f-2.1, r. 10 - Regulation respecting the median proportion of the real estate assessment roll

Updated to 1 September 2012

This document has official status.

chapter F-2.1, r. 10

Regulation respecting the median proportion of the real estate assessment roll

Act respecting municipal taxation

(chapter F-2.1, s. 263).

DIVISION I GENERAL

1. The median proportion of the actual real estate value of units of assessment to which the values entered on the real estate assessment roll of a local municipality correspond, for a municipal fiscal period, is the proportion determined by performing the applicable operations prescribed in this Regulation.

M.O. 93-10-20, s. 1.

2. For the purposes of this Regulation, “sale” means any sale of an immovable, located on the territory of the municipality, that is made, according to the contract of sale, for a price equal to or greater than $1,000, including the amount of any tax applicable by reason of the supply of the immovable.

Such a sale is deemed to be concluded on the date on which the contract is signed by all the parties.

M.O. 93-10-20, s. 2.

3. Unless otherwise indicated, in any case where the result of a computation prescribed in this Regulation is a decimal number, the decimal is omitted and 1 is added to the whole number if the first decimal is greater than 4.

In any case where a provision of this Regulation provides that the number resulting from a computation must contain a certain number of decimals, 1 is added to the last such decimal if the following decimal is greater than 4.

M.O. 93-10-20, s. 3.

DIVISION II RULES FOR COMPUTING THE MEDIAN PROPORTION

§ 1 . — Establishing the basic list of sales

4. A basic list shall be drawn up of the sales that may be used for the purposes of determining the median proportion.

M.O. 93-10-20, s. 4.

5. The number of sales to be entered on the basic list shall be either 30 or the number obtained by performing the following operations consecutively, whichever number is higher:

(1)  the number of units of assessment included on the roll is multiplied by 0.001;

(2)  15.500 and the product of the multiplication prescribed in subparagraph 1 are added together;

(3)  the number of units of assessment included on the roll is divided by the sum of the addition prescribed in subparagraph 2.

The product resulting from the multiplication and the sum resulting from the addition prescribed in subparagraphs 1 and 2 of the first paragraph shall comprise 3 decimals.

For the purposes of the first paragraph, the number of units of assessment included on the roll shall be the number indicated in the summary transmitted to the Minister of Municipal Affairs, Regions and Land Occupancy in accordance with the Regulation made under paragraph 1 of section 263 of the Act respecting municipal taxation (chapter F-2.1) and which reflects,

(1)  in any case where the median proportion for the first fiscal period to which the roll applies is being determined, the state of the preceding roll at a date within the period commencing 15 August and ending 15 September of the second preceding fiscal period;

(2)  in any case where the median proportion for the second fiscal period to which the roll applies is being determined, the state of the roll at the date of its deposit;

(3)  in any case where the median proportion for the third fiscal period to which the roll applies is being determined, the state of the roll at a date within the period commencing 15 August and ending 15 September of the second preceding fiscal period.

M.O. 93-10-20, s. 5.

6. Among the sales concluded during the second fiscal period preceding the fiscal period for which the median proportion is being determined, the following shall be entered on the basic list:

(1)  the sale that is the last in chronological order according to the date on which it was concluded;

(2)  the sales whose rank, according to such chronological order, corresponds to one of the products obtained when the quotient obtained by dividing the number of sales concluded during that second preceding fiscal year by the number of sales to be entered on the basic list is multiplied by each positive whole number lower than the number or sales to be entered on that list.

The quotient resulting from the division prescribed in subparagraph 2 of the first paragraph shall comprise 2 decimals. If a product resulting from the multiplication prescribed in that paragraph is a decimal number, the decimal is omitted and, notwithstanding the first paragraph of section 3, if the first decimal is greater than 4, 1 is not added to the whole number.

M.O. 93-10-20, s. 6.

7. If, after the application of section 6, the number of sales entered on the basic list is lower than the number of sales to be entered on that list, as many sales as necessary to make up the difference shall be added to the list from among the sales concluded before the second fiscal period preceding the fiscal period for which the median proportion is being determined.

The sales entered on the basic list in accordance with the first paragraph shall be determined based on the reserve chronological order according to the date on which they were concluded and, in the case of sales concluded on the same date, based on the descending order of registration numbers.

Notwithstanding the foregoing, no sale concluded before the fourth fiscal period preceding the fiscal period for which the median proportion is being determined may be on the basic list.

