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LOCAL GOVERNMENT ACT — Continued
[RSBC 1996] CHAPTER 323

Part 11 — Tax Collection

Division 1 — Due Dates and Tax Notices

Options for tax due dates

365 Property taxes under Part 10.1 are due as follows:

(a) in accordance with the general tax collection scheme under section 366, if the municipality does not establish its own scheme under section 367;

(b) if the municipality does establish a scheme under section 367, in accordance with section 368.

General tax collection scheme

366 (1) If this section applies, property taxes for a year are due on July 2 of the year.

(2) The Lieutenant Governor in Council may make regulations establishing penalties and interest that must be applied by municipalities in relation to payments made after the tax due date under subsection (1).

Alternative municipal tax collection scheme

367 (1) A council may, by bylaw, establish one or more dates on which all or part of the property taxes under Part 10.1 are due.

(2) A bylaw under subsection (1) must establish an annual time period during which owners may make elections under section 368.

(3) A bylaw under subsection (1) may do one or more of the following:

(a) establish procedures for determining the amount of taxes due on each of the due dates;

(b) provide for

(i) estimating, before the adoption of the annual property tax bylaw, the amount of taxes payable in the year, and

(ii) making adjustments to payments due after the adoption of that bylaw in order to take into account variations between the estimated and actual taxes payable;

(c) establish discounts to be applied in relation to payments made before a tax due date established by the bylaw;

(d) establish penalties and interest to be applied in relation to payments made after a tax due date established by the bylaw;

(e) set terms, conditions and procedures in relation to payments, which may be different for different classes of owners as established by the bylaw.

(4) As a limitation on subsection (3) (a), there must not be more than 12 months between the first and last due dates for annual taxes for any year.

Owner may elect which scheme to use

368 (1) If a municipal tax collection scheme is established, the applicable scheme is determined in accordance with the following:

(a) if an owner has elected in accordance with subsection (2) to pay under the municipal scheme, that scheme applies;

(b) if an owner has elected in accordance with subsection (2) to pay under the general tax collection scheme, that scheme applies;

(c) if paragraph (a) or (b) does not apply and the municipal tax collection scheme

(i) has not established due dates that are before July 2,

(ii) has not established any interest, or has established interest that does not exceed the interest for the general tax collection scheme prescribed under section 366 (2), and

(iii) has not established any penalty, or has established penalties that do not exceed the penalties for the general tax collection scheme prescribed under section 366 (2),

the municipal tax collection scheme applies;

(d) if no other paragraph applies, the general tax collection scheme applies.

(2) An owner may make an election, or change an election, referred to in subsection (1) (a) or (b) by giving written notice of the election to the municipality within the time period established under section 367 (2) [municipal scheme].

(3) If the land title registration of a property indicates that there is more than one registered owner of the property, a person giving notice under subsection (2) may only do so with the written consent of the number of those persons who, together with the person giving notice, are a majority of the registered owners.

(4) As a limit on subsection (2), after an election or change has been made under this section, no further change in election may be made for the same year.

(5) Once an election or change has been made under this section, the owner is liable to make payments in accordance with the applicable scheme until the owner has made a subsequent change in election under this section.

General tax notices

369 (1) Each year a municipality must mail a tax notice in accordance with this section to each owner of property subject to tax under this Part.

(2) A tax notice must include the following:

(a) a short description of the property;

(b) the taxes imposed under this Part for the current year, separately stated for

(i) property value taxes imposed under section 359 (1) (a) [municipal property taxes],

(ii) each property value tax imposed under section 359 (1) (b) [property taxes for other bodies],

(iii) each property value tax collected by the municipality on behalf of another local government or other public body on the basis of tax rates imposed by the other body, and

(iv) each parcel tax imposed under section 360 [parcel tax bylaw];

(c) other taxes or charges that are payable in relation to the property;

(d) any credit or abatement authorized by this or another Act;

(e) when the penalties under section 366 [general tax collection scheme] will be added if taxes are not paid;

(f) other information that may be prescribed by regulation.

(3) The tax notice must include or have enclosed with it an application for a grant under the Home Owner Grant Act.

(4) A tax notice under this section must also be mailed to each holder of a registered charge in relation to the property whose name is included on the assessment roll.

(5) For the purposes of this section, the tax notice is to be mailed to the owner or other person at the address on the assessment roll.

(6) If a number of parcels are assessed in the name of the same owner,

(a) any number of those parcels may be included in one tax notice, and

(b) if several of the parcels are assessed at the same value, the tax notice is sufficient if it clearly identifies the property assessed and taxed as a block, parts of a block or a series of lots, without the full description for each parcel.

(7) The obligation to give notice under this section is satisfied if the municipality made a reasonable effort to mail or otherwise deliver the tax notice.

Copies of tax notice to be sent to persons who have requested this

370 (1) The collector must mail or otherwise deliver a copy of a tax notice under section 369 [general tax notices] and any statement under section 382 [statement of taxes in arrear or delinquent] to all persons who have requested this during the current year in accordance with subsection (2).

(2) In order to make a request for the purposes of this section, a person must make a written request to the municipality and include in it a description of the property for which the tax notice is requested sufficient to allow the property to be identified.

