Development Tax and Redevelopment Tax Grant Regulations

Regulations Respecting Payments in Lieu of Development and Redevelopment Taxes on Federal Property These Regulations may be cited as the Development Tax and Redevelopment Tax Grant Regulations. In these Regulations, defined area means an area within a municipality in which a development tax or redevelopment tax is levied; (zone déterminée) development tax or redevelopment tax means a compulsory levy imposed by a municipality on real property situated within a defined area that is payable by a taxable owner of real property by virtue of his ownership of such property or of specified actions undertaken by him to develop such property, calculated by reference to all or part of the frontage, area or other attribute of land or buildings of the owner, assessed at a uniform rate upon owners of real property liable to pay the tax, and levied for the purpose of financing all or part of the capital cost of the construction or reconstruction of a trunk or arterial road or any other capital service that has been, is being or will be carried out within the defined area, but does not include a levy in respect of which payments by way of a grant may be made under section 4 or 6 of the Municipal Grants Act or a levy on real property paid to a municipality in the form of a land transfer or of cash in lieu thereof; (taxe d'aménagement ou de réaménagement) federal property means federal property as defined in subection 6(3) of the Municipal Grants Act; (propriété fédérale) other attribute of land or buildings includes the actual or estimated cost of construction on a site, the number of rooms, living units or beds or the number of persons in occupancy. (autre caractéristique des biens immeubles) Subject to section 4, on receipt of an application from a municipality in a form prescribed by the Minister, the Minister may pay to the municipality, in respect of federal property, a grant in lieu of a development tax or redevelopment tax not exceeding the amount of tax that would be payable if federal property were taxable property. The Minister may, in determining the amount of a grant payable to a municipality under these Regulations in respect of federal property within a defined area, deduct from the amount that would otherwise be payable an amount that, in the opinion of the Minister, is equal to the product of the total proceeds of the development tax or redevelopment tax in respect of that area multiplied by a fraction the denominator of which is the said total proceeds and the numerator of which is that portion of the said total proceeds that relates to the financing of services of a kind that the federal government, at its own expense, has carried out, is carrying out or plans to carry out. These Regulations apply in respect of a development tax or redevelopment tax on federal property that would, if the federal property were taxable property, have become due and payable on or after January 1, 1974.