Heritage Property Tax Relief Measure

Hardcopies can be obtained from Publications Ontario by going on-line, calling 1-800-668-9938 or in person at the Ontario Government Bookstore, 880 Bay St. in Toronto.

Guide in PDF format

Changes to the Municipal Act, 2001 enable municipalities to provide tax relief to owners of eligible heritage properties. The legislation gives municipalities the option of passing a by-law to establish a local program to provide tax reductions or refunds to owners of eligible heritage properties.

The province provides municipalities with the flexibility they need to adapt their program to local circumstances. For instance, municipalities can determine the amount of tax relief they wish to offer (between 10 per cent and 40 per cent) and develop eligibility criteria in addition to those prescribed in the legislation. The province shares in the cost of the program by funding the education portion of the property tax relief.

Our partners, including heritage organizations, municipalities, Municipal Heritage Committees (formerly known as “LACACs”), property owners and developers, were instrumental in providing input on how this new measure could enhance heritage stewardship.

The Ministry of Culture has prepared a guide for municipalities to help them learn more about the tax relief measure and develop a local program in a community.

The guide provides step-by-step information on how municipalities can develop a heritage property tax relief program. The guide provides two kinds of information:

• steps that are mandatory under section Section 365.2 of the Municipal Act, 200
• 1 (PDF) – these are indicated throughout the guide by the word “must”;
• steps that are not mandatory but are recommended

For clarity, the guide divides the process of developing a heritage property tax relief program into 10 steps.

This guide is provided for information purposes only and is not intended to be authoritative. Reference should be made to the official text of section 365.2 of the Municipal Act, 2001 in developing or administering a heritage property tax relief program.

Heritage Conservation Agreement

To be eligible for the tax relief, a property must be a building, structure or a portion of a building or structure that is:

• designated under Part IV of the Ontario Heritage Act or part of a heritage conservation district designated under Part V of the Act;
• subject to a heritage conservation agreement for the property.

A heritage conservation agreement is a voluntary legal agreement between the municipality (or the Ontario Heritage Trust) and an owner to protect the heritage features of a property, and to encourage good stewardship of the property. As the agreement is voluntary, it recognizes the intention of both parties to protect the heritage character of the property.

• Example of a Heritage Conservation Agreement (PDF)
• Example of a Municipal Easement Agreement (PDF)

The Municipal Act, 2001 provides three options for the heritage conservation agreement:

1. an easement agreement between the property owner and the municipality under section 37 of the Ontario Heritage Act; or
2. an easement agreement (often referred to as a “conservation easement”) between the property owner and the Ontario Heritage Trust under section 22 of the Ontario Heritage Act; or
3. an agreement between the property owner and the municipality to ensure that the property is conserved.

The Ontario Heritage Trust, a provincial Crown agency, is authorized under Part II of the Ontario Heritage Act to enter into heritage conservation easement agreements with owners of heritage properties. For more information about the Foundation’s Heritage Conservation Easement Program, visit its Web site at www.heritfagedn.on.ca. If your municipality requires assistance in designing an effective conservation agreement as part of your heritage property tax relief program, contact the Foundation at (416) 325-5000.

The Guide provides a further explanation of these agreements and examples from municipalities are also available for downloading. The Ministry of Culture would like to acknowledge those municipalities who have kindly agreed to share their examples on this Web site.

Disclaimer: Online Sample Heritage Conservation Agreements
These sample agreements have been included for information purposes only as examples of how some municipalities address heritage conservation easements and agreements. These examples may not suit your municipality's heritage conservation program objectives and resources. It is therefore recommended that any municipal heritage conservation easement or agreement be developed and customized to meet the objectives of the municipality's heritage conservation program in consultation with legal counsel.

If you have any questions about the establishing a municipal heritage tax relief program for your community, please contact:

Paul King
Heritage Education/Technical Advisor
Ontario Ministry of Culture
Telephone: (416) 314-7134
Fax: (416) 314-7175
paul.king@ontario.ca

Tamara Anson-Cartwright
Conservation Advisor
Ministry of Culture
Telephone: (416) 314-7133
Fax: (416) 314-7790
tamara.ansoncartwright@ontario.ca
 
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