(3) The obligation under subsection (1) is satisfied if a reasonable effort was made to mail or otherwise deliver the notice or statement.

Division 2 — Adjustments to Taxes

Interest on overpayment of taxes

371 (1) If a person is refunded an amount of taxes paid under this Act, the municipality must pay the person interest at the rate prescribed under subsection (2).

(2) The Lieutenant Governor in Council may prescribe a rate of interest for the purposes of this section.

Adjustments required if assessments are set aside or varied

372 (1) If an assessment is set aside or varied after the annual property tax bylaw is adopted, the collector must

(a) make the necessary adjustments to the taxes imposed on the affected property, and

(b) report on that adjustment to the council.

(2) The amount of any tax as amended under this section is the amount of taxes imposed for the current year on the property affected and, despite the terms of a receipt given by the collector, any excess paid must be refunded and any balance unpaid is tax due and payable.

Taxation based on supplementary roll

373 (1) If taxes are to be imposed on the basis of a supplementary roll under the Assessment Act, 30 days' notice must be given for payment of those taxes and a penalty must not be added in that period.

(2) The obligation to give notice under subsection (1) is satisfied if the collector made a reasonable effort to mail or otherwise deliver the notice.

(3) Taxes imposed on the basis of a supplementary roll are a debt to the municipality and subject to all methods available to the municipality for the recovery of taxes, including tax sale.

(4) If an assessment on a supplementary roll is set aside or the assessed value reduced under the Assessment Act, the collector must refund to an owner the excess amount of taxes, and any penalty and interest on that excess, paid by the owner, less any taxes in arrear or delinquent taxes the person owes to the municipality.

Apportionment of property value taxes if land subdivided

374 (1) If a plan of subdivision is deposited in the land title office after November 30 in any year and before June 1 in the next year, the collector may

(a) apportion the taxes payable in that next year between the parcels created by the subdivision in the same proportions as taxes would have been payable in respect of the parcels had the subdivision occurred on or before November 30 in the first year, and

(b) on making an apportionment under paragraph (a), record the apportionment in the manner that the collector considers necessary.

(2) Taxes apportioned to a parcel under subsection (1) are the taxes payable in respect of the parcel in the year for which they are apportioned.

(3) The assessor for the area in which the land is located must provide the collector with the assessed values necessary to calculate the proportions of taxes referred to in subsection (1).

Apportionment of parcel taxes if land subdivided

375 (1) If a parcel of land subject to tax under Division 2 [Parcel Taxes] of Part 10.1 [Taxes, Fees and Charges] is subdivided, the collector must

(a) apportion the taxes payable between the parcels created by the subdivision in the same proportions as taxes would have been payable in respect of the parcels had the subdivision occurred before the assessment roll was authenticated, and

(b) on making an apportionment under paragraph (a), record the apportionment in the manner that the collector considers necessary.

(2) Taxes apportioned to a parcel under subsection (1) are the taxes payable in respect of the parcel.

(3) An apportionment or reapportionment of a parcel tax under this section does not

(a) require authorization or confirmation by bylaw or by a local court of revision,

(b) operate as a new parcel tax assessment, or

(c) in any way invalidate, reopen or affect the assessment roll other than for the land in respect of which the apportionment or reapportionment has been made.

Special fees and charges that are to be collected as taxes

376 (1) This section applies to

(a) fees or charges imposed under this Act for work done or services provided to land or improvements, or

(b) amounts that the municipality is entitled to recover for work done or services provided to land or improvements under any provision of this Act that authorizes the municipality to recover amounts in the event of default by a person.

(2) An amount referred to in subsection (1)

(a) may be collected in the same manner and with the same remedies as ordinary taxes on land and improvements under this Act, and

(b) if it is due and payable by December 31 and unpaid on that date, is deemed to be taxes in arrear.

(3) If an amount referred to in subsection (2) (b) is a fee or charge referred to in section 363 (2) (a) [fees and charges for services outside the municipality],

(a) the collector must promptly, after December 31, forward a statement showing the amount of the fee or charge

(i) to the Surveyor of Taxes in the case of real property that is not in a municipality, or

(ii) to the applicable municipal collector in other cases, and

(b) the Surveyor of Taxes or collector must add the amount of the fee or charge to the taxes payable on the property.

(4) If an amount is added under subsection (3) (b),

(a) the amount is deemed to be a Provincial or municipal tax, as applicable, and must be dealt with in the same manner as taxes against the property would be under the Taxation (Rural Area) Act or this Act, and

(b) when it is collected, the Minister of Finance and Corporate Relations or collecting municipality must pay the amount to the municipality to which it is owed.

(5) If an amount is added under subsection (3) (b) and is not paid at the time the property is sold by tax sale,

(a) if the upset price is obtained at the time of the tax sale, the minister or municipality referred to in subsection (4) must pay out of the proceeds of the sale the amount due under this section to the municipality to which it is owed, or

(b) if the upset price is not obtained and subsequently the property is sold, the proceeds of sale must be applied according to the respective interests in the upset price.

(6) Despite subsections (3) to (5), the municipality to which the amount is owed may bring action in a court of competent jurisdiction to recover that amount.

