BILL 22 An Act to Amend the Residential Property Tax Relief Act

BILL 22

An Act to Amend the Residential Property Tax Relief Act

 

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 2 of the Residential Property Tax Relief Act, chapter R-10 of the Revised Statutes, 1973, is amended

(a) by adding after subsection (1) the following:

2(1.01) A person in whose name real property is assessed on January 1, 1999, or on the first day of January in any succeeding year shall be deemed for the purposes of subsection (1) to have maintained his or her principal residence on the real property for the year 1999 or any succeeding year if that person

(a) maintains his or her residence on the real property for at least one hundred and eighty-three days during the year, and

(b) is not otherwise entitled under subsection (1) to a credit against taxes owing in respect of real property for that year.

(b) by adding after subsection (8) the following:

2(8.1) Where under an agreement of purchase and sale, a person who maintained his or her principal residence on real property assessed in the name of another person or who maintained a residence for his or her spouse or children on that real property becomes the owner of that real property, that person is entitled under this Act to a credit against taxes owing on that real property, or if the taxes have been paid, to a rebate of those taxes, for the period determined under subsection (8.2), as if that person had been the owner during that period, if

(a) the person was required, under the agreement of purchase and sale, to purchase the real property within three years after the date the agreement was executed,

(b) the person maintained his or her principal residence on the real property or maintained on the real property a residence for his or her spouse or children after the date the agreement of purchase and sale was executed,

(c) the agreement of purchase and sale was registered in the registry office for the county in which the real property lies within ninety days after it was executed,

(d) the person became the owner of the real property in accordance with the agreement of purchase and sale, and

(e) no other person was entitled to a credit against taxes owing in respect of the real property or to a rebate of such taxes for that period.

 

2(8.2) For the purposes of subsection (8.1), the period for which a person is entitled to a credit or a rebate of taxes is as follows:

(a) in respect of the year in which the person becomes the owner of the real property under the agreement of purchase and sale, the portion of that year, immediately before he or she became the owner, during which the person maintained his or her principal residence on the real property or maintained on that real property a residence for his or her spouse or children; and

(b) in respect of any year or years before the year referred to in paragraph (a), to a maximum of three years immediately before the person became the owner of the real property, the portion of that year or those years after the date the agreement of purchase and sale was executed during which the person maintained his or her principal residence on the real property or maintained on that real property a residence for his or her spouse or children.

2(8.3) Subsections (8.1) and (8.2) apply to agreements of purchase and sale executed after the commencement of this subsection.

2 This Act shall be deemed to have come into force on January 1, 1999.

EXPLANATORY NOTES

Section 1

(a) In the circumstances described in the new subsection 2(1.01), a person in whose name real property is assessed on January 1, 1999, or on the first day of January in any succeeding year shall be deemed for the purposes of subsection 2(1) of the Residential Property Tax Relief Act to have maintained his or her principal residence on the real property for the year 1999 or any succeeding year.

(b) Where, in the circumstances described in the new subsection 2(8.1), a person who maintained his or her principal residence on real property assessed in the name of another person or who maintained a residence for his or her spouse or children on that real property becomes the owner, that person is entitled under the Residential Property Tax Relief Act to a credit against the taxes owing on that real property, or if the taxes have been paid, to a rebate of those taxes, for the period determined under the new subsection (8.2), as if he or she had been the owner during that period.

 

The new subsections 2(8.1) and (8.2) apply only to agreements of purchase and sale executed after the commencement of the new subsection 2(8.3).

Section 2

Commencement provision.