A-18.1, r. 12.1 - Regulation respecting the reimbursement of property taxes of certified forest producers

Updated to 4 February 2023

This document has official status.

chapter A-18.1, r. 12.1

Regulation respecting the reimbursement of property taxes of certified forest producers

Sustainable Forest Development Act

(chapter A-18.1, s. 173).

The amounts prescribed in the Regulation have been indexed pursuant to the notice published in Part 1 (French) of the Gazette officielle du Québec of 4 February 2023, page 97. (s. 5.1, Sch. 1) (Effect from 1 January 2023) (Erratum, 2023 G.O. 1, 255)

1. A certified forest producer, that meets the conditions set out in sections 130 and 131 of the Sustainable Forest Development Act (chapter A-18.1), may receive, in accordance with section 220.3 of the Act respecting municipal taxation (chapter F-2.1), the reimbursement of part of the property taxes paid.

O.C. 1218-2013, s. 1; S.Q. 2022, c. 3, s. 4.

2. To be eligible for reimbursement of property taxes, the development expenses must

(1)  have an impact on the establishment, maintenance or improvement of a timber stand;

(2)  comply with applicable municipal by-laws;

(3)  be described in Schedule 1;

(4)  (paragraph revoked);

(5)  be described in the report provided for in section 5.

O.C. 1218-2013, s. 2; S.Q. 2022, c. 3, s. 5.

3. The total amount of eligible development expenses is calculated using the following formula:

O.C. 1218-2013, s. 3; O.C. 1228-2017, s. 1.

4. A certified forest producer that, in a particular calendar year ending before 1 January 2022 or a particular fiscal year ending before that date, as the case may be, has incurred expenses for an amount less than the amount of property taxes paid during that period may carry forward that amount over the 5 calendar years following the particular calendar year or the 5 fiscal years following the particular fiscal year.

A certified forest producer that, in a particular calendar year or a particular fiscal year, as the case may be, has incurred expenses for an amount greater than the amount of property taxes paid during that period may carry forward the excess amount over the 10 calendar years following the particular calendar year or the 10 fiscal years following the particular fiscal year. Accumulated surplus expenses are claimed according to the order in which they occur.

The amount carried forward will be considered as having been incurred in the year of the carry-forward if the certified forest producer still meets the conditions set out in sections 130 and 131 of the Sustainable Forest Development Act (chapter A-18.1).

O.C. 1218-2013, s. 4; S.Q. 2022, c. 3, s. 6.

5. The forest engineer’s report required under section 131 of the Sustainable Forest Development Act (chapter A-18.1) must comply with the form and content provided for in Schedule 2.

O.C. 1218-2013, s. 5.

5.1. Every value of development expenses eligible for the reimbursement of property taxes of certified forest producers indicated in Schedule 1 is adjusted on 1 January of each year by a rate corresponding to the sum of the weighted indices defined in the table below for each family of non‑commercial development expenses and for each activity in the family of commercial development expenses.

For the indices in the table below for which data is made available on a monthly basis, the annual change is calculated with both 12‑month periods ending on 30 September of the year preceding the year for which a value must be adjusted.

For the indices in the table below for which data is made available on a quarterly basis, the annual change is calculated with both 4‑quarter periods ending on 30 September of the year preceding the year for which a value must be adjusted.

The result of an adjustment is rounded off to the nearest multiple of $1.00. The result of an adjustment that is equidistant from 2 multiples must be rounded off to the higher of the two.

Where the rounding off of the result of the adjustment does not make it possible to increase or decrease the expense value by at least $1.00, the adjustment of the expense value is carried forward to the year in which the sum of the adjustment rates applicable to each of the years for which the adjustment is carried forward varies the expense value by at least $1.00.

The Minister of Natural Resources and Wildlife publishes the results of the adjustment in Part 1 of the Gazette officielle du Québec and by any other means.