Charge for irrigation water rights

377 (1) The rates or tolls chargeable under a municipal bylaw or under an order of the Comptroller of Water Rights under the Water Act for carriage and delivery of water for irrigation of land in a position to be supplied or served from the municipality's irrigation works, and the costs and charges for the service, are a charge on the land that is in a position to be served or on which the water is supplied or used.

(2) The rates or tolls and costs and charges referred to in subsection (1) are taxes deemed to be imposed under this Act, and the provisions of this Act for collection and recovery of taxes apply.

(3) This section does not limit the generality of section 376 [special fees and charges that are to be collected as taxes].

Division 3 — Payment of Taxes

Application of tax payments

378 (1) Payments for taxes must be credited by the collector against the following in the indicated order:

(a) delinquent taxes, including interest, from past years;

(b) taxes in arrear, including interest, from the preceding year;

(c) a penalty added in the current year;

(d) taxes imposed under the School Act for the current year;

(e) taxes under Part 19 [Local Improvements and Specified Areas] in the current year;

(f) any unpaid municipal taxes for the current year.

(2) Acceptance of a payment on account of taxes does not affect the liability of a person for full payment or of the land or improvements to be sold for the amount of taxes unpaid.

Taxes in arrear

379 (1) The taxes for the current year on land or improvements, or both, together with any applicable penalties, that are unpaid on December 31 in the year imposed

(a) are taxes in arrear on that date, and

(b) bear interest from that date at a rate prescribed by the Lieutenant Governor in Council under section 11 (3) of the Taxation (Rural Area) Act.

(2) Taxes

(a) imposed by a municipality under section 359 (1) (b) [property taxes for other bodies], or

(b) collected by the municipality on behalf of another local government or other public body on the basis of tax rates imposed by the other body

that are unpaid on December 31 in the year imposed, together with any applicable penalties, become municipal taxes in arrear under subsection (1) on that date.

(3) The interest under subsection (1) (b) is part of the taxes in arrear, and the total amount of the taxes in arrear is a charge on the land or improvements, or both, as if the penalties and interest had originally formed part of the taxes imposed.

Delinquent taxes

380 (1) Any taxes in arrear remaining unpaid on December 31 in the year following the year in which they became taxes in arrear

(a) are delinquent on that date, and

(b) bear interest from that date at a rate prescribed by the Lieutenant Governor in Council under section 11 (3) of the Taxation (Rural Area) Act until paid or recovered.

(2) The added interest under subsection (1) (b) is part of the delinquent taxes and is a charge as in section 379 (3) [taxes in arrear].

Treatment of taxes on subdivision or cancellation of subdivision

381 (1) If a parcel of land appears on the assessment roll to have been subdivided, the collector must apportion taxes in arrear and delinquent taxes in the same proportion as the assessment for each new parcel bears to the total assessment.

(2) The assessor for the area in which the land is located must provide the collector with the assessment apportionment required for the purpose of subsection (1).

(3) Subsections (1) and (2) also apply if part of a parcel on which taxes are due has been sold and the transfer has been delivered to the purchaser.

(4) If a plan of subdivision has been cancelled, the amount of any taxes in arrear or delinquent taxes against a parcel in the plan or subdivision cancelled are taxes in arrear or delinquent taxes against the parcel of land as it appears after cancellation.

Statements of taxes in arrear or delinquent

382 (1) No later than the date on which the tax notice under section 369 [general tax notices] is mailed, the collector must mail a statement of the amount of the taxes in arrear and of delinquent taxes to each assessed owner of

(a) property for which there are taxes in arrear or delinquent taxes, or

(b) property sold under section 403 [annual tax sale] but remaining subject to redemption under section 417 [redemption by owner].

(2) A statement under subsection (1) must also be mailed to each holder of a registered charge in relation to the property whose name is included on the assessment roll.

(3) The obligation to mail a statement under subsection (1) or (2) is satisfied if a reasonable effort was made to mail or otherwise deliver the statement.

(4) If applicable, the statement under subsection (1) must be in the form prescribed by regulation.

Certificate of taxes outstanding

383 (1) On demand and without charge, the collector must give the owner of real property whichever of the following is applicable to the property:

(a) a written statement showing the amount of all unpaid taxes;

(b) a certificate that all taxes, fees and charges imposed against the real property identified in the certificate have been fully paid.

(2) The collector must provide, to any person who requests this, a certificate showing

(a) the amount of unpaid taxes charged against specified real property,

(b) whether the real property has been sold for taxes, and

(c) if the property has been sold for taxes, the time if any remaining for redemption and the amount required to redeem it.

(3) An error in a statement or certificate given under this section does not subject the municipality to damages.

Divisions 4 to 6

Sections Repealed

384 to 387 [Repealed 1999-37-102.]

388 [Repealed 1998-34-64.]

389 to 395 [Repealed 1999-37-102.]

Division 7 — Recovery of Taxes

Taxes are a special charge on the land

396 (1) Taxes accrued and to accrue on land and its improvements, and a judgment under section 397 for the taxes, are a charge that

(a) is a special charge on the land and improvements,

(b) has priority over any claim, lien, privilege or encumbrance of any person except the Crown, and

(c) does not require registration to preserve it.

