Taxation (Rural Area) Act

INTEREST ON PREPAID TAX REGULATION

Prepayment

1 (1) The Surveyor of Taxes or a local collector is authorized to receive on behalf of a taxpayer not more than one deposit each month between January 1 and May 15 each year to be applied to the taxes levied for that taxation year under the Taxation (Rural Area) Act on the property of the taxpayer recorded on the taxation roll prepared for that taxation year under the Act.

(2) Where property of a taxpayer is recorded on more than one parcel in the taxation roll, a separate deposit may be made during a month under subsection (1) in respect of each parcel.

Minimum prepayment

2 The minimum amount that may be received under section 1 as a deposit is the lesser of

(a) $50, or

(b) the amount of the gross taxes, less the amount of the home owner grant, if any, levied on the property in the immediately preceding taxation year.

Interest

3 Interest on money deposited under section 1 shall be paid to the taxpayer from the date of deposit to June 30 of that year at a rate of 3.5% below the prime lending rate on Canadian dollar commercial loans in Canada made to the prime risk commercial customers by the principal bank to the Province on the 15th day of the month immediately preceding the month in which the deposit is made and shall be compounded monthly.

Further limit on prepayment

4 A deposit shall not be accepted under section 1 respecting a property if the resulting total, as of June 30 of that year, for all deposits and interest earned on those deposits in respect of the property would exceed the amount of the property taxes on that property under the Taxation (Rural Area) Act in the immediately preceding year after the home owner grant, if any, that applied to reduce those taxes in the preceding year was deducted.

[Provisions of the Taxation (Rural Area) Act, R.S.B.C. 1996, c. 448, relevant to the enactment of this regulation: section 13]

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