F-2.1 - Act respecting municipal taxation

Section 232.3 Disposition versions

2003-12-18

232.3. If the municipality results from an amalgamation, its constituting Act or Order in Council requires or authorizes it, during a transitional period, to fix different rates for the business tax according to the territories of the municipalities having ceased to exist on amalgamation, and meets this requirement or uses this power during a fiscal year within that period, the municipality may provide that, instead of applying to each of the rates it fixes, section 232.2 shall apply to the hypothetical rate it would have fixed for all its territory had it not imposed the different rates for the business tax.

For the purpose of fixing the hypothetical rate, no account shall be taken of that part of the revenues from the business tax that is to be used to finance expenditures related to the debts of the municipalities that ceased to exist on amalgamation if the Act or Order in Council referred to in the first paragraph institutes a transitional scheme to limit variations in the tax burden established for the territory of each such municipality and provides that the revenues used to finance such expenditures are not taken into account in establishing that tax burden.

For the purposes of the second paragraph, the expenditures related to debts include what the Act or Order in Council referred to in the first paragraph considers as such and the revenues from the business tax include amounts to stand in lieu of the business tax that must be paid by the Government in accordance with the second paragraph of section 210 or with section 254 and the first paragraph of section 255, or by the Crown in right of Canada or one of its mandataries.

2003, c. 19, s. 191.