(2) If it is necessary or advisable to protect or enforce a charge under subsection (1) by a proceeding, this may be done by order of the court, on application and on notice the court considers proper.

Liability of assessed owner and recovery by court action

397 (1) A person who, in any year, is an assessed owner of land, improvements or both in a municipality, or of a taxable interest in them, is liable to the municipality for

(a) all taxes imposed by the municipality under any Act or former Act on the land, improvements or both during the year, and

(b) all unpaid taxes imposed in a previous year.

(2) The liability referred to in subsection (1) is a debt recoverable by the municipality by action in a court of competent jurisdiction.

(3) A copy of the tax notice under section 369 [general tax notices] that refers to the taxes payable by the person, certified as a true copy by the municipal officer assigned responsibility under section 198 [corporate administration], is evidence of the debt referred to in subsection (2).

(4) The liability must not be enforced by action against a person whose name appears on an assessment roll only as a personal representative or trustee of an estate, except to the extent and value of the assets of the estate that have come into that person's hands.

Recovery of taxes by the legal remedy known as "distress"

398 (1) Despite any Act, with the approval of the council, a collector may, directly or by agent, levy the amount of taxes due, with costs, by distress of one or more of the following:

(a) the output of the taxed property;

(b) goods and chattels of the person liable to pay the taxes;

(c) any goods and chattels in British Columbia in the possession of the person liable to pay the taxes;

(d) any goods and chattels found on the premises of the person liable to pay the taxes;

(e) any goods and chattels found on the property of or in the possession of another occupant of the premises of the person liable to pay the taxes that would be subject to distress for rent arrears due to a landlord.

(2) The costs chargeable on distress under this section are those payable as between landlord and tenant.

(3) A collector who makes distress must, by notice posted in at least 3 conspicuous public places in the locality where the property seized is to be sold, give at least 10 days' notice of

(a) the time and place of the sale, and

(b) the name of the taxpayer whose property is to be sold.

(4) At the time given in the notice under subsection (3), the collector or agent must sell at public auction the seized property or as much as may be necessary.

(5) If there is a surplus from the sale over the amount of the taxes and costs, the surplus must be paid to the person in possession of the property when it was seized, unless claim to it is made by another person on the ground that the property sold belonged to the other person, or that the other person was entitled by lien or other right to the surplus.

(6) If a claim is made by the person for whose taxes the property was distrained and the claim is admitted, the surplus must be paid to the claimant.

(7) If the claim referred to in subsection (6) is contested, the surplus must be retained by the collector until the rights of the parties have been determined.

(8) A person receiving a surplus under this section must give a receipt for it.

Power to accept real property in place of taxes

399 (1) A council may, by bylaw adopted by at least 2/3 of its members, accept, in place of all unpaid taxes, rates, interest and costs against otherwise unencumbered real property in the municipality, an absolute conveyance to the municipality of the whole of the real property from its registered owner.

(2) Delivery of the conveyance must be made to the municipality and, after receipt, the designated municipal officer must promptly apply to the proper land title office for registration of the municipality as owner.

(3) Registration of the municipality as owner of the land or real property is deemed to be in payment of and discharges all taxes, rates, interest and costs assessed and chargeable against the land or real property at the date of the conveyance.

Notice of delinquent taxes on Crown land

400 If taxes become delinquent on land that the Provincial government has agreed to sell under an agreement to purchase,

(a) the collector must notify the minister responsible for the administration of the Land Act within 3 months after taxes with respect to the person holding the land became delinquent, and

(b) that minister must cause a suitable notation to be made on the record of purchase and may take any other steps considered advisable.

Recovery of taxes on Crown land subject to an agreement for sale

401 (1) This section applies if the Provincial government has agreed to sell land in a municipality on terms of deferred payment and the holder of the agreement for sale

(a) has defaulted in payment for the land, or has abandoned the land with the title remaining in the Provincial government, and

(b) has defaulted in payment of municipal taxes against the land.

(2) The municipal taxes referred to in subsection (1) are a first charge against the land and, following the sale of the land, the Provincial government must pay the municipal taxes out of the proceeds of the sale, subject to the limit that the amount paid must not exceed the amount received by the Provincial government for the sale.

Recovery of taxes on Crown land held under lease or licence

402 (1) The collector must not sell land the fee simple of which is vested in the Provincial government and which is held under lease, licence, permit or location.

(2) Within 5 months from the date when taxes on land referred to in subsection (1) become delinquent, the collector must give written notice to the person liable for them, either by serving the notice or by sending it by registered mail, that the lease, licence, permit or location will be cancelled if the person does not pay the delinquent taxes, together with interest and all subsequent taxes, within 6 months from the date when the taxes became delinquent.

(3) On application, the Supreme Court may order that the notice under subsection (2) may be served by substituted service in accordance with the order.

(4) The collector must send a copy of the notice under subsection (2) to the minister responsible for the administration of the Land Act.

(5) If payment of the delinquent taxes, with interest, and all subsequent taxes is not made within the 6 months,

(a) the collector must forward to the minister referred to in subsection (4) a list of defaulting lessees, licensees, permittees or locators, and

(b) that minister must at once cancel the leases, licences, permits or locations.

(6) Until the minister referred to in subsection (4) notifies the collector of cancellation under subsection (5), the collector must not cancel an amount due.

