiscal year to which the preceding roll applied;

(2)  multiply the total to be divided established in accordance with subparagraph 1 of the first paragraph of section 5.1 by the effective aggregate taxation rate established, without taking into account the application of Division IV.3 of Chapter XVIII and section 261.5.10 of the Act, for the first fiscal year to which the current roll applies;

(3)  subtract the product obtained in paragraph 1 by the product obtained in paragraph 2;

(4)  multiply the divisor total established in accordance with subparagraph 2 of the first paragraph of section 5.1 by the weighted aggregate taxation rate established for the last fiscal year to which the preceding roll applied;

(5)  subtract the difference obtained in paragraph 3 from the product obtained in paragraph 4;

(6)  divide the product obtained in paragraph 4 by the difference obtained in paragraph 5.

O.C. 126-2010, s. 1.

5.3. If the municipality avails itself of the power provided for in section 253.27 of the Act in respect of its current roll, the operations provided for in the second and third paragraphs are performed to adjust the divisor applicable under the second paragraph of section 5 for the purposes of establishing the weighted aggregate taxation rate for either of the first 2 fiscal years to which the current roll applies. The operations vary depending on whether the product calculated under that paragraph is greater than 1 or not.

The first operation consists, in the first case, in subtracting 1 from the product and, in the second case, in subtracting the product from 1.

The second operation consists, in the first case, in adding to 1 and, in the second case, in subtracting from 1, the number corresponding to one third or two thirds, depending on whether the fiscal year for which the weighted aggregate taxation rate is the first or the second to which the current roll applies, of the difference resulting from the subtraction provided for in the second paragraph.

Where the current roll in respect of which the municipality avails itself of the power provided for in section 253.27 of the Act does apply only to 2 fiscal years, an adjusted divisor is calculated only for the first fiscal year. To that end, for the purposes of the third paragraph, half the difference resulting from the subtraction provided for in the second paragraph is taken into account instead of one third or two thirds.

O.C. 126-2010, s. 1.

5.4. The weighted aggregate taxation rate is established on the basis of data available to the Minister when the Minister is required, under Division V, to make a payment or to demand refund of the amount collected in excess.

If, at that time, all the data necessary for establishing the weighted aggregate taxation rate are not available, that rate is deemed to be equal to the aggregate taxation rate to which it is compared under the third paragraph of section 256 of the Act.

O.C. 126-2010, s. 1.

DIVISION 3 PERSON PAYING COMPENSATION

6. The Minister of Municipal Affairs, Régions and Land Occupancy shall pay the sum provided for in the second paragraph of section 210 of the Act and the sums provided for in section 254 of the Act, as well as the non-real estate taxes, compensations and modes of tariffing contemplated in the first paragraph of section 257 of the Act.

Notwithstanding the foregoing, the Société québécoise des infrastructures shall pay the sum provided for in the second paragraph of section 254 of the Act in respect of any business establishment of which it or the State is the occupant in or on an immovable not belonging to any of them.

For the purposes of Divisions 4, 5 and 7, “compensation” means any sum, non-real estate tax or compensation or any mode of tariffing contemplated in this section.

O.C. 1086-92, s. 6; O.C. 1170-2001, s. 6.

DIVISION 4 TIME LIMIT FOR PRODUCING THE DEMAND FOR PAYMENT

7. The demand for payment of the compensation for a fiscal period shall be received by the person who must pay it not later than 31 December of the following fiscal period.

Notwithstanding the foregoing, the demand for payment of an additional compensation shall be received not later than 31 December of the fiscal period following the fiscal period during which the alteration is made to the roll giving rise to the additional compensation.

For the purposes of this section and Division 5, a demand for payment is not deemed to have been received unless it complies with the Act and this Regulation.

O.C. 1086-92, s. 7.

DIVISION 5 TERMS OF PAYMENT

§ 1 . — Payment of the compensation in respect of the immovables of educational, health and social services establishments

8. This Subdivision applies, subject to Subdivision 3, to the payment of the compensation payable in respect of the immovables contemplated in the second, third and fourth paragraphs of section 255 of the Act.

O.C. 1086-92, s. 8.

9. The Minister of Municipal Affairs, Regions and Land Occupancy shall pay to the municipality 90% of the amount for which it has applied based on the rate applicable under section 10, for the fiscal period for which the compensation is payable.

