Acts and Regulations

R-2 - Real Property Tax Act

Section 20.1
Disposition versions

Full text
Payment by insurer to a municipality that collects tax and penalties under subsection 6(2)
20.1(1)Except where a policy of insurance has been effected and is maintained by a mortgagee solely for the mortgagee’s own protection or where the insurer has been notified under subsection (6) or subsection (7), all tax and penalties due to a municipality that collects tax and penalties under subsection 6(2), in respect of real property in that municipality, are a second charge upon any money payable under a policy of insurance on improvements on such real property.
20.1(1.1)Subsection (1) does not apply to any amount of taxes and interest referred to in section 5.02.
20.1(2)Where real property is damaged or destroyed to the extent of the amount set for the purposes of subsection 20(2) or more than such amount and an insurer has received formal proof of loss under a policy of insurance covering such property, the insurer shall, within forty-eight hours after receipt of such proof of loss, notify the municipality referred to in subsection (1) of such loss by sending a notice by prepaid registered mail or a facsimile of the notice by telephone transmission.
20.1(3)Within ten days after being notified under subsection (2), the municipality shall notify the insurer of the total tax and penalties referred to in subsection (1) on the real property affected by the loss by sending a notice by registered mail or a facsimile of the notice by telephone transmission.
20.1(4)Upon notification under subsection (3), the insurer shall pay to the municipality the full amount of the tax and penalties referred to in subsection (1) on real property subject to the rights of any mortgagee under subsection (1), but if the amount the insurer is liable to pay under the policy is insufficient to pay the full amount of the tax and penalties referred to in subsection (1), the insurer shall pay to the municipality the full amount for which the insurer is liable under the policy.
20.1(5)Nothing in subsection (4) shall be construed to increase the amount payable under a policy of insurance and the payment of the tax and penalties by the insurer shall reduce the amount payable under the policy to the insured or the insured’s assignee.
20.1(6)Notwithstanding subsections (3) to (5), the municipality may notify the insurer that the insurer is not liable to pay the tax referred to in subsection (1) if
(a) there are no tax arrears on the real property with respect to the tax referred to in subsection (1),
(b) the notice under subsection (2) is received by the municipality on a date when a discount would be allowed if the tax referred to in subsection (1) was paid on that date, and
(c) the person in whose name the real property is assessed is registered under section 10.1.
20.1(7)Notwithstanding subsections (3) to (5), where real property is damaged or destroyed as a result of an event for which the Government of the Province or the Government of Canada has declared a state of emergency and the extent of the damage or destruction to the real property is ten thousand dollars or more, the municipality may notify the insurer that the insurer is not liable to pay the tax and penalties referred to in subsection (1).
1996, c.46, s.19; 2011, c.57, s.3; 2012, c.43, s.3
Payment by insurer to a municipality that collects tax and penalties under subsection 6(2)
20.1(1)Except where a policy of insurance has been effected and is maintained by a mortgagee solely for the mortgagee’s own protection or where the insurer has been notified under subsection (6) or subsection (7), all tax and penalties due to a municipality that collects tax and penalties under subsection 6(2), in respect of real property in that municipality, are a second charge upon any money payable under a policy of insurance on improvements on such real property.
20.1(1.1)Subsection (1) does not apply to any amount of taxes and interest referred to in section 5.02.
20.1(2)Where real property is damaged or destroyed to the extent of the amount set for the purposes of subsection 20(2) or more than such amount and an insurer has received formal proof of loss under a policy of insurance covering such property, the insurer shall, within forty-eight hours after receipt of such proof of loss, notify the municipality referred to in subsection (1) of such loss by sending a notice by prepaid registered mail or a facsimile of the notice by telephone transmission.
20.1(3)Within ten days after being notified under subsection (2), the municipality shall notify the insurer of the total tax and penalties referred to in subsection (1) on the real property affected by the loss by sending a notice by registered mail or a facsimile of the notice by telephone transmission.
20.1(4)Upon notification under subsection (3), the insurer shall pay to the municipality the full amount of the tax and penalties referred to in subsection (1) on real property subject to the rights of any mortgagee under subsection (1), but if the amount the insurer is liable to pay under the policy is insufficient to pay the full amount of the tax and penalties referred to in subsection (1), the insurer shall pay to the municipality the full amount for which the insurer is liable under the policy.
20.1(5)Nothing in subsection (4) shall be construed to increase the amount payable under a policy of insurance and the payment of the tax and penalties by the insurer shall reduce the amount payable under the policy to the insured or the insured’s assignee.
20.1(6)Notwithstanding subsections (3) to (5), the municipality may notify the insurer that the insurer is not liable to pay the tax referred to in subsection (1) if
(a) there are no tax arrears on the real property with respect to the tax referred to in subsection (1), and
(b) the notice under subsection (2) is received by the municipality on a date when a discount would be allowed if the tax referred to in subsection (1) was paid on that date.
20.1(7)Notwithstanding subsections (3) to (5), where real property is damaged or destroyed as a result of an event for which the Government of the Province or the Government of Canada has declared a state of emergency and the extent of the damage or destruction to the real property is ten thousand dollars or more, the municipality may notify the insurer that the insurer is not liable to pay the tax and penalties referred to in subsection (1).
1996, c.46, s.19; 2011, c.57, s.3
Payment by insurer to a municipality that collects tax and penalties under subsection 6(2)
20.1(1)Except where a policy of insurance has been effected and is maintained by a mortgagee solely for the mortgagee’s own protection or where the insurer has been notified under subsection (6) or subsection (7), all tax and penalties due to a municipality that collects tax and penalties under subsection 6(2), in respect of real property in that municipality, are a second charge upon any money payable under a policy of insurance on improvements on such real property.
20.1(2)Where real property is damaged or destroyed to the extent of the amount set for the purposes of subsection 20(2) or more than such amount and an insurer has received formal proof of loss under a policy of insurance covering such property, the insurer shall, within forty-eight hours after receipt of such proof of loss, notify the municipality referred to in subsection (1) of such loss by sending a notice by prepaid registered mail or a facsimile of the notice by telephone transmission.
20.1(3)Within ten days after being notified under subsection (2), the municipality shall notify the insurer of the total tax and penalties referred to in subsection (1) on the real property affected by the loss by sending a notice by registered mail or a facsimile of the notice by telephone transmission.
20.1(4)Upon notification under subsection (3), the insurer shall pay to the municipality the full amount of the tax and penalties referred to in subsection (1) on real property subject to the rights of any mortgagee under subsection (1), but if the amount the insurer is liable to pay under the policy is insufficient to pay the full amount of the tax and penalties referred to in subsection (1), the insurer shall pay to the municipality the full amount for which the insurer is liable under the policy.
20.1(5)Nothing in subsection (4) shall be construed to increase the amount payable under a policy of insurance and the payment of the tax and penalties by the insurer shall reduce the amount payable under the policy to the insured or the insured’s assignee.
20.1(6)Notwithstanding subsections (3) to (5), the municipality may notify the insurer that the insurer is not liable to pay the tax referred to in subsection (1) if
(a) there are no tax arrears on the real property with respect to the tax referred to in subsection (1), and
(b) the notice under subsection (2) is received by the municipality on a date when a discount would be allowed if the tax referred to in subsection (1) was paid on that date.
20.1(7)Notwithstanding subsections (3) to (5), where real property is damaged or destroyed as a result of an event for which the Government of the Province or the Government of Canada has declared a state of emergency and the extent of the damage or destruction to the real property is ten thousand dollars or more, the municipality may notify the insurer that the insurer is not liable to pay the tax and penalties referred to in subsection (1).
1996, c.46, s.19