(7) On cancellation of a lease, licence, permit or location, the minister referred to in subsection (4) must notify the collector, who must then cancel the amount due.

(8) If good reasons are shown to the satisfaction of the minister referred to in subsection (4) that the defaulting person, from poverty, sickness or other cause, has been unable to pay the amount due within the time limit, the minister may extend the time within which payment must be made before cancellation takes effect.

Division 8 — Annual Tax Sale

Annual tax sale

403 (1) At 10 a.m. on the last Monday in September, at the council chambers, the collector must conduct the annual tax sale by offering for sale by public auction each parcel of real property on which taxes are delinquent.

(2) If the last Monday in September is a holiday, the tax sale must instead be held on the next Monday that is not a holiday.

(3) The collector may adjourn the tax sale to the same hour on the following day, and from day to day until each parcel is disposed of.

(4) The collector may act as auctioneer at the tax sale.

(5) The collector may also offer for sale at the tax sale the other improvements on the real property that are taxable under this Act and on which taxes are delinquent.

(6) A sale under subsection (5) must be in accordance with section 398.

(7) The sale of real property under this section is not a bar to a sale under section 398.

Exemption of Crown land from tax sale

404 (1) A council may, by bylaw, exempt from the tax sale the sale of any real property owned by the Provincial government.

(2) An exemption under subsection (1) does not relieve the real property from taxes lawfully imposed or prejudice the right of the collector to offer it for sale in a succeeding year.

Notice of tax sale

405 (1) Notice of the time and place of the tax sale and the description and street address, if any, of the property subject to tax sale must be published in at least 2 issues of a newspaper.

(2) The last publication under subsection (1) must be at least 3 days and not more than 10 days before the date of the tax sale.

Municipality may bid at tax sale

406 A person authorized by the council may bid for the municipality at the tax sale up to a maximum amount set by the council.

Upset price and conduct of tax sale

407 (1) The collector is authorized to receive from the proceeds of a sale under section 403 the following amounts for the use of the municipality:

(a) the amount of delinquent taxes, taxes in arrear and interest to the first day of the tax sale for which the parcel of land and the improvements are liable for sale;

(b) the taxes, including penalties incurred, for the current year on the land and improvements;

(c) 5% of the amounts under paragraph (a) and (b);

(d) the fees prescribed under the Land Title Act.

(2) The total of the amounts under subsection (1) is the upset price and the lowest amount for which the parcel may be sold.

(3) The highest bidder above the upset price or, if there is no bid above the upset price, the bidder at the upset price, must be declared the purchaser.

(4) If there is no bid, or no bid equal to the upset price, the municipality must be declared the purchaser.

(5) If the municipality has been declared the purchaser of a parcel, the collector may offer the parcel for sale again later at the tax sale on the same conditions as before.

(6) If a purchaser fails to immediately pay the collector the amount of the purchase price, the collector must promptly again offer the parcel for sale.

Purchaser to give authority to register tax sale title

408 (1) At the time of the tax sale and before the purchaser is given the certificate of sale, a purchaser other than the municipality must provide a statement, signed by the purchaser or the purchaser's agent,

(a) setting out the purchaser's full name, occupation and address, and

(b) authorizing the collector to make the application referred to in section 420 (2) to register at the appropriate time the purchaser's title to the real property.

(2) A statement under subsection (1) must be preserved with the records of the sale.

Collector to provide certificate of sale

409 After a sale to a person other than the municipality, the collector must sign and give to the purchaser a certificate

(a) describing the parcel sold,

(b) stating the sale price, and

(c) stating that an indefeasible title will be applied for on the purchaser's behalf at the end of one year from the date of sale unless the property is redeemed or the sale is cancelled under section 423.

Tax sale of Crown land subject to an agreement to purchase

410 (1) The collector may, by sale held at the annual tax sale, sell land, the fee simple of which is vested in the Provincial government, but held by a person under an agreement to purchase.

(2) A sale under this section is subject to the interest of the Provincial government and the collector must expressly state at the sale that the interest of the Provincial government is prior to all claims and is not affected by the sale.

(3) Sections 412 to 420 do not apply to a sale under this section.

(4) The collector must sign and give the purchaser of land at a sale under this section a certificate that

(a) describes the land sold,

(b) states the price at which the land was sold,

(c) states that the interest of the Provincial government has priority over all claims and is not affected by the sale, and

(d) states that the sale is made under this section.

(5) The collector must promptly provide to the minister responsible for the administration of the Land Act

(a) a copy of the certificate under subsection (4), and

(b) the address of the purchaser.

Provincial government may accept tax sale purchaser

411 (1) The minister responsible for the administration of the Land Act may accept the tax sale purchaser as purchaser of the land and may deal with that purchaser to the exclusion of the person whose interest was sold at the tax sale and of all persons claiming under that person.

(2) If that minister accepts the tax sale purchaser as purchaser of the land, the minister must notify the collector of this.

(3) If that minister does not accept the tax sale purchaser as purchaser of the land or does not notify the collector within 6 months from the date of sale that the minister has accepted the purchaser, the purchaser is entitled to a refund from the municipality of the amount the purchaser paid together with interest at the rate prescribed under subsection (4).

