HERITAGE PROPERTY TAX RELIEF PROGRAM GUIDELINES & APPLICATION Community Services Department Planning Division

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1 PART 1 - PURPOSE HERITAGE PROPERTY TAX RELIEF PROGRAM GUIDELINES & APPLICATION Community Services Department Planning Division 1.1 Heritage property tax relief is a financial tool for municipalities to help owners maintain and restore their properties for the benefit of the entire community today and into the future. Adopting the program is a municipal choice and the program is administered at the local level. 1.2 Well-maintained heritage properties enrich our quality of life and give communities their unique character and sense of place. Conserving heritage properties can help revitalize historic town centres and attract residents, businesses and visitors to communities. 1.3 Although heritage properties provide benefit and enjoyment to the whole community, most of these properties are privately owned. The Heritage Property Tax Relief Program provides an incentive to owners to make regular investments in the ongoing conservation of their heritage properties. With continuous care and maintenance, major restoration projects and their high costs can often be avoided. CONSERVATION: safeguarding a heritage property so it retains its cultural heritage value or interest, integrity or appearance and its physical life is extended. Activities include identification, protection, interpretation, management, use, preservation, stabilization, repair and maintenance. MAINTENANCE: mitigating natural wear and deterioration without altering the cultural heritage value or interest, integrity or appearance of a heritage property. It includes both routine and cyclical activities. 1.4 Owen Sound Council passed By-law # to provide property tax relief in order to encourage and support owners to be stewards of their heritage properties, so that our heritage may be protected for future generations. PART 2 - AMOUNT OF TAX REFUND 2.1 The amount of Heritage Property Tax Refund provided by the City under this program is 20% of the taxes for lower-tier municipal and school purposes levied on the property. For example, for 2009 if a residential property paid $3,000 in taxes, 60.9% or $1,827 is the municipal portion and 16.4% or $492 is the school portion. 20% of these two amounts, or $463.80, would be the Refund for that year. Each property will be eligible for a different amount each year based on its assessment, property class and tax rates. 2.2 If the assessment or taxes of a property for a year changes as a result of proceedings under the Assessment Act or the Municipal Act, the Refund shall be determined using the new assessment or taxes.

2 2.3 The Province of Ontario shares in the cost of this program by funding the education portion of the Refund. The overall education funding available to school boards for the provision of publicly funded education is not affected by a heritage property tax relief program. 2.4 The County of Grey may pass a By-law to authorise a similar tax Refund on the portion of taxes levied for upper-tier purposes. If the County passes such a by-law, the Refund must be at the same percentage rate. 2.5 Subject to funding availability, each year Council sets a maximum budgeted amount refunded in that year. 2.6 Where funding is insufficient in any year to provide a Refund to every eligible applicant, applications shall be pro-rated. No priority will be given to applicants who have previously obtained a Refund. Where a property is receiving any other form of property tax relief, the amount of the Refund shall be calculated on the adjusted taxes, less the other rebates. 2.7 Subject to the conditions set out in the By-law, one Refund may be paid annually for each eligible heritage property in any property class. If multiple easement and/or conservation and maintenance agreements are executed on one property, multiple Refunds will not be provided. 2.8 The Refund will be paid for an individual property only if the eligible Refund amount is equal to or greater than $250 in any taxation year. If the eligible Refund amount is less than $250, then no Refund will be payable for that taxation year. 2.9 The Refund will be in the form of a cheque to the eligible heritage property owner. In the event of a land ownership transfer, the Refund amount shall be paid to the program applicant. A new eligible heritage property owner must apply to the Program to initiate or continue the Refund for years subsequent to the land ownership transfer An owner of an eligible heritage property may retain the benefit of any tax Refund obtained under this section, despite the provisions of any lease or other agreement relating to the property. PART 3 ELIGIBILITY CRITERIA 3.1 In order to be eligible to apply to the Program, heritage properties must meet the following criteria: i) property is located in the City of Owen Sound; ii) property is designated under Part IV of the Ontario Heritage Act or is part of a heritage conservation district under Part V of the Ontario Heritage Act; if located in a heritage conservation district, only those identified in the district plan as being of medium to high heritage value would be eligible; HERITAGE PROPERTY TAX RELIEF PROGRAM - GUIDELINES & APPLICATION page 2