Indices1 used for the adjustment of the value of an expense on the basis of the family of development expenses

		Family of non-commercial development expenses
		PtRMe2	PtRMa3	E. P.4	T. T.5	M 6
Index		Weight of index
Index A – Labour	Annual change in average weekly earnings by industry	44.9%	73.0%	83.6%	75.9%	66.1%
Index B – Machinery, equipment and maintenance	Annual change in the machinery and equipment price index, by industry of purchase	26.6%	6.4%	1.7%	4.1%	5.8%
Index C – Fuel	Annual change in the monthly average retail price, gasoline and heating oil	12.3%	3.7%	2.8%	2.2%	0.9%
Index D – Machinery transportation	Annual change in the for-hire motor carrier freight services price index	5.2%	0.9%	N/A	N/A	N/A
Index E – Seedling transportation	In accordance with the composite transportation index Transportation index for the family of commercial development expenses	N/A	1.1%	N/A	N/A	N/A
Index F – Other types of transportation	Annual change in the consumer price index	3.4%	6.4%	4.3%	11.9%	13.4%
Index G – Roads	Annual change in the forest road composite index for the family of commercial development expenses	0.1%	N/A	0.5%	N/A	N/A
Index H – Other expenses including overheads	Annual change in the monthly consumer price index, together	75%	8.5%	7.1%	5.9%	13.8%

		Family of commercial development expenses
		C.T.7
		Activity
		Harvesting	Road work	Transportation	Supervision
Index		Weight of index
Index A – Labour	Annual change in average weekly earnings by industry	27.02%	34.14%	28.16%	100%
Index B – Machinery, equipment and maintenance	Annual change in the machinery and equipment price index, by industry of purchase	55.42%	21.4%	17.8%	N/A
Index C – Fuel	Annual change in the monthly average retail price, gasoline and heating oil	17.6%	24.1%	38.54%	N/A
Index D – Parts and maintenance	Annual change in the monthly consumer price index, passenger vehicle parts, maintenance and repairs	N/A	19.51%	15.92%	N/A
1 Based on the data published by Statistics Canada, CANSIM tables
2 Site preparation and mechanized reforestation
3 Site preparation and manual reforestation
4 Stand tending
5 Technical work
6 Marking
7 Commercial treatments

O.C. 1228-2017, s. 2; O.C. 630-2022, s. 1.

The adjustment rates by family of development expenses for the year 2023 are:

PtRMe            11.87%

PtRMa             5.87%

E. P.                4.98%

M.                   5.46%

T. T.                5.53%

T. C.              19.83%

6. (Revoked).

O.C. 1218-2013, s. 6; O.C. 1228-2017, s. 3.

7. This Regulation replaces the Regulation respecting the reimbursement of property taxes of certified forest producers (chapter A-18.1, r. 12).

O.C. 1218-2013, s. 7.

8. (Omitted).

O.C. 1218-2013, s. 8.

Schedule 1

(ss. 2 and 5.1)

DEVELOPMENT EXPENSES ELIGIBLE FOR REIMBURSEMENT OF PROPERTY TAXES OF CERTIFIED FOREST PRODUCERS

  

O.C. 1218-2013, Sch. 1; O.C. 1228-2017, s. 4; O.C. 630-2022, s. 2.

SCHEDULE 2

(s. 5)

REPORT PREPARED BY A FOREST ENGINEER CONTAINING A STATEMENT OF EXPENSES FOR THE REIMBURSEMENT OF PROPERTY TAXES OF CERTIFIED FOREST PRODUCERS (Sustainable Forest Development Act, chapter A-18.1, s. 131)

  

O.C. 1218-2013, Sch. 2; O.C. 1228-2017, s. 5; S.Q. 2022, c. 3, s. 7.

TRANSITIONAL

2017

(O.C. 1228-2017) SECTION 6 . This Regulation is, with respect to a certified forest producer who is a natural person, applicable to development expenses incurred as of 1 January 2018, and, in other cases, as of the first fiscal year of the producer that begins after 31 December 2017.

REFERENCES

O.C. 1218-2013, 2013 G.O. 2, 3408

O.C. 1228-2017, 2017 G.O. 2, 3893

S.Q. 2022, c. 3, ss. 4 to 7

O.C. 630-2022, 2022 G.O. 2, 1036