(4) The Lieutenant Governor in Council may prescribe a rate of interest for the purposes of subsection (3).

(5) If a refund is made under subsection (3), the collector must promptly replace the amount of the upset price, together with the interest paid to the purchaser, as delinquent taxes on the land.

Resale of land purchased by municipality at tax sale

412 (1) If property is purchased by a municipality under section 407 and is not sold later at the tax sale, within 9 months after the purchase, the council may sell the property to any person for not less than the upset price plus interest accrued from the date of purchase at the rate prescribed under section 11 (3) of the Taxation (Rural Area) Act.

(2) On a sale under this section, the council must direct the collector to give the purchaser a certificate similar to that under section 409.

(3) A sale under this section does not affect the period for or the right of redemption by the owner under this Act.

Notice of tax sale must be filed in land title office

413 Promptly after selling property for taxes, the collector must

(a) file in the proper land title office the notice of the tax sale, and

(b) pay the fees prescribed under the Land Title Act for filing the notice and making the proper references.

Owners must be given notice of tax sale and redemption period

414 (1) Not later than 3 months after the sale of property at the tax sale, the collector must give written notice of the sale and of the day the redemption period ends, either by serving the notice or by sending it by registered mail, to persons registered in the land title office

(a) as owner of the fee simple of the property, or

(b) as owner of a charge on the property.

(2) On application, the Supreme Court may order that the notice under subsection (1) may be served by substituted service in accordance with the order.

(3) No liability or responsibility other than as set out in subsection (1) rests with the collector or municipality to give notice of the sale for taxes.

Assessment and taxes during redemption period

415 (1) During the period allowed for redemption, real property sold at the tax sale must continue to be assessed and taxed in the name of the person who at the time of sale appeared on the assessment roll as owner and that person is liable for taxes accruing.

(2) The accruing taxes continue to be a special lien on the property under section 396.

(3) The purchaser at the tax sale may pay the taxes that become due during the period of redemption, and the amount paid must be added to the amount required to redeem.

Application of surplus from tax sale

416 (1) If the property is not redeemed, money received by the collector at the tax sale above the upset price must be paid without interest to the owner at the time of the tax sale, on written application to the council.

(2) The money must not be paid to the owner if a claim to the surplus is made by another person on the ground that the property belonged to the other person, or that the other person is otherwise entitled to the surplus.

(3) If a claim referred to in subsection (2) is made, the money must, without leave, be paid into the Supreme Court, accompanied by

(a) a copy of the certificate of sale under section 409, and

(b) a statement of the municipal officer assigned responsibility under section 198 [corporate administration] setting out the facts under which the payment into court is made and the names of the owner at the time of the tax sale and the claimant.

(4) Money paid into court under subsection (3) is payable out of court to the party entitled on a court order to be made on application in a summary manner and subject to the giving of the notices directed by the court.

(5) If surplus money remains unpaid 6 months after the end of the redemption period, in the next month the council must have published in a newspaper a notice stating

(a) the name of the owner to whom the surplus is payable,

(b) the date it became payable, and

(c) the amount of the surplus.

(6) If the surplus remains unclaimed 3 months after publication under subsection (5), it must be transferred to the Minister of Finance and Corporate Relations.

(7) Money transferred under subsection (6) is deemed to be an unclaimed money deposit under the Unclaimed Property Act.

Redemption by owner

417 (1) A parcel of property sold at a tax sale may be redeemed in accordance with this section by

(a) an owner or registered owner in fee simple of the parcel,

(b) an owner of a registered charge against the parcel, or

(c) another person on behalf of a person referred to in paragraph (a) or (b).

(2) The time limit for making a redemption is one year from the day the tax sale began, or a further time allowed by bylaw under subsection (6).

(3) A redemption is made by paying or tendering to the collector for the use and benefit of the purchaser under section 407 the total of the following amounts:

(a) the upset price of the parcel at the time of the tax sale;

(b) all costs of which the collector has had notice that have been incurred by the purchaser in maintenance of the real property and in prevention of waste;

(c) taxes advanced by the purchaser;

(d) interest to the date of redemption on any amount in excess of the upset price and on the total amount expended by the purchaser under paragraphs (a) to (c) during the period for redemption, at the rate prescribed under section 11 (3) of the Taxation (Rural Area) Act.

(4) So much of the amount received by the collector at the sale for land title fees as is not required must be deducted.

(5) On redemption of a parcel, the purchaser is entitled to receive from the municipality all amounts paid by the purchaser, together with interest to the date of redemption at the rate prescribed under section 11 (3) of the Taxation (Rural Area) Act.

(6) If the municipality has been declared the purchaser and the property has not been subsequently sold under section 407, the council may, by bylaw, extend for one year only the period for redemption.

Redemption payments by instalments

418 (1) This section applies in the case of land of which the municipality has been declared the purchaser under section 407 if

(a) there are improvements on the land,

(b) the land has not been subsequently sold under section 407 or 412, and

(c) the municipality has not adopted a bylaw under section 417 (6).

(2) A person empowered under section 417 to redeem the land and improvements referred to in subsection (1) is entitled to redeem them under subsection (3) if the person pays to the collector, on or before the latest date allowed under this Act for redemption, 50% of the total of

(a) the amount of the upset price for which the land and improvements were offered for sale, and

(b) interest on the amount under paragraph (a).