3 iii) property is subject to an easement agreement with the City under section 37 of the Ontario Heritage Act; subject to an easement agreement with the Ontario Heritage Trust under section 22 of the Ontario Heritage Act; or subject to a Heritage Conservation and Maintenance Agreement with the City respecting the property; iv) the designation referred to in subsection ii) above and the HCMA referred to in subsection iii) above must be authorised by By-law by the City by December 31 of the first taxation year for which a Refund is sought; v) property is occupied and in good and habitable condition; vi) property is not the subject of any contraventions, work orders or outstanding municipal requirements; and vii) there are no outstanding municipal fines, arrears of taxes, fees or penalties assessed against the property or the owner. 3.2 As noted in section ii) above, to be eligible a property must be designated under Part IV of the Ontario Heritage Act or is part of a heritage conservation district under Part V of the Ontario Heritage Act. Preparing a property for designation can take as long as six months; keep this in mind before making application if your property is not designated. 3.3 The agreement options outlined in section iii) above are required because municipal designation alone does not oblige owners to maintain their properties on an ongoing basis. As the purpose of the tax relief measure is to offer an incentive for heritage property conservation, relief will only be made available to those owners who have made a long-term commitment to conserve their heritage properties. 3.4 Should a subject property become ineligible at any time during Program participation, the owner shall automatically forfeit any rights to the Refund and the property will be cancelled from the Program until such time as the situation is satisfactorily remedied. The remedy may require a new application with payment of the initial fee. PART 4 HERITAGE CONSERVATION & MAINTENANCE AGREEMENT 4.1 Before making application for a Refund, the property must meet the eligibility criteria in Section 3. If the property is not subject to an easement agreement with the City or the Ontario Heritage Trust, the owner must enter into a Heritage Conservation and Maintenance IMPORTANT NOTE: While the municipality can assist owners with the requirements of the program, it cannot provide professional legal or tax advice to an owner. Agreement (HCMA) with the City which details the municipal expectations for use of the Refund 4.2 The HCMA will be drafted by staff in co-ordination with the property owner with recommendations for consideration by the Community Planning & Heritage Advisory Committee and final approval by Council. HERITAGE PROPERTY TAX RELIEF PROGRAM - GUIDELINES & APPLICATION page 3

4 4.3 Information contained in designation by-laws (e.g., heritage attributes) are useful in drafting heritage conservation agreements. The agreement will contain certain core elements to ensure the conservation of heritage properties, including: requirements for the owner to maintain the property in good condition and seek approval for alterations that would affect its heritage attributes or features; and provisions for the municipality to monitor the condition of the property periodically. 4.4 City staff will visit the property to compile baseline information and assess its current status (e.g., boundaries, heritage attributes or features, historic land uses and hazards). Photographs and other recording methods will be used. This documentation provides the basis upon which future improvements to the property are approved or breaches of the agreement are identified. This visit can also assist in acquiring other key information such as deeds, surveys and maps. 4.5 The City will initiate title search to confirm the legal description and ownership. 4.6 The terms of each heritage conservation agreement will vary depending on the property s heritage attributes or features and the owner s interests. The aim is to protect the property s cultural heritage value, as well as outline the responsibilities of both parties under the agreement. 4.7 Once the parties have agreed to the terms of the agreement, the agreement document must be approved by Council and executed on behalf of the City by the Mayor and Clerk. 4.8 The HCMA will include a plan for conservation and maintenance of the eligible heritage property. The plan is renewable every five (5) years or until the program is terminated or until non-compliance of the program criteria occurs, whichever come first. 4.9 The HCMA is not registered on title and will cease to have effect when the owner sells the property. PART 5 APPLICATION PROCESS 5.1 All Refund Applications must be completed in full on the prescribed forms and include the following to be considered for the Program: i) proof that a HCMA has been approved by Council for the subject eligible heritage property; ii) current photographs of all elevations of the eligible heritage property; and iii) proof of insurance on the eligible heritage property in an amount equal to that of the replacement of the building in the event of fire or other damage. HERITAGE PROPERTY TAX RELIEF PROGRAM - GUIDELINES & APPLICATION page 4