The payment shall be made

(1)  where the amount of the demand is less than $3,000, not later than 31 May of the fiscal period or, where the demand is received after 2 March of that fiscal period, within 90 days following its receipt;

(2)  where the amount of the demand is equal to or greater than $3,000, not later than 10 June of the fiscal period or, where the demand is received after 2 March of that fiscal period, within 100 days following its receipt.

For the purposes of the second paragraph, where, on the date of the receipt by the Minister of the demand for payment, the Minister has not received the municipality’s budget for the fiscal period for which the compensation is payable or the extract from the roll comprising any entry used in computing the compensation, the demand is deemed to have been received only on the date of the receipt of the budget or the date of the receipt of the extract, whichever date is later.

For the purposes of this Division, a budget is not deemed to have been received unless it complies with the Act governing the municipality in such matters.

O.C. 1086-92, s. 9; O.C. 1055-95, s. 4; O.C. 313-99, s. 2; O.C. 1170-2001, s. 8; O.C. 126-2010, s. 2.

10. To calculate the amount of the payment provided for in section 9, the highest of the following rates is used:

(1)  the municipality’s projected aggregate taxation rate established for the fiscal year for which the compensation is payable;

(2)  the municipality’s weighted aggregate taxation rate established for that fiscal year.

Despite the foregoing, if that fiscal year is the first fiscal year to which the current roll applies, the multiplier used in the operations provided for in paragraphs 1 and 2 of section 5.2 is, in the first case, the projected aggregate taxation rate established for the last fiscal year to which the preceding roll applied and, in the second case, the projected aggregate taxation rate established, without taking into account the application of Division IV.3 of Chapter XVIII and section 261.5.10 of the Act, for the first fiscal year to which the current roll applies.

O.C. 1086-92, s. 10; O.C. 82-98, s. 1; O.C. 1170-2001, s. 9; O.C. 126-2010, s. 3.

11. (Revoked).

O.C. 1086-92, s. 11; O.C. 1055-95, s. 5; O.C. 313-99, s. 3.

12. Within 90 days following receipt by the Minister of the municipality’s financial report for the fiscal year for which the compensation is payable, the Minister pays the municipality the balance of the amount to which it is entitled based on the highest of its rates between the effective and the weighted aggregate taxation rates established for that fiscal year.

Notwithstanding the foregoing, where that amount is less than the amount that the Minister paid to it under section 9, the amount collected in excess shall be refunded in accordance with Subdivision 3.

For the purposes of the first paragraph, a financial report is deemed to have been received only if it complies with the Act governing the municipality in that matter.

O.C. 1086-92, s. 12; O.C. 1055-95, s. 6; O.C. 313-99, s. 4; O.C. 126-2010, s. 4.

§ 2 . — Payment of any other compensation

13. This Subdivision applies, subject to Subdivision 3, to the payment of any compensation other than that contemplated in Subdivision 1.

O.C. 1086-92, s. 13.

14. The competent person under section 6 shall pay to the municipality the amount for which it has applied.

The payment shall be made

(1)  where the amount of the demand is less than $3,000, not later than 31 May of the fiscal period for which the compensation is payable or, where the demand is received after 2 March of that fiscal period, within 90 days following its receipt;

(2)  where the amount of the demand is equal to or greater than $3,000, not later than 10 June of the fiscal period for which the compensation is payable or, where the demand is received after 2 March of that fiscal period, within 100 days following its receipt.

For the purposes of the second paragraph, where, on the date of the receipt by the competent person of the demand for payment, the Minister has not received the municipality’s budget for the fiscal period for which the compensation is payable or the extract from the roll comprising any entry used in computing the compensation, the demand is deemed to have been received only on the date of the receipt of the budget or the date of the receipt of the extract, whichever date is later.

O.C. 1086-92, s. 14; O.C. 313-99, s. 5.

15. (Revoked).

O.C. 1086-92, s. 15; O.C. 313-99, s. 6.

§ 3 . — Additional compensation or refund of compensation

16. Section 245 of the Act applies, with the necessary modifications, to determine in which cases an alteration to the roll of a municipality entails, in respect of a compensation, the obligation to pay additional compensation or refund an amount collected in excess and to establish the amount of the supplement or the amount collected in excess.

Despite the foregoing, the aggregate taxation rate used to calculate the amount of the compensation referred to in Subdivision 1 and established for a fiscal year, whether it is the effective, projected or weighted rate, is not affected by an alteration to the roll that is made after the date on which the roll is taken into consideration in establishing the rate.

O.C. 1086-92, s. 16; O.C. 126-2010, s. 5.

