Municipal Tax Increase by Extraordinary Amount (LTB)

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Date Retrieved:	2024-05-18
CLNP Page ID:	2213
Page Categories:	[AGI Applications]
Citation:	Municipal Tax Increase by Extraordinary Amount (LTB), CLNP 2213, <https://rvt.link/5->, retrieved on 2024-05-18
Editor:	Sharvey
Last Updated:	2023/05/23

Residential Tenancies Act, 2006, S.O. 2006, c. 17

126 (1) A landlord may apply to the Board for an order permitting the rent charged to be increased by more than the guideline for any or all of the rental units in a residential complex in any or all of the following cases:

1. An extraordinary increase in the cost for municipal taxes and charges for the residential complex or any building in which the rental units are located.

2. Eligible capital expenditures incurred respecting the residential complex or one or more of the rental units in it.

3. Operating costs related to security services provided in respect of the residential complex or any building in which the rental units are located by persons not employed by the landlord. 2006, c. 17, s. 126 (1); 2017, c. 13, s. 22 (1).

Interpretation

(2) In this section,

“extraordinary increase” means extraordinary increase as defined by or determined in accordance with the regulations. 2006, c. 17, s. 126 (2).

O. Reg. 516/06: GENERAL: under Residential Tenancies Act, 2006, S.O. 2006, c. 17

19. (1) In this Part,

“base year” means,

(a) when determining rent increases due to an extraordinary increase in the cost for municipal taxes and charges, the last completed calendar year immediately preceding the day that is 90 days before the effective date of the first intended rent increase referred to in the application,

(b) when determining rent increases due to operating costs related to security services, the annual accounting period of one year in length chosen by the landlord which is most recently completed on or before the day that is 90 days before the effective date of the first intended rent increase referred to in the application; (“année de base”)

“local board” means a “local board” as defined in the Municipal Affairs Act; (“conseil local”)

“reference year” means the 12-month period immediately preceding the base year. (“année de reference”) O. Reg. 516/06, s. 19 (1); O. Reg. 562/17, s. 2 (1).

(2) Despite clause (b) of the definition of “base year” in subsection (1), if an order has previously been issued with respect to the residential complex under section 126 of the Act in which relief was granted or for operating costs related to security services, the base year shall begin and end on the same days of the year as the base year used in the previous order. O. Reg. 516/06, s. 19 (2); O. Reg. 562/17, s. 2 (2).

Interest rate
20. The interest rate for the purposes of subsection 18 (2) and subsection 26 (6) is the chartered bank administered conventional five-year mortgage interest rate on the last Wednesday of the month before the month in which the application is made, as reported by the Bank of Canada. O. Reg. 516/06, s. 20.

Factor to be applied
21. (1) The factor to be applied for the purposes of paragraph 6 of subsection 29 (2) and paragraph 2 of subsection 30 (2) is determined by dividing the total rents of the rental units in the residential complex that are subject to the application and are affected by the operating cost by the total rents of the rental units in the residential complex that are affected by the operating cost. O. Reg. 516/06, s. 21 (1); O. Reg. 562/17, s. 3.

(2) For the purpose of subsection (1), the rent for a rental unit that is vacant or that is otherwise not rented shall be deemed to be the average rent charged for the rental units in the residential complex. O. Reg. 516/06, s. 21 (2).

Material to accompany application
22. (1) An application under section 126 of the Act must be accompanied by the following material:

1. If the application is based on an extraordinary increase in the cost for municipal taxes and charges,

i. evidence of the costs for the base year and the reference year and evidence of payment of those costs, and

ii. evidence of all grants, other forms of financial assistance, rebates and refunds received by the landlord that effectively reduce those costs for the base year or the reference year.

