C-19 - Cities and Towns Act

Section 500.1 Disposition versions

2018-10-17

500.1. Every municipality may, by by-law, impose a municipal tax in its territory, provided it is a direct tax and the by-law meets the criteria set out in the fourth paragraph.

The municipality is not authorized to impose the following taxes:

(1)  a tax in respect of the supply of a property or a service;

(2)  a tax on income, revenue, profits or receipts, or in respect of similar amounts;

(3)  a tax on paid-up capital, reserves, retained earnings, contributed surplus or indebtedness, or in respect of similar amounts;

(4)  a tax in respect of machinery and equipment used in scientific research and experimental development or in manufacturing and processing or in respect of any assets used to enhance productivity, including computer hardware and software;

(5)  a tax in respect of remuneration that an employer pays or must pay for services, including non-monetary remuneration that the employer confers or must confer;

(6)  a tax on wealth, including an inheritance tax;

(7)  a tax on an individual because the latter is present or resides in the territory of the municipality;

(8)  a tax in respect of alcoholic beverages within the meaning of section 2 of the Act respecting offences relating to alcoholic beverages (chapter I-8.1);

(9)  a tax in respect of tobacco or raw tobacco within the meaning of section 2 of the Tobacco Tax Act (chapter I-2);

(10)  a tax in respect of fuel within the meaning of section 1 of the Fuel Tax Act (chapter T-1);

(10.1)  a tax in respect of cannabis within the meaning of section 2 of the Cannabis Act (S.C. 2018, c. 16);

(11)  a tax in respect of a natural resource;

(12)  a tax in respect of energy, in particular electric power; or

(13)  a tax collected from a person who uses a public highway within the meaning of section 4 of the Highway Safety Code (chapter C-24.2), in respect of equipment placed under, on or above a public highway to provide a public service.

For the purposes of subparagraph 1 of the second paragraph, “property”, “supply” and “service” have the meanings assigned to them by the Act respecting the Québec sales tax (chapter T-0.1).

The by-law referred to in the first paragraph must state

(1)  the subject of the tax to be imposed;

(2)  the tax rate or the amount of tax payable; and

(3)  how the tax is to be collected and the designation of any persons authorized to collect the tax as agents for the municipality.

The by-law referred to in the first paragraph may prescribe

(1)  exemptions from the tax;

(2)  penalties for failing to comply with the by-law;

(3)  collection fees and fees for insufficient funds;

(4)  interest and specific interest rates on outstanding taxes, penalties or fees;

(5)  assessment, audit, inspection and inquiry powers;

(6)  refunds and remittances;

(7)  the keeping of registers;

(8)  the establishment and use of dispute resolution mechanisms;

(9)  the establishment and use of enforcement measures if a portion of the tax, interest, penalties or fees remains unpaid after it is due, including measures such as garnishment, seizure and sale of property;

(10)  considering the debt for outstanding taxes, including interest, penalties and fees, to be a prior claim on the immovables or movables in respect of which it is due, in the same manner and with the same rank as the claims described in paragraph 5 of article 2651 of the Civil Code, and creating and registering a security by a legal hypothec on the immovables or movables; and

(11)  criteria according to which the rate and the amount of the tax payable may vary.

2017, c. 13, s. 64; 2018, c. 19, s. 19.

2018-01-01

500.1. Every municipality may, by by-law, impose a municipal tax in its territory, provided it is a direct tax and the by-law meets the criteria set out in the fourth paragraph.

The municipality is not authorized to impose the following taxes:

(1)  a tax in respect of the supply of a property or a service;

(2)  a tax on income, revenue, profits or receipts, or in respect of similar amounts;

(3)  a tax on paid-up capital, reserves, retained earnings, contributed surplus or indebtedness, or in respect of similar amounts;

(4)  a tax in respect of machinery and equipment used in scientific research and experimental development or in manufacturing and processing or in respect of any assets used to enhance productivity, including computer hardware and software;

(5)  a tax in respect of remuneration that an employer pays or must pay for services, including non-monetary remuneration that the employer confers or must confer;

(6)  a tax on wealth, including an inheritance tax;

(7)  a tax on an individual because the latter is present or resides in the territory of the municipality;

(8)  a tax in respect of alcoholic beverages within the meaning of section 2 of the Act respecting offences relating to alcoholic beverages (chapter I-8.1);

(9)  a tax in respect of tobacco or raw tobacco within the meaning of section 2 of the Tobacco Tax Act (chapter I-2);

(10)  a tax in respect of fuel within the meaning of section 1 of the Fuel Tax Act (chapter T-1);

(11)  a tax in respect of a natural resource;

(12)  a tax in respect of energy, in particular electric power; or

(13)  a tax collected from a person who uses a public highway within the meaning of section 4 of the Highway Safety Code (chapter C-24.2), in respect of equipment placed under, on or above a public highway to provide a public service.

For the purposes of subparagraph 1 of the second paragraph, “property”, “supply” and “service” have the meanings assigned to them by the Act respecting the Québec sales tax (chapter T-0.1).

The by-law referred to in the first paragraph must state

(1)  the subject of the tax to be imposed;

(2)  the tax rate or the amount of tax payable; and

(3)  how the tax is to be collected and the designation of any persons authorized to collect the tax as agents for the municipality.

The by-law referred to in the first paragraph may prescribe

(1)  exemptions from the tax;

(2)  penalties for failing to comply with the by-law;

(3)  collection fees and fees for insufficient funds;

(4)  interest and specific interest rates on outstanding taxes, penalties or fees;

(5)  assessment, audit, inspection and inquiry powers;

(6)  refunds and remittances;

(7)  the keeping of registers;

(8)  the establishment and use of dispute resolution mechanisms;

(9)  the establishment and use of enforcement measures if a portion of the tax, interest, penalties or fees remains unpaid after it is due, including measures such as garnishment, seizure and sale of property;

(10)  considering the debt for outstanding taxes, including interest, penalties and fees, to be a prior claim on the immovables or movables in respect of which it is due, in the same manner and with the same rank as the claims described in paragraph 5 of article 2651 of the Civil Code, and creating and registering a security by a legal hypothec on the immovables or movables; and

(11)  criteria according to which the rate and the amount of the tax payable may vary.

2017, c. 13, s. 64.