本文发表在 rolia.net 枫下论坛Automatic Rent Reduction and Tax Decreases
This is a guide to the rules in the Tenant Protection Act about automatic rent reductions and tax decreases.
If you want to know exactly what the law says, you should read the Act. Additional Information at the end of this guide explains how you can get a copy.
About the Tribunal
The Ontario Rental Housing Tribunal is an independent, quasi-judicial agency.
Tenants and landlords can apply to the Tribunal to resolve certain types of disputes, either through mediation or adjudication.
In mediation, a Tribunal mediator will help a landlord and tenant to resolve a dispute and reach an agreement they are both satisfied with.
In adjudication, a hearing is usually held. A Tribunal member makes a decision based on the evidence examined, and issues an "order."
The Tribunal also provides landlords and tenants with information about the rights and obligations each has under the Tenant Protection Act.
Additional Information at the end of this guide explains how to contact the Tribunal.
What to find in this guide
About the Tribunal
Rent and taxes
Properties affected
Timing of rent reductions
How reductions are calculated
When notices are sent
Disputing the amount
Additional Information
Rent & taxes
Under the Tenant Protection Act, rents are automatically reduced if the municipal property taxes paid by the landlord for the residential complex have decreased by 2.5 per cent or more from the previous year’s taxes.
In these cases, municipalities are required to notify landlords and tenants of residential complexes with seven or more units of the percentage rent reduction that applies to all units in the complex. While municipalities are not required to send notices to landlords and tenants of complexes with six or fewer units, the automatic rent reductions apply to these complexes as well.
Tenants are not required to apply to the Tribunal to obtain permission to reduce the rent.
What properties are affected by the automatic rent reductions?
Most rental residential properties are affected by automatic rent reductions. These include apartment buildings, rented townhouse developments, rented duplexes and detached homes, boarding and lodging homes, mobile home parks, rented condominiums, most care homes, and "for-profit" cooperatives that are rented.
The automatic rent reductions do not apply to commercial, industrial or recreational properties.
Certain types of rental residential properties are also exempt from the automatic rent reduction provisions. These include public housing, non-profit housing projects, non-profit housing cooperatives, vacation homes and some housing owned by educational institutions.
Timing of rent reductions
Automatic rent reductions take effect on December 31 of the year the property taxes for the property decreased.
How are rent reductions calculated?
In calculating automatic rent reductions, the property taxes for the current year are compared to the property taxes for the previous year to determine the percentage that taxes have decreased. The rent reduction must be calculated if the percentage decrease in taxes is 2.5 per cent or more.
The actual property taxes levied for the rental property are used to calculate the rent reductions. Special levies, penalty charges, user fees, etc. are not included in calculating the rent reduction.
To determine the percentage rent reduction, the percentage decrease in taxes for the complex is multiplied by 20 per cent because this figure is, on average, the amount that taxes represent of a landlord’s total rent revenue.
Example
Year 2000 taxes were: $ 20,000
Year 2001 taxes were: $ 18,000
Taxes decreased by: $ 2,000
The percentage tax decrease is: $ 2,000 x 100 = 10 %
$20,000
Taxes must have decreased by 2.5% or more for the tenants to get a rent reduction. In this case, the taxes have decreased by 10%, so the tenants receive a rent reduction.
The amount of the rent reduction is 20% of the tax decrease.
The tax decrease is 10%. Therefore, the rent reduction is 20% x 10% = 2%.
If the tenant pays rent of $ 800 per month, the reduction is 2% x $ 800 = $ 16.
Therefore, the new monthly rent is $ 800 - $ 16 = $ 784
The rent for all rental units in the residential complex would be reduced by the same percentage.
When are rent reduction notices sent to landlords and tenants?
Municipalities must send rent reduction notices to landlords between June 1 and September 15, and to tenants between October 1 and December 15, of the year in which the property taxes decrease.
The form municipalities must use in notifying landlords and tenants about rent reductions is available from the Tribunal.
What if you disagree with the amount of the rent reduction?
If a landlord or a tenant feels the rent reduction is too high or too low, they can apply to the Tribunal to have the amount of the rent reduction varied.
The deadline for applying is the later of: March 31st of the year following the date the rent reduction took effect, and
The 90th day following the day the rent reduction notice was issued (or, if the municipality was not required to issue a rent reduction notice, the 90th day after the tax notice was issued).
An application to vary the amount of the rent reduction does not stop the rent reduction. The rent reduction continues to be in effect for the entire complex. Once the Tribunal resolves the application, the Tribunal’s order is effective as of December 31, when the rent reduction originally took effect. Therefore, any overpayment or underpayment will have to be paid back to either the landlord or the tenant.
Varying a rent reduction
A landlord or tenant can apply to the Tribunal to vary the amount of the rent reduction, if any of the following circumstances applies:
The landlord paid certain charges that were not included when the municipality calculated the percentage rent reduction,
The amount the landlord pays in property taxes is not equal to 20 per cent of the rent,
The amount of the tax reduction or rent reduction in the municipality’s notice is wrong,
The property taxes for the year being considered increased or decreased after the notice of rent reduction was sent to landlords and tenants.
Additional information
Our toll-free numbers are 1 - 888 - 332 - 3234 or 416-645-8080
You can get information from these numbers 24 hours a day. You can talk to a Customer Service representative Monday to Friday, from 8:30 a.m. - 5:00 p.m.
You can order a copy of the Tenant Protection Act from Publications Ontario; call toll-free 1 - 800 - 668-9938 or 416-326-5300 from within Toronto,
or you can purchase a copy on line at: www.publications.gov.on.ca.更多精彩文章及讨论，请光临枫下论坛 rolia.net
This is a guide to the rules in the Tenant Protection Act about automatic rent reductions and tax decreases.