17. The competent person under section 6 shall, within 150 days following the receipt by him of a demand for payment of an additional compensation, pay the municipality the additional compensation to which it is entitled.

O.C. 1086-92, s. 17.

18. The municipality shall, within 150 days following the sending by the competent person of a demand for refund of compensation collected in excess, refund the amount collected in excess to that person.

The competent person may not send such a demand after 31 December of the fiscal period following the fiscal period during which the alteration to the roll is made giving rise to the amount collected in excess. Notwithstanding the foregoing, in the case of an amount collected in excess contemplated in section 12, the demand may not be sent after the expiry of the time limit provided for in that section.

O.C. 1086-92, s. 18; O.C. 1170-2001, s. 12.

19. Notwithstanding section 17 or 18, as the case may be, the competent person may pay an additional compensation or refund himself for an amount collected in excess by increasing or decreasing the amount of any payment that is provided for in this Regulation or a regulation made under paragraph 7 of section 262 of the Act and that must be made by the person after the date on which he received the demand for payment of the additional compensation or ascertained the existence of an amount collected in excess.

Any person availing himself of the first paragraph shall send a notice of his decision to the municipality. Such notice shall be sent not later than the date of the payment the amount of which is increased or decreased, or, where it is offset entirely by the amount collected in excess, before the expiry of the time limit within which the payment ought to have been made. Furthermore, the notice concerning an amount collected in excess may not be sent after the expiry of the time limit applicable under the second paragraph of section 18 to the sending of a demand for refund.

Where it is sent before the amount of the payment is increased or decreased, the notice shall explain the consequences of the decision taken under the first paragraph, particularly with respect to computation of the interest under Subdivision 4, and shall inform the municipality of the right provided for in section 20.

O.C. 1086-92, s. 19; O.C. 1170-2001, s. 13.

20. Before the amount of a payment is increased or decreased as the result of a decision taken under section 19 and notwithstanding such decision, the competent person may pay the additional compensation to the municipality or the municipality may refund to the person the amount collected in excess.

O.C. 1086-92, s. 20.

§ 4 . — Interest

21. The amount of any payment that is provided for in any of Subdivisions 1 and 2 and that is not made within the prescribed time limit shall bear interest from the expiry of that time limit.

O.C. 1086-92, s. 21.

22. The amount of any additional compensation or any amount collected in excess that is provided for in Subdivision 3 and is not paid or refunded within the time limit provided for in section 17 or 18, as the case may be, shall bear interest from the expiry of that time limit.

Notwithstanding the foregoing:

(1)  where the additional compensation results from an alteration to the roll entailed by an agreement reached under section 138.4 of the Act, a decision of the Administrative Tribunal of Québec or a court decision, that additional compensation shall bear interest from the date on which the sole or the final payment of the original compensation related thereto became payable;

(2)  where the amount collected in excess results from an alteration contemplated in subparagraph 1, that amount shall bear interest from the date on which it was paid;

(3)  where the amount collected in excess is contemplated neither in subparagraph 2 nor in section 12 and where the competent person sends in respect of that amount the notice provided for in the second paragraph of section 19 before the demand for refund provided for in section 18, the amount collected in excess shall bear interest from the expiry of 150 days from the sending of the notice.

Where the alteration to the roll follows a recourse before the Administrative Tribunal of Québec, the additional compensation or the amount collected in excess bears no interest for the period indicated in the decision of the Tribunal, where applicable, as the period during which the hearing of the recourse has been subject to an undue delay for which the debtor of the additional compensation or amount collected in excess, or the party litigant whose debtor is the successor, is not responsible.

O.C. 1086-92, s. 22; O.C. 82-98, ss. 2 and 3; O.C. 313-99, s. 7.

23. The rate of interest shall be the rate in force under section 28 of the Tax Administration Act (chapter A-6.002).

O.C. 1086-92, s. 23.

24. The interest on the amount of a payment provided for in any of Subdivisions 1 and 2 or on an additional compensation provided for in Subdivision 3 shall cease to accrue on the day of the issue of the cheque by means of which the principal is paid off.

O.C. 1086-92, s. 24.

25. Where, under section 19, the competent person pays an additional compensation or refunds himself for an amount collected in excess by increasing or decreasing the amount of several payments, each such adjustment shall take into account the part of the principal and interest, where applicable, that the person decides to pay or refund to himself by that adjustment.

Between 2 adjustments, the balance of the principal shall continue to bear interest, where applicable.

O.C. 1086-92, s. 25.