M.O. 93-10-20, s. 7.

§ 2 . — Subtraction of certain sales of vacant land

8. Certain sales of vacant land entered on the basic list shall be subtracted from the group of sales that may be used for purposes of determining the median proportion, to the extent that their number exceeds the maximum number of sales of vacant land that may be so used.

M.O. 93-10-20, s. 8.

9. The maximum number of sales of vacant land that may be used for purposes of determining the median proportion shall be determined by performing the following operations consecutively:

(1)  the number of parcels of vacant land included on the roll is divided by the number of units of assessment included on the roll, and the quotient thereby obtained must comprise 2 decimals;

(2)  the quotient resulting from the division prescribed in subparagraph 1 is multiplied by the number of sales entered on the basic list.

The third paragraph of section 5 applies, with the necessary modifications, for the purposes of determining the number of units of assessment and parcels of vacant land included on the roll.

M.O. 93-10-20, s. 9.

10. If the number of sales of vacant land entered on the basic list exceeds the maximum number, they shall be subtracted, one by one until the excess number of sales is eliminated, beginning with the sales concluded on the date that is the most remote from 1 July of the second fiscal period preceding the fiscal period for which the median proportion is being determined.

M.O. 93-10-20, s. 10.

§ 3 . — Adjustment of the price of certain sales

11. Subject to section 13, the price of a sale shall be adjusted where that sale is entered on the basic list, has not been subtracted under Subdivision 2 and, for a reason mentioned in section 12, does not reasonably correspond to the actual value of the unit of assessment according to market conditions as of 1 July of the second fiscal period preceding the fiscal period for which the median proportion is being determined.

The adjusted price shall reasonably correspond to that value.

M.O. 93-10-20, s. 11.

12. A lack of correspondence between the price and the value referred to in section 11 shall entail price adjustment, in accordance with that section, where that difference is caused by a difference between the market conditions existing on the date mentioned in that section and the market conditions existing on the date on which the sales is concluded, by a difference between the object of the sale and the unit of assessment or by any other characteristic or condition of the sale that has influenced the price.

In the case of a sale concluded before the second fiscal period preceding the fiscal period for which the median proportion is being determined, the market conditions existing at the date on which that sale is concluded are assumed, subject to any evidence to the contrary, to be different from the market conditions existing on 1 July of that second fiscal period.

M.O. 93-10-20, s. 12.

§ 4 . — Exclusion of certain non-representative sales

13. Any sale that is entered on the basic list, has not been subtracted under Subdivision 2 and was made for a price not reasonably corresponding to the actual value of the unit of assessment according to market conditions as of 1 July of the second fiscal period preceding the fiscal period for which the median proportion is being determined shall be excluded from the group of sales that may be used for purposes of determining the median proportion, where the price adjustment prescribed in Subdivision 3 is not expedient or cannot be performed easily and objectively.

M.O. 93-10-20, s. 13.

14. For the purposes of this Regulation, any sale entered on the basic list that has been neither subtracted under Subdivision 2 nor excluded under this Subdivision is deemed to be admissible for purposes of determining the median proportion.

M.O. 93-10-20, s. 14; M.O. 94-09-01, s. 1.

§ 5 . — Statistical deletion of admissible sales

15. For the purposes of determining whether certain admissible sales must, by statistical deletion, be subtracted from the group of sales that may be used for purposes of determining the median proportion, the following operations shall be performed consecutively:

(1)  for each admissible sale, the value of the unit of assessment entered on the roll is divided by the sale price, adjusted, where applicable, in accordance with Subdivision 3, and the quotient thereby obtained must comprise 2 decimals and be transformed into a percentage to constitute a ratio;

(2)  the median ratio is determined among the ratios determined under subparagraph 1;

(3)  for each admissible sale, the ratio determined under subparagraph 1 is subtracted from the median ratio determined under subparagraph 2;

(4)  for each admissible sale, the difference resulting from the subtraction prescribed in subparagraph 3 is squared;

(5)  the squares obtained under subparagraph 4 are added together;

(6)  the sum resulting from the addition prescribed in subparagraph 5 is divided by the number, less 1 of admissible sales, and the quotient thereby obtained must comprise 3 decimals;

(7)  the square root of the quotient resulting from the division prescribed in subparagraph 6 is determined;

(8)  double the square root determined under subparagraph 7 is subtracted from the median ratio determined under subparagraph 2;

(9)  the median ratio determined under subparagraph 2 and double the square root determined under subparagraph 7 are added together.

