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Home My Public Portal AboutTax Exemption Policy_P-25_Effective 2022-09-29Municipality of the District of Chester Tax Exemption Policy Policy P-25 Amended - Effective Date: September 29, 2022 Fiscal Year 2022/2023 Tax Exemption Policy (continued) 2 MUNICIPALITY OF THE DISTRICT OF CHESTER POLICY P-25 TAX EXEMPTION POLICY WHEREAS Section 69 of the Municipal Government Act permits a Municipality to grant a tax exemption for low income earners; THEREFORE, BE IT RESOLVED that Council of the Municipality of the District of Chester adopts the following policy respecting property tax exemptions. 1.0 In this Policy, 1.1 INCOME means a person's total income (total income before deductions) from all sources for the calendar year preceding the fiscal year of the Municipality of the District of Chester, excluding any allowances paid pursuant to the War Veterans Allowance Act (Canada) or Pension paid pursuant to the Pension Act (Canada) and includes: i) The income of all assessed owners, their spouse(s), including common law spouses -who occupy the property as their principal residence; ii) The income from members of the same family residing in the same household, who contribute to the household expenses; and iii) Those who hold an interest in the property and contribute to the household expenses. 1.2 Owner and those who an interest in the property includes: i) The person assessed for the property; ii) A person who holds title including a part owner, joint owner, tenant in common, orjoint tenant of the property; and ii) A person with a life interest in the property; and iv) A person with a matrimonial interest. Not included are those with a leasehold interest and those with an interest under an agreement of purchase and sale. 1.3 Principal Residence is the ordinary place of residence for greater part of the year of an owner as well as an owner in a hospital or nursing care facility, unless that person has not slept at the property for a period of two (2) years or more, or unless the property has been rented to paying tenants, in either of which events, the property shall be deemed to cease being the owner's ordinary place of residence. First Notice — Council September 8, 2022 (2022-353) Second Notice — Council September 29, 2022 (2022-381) Effective Date — September 29, 2022 Tax Exemption Policy (continued) 3 1.4 SAME FAMILY in section 1.1(ii) is defined as including, but not limited to, children and stepchildren connected to at least one of the legally married or common-law couples included in section 1.1(i). 2.0 The Director of Finance of the Municipality shall grant an exemption as follows: i) For owners with an Income Level of $16,419 or less the tax exemption shall be the lessor of $813 or the tax on the general tax rate and the waste collection and disposal area rate only; ii) For owners with an Income Level of $16,419 to $27,558 the tax exemption shall be the lessor of $813 less the bracket's change in the exemption amount $487) prorated for the income above $16,419 divided by the bracket's income size* or the tax on the general tax rate and the waste collection and disposal area rate only. * i.e. $813 - (((income - $16,419) / ($27,558 - $16,419)) x ($813 - $326)) iii) For owners with an Income Level of $27,558 to $29,590 the tax exemption shall be -the lessor of $326 less the bracket's change in the exemption amount $326) prorated for the income above $27,558 divided by the bracket's income size or the tax on the general tax rate and the waste collection and disposal area rate only. ^ i.e. $326 - (((income - $27,558) / ($29,590 - $27,558)) x $326) 3.0 A person or persons applying for an exemption must: Make an affidavit: a) Regarding his/her income from all sources in the calendar year preceding the Municipal taxation year for which the exemption is sought. Satisfactory verification of income must be presented to substantiate the exemption. Exemption form attached as Schedule "A". b) Verify that any person who either holds an interest in the property or are family members residing in the same household, whose income is not included in household income pursuant to clause 1.1 (ii), does not contribute to paying household expenses. c) Provide satisfactory verification of income to substantiate the exemption. Satisfactory evidence includes a CRA notice assessment, GST/HST credit notice, and copy of tax return prepared by a third -party tax preparer. iii) Apply for the exemption each year prior to March 315t of the Municipal taxation year. First Notice — Council September 8, 2022 (2022-353) Second Notice — Council September 29, 2022 (2022-381) Effective Date — September 29, 2022 Tax Exemption Policy (continued) 4 4.0 The exemption shall only apply to a property where at least one of the assessed owners occupies it as his/her principal residence. 