26. Notwithstanding sections 21 to 25, no amount of interest shall be payable if it is less than $5.

O.C. 1086-92, s. 26.

§ 5 . — Decimal numbers

27. Where the amount of the compensation payable or of any payment, additional compensation, amount collected in excess or interest related to the compensation is a decimal number, the decimal part of the number is struck out and, where the first decimal would have been a figure greater than 4, the whole number is increased by 1.

O.C. 1086-92, s. 27; O.C. 126-2010, s. 6.

DIVISION 6

(Revoked)

O.C. 1086-82, Div. 6; O.C. 126-2010, s. 7.

28. (Revoked).

O.C. 1086-92, s. 28; O.C. 1055-95, s. 7; O.C. 126-2010, s. 7.

29. (Revoked).

O.C. 1086-92, s. 29; O.C. 1055-95, s. 8; O.C. 126-2010, s. 7.

30. (Revoked).

O.C. 1086-92, s. 30; O.C. 1055-95, s. 9; O.C. 1170-2001, s. 14; O.C. 126-2010, s. 7.

DIVISION 7 TRANSITIONAL AND FINAL

31. This Regulation applies for the purposes of computing and paying any compensation payable for any fiscal period from that of 1992.

Notwithstanding the foregoing, section 16 applies to determine whether an additional compensation must be paid or whether an amount collected in excess must be refunded in respect of a compensation payable for any fiscal period, even prior to that of 1992, as a result of an alteration to the roll made after 20 August 1992, as well as to establish the amount of such additional compensation or amount collected in excess.

O.C. 1086-92, s. 31.

32. For the purposes of computing the aggregate taxation rate or the provisional aggregate taxation rate for the 1992 fiscal period, the revenues derived from the application of a provision whose repeal, abrogation or replacement is provided for in a provision or in the Schedule mentioned in section 584 of the Act are not taken into account.

O.C. 1086-92, s. 32.

32.1. Subject to the second paragraph, Division 2 applies for the purposes of establishing a weighted aggregate taxation rate for each of the fiscal years to which a property assessment roll applies if its coming into force coincides with the beginning of any fiscal year from 2009 to 2013.

In the case of a municipality of which no property assessment roll came into force in 2006, 2007 or 2008, the rules applicable to establish the weighted aggregate taxation rate, for each of the fiscal years to which a property assessment roll that came into force in 2009 applies, are the rules referred to in paragraph 1 of section 32.2.

O.C. 126-2010, s. 8.

32.2. For the fiscal years to which a property assessment roll that came into force in 2006, 2007 or 2008 applies, the rules to establish the weighted aggregate taxation rate of the municipality are,

(1)  subject to paragraph 2, the rules provided for in sections 130 to 132, as amended by section 13 of chapter 33 of the Statutes of 2007, 133 to 135 and 137 of chapter 31 of the Statutes of 2006, account being taken of any modification made to section 134 of that chapter by section 144 and the schedule to chapter 60 of the Statutes of 2006;

(2)  if the Minister set that rate under section 136 of chapter 31 of the Statutes of 2006, the rules used by Minister for that purpose.

O.C. 126-2010, s. 8.

32.3. If the modifications provided for in the schedule to chapter 60 of the Statutes of 2006 apply to a municipality, under section 144 of that chapter, for a fiscal year for which the weighted aggregate taxation rate of the municipality must be established by applying section 5.3, that section is modified

(1)  by replacing “2” in the first paragraph by “3”;

(2)  by replacing “third or two thirds, depending on whether the fiscal year for which the weighted aggregate taxation rate is the first or the second” in the third paragraph by “quarter, half or three quarters, depending on whether the fiscal year for which the weighted aggregate taxation rate is established is the first, the second or the third”;

(3)  by striking out the fourth paragraph.

O.C. 126-2010, s. 8.

33. (Omitted).

O.C. 1086-92, s. 33.

34. (Omitted).

O.C. 1086-92, s. 34.

REFERENCES

O.C. 1086-92, 1992 G.O. 2, 4058

S.Q. 1993, c. 32, s. 22

O.C. 1055-95, 1995 G.O. 2, 2659

O.C. 82-98, 1998 G.O. 2, 1105

O.C. 313-99, 1999 G.O. 2, 476

O.C. 1170-2001, 2001 G.O. 2, 5723

O.C. 126-2010, 2010 G.O. 2, 657

S.Q. 2010, c. 31, s. 91

S.Q. 2013, c. 23, s. 164