(3) A person who makes a payment under subsection (2) may redeem the land and improvements by paying to the collector the remainder of the total referred to in that subsection at any time within 11 months and 21 days from the latest date otherwise allowed for redemption.

(4) In the circumstances described in this section, the time for redemption is extended accordingly.

Notice of redemption must be filed in land title office

419 If real property sold for taxes is redeemed within the time allowed for redemption, the collector must promptly send to the registrar of land titles for filing the notice required by section 273 of the Land Title Act, together with any applicable fee under that Act.

Registration of purchaser

420 (1) If a parcel of land sold for taxes is not redeemed as provided in this Act, at the end of the redemption period, the collector must forward a notice to that effect to the registrar of land titles.

(2) The notice under subsection (1) must

(a) show the full name, occupation and address of the purchaser, and

(b) be accompanied by

(i) the fees prescribed under the Land Title Act, and

(ii) an application in the form prescribed under the Land Title Act for registration of title in fee simple in the name of the purchaser.

(3) It is not necessary with the application referred to in subsection (2) (b) to produce an outstanding absolute certificate of title or duplicate, or interim certificate of indefeasible title.

(4) On forwarding the notice referred to in subsection (1) to the registrar of land titles, the municipality must immediately notify the administrator under the Property Transfer Tax Act.

(5) The notice referred to in subsection (1) operates

(a) as a conveyance to the purchaser from the registered owner in fee simple, without proof of the signature of the collector and without an attestation or proof of execution, and

(b) as a quit claim in favour of the purchaser of all right, title and interest of every previous owner in fee simple of the parcel, or of those claiming under any previous owner, and of all claims, demands, payments, charges, liens, judgments, mortgages and encumbrances of every type, and whether or not registered in accordance with the Land Title Act, subsisting at the time the application to register was received by the registrar, except

(i) the matters set out in section 276 (1) (c) to (g) of the Land Title Act, and

(ii) any lien of the Crown or an improvement district.

(6) One application may be made under this section on behalf of a purchaser for registration of any number of parcels contained in the same block and listed on the one notice produced for registration, but subject to the requirements of section 158 of the Land Title Act.

(7) If the registrar of land titles refuses to register the title in the name of a purchaser of property at a tax sale and no appeal is made under section 301, or if an appeal has been made and the decision of the registrar sustained, the municipality is deemed to have been declared the purchaser of the property at the tax sale, and the municipality must refund the purchase price, without interest, to the purchaser.

Effect of tax sale on rights of owner

421 (1) When real property is sold at a tax sale under this Act, all rights in it held by the person who at the time of the sale was the owner, the registered owner in fee simple or the registered owner of a registered charge on the property, immediately cease to exist, except as follows:

(a) the property is subject to redemption as provided in this Act;

(b) the right to possession of the property is not affected during the time allowed for redemption, subject, however, to

(i) impeachment for waste, and

(ii) the right of the purchaser at the tax sale to enter on the property sold to maintain it in a proper condition and to prevent waste;

(c) during the period allowed for redemption, an action may be brought under section 422 to have the tax sale set aside and declared invalid.

(2) During the period allowed for redemption, subsection (1) does not operate to affect in any way the rights of the owner, the registered owner in fee simple or the owner of a registered charge, among or as between themselves.

Action by owner to have tax sale set aside

422 (1) A person who at the time of a tax sale was the owner, the registered owner in fee simple or the registered owner of a charge on the real property may bring an action in the Supreme Court to have the sale set aside and declared invalid.

(2) An action under subsection (1) may only be brought on one or more of the following grounds:

(a) the property was not liable to taxation during the years in which the taxes for which the property was sold were imposed;

(b) the taxes for which the property was sold were fully paid;

(c) irregularities existed in connection with the imposition of the taxes for which the property was sold;

(d) the sale was not fairly and openly conducted;

(e) the collector did not give to that person the notice required by section 414.

(3) An action under this section may not be brought until one month after written notice has been given by the person to the council stating in detail the grounds of complaint.

(4) During the period allowed for redemption, subsection (1) does not operate to affect in any way the rights of the owner, the registered owner in fee simple or the owner of a registered charge, among or as between themselves.

Reinstatement of taxes if sale set aside

423 (1) If the court declares that a tax sale is set aside or invalid for a reason referred to in section 422 (2) (c) or (d), the court may

(a) provide that the amount of unpaid taxes on the real property at the date of sale, together with interest from that date, is a lien on the property as if the tax sale had not taken place, in which case that amount is deemed to be delinquent taxes,

(b) provide for the immediate payment of those taxes, or

(c) otherwise deal with those taxes according to the circumstances.

(2) During the period allowed for redemption, if the council finds a manifest error in the tax sale or in the proceedings before the sale, it may order that

(a) the purchase price be returned to the purchaser together with interest at the rate prescribed under subsection (3), and

(b) the taxes be dealt with as the circumstances require, either

(i) by restoring the taxes as they were before the sale, or

(ii) otherwise as directed by the council.

(3) The Lieutenant Governor in Council may prescribe a rate of interest for the purposes of subsection (2) (a).