5.0 Prior to an exemption being granted, all outstanding debts to the Municipality, which are not a lien on the property, shall be paid in full. This would include any fees such as building permit fees, landfill tipping fees, recreation fees, etc. 6.0 Residents who would otherwise have qualified for an exemption, but who have missed the deadline for application, may submit a written request for appeal to the CAO, for special approval. This appeal process will be available until June 30t". After June 30t", any further appeals must be submitted through Council. 7.0 Annually tax exemption income levels and the exemption amounts will be adjusted as follows: i) Annually, the income levels, below which an exemption for taxation is granted, will be adjusted by either the seasonally adjusted year -over -year percent change in average weekly earnings for Nova Scotia or to the extent that council considers appropriate. ii) Annually, the scale of exemption amounts granted will be adjusted by either the combined change in the PVSC CAP rate and the change in residential tax bill for the general tax rate and waste collection and disposal area rate or to the extent that council considers appropriate. First Notice — Council September 8, 2022 (2022-353) Second Notice — Council September 29, 2022 (2022-381) Effective Date — September 29, 2022 Tax Exemption Policy (continued) 5 SCHEDULE A MUNICIPALITY OF THE DISTRICT OF CHESTER— PROPERTY TAX EXEMPTION AFFIDAVIT YEAR DISTRICT ACCOUNT EXEMPTION AMOUNT NUMBER l 2022/23 I/We, property owners of in the County of Lunenburg, Province of Nova Scotia, and is our principal residence, make oath and say as follows: 1. That the total income before deductions of all assessed owners, their spouses (including Common Law Spouses) who occupy the property as their principal residence, family members residing in the same household, who contribute to household expenses and those who hold an interest in the property and contribute to household expenses, was as follows during the calendar year 2021. Any Allowance paid pursuant to the War Veterans Allowance Act (Canada) or pension paid pursuant to the Pension Act (Canada) is not to be included in a person's total income for this purpose. _ Combined Income was $16,419 or less; OR Combined Income was between $16,420 and $27,558; OR Combined Income was between $27,559 and $29,590 AND 2. Verification Provided of combined income of $ . Check one of the following: Notice of Assessment, GST/HST Credit Notice, Copy of tax return. 3. Would you like to be contacted directly when Policy P-25 is amended for the following fiscal year? Yes_ No_ How would you prefer to be contacted? (phone/mail/email): NOTE - THIS IS A LEGAL SWORN AFFIDAVIT AND THE APPLICANTS SIGNATURE(S) ENDORSED BELOW ARE VERIFICATION THAT THE INFORMATION PROVIDED IS TRUE IN ALL RESPECTS. THE AMOUNT OF EXEMPTION GRANTED WILL BE DETERMINED AFTER THE FINAL TAX BILL IS PRODUCED AND WILL BE LIMITED TO THE GENERAL RESIDENTIAL TAX AND WASTE COLLECTION AND DISPOSAL AREA RATE PORTION OF THE OVERALL TAX BILL (I.E. DOES NOT INCLUDE OTHER AREA RATES). Sworn to at in the County of Lunenburg, Nova Scotia on the day of 20 . Staff Signature First Notice — Council September 8, 2022 (2022-353) Second Notice — Council September 29, 2022 (2022-381) Effective Date — September 29, 2022 Tax Exemption Policy (continued) 6 A Commissioner of the Supreme Court of Signature of Applican t(s) Nova Scotia or a Municipal Councilor First Notice - Council September 8, 2022 (2022-353) Second Notice - Council September 29, 2022 (2022-381) Effective Date - September 29, 2022 Tax Exemption Policy (continued) 7 Annotation for Official Policy Book Date of First Notice at Council September 8, 2022 2022-353 Date of Second Notice at Council September 29, 2022 2022-381 Effective Date September 29, 2022 1 certify that this Policy was adopted by Council as indicated above. October 12, 2022 Pamela M. I yra, /lunicipal Clerk Date First Notice — Council September 8, 2022 (2022-353) Second Notice — Council September 29, 2022 (2022-381) Effective Date — September 29, 2022