Low Income Tax Exemption

Policy No.: 2017-4
Supersedes: 2008-2 
Effective Date: April 18, 2017
Approval By Council Motion No.: 14

Purpose:

Definitions:

1. In this Policy:
   • “Family” includes persons related by blood or marriage, common law spouses, registered domestic partners and persons related through adoption;
   • “Income” means a person’s total income from all sources for the calendar year preceding the fiscal year of the Town of Annapolis Royal excluding any allowances paid pursuant to the War Veterans Allowance Act (Canada) or pension paid pursuant to the Pension Act (Canada) and includes the income of all other members of the same family residing in the same household;
   • “Owner” includes:
     1. the person assessed for the property;
     2. a person who holds title including a part owner, joint owner, tenant in common, or joint tenant of the property;
     3. a person having the care or control of the property through adverse possession; and
     4. a person with a life interest in the property.
   • “Principal Residence”[1] includes the ordinary place of residence of an owner who is in a hospital or nursing care facility, unless that person has not slept at the property for a period of [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;
   • “Taxes” has the same meaning as in the Municipal Government Act and, to the extent permitted by law, includes all rates, charges or taxes of the Town of Annapolis Royal prescribed by Statute as a lien on real property OR means [specify the particular taxes, rates and charges which are intended to be exempted pursuant to the Policy];
   • “Treasurer” includes persons authorized by the Treasurer.

Policy Statement:

Exemption

2. Subject to the other provisions of this Policy, the Town of Annapolis Royal hereby grants on an annual basis an exemption from taxation, operating as a reduction in the taxes otherwise payable to the Town of Annapolis Royal in respect of a property in the amount of $300.00 for owners of property whose income is less than $18,000.00. The exemption shall only apply to owners who occupy the property as that owner’s principal residence.
3. Where a property is assessed to more than one owner [other than persons whose income is included in the calculation of income pursuant to this Policy] any of them who is entitled to an exemption may receive only the portion of the exemption equal to that person’s share of the assessment for the property, but where the different interests are not separate, then to that portion determined by the Treasurer, whose determination is final.
4. Notwithstanding any other provision of this Policy, no exemption shall exceed 50% of the taxes payable on any property.
5. In any fiscal year in which the total exemption applications from qualified applicants exceed the budgeted amount for the tax exemption, the exemption amounts shall be reduced pro rata to conform the aggregate of such exemptions to the budgeted amount.
6. In order to be eligible for an exemption, the applicant property owner shall submit to the Treasurer an Tax Exemption Application form complete with the signed affidavit attached by the Treasurer by May 31 of the fiscal year for which the exemption is sought.
7. The Treasurer may ask for documentary verification of income from any source or confirmation of income from third parties and may reject an application which, in the Treasurer’s opinion, is not adequately verified or substantiated.

Enforcement Charges Not Exempted

8. Notwithstanding any other provision of this policy, no exemption is conferred from obligations to remedy unsightly or dangerous premises or any other infractions against a statute, regulation or bylaw, and any charges imposed upon a property arising from enforcement of such provisions shall not be subject to a tax exemption pursuant to this policy.

[1] section 69(4)(a) of the Municipal Government Act.

Low Income Tax Exemption Policy- Signed

Questions and Answers Re Tax Exemption Policy

Tax Reduction Form – 2018-2019