BILL 29 - An Act to Amend the Assessment Act

BILL 29

An Act to Amend the Assessment Act

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

1 Section 14 of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is amended by adding after subsection (7.1) the following:

14(7.2) Where real property is under a lease for a term of five years or more, but fewer than sixty years, excluding any renewal periods or options to renew, the Director may assess the real property jointly in the names of the owner and the lessee if

(a) the lease is registered in the registry office of the county in which the land is situate and contains a full and accurate description of the land,

(b) the land referred to in paragraph (a) is able to be separately conveyed as described,

(c) one or more buildings are situated on the real property under lease and the lessee owns the building or buildings,

(d) the lessee has full use and occupation of the real property, and

(e) any other conditions or circumstances prescribed by regulation are met.

14(7.3) Where real property is under a lease for a term of sixty years or more, excluding any renewal periods or options to renew, the Director may assess the real property in the name of the lessee if

(a) the lease is registered in the registry office of the county in which the land is situate and contains a full and accurate description of the land,

(b) the land referred to in paragraph (a) is able to be separately conveyed as described,

(c) one or more buildings are situated on the real property under lease and the lessee owns the buildings,

(d) the lessee has full use and occupation of the real property, and

(e) any other conditions or circumstances prescribed by regulation are met.

2 Section 40 of the Act is amended

(a) in subsection (1) by adding after paragraph (e.7) the following:

(e.8) prescribing conditions or circumstances for the purposes of paragraph 14(7.2)(e) or (7.3)(e);

(b) in subsection (1.1) by striking out "or (e.7)" and substituting ", (e.7) or (e.8)".

3 The Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is amended

(a) in section 11 by adding after subsection (2) the following:

11(2.1) Each year after a date to be fixed by regulation, an owner of real property that has been assessed pursuant to subsection 14(7.3) of the Assessment Act and to which are attached liens under subsections (1), (1.01) and (1.1),

(a) may pay the amount of the liens,

(b) may add such amount to the rent payable under the lease, and

(c) has the same rights and remedies for such amount as are contained in the lease with respect to rent under the lease.

(b) in section 12

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

12(1.001) Where the Minister mails a notice under subsection (1) to a person in respect of real property assessed pursuant to subsection 14(7.3) of the Assessment Act, the Minister shall, on or after the date the notice under subsection (1) is mailed to that person, mail to the owner of the real property a notice stating that the real property is liable to be sold in accordance with this Act.

(ii) in subsection (1.1) by adding "or (1.001), whichever is the later" after "subsection (1)";

(iii) by repealing subsection (2) and substituting the following:

12(2) Where taxes and penalties on real property are due and unpaid two months after the sending of the notice under subsection (1) or (1.001), whichever is the later, the Minister shall, on or after the expiration of those two months, mail

(a) to the person in whose name the real property is assessed, and

(b) to the owner of the real property, if the real property was assessed pursuant to subsection 14(7.3) of the Assessment Act,

a notice stating that the real property will be sold in accordance with the regulations.

(iv) by repealing subsection (3) and substituting the following:

12(3) Subject to subsection (5), where taxes or penalties on real property are due and unpaid one month after the mailing of the notice under paragraph (2)(a) or (b), whichever is the later, the Minister shall, on or after the expiration of that month, serve

(a) the person in whose name the real property is assessed, and

(b) the owner of the real property, if the real property was assessed pursuant to subsection 14(7.3) of the Assessment Act,

with a notice stating that the real property will be sold and may at any time after the service of the notice or notices, as the case may be, institute proceedings to sell the real property in accordance with this Act and the regulations.

(v) in subsection (4) by adding after paragraph (b) the following:

(b.1) the name of the owner of the real property, if the real property was assessed pursuant to subsection 14(7.3) of the Assessment Act,

(vi) in subsection (5.5) by adding ", the name of the owner of the real property, if the real property was assessed pursuant to subsection 14(7.3) of the Assessment Act," after "last assessed".

4 This Act comes into force on January 1, 2001.

EXPLANATORY NOTES

Section 1

In the new subsection 14(7.2), the Director may assess real property jointly in the name of the lessee and the owner in certain circumstances. In the new subsection 14(7.3), the Director may assess real property in the name of the lessee alone in certain circumstances.

Section 2

(a) Regulation-making authority is expanded.

(b) The existing provision is as follows:

40(1.1) A regulation made under paragraph (1)(e.41), (e.5), (e.6) or (e.7) may be retroactive in its operation.

Section 3

Consequential amendments are made to the Real Property Tax Act to provide an opportunity for the owner of property leased for sixty years or more, and assessed in the name of the lessee, to pay tax arrears and add that amount to the rent due under the lease, to provide various notices to the owner of the real property of tax arrears and tax sale, and to provide for publication of the owner’s name when advertising a tax sale of the real property.

 

Section 4

Commencement provision.