If you want to know exactly what the law says, you should read the Act. Additional Information at the end of this guide explains how you can get a copy.
About the Tribunal
The Ontario Rental Housing Tribunal is an independent, quasi-judicial agency.
Tenants and landlords can apply to the Tribunal to resolve certain types of disputes, either through mediation or adjudication.
In mediation, a Tribunal mediator will help a landlord and tenant to resolve a dispute and reach an agreement they are both satisfied with.
In adjudication, a hearing is usually held. A Tribunal member makes a decision based on the evidence examined, and issues an "order."
The Tribunal also provides landlords and tenants with information about the rights and obligations each has under the Tenant Protection Act.
Additional Information at the end of this guide explains how to contact the Tribunal.
What to find in this guide
About the Tribunal
Rent and taxes
Properties affected
Timing of rent reductions
How reductions are calculated
When notices are sent
Disputing the amount
Additional Information
Rent & taxes
Under the Tenant Protection Act, rents are automatically reduced if the municipal property taxes paid by the landlord for the residential complex have decreased by 2.5 per cent or more from the previous year’s taxes.
In these cases, municipalities are required to notify landlords and tenants of residential complexes with seven or more units of the percentage rent reduction that applies to all units in the complex. While municipalities are not required to send notices to landlords and tenants of complexes with six or fewer units, the automatic rent reductions apply to these complexes as well.
Tenants are not required to apply to the Tribunal to obtain permission to reduce the rent.
What properties are affected by the automatic rent reductions?
Most rental residential properties are affected by automatic rent reductions. These include apartment buildings, rented townhouse developments, rented duplexes and detached homes, boarding and lodging homes, mobile home parks, rented condominiums, most care homes, and "for-profit" cooperatives that are rented.
The automatic rent reductions do not apply to commercial, industrial or recreational properties.
Certain types of rental residential properties are also exempt from the automatic rent reduction provisions. These include public housing, non-profit housing projects, non-profit housing cooperatives, vacation homes and some housing owned by educational institutions.
Timing of rent reductions
Automatic rent reductions take effect on December 31 of the year the property taxes for the property decreased.
How are rent reductions calculated?
In calculating automatic rent reductions, the property taxes for the current year are compared to the property taxes for the previous year to determine the percentage that taxes have decreased. The rent reduction must be calculated if the percentage decrease in taxes is 2.5 per cent or more.
The actual property taxes levied for the rental property are used to calculate the rent reductions. Special levies, penalty charges, user fees, etc. are not included in calculating the rent reduction.
To determine the percentage rent reduction, the percentage decrease in taxes for the complex is multiplied by 20 per cent because this figure is, on average, the amount that taxes represent of a landlord’s total rent revenue.
Example
Year 2000 taxes were: $ 20,000
Year 2001 taxes were: $ 18,000
Taxes decreased by: $ 2,000
The percentage tax decrease is: $ 2,000 x 100 = 10 %
$20,000
Taxes must have decreased by 2.5% or more for the tenants to get a rent reduction. In this case, the taxes have decreased by 10%, so the tenants receive a rent reduction.
The amount of the rent reduction is 20% of the tax decrease.
The tax decrease is 10%. Therefore, the rent reduction is 20% x 10% = 2%.
If the tenant pays rent of $ 800 per month, the reduction is 2% x $ 800 = $ 16.
Therefore, the new monthly rent is $ 800 - $ 16 = $ 784
The rent for all rental units in the residential complex would be reduced by the same percentage.
When are rent reduction notices sent to landlords and tenants?
Municipalities must send rent reduction notices to landlords between June 1 and September 15, and to tenants between October 1 and December 15, of the year in which the property taxes decrease.
The form municipalities must use in notifying landlords and tenants about rent reductions is available from the Tribunal.
What if you disagree with the amount of the rent reduction?
If a landlord or a tenant feels the rent reduction is too high or too low, they can apply to the Tribunal to have the amount of the rent reduction varied.
The deadline for applying is the later of: March 31st of the year following the date the rent reduction took effect, and
The 90th day following the day the rent reduction notice was issued (or, if the municipality was not required to issue a rent reduction notice, the 90th day after the tax notice was issued).
An application to vary the amount of the rent reduction does not stop the rent reduction. The rent reduction continues to be in effect for the entire complex. Once the Tribunal resolves the application, the Tribunal’s order is effective as of December 31, when the rent reduction originally took effect. Therefore, any overpayment or underpayment will have to be paid back to either the landlord or the tenant.
Varying a rent reduction
A landlord or tenant can apply to the Tribunal to vary the amount of the rent reduction, if any of the following circumstances applies:
The landlord paid certain charges that were not included when the municipality calculated the percentage rent reduction,
The amount the landlord pays in property taxes is not equal to 20 per cent of the rent,
The amount of the tax reduction or rent reduction in the municipality’s notice is wrong,
The property taxes for the year being considered increased or decreased after the notice of rent reduction was sent to landlords and tenants.
Additional information
Our toll-free numbers are 1 - 888 - 332 - 3234 or 416-645-8080
You can get information from these numbers 24 hours a day. You can talk to a Customer Service representative Monday to Friday, from 8:30 a.m. - 5:00 p.m.
You can order a copy of the Tenant Protection Act from Publications Ontario; call toll-free 1 - 800 - 668-9938 or 416-326-5300 from within Toronto,
or you can purchase a copy on line at: www.publications.gov.on.ca.更多精彩文章及讨论，请光临枫下论坛 rolia.net