In the operations prescribed in subparagraphs 3, 8 and 9 of the first paragraph, the numbers representing the ratios referred to therein are used without taking into account the fact that they are percentages; the results of the operations prescribed in subparagraphs 8 and 9 of the first paragraph are, nevertheless, percentages.

M.O. 93-10-20, s. 15.

16. Any admissible sale for which the ratio determined under subparagraph 1 of the first paragraph of section 15 is either less than the difference resulting from the subtraction prescribed in subparagraph 8 of that paragraph or greater than the sum resulting from the addition prescribed in subparagraph 9 of that paragraph shall be deleted.

M.O. 93-10-20, s. 16.

17. Any admissible sale that is not deleted under this Subdivision shall be used for the purposes of determining the median proportion.

M.O. 93-10-20, s. 17; M.O. 94-09-01, s. 2.

§ 6 . — Determining the median proportion by means of the sales used

18. For the purposes of determining the median proportion by means of the sales used, the median ratio is determined among the ratios that have been determined for those sales under subparagraph 1 of the first paragraph of section 15.

M.O. 93-10-20, s. 18.

19. If the number of sales entered on the basic list is equal to the number of sales to be entered on the list, the median ratio determined under section 18 constitutes the median proportion of the roll.

M.O. 93-10-20, s. 19.

§ 7 . — Determining the median proportion by means of weighting

20. This Subdivision applies if the number of sales entered on the basic list is, by reason of the application of the third paragraph of section 7, less than the number of sales to be entered on the list.

M.O. 93-10-20, s. 20.

21. For the purposes of determining the median proportion for the first fiscal period to which a roll applies where that roll, according to the assessor of the municipal body responsible for the assessment that caused the roll to be drawn up, is the result of an equilibration within the meaning of the third paragraph of section 46.1 of the Act respecting municipal taxation (chapter F-2.1), the following operations shall be performed consecutively:

(1)  the number of sales entered on the basic list is divided by the number of sales to be entered on the list, and the quotient thereby obtained must comprise 2 decimals;

(2)  the quotient resulting the division prescribed in subparagraph 1 is multiplied by the median ratio determined under section 18;

(3)  the number of sales entered on the basic list is subtracted from the number of sales to be entered on the list;

(4)  the difference resulting from the subtraction prescribed in subparagraph 3 is divided by the number of sales to be entered on the basic list, and the quotient thereby obtained must comprise 2 decimals and be transformed into a percentage;

(5)  the product resulting from the multiplication prescribed in subparagraph 2 and the quotient resulting from the division prescribed in subparagraph 4 are added together.

In the operation prescribed in subparagraph 2 of the first paragraph, the number representing the median ratio is used without taking into account the fact that it is a percentage; the result of that operation is, nevertheless, a percentage.

M.O. 93-10-20, s. 21.

22. In any case other than the case contemplated in section 21, the median proportion shall be determined by consecutively performing the operations prescribed in subparagraph 1 to 4 of the first paragraph of that section and the following operations:

(1)  for each comparable roll, its median proportion determined for the fiscal period in question is subtracted from its median proportion determined for the preceding fiscal period;

(2)  for each comparable roll, the difference resulting from the subtraction prescribed in subparagraph 1 is divided by the median proportion of that roll determined for the fiscal period preceding the fiscal period in question, and the quotient thereby obtained must comprise 3 decimals and be transformed into a percentage to constitute a variation;

(3)  the average variation is determined among the variations determined under subparagraph 2, and the percentage representing that average variation must comprise one decimal;

(4)  the average variation determined under subparagraph 3 is multiplied by the median proportion of the roll of the municipality determined for the fiscal period preceding the fiscal period in question;

(5)  if the average variation determined under subparagraph 3 is a negative percentage, the product resulting from the multiplication prescribed in subparagraph 4 is transformed into a positive number and is subtracted from the median proportion of the roll of the municipality determined for the fiscal period preceding the fiscal period in question or, if the variation is a positive percentage, the product is added to that proportion;

(6)  the difference resulting from the subtraction or the sum resulting from the addition prescribed in subparagraph 5, as the case may be, is multiplied by the quotient resulting from the division prescribed in subparagraph 4 of the first paragraph of section 21;

(7)  the products resulting from the multiplications prescribed in subparagraph 6 of this paragraph and in subparagraph 2 of the first paragraph of section 21 are added together.