Restrictions on legal actions in relation to tax sale

424 (1) After the end of the period allowed for redemption, no action may be brought to recover the property sold or to set aside its sale.

(2) No action may be brought

(a) against the registrar of land titles or the Attorney General under the Land Title Act or against the collector in respect of the sale of the property or the registration of an indefeasible title to it, or

(b) against the municipality in respect of any loss or damage sustained by reason of the sale, except as provided in this section.

(3) A person who at the time of the tax sale was an owner of, a registered owner in fee simple of or an owner of a registered charge on the property must be indemnified by the municipality for any loss or damage sustained by the person on account of the sale of the property if the circumstances referred to in section 422 (2) (a), (b) or (e) existed.

(4) As limits on subsection (3),

(a) no action may be brought to recover indemnity or compensation under this section after the end of one year from the time allowed by this Act for redemption of the real property, and

(b) there is no right to indemnity or compensation under subsection (3) if it is shown that the person claiming indemnity or compensation was aware at the time of tax sale that the property was offered for sale, or was aware during the period allowed for redemption that it had been sold.

Repossessed tax sale land

425 If land that became the property of a municipality as a result of tax sale has been sold by agreement for sale or subject to mortgage and is repossessed by the municipality for satisfaction of amounts due, the land is deemed to be again tax sale land.

Procedure on default of purchaser under agreement

426 (1) The collector must send a notice in accordance with subsection (2) if

(a) land becomes the property of the municipality as a result of tax sale or failure to pay taxes and is sold by agreement for sale, and

(b) there is default in the payment to the municipality of any instalment or interest.

(2) The notice under subsection (1)

(a) must be sent to the purchaser

(i) by personal service on the purchaser, or

(ii) by registered mail to the purchaser at the purchaser's address named in the agreement for sale, and

(b) must be to the effect that, if the amounts in default are not paid within 90 days from the date of the service or mailing,

(i) all the right, title and interest of the purchaser in and to the agreement for sale, the amounts paid under it and the land referred to in it will cease and determine, and

(ii) the amounts paid under the agreement for sale will be forfeited to the municipality.

(3) On application, the Supreme Court may order that a notice under subsection (1) may be served by substituted service in accordance with the order.

(4) If the purchaser fails to pay or cause to be paid the amounts in default within the period referred to in subsection (2) (b),

(a) all that person's right, title and interest in and to the agreement for sale, the amounts paid under it and the land referred to in it cease and determine,

(b) the land immediately revests in the municipality, free from all claims in respect of the agreement for sale, and

(c) all amounts paid under the agreement are forfeited to the municipality.

(5) Despite the Law and Equity Act or any rule of law or equity to the contrary, a person may not commence or bring an action against the municipality for relief against forfeiture or otherwise in respect of the cancellation of the agreement for sale or the retainer of the money paid to the municipality under the agreement for sale.

(6) On the collector filing in the land title office an affidavit of the continuation of the default after the expiration of the 90 day period, together with evidence of notice or service, the registrar of land titles must cancel all charges or encumbrances, of any type, appearing in the records of the land title office against the land.

(7) The registrar of land titles may require evidence of sufficiency of service and, if not satisfied, the service must be effected in the manner the Supreme Court may direct on an application by the municipality without notice to any other person.

Redemption by municipality of land sold for Provincial taxes

427 (1) This section applies if

(a) land in a municipality has become subject to forfeiture to the Provincial government or has been sold by the Surveyor of Taxes or by the Inspector of Dikes to a person under any statute for the recovery of Provincial taxes, or school taxes, or diking assessments, or other charges in arrear, and

(b) there are taxes in arrear due to the municipality in respect of the land,

(2) In the circumstances referred to in subsection (1), the council may redeem the land at any time during the period allowed for redemption by paying to the Surveyor of Taxes or the Inspector of Dikes, as applicable, the amount required to redeem it as provided in the Act under which the land became subject to forfeiture or was sold.

(3) On the redemption of land by a council under this section, it may add the amount of the redemption payment made by it to the amount of municipal taxes in arrear in respect of the land, and the amount added is deemed to be delinquent taxes under this Act.

(4) If land subject to forfeiture referred to in subsection (1) has not been redeemed, but has been forfeited to and vested in the Provincial government, the council may purchase the land under the terms of any Act that provides for sale of the forfeited land to the municipality.

(5) Despite the sale of land referred to in subsection (1) by the Surveyor of Taxes or by the Inspector of Dikes for the recovery of taxes, assessments or other charges in arrear, the land continues to be liable to taxation by the municipality in which it is located.

Power to agree with other taxing authority

428 (1) Despite this Act, a council may, by bylaw, make agreements with any other authority having taxing powers in respect of land, or land and improvements, located in the municipality respecting the exercise of the powers of the municipality and of the other authority in all matters of collection of taxes, tax sales, redemptions, the disposal of reverted land, the rental of that land before disposal and similar matters.

(2) An agreement under subsection (1) may provide for the exercise of its power by either the municipality or the other authority acting alone on the working basis of protection of the joint interests of the parties that may be mutually determined.

(3) [Repealed 1998-34-70.]

Sections Repealed

429 to 447 [Repealed 1999-37-107.]


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