2. If the application is based on capital expenditures incurred,

i. evidence of all costs and payments for the amounts claimed for capital work, including any information regarding grants and assistance from any level of government and insurance, resale, salvage and trade-in proceeds,

ii. details about each invoice and payment for each capital expenditure item, in the form approved by the Board, and

iii. details about the rents for all rental units in the residential complex that are affected by any of the capital expenditures, in the form approved by the Board.

3. If the application is based on operating costs related to security services, evidence of the costs claimed in the application for the base year and the reference year and evidence of payment of those costs. O. Reg. 516/06, s. 22 (1); O. Reg. 562/17, s. 4.

(2) Despite subsection (1), if any of the following material is unavailable at the time the application is made under section 126 of the Act but becomes available before the end of the hearing, the material must be provided to the Board before or during the hearing:

1. Evidence described in subparagraph 1 ii of subsection (1).

2. Information concerning grants and assistance referred to in paragraph 2 of subsection (1).

3. Information concerning insurance, resale, salvage and trade-in proceeds referred to in paragraph 2 of subsection (1). O. Reg. 516/06, s. 22 (2).

(3) An application under section 126 of the Act must be accompanied by one additional photocopy of the application, by one additional photocopy of the material that accompanies the application under subsection (1), and by an electronic copy of the material that accompanies the application under subsection (1) in portable document format. O. Reg. 516/06, s. 22 (3); O. Reg. 37/20, s. 1 (1).

(4) If material is provided to the Board under subsection (2), it must be accompanied by one additional photocopy of the material and by an updated electronic copy of the material that accompanied the application under subsection (1) and the material provided under subsection (2) in portable document format. O. Reg. 516/06, s. 22 (4); O. Reg. 37/20, s. 1 (2).

(5) Revoked: O. Reg. 37/20, s. 1 (3).

(6) Subsections (3) and (4) do not apply if the application referred to in subsection (1) is not based on capital expenditures. O. Reg. 516/06, s. 22 (6); O. Reg. 37/20, s. 1 (4).

Information for tenants
23. (1) The rules set out in this section apply for the purposes of subsection 126 (4) of the Act. O. Reg. 516/06, s. 23 (1).

(2) Upon the request of a tenant subject to the application, the landlord shall provide the tenant with an electronic copy of the material provided to the Board under subsections 22 (1) and (2) in portable document format, at no charge to the tenant. O. Reg. 516/06, s. 23 (2); O. Reg. 37/20, s. 2 (1).

(3) Instead of providing the electronic copy referred to in subsection (2), the landlord and the tenant may agree that the landlord will provide the tenant with a photocopy of the material provided under subsections 22 (1) and (2), for no more than the landlord’s reasonable out-of-pocket costs for the photocopying. O. Reg. 37/20, s. 2 (2).

(4) Revoked: O. Reg. 37/20, s. 2 (2).

(5) If the landlord has an office in or close to the residential complex, the landlord shall, during normal business hours and at no charge, make a photocopy of the material provided under subsections 22 (1) and (2) available for viewing by tenants subject to the application. O. Reg. 516/06, s. 23 (5).

(6) The landlord shall, in the application, inform every tenant subject to the application of the ways in which a tenant may obtain access under this section to the material provided under subsections 22 (1) and (2). O. Reg. 516/06, s. 23 (6).

TEL-27801 (Re), 2010 CanLII 92789 (ON LTB)

6. For the purpose of an above guideline increase application, the terms “base year” and “reference year” are defined in section 19 of the Regulation as follows:

19. (1) In this Part, “base year” means,

(a) when determining rent increases due to an extraordinary increase in the cost for municipal taxes and charges, the last completed calendar year immediately preceding the day that is 90 days before the effective date of the first intended rent increase referred to in the application,

…

“reference year” means the 12-month period immediately preceding the base year.

7. The Landlord’s application, filed on December 11, 2009, has a first intended rent increase date of March 15, 2010. Therefore, pursuant to the definitions found in section 19 of the Regulation, the “reference year” for the instant application is 2007 and the “base year” is 2008.