5 5.2 The owners of eligible heritage properties must apply every year, between January 1 and no later than the last day of February after the year for which the owner is seeking relief; payouts will be made within 120 days of receiving a completed application. 5.3 An application fee of $100 is required for first-time applicants. 5.4 Applications will be reviewed by staff with recommendations for consideration by the Community Planning & Heritage Advisory Committee and final approval by Council. 5.5 Applications received in the second and subsequent years of an eligible heritage property s participation in the Program will include a heritage maintenance report prepared by the owner outlining the previous year s conservation and maintenance activities and costs (note: keep track of receipts for work performed). 5.6 Upon application, the owner must consent to the City conducting an inspection of the interior (if interior elements are identified in the description of the property s heritage attributes for designation under Part IV of the Ontario Heritage Act) and exterior of the eligible heritage property at any reasonable time, if required, to ensure that the HCMA is being complied with and to ensure that the eligibility criteria can be met. PART 6 LIMITATIONS & RESTRICTIONS 6.1 Council will conduct periodic reviews of the Program to assess effectiveness, establish funding levels, and consider modifications to the program. The Refund is subject at all times to the availability of funding for the Program. Nothing requires the City to provide funding for the Program and the Refund may be eliminated by Council through repeal of the By-law at any time with no notice whatsoever to affected persons. 6.2 The Program is subject to any regulations that the Minister of Finance may make governing by-laws for a tax reduction or Refund for eligible heritage properties. 6.3 No Refund will be given where the City determines that the HCMA is not being complied with to the satisfaction of City staff. PART 7 PENALTIES 7.1 If the owner demolishes the eligible heritage property or breaches the terms of an agreement described in Part 3.1.iii), the City may require the owner to repay part or all of any Refund(s) provided to the owner for one or more years under this Program. 7.2 The City may require the owner to pay interest on the amount of any repayment required under Part 7.1, at the lowest prime rate reported to the Bank of Canada calculated from the date Refunds were provided. HERITAGE PROPERTY TAX RELIEF PROGRAM - GUIDELINES & APPLICATION page 5

6 PART 8 YOUR NOTES CONTACT: For more information, please call, or visit the Heritage Planning Co-ordinator: Planning Division Owen Sound City Hall nd Avenue East OWEN SOUND, ON N4K 2H4 (519) , 1275 Fax (519) HERITAGE PROPERTY TAX RELIEF PROGRAM - GUIDELINES & APPLICATION page 6

7 HERITAGE PROPERTY TAX REFUND APPLICATION Community Services Department Planning Division Date received: Office use only Received by: IMPORTANT NOTES: The Heritage Property Tax Refund is 20% of the taxes for City and school purposes levied on the property; the minimum Refund is $250 in any taxation year. To be eligible, a property must be designated under Part IV of the Ontario Heritage Act and it must be subject to a Heritage Conservation & Maintenance Agreement - these must be in place by December 31 of the first taxation year for which a refund is sought. Application for a Refund must be made every year, between January 1 and the last day of February; payouts will be made within 120 days of receiving a completed application. PROPERTY INFORMATION: Address: Legal Description: Tax Roll Number: Designated under Part IV of the Ontario Heritage Act By-law #: Heritage Conservation & Maintenance Agreement By-law #: Postal Code: Date: Date: REGISTERED OWNER: Name: Address: Postal Code: Home Phone #: Work Phone #: Address: Fax #: PROGRAM REQUIREMENTS: Tax year for which a refund is being requested: Is this your first application for a refund? Yes No If Yes, application fee of $100 required ( paid) Is the property occupied, and in good and habitable condition? Yes No If No, please explain. Attach a Certificate of Insurance. ( attached) DECLARATION BY OWNER: Please obtain any required authorization and check one of the following statements: I, the applicant, am the sole owner of the property for which this application is made. I, the applicant, am one of the owners of the property for which this application is made, and have received express authorization from all other property owners to make this application and receive the Heritage Property Tax Refund on their behalf. I certify that to the best of my knowledge the information provided in this application is accurate and complete. I agree to the terms and conditions of the Heritage Property Tax Relief Program as established by the City of Owen Sound under By-law Owner Signature Date

8 HERITAGE PROPERTY TAX REFUND APPLICATION page 2 RECENT PHOTOGRAPHS: Attach recent photographs of all elevations of the heritage building (e.g., north, south, east and west). Label and date all photographs (e.g., Property Name, View east from 5 th Avenue East, November 2009, etc.) ( attached) HERITAGE MAINTENANCE REPORT: If this is this the second or subsequent year of application, complete the heritage maintenance report below, outlining the previous year s conservation and maintenance activities (based on your Heritage Maintenance & Conservation Agreement Plan) and costs. Attach additional information, if required. Date (work completed) Building Face (e.g., north, south, east or west) Historic Features (e.g., reasons for designation) Activities (plus reason why - e.g., repair cracked foundation) Total Cost (attach receipts) UPCOMING HERITAGE MAINTENANCE ACTIVITIES: List any anticipated conservation and maintenance activities (based on your Heritage Maintenance & Conservation Agreement Plan) and costs for the coming year. Attach additional information, if required. Date (proposed) Building Face (e.g., north, south, east or west) Historic Features (e.g., reasons for designation) Activities (plus reason why - e.g., repair cracked foundation) Estimated Cost

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