In the operations prescribed in subparagraph 1, 2, 4 and 5 of the first paragraph, the numbers representing the median proportions contemplated are used without taking into account the fact that they are percentages; the result of the operation prescribed in subparagraph 6 of that paragraph is, nevertheless, a percentage.

M.O. 93-10-20, s. 22.

23. For the purposes of section 22,

(1)  “fiscal period in question” means the fiscal period for which the median proportion of the roll of the municipality is being determined;

(2)  “comparable roll” means any real estate assessment roll, other than that of the municipality, that is drawn up for a part of the regional municipal territory comprising that of the municipality which, according to the assessor of the municipal body responsible for the assessment that caused the roll to be drawn up, is not the result of an equilibration within the meaning of the third paragraph of section 46.1 of the Act respecting municipal taxation (chapter F-2.1) and in respect of which the basic list used to determine its median proportion for the fiscal period in question contains a number of sales equal to the number of sales to be entered on that list;

(3)  “regional municipal territory” means the territory of a regional county municipality, the territory formed by all the territories of the Municipalité de la Côte-Nord-du-Golfe-Saint-Laurent and the municipalities constituted under the Act respecting the municipal reorganization of the territory of the municipality of the North Shore of the Gulf of St. Lawrence (1988, chapter 55) or the territory formed by all the territories of the Municipalité de la Baie-James and the other municipalities contemplated in section 40 of the James Bay Region Development and Municipal Organization Act (chapter D-8.2).

M.O. 93-10-20, s. 23.

DIVISION III ADMINISTRATIVE PROCESS

24. (Revoked).

M.O. 93-10-20, s. 24; M.O. 95-11-14, s. 1.

25. The assessor shall fill out the form supplied by the Minister of Municipal Affairs, Regions and Land Occupancy in the manner prescribed therein and shall indicate therein the requested information and results of operation, in particular,

(0.1)  any sale concluded during the second fiscal period preceding the fiscal period for which he is determining the median proportion;

(0.2)  any sale that he enters on the basis list in accordance with Subdivision 1 of Division II;

(1)  any sale that he subtracts or deletes under Subdivision 2 or 5 of Division II;

(2)  any adjusted price that he determines under Subdivision 3 of Division II and the reasons for the adjustment;

(3)  any sale that he excludes under Subdivision 4 of Division II and the reasons for the exclusion;

(4)  the median proportion that he determines.

M.O. 93-10-20, s. 25; M.O. 95-11-14, s. 2.

26. If the number of sales excluded under Subdivision 4 of Division II corresponds to more than 40% of the number of sales entered on the basic list, the assessor shall, on a schedule to the form that is deemed to be a part of the form, make a report analyzing, by class of immovables, all the reasons invoked for the exclusions and demonstrating that the reliability of the median proportion is not diminished by those exclusions.

M.O. 93-10-20, s. 26.

27. If the assessor is unable to apply Subdivision 6 or 7 of Division II, he shall, on a schedule to the form that is deemed to be a part of the form, make a report explaining the reasons why he is unable to do so and justifying the median proportion that he has determined by other means.

M.O. 93-10-20, s. 27.

28. The assessor shall transmit to the Minister the duly completed form not later than 31 October of the fiscal period preceding the fiscal period for which the median proportion is being determined.

Notwithstanding the foregoing, in the case of the median proportion determined for the first fiscal period to which a roll deposited after 15 September of the preceding fiscal period applies, transmission of the form as prescribed in the first paragraph shall be made not later than 30 November of that preceding fiscal period. The same applies in the case of the median proportion determined for a supplementary fiscal period to which the roll applies under section 72 of the Act respecting municipal taxation (chapter F-2.1).

M.O. 93-10-20, s. 28.

DIVISION IV TRANSITIONAL AND FINAL

29. This Regulation applies for the purposes of determining the median proportion for every fiscal period from the 1994 fiscal period.

M.O. 93-10-20, s. 29.

30. (Omitted).

M.O. 93-10-20, s. 30.

31. (Omitted).

M.O. 93-10-20, s. 31.

REFERENCES

M.O. 93-10-20, 1993 G.O. 2, 5785

M.O. 94-09-01, 1994 G.O. 2, 4103

M.O. 95-11-14, 1995 G.O. 2, 3341