CPA · Municipal Government Act
Part 9 — are not to be counted in determining the sufficiency of a petition under subsection (2), and the council must comply with the notice. (5) If a corporation, church, organization, estate or other entity is entitled to sign a petition under this Div
400 Person liable to pay local improvement tax
a local improvement tax bylaw is the owner of the parcel of land in
respect of which the tax is imposed.
1994 cM-26.1 s400
Paying off a local improvement tax
401(1) The owner of a parcel of land in respect of which a local
improvement tax is imposed may pay the tax at any time.
(2) If the local improvement tax rate is subsequently reduced under
section 402 or 403, the council must refund to the owner the
appropriate portion of the tax paid.
1994 cM-26.1 s401
Variation of local improvement tax bylaw
402(1) If, after a local improvement tax has been imposed, there is
(a) a subdivision affectin g a parcel of land, or
(b) a consolidation of 2 or more parcels of land,
in respect of which a local improvement tax is payable, the council,
with respect to future years, must revise the local improvement tax
bylaw so that each of the new parcels of land bears an appropriate
share of the local improvement tax.
(2) If, after a local improvement tax has been imposed,
(a) there is a change in a plan of subdivision affecting an area
that had not previously been subject to a local improvement
tax, and
(b) the council is of the opinio n that as a result of the change the
new parcels of land receive a benefit from the local
improvement,
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the council, with respect to future years, must revise the local
improvement tax bylaw so that each benefitting parcel of land
bears an appropriate share of the local improvement tax.
1994 cM-26.1 s402
Variation of local improvement tax rate
403(1) If, after a local improvement tax rate has been set, the
council
(a) receives financial assistan ce from the Crown in right of
Canada or Alberta or from other sources that is greater than
the amount estimated when the local improvement tax rate
was set, or
(b) refinances the debt created t o pay for the local improvement
at an interest rate lower than the rate estimated when the
local improvement tax rate was set,
the council, with respect to future years, may revise the rate so that
each benefitting parcel of land bears an appropriate share of the
actual cost of the local improvement.
(2) If, after a local improvement tax rate has been set, an alteration
is necessary following a complaint under Part 11 or an appeal
under Part 12 that is sufficient to reduce or increase the revenue
raised by the local improvement tax bylaw in any year by more
than 5%, the council, with respect to future years, may revise the
rate so that the local improvement tax bylaw will raise the revenue
originally anticipated for those years.
(3) If, after a local improvement tax rate has been set, it is
discovered that the actual cost of the local improvement is higher
than the estimated cost on which the local improvement tax rate is
based, the council may revise, once only over the life of the local
improvement, the rate with respect to future years so that the local
improvement tax bylaw will raise sufficient revenue to pay the
actual cost of the local improvement.
1994 cM-26.1 s403;1999 c11 s21
Unusual parcels
404 If some parcels of land in respect of which a local
improvement tax is to be imposed appear to call for a smaller or
larger proportionate share of the tax because they are corner lots or
are differently sized or shaped from other parcels, those parcels
may be assigned the number of units of measurement the council
considers appropriate to ensure that they will bear a fair portion of
the local improvement tax.
1994 cM-26.1 s404
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Section 405 MUNICIPAL GOVERNMENT ACT Chapter M-26
290
Municipality's share of the cost
405(1) A council may by bylaw require the municipality to pay
the cost of any part of a local improvement that the council
considers to be of benefit to the whole municipality.
(2) A bylaw under subsection (1) must be advertised if the cost to
be paid by the municipality exceeds 50% of the cost of the local
improvement less any financial assistance provided to the
municipality by the Crown in right of Canada or Alberta.
(3) If financial assistance is provided to the municipality by the
Crown in right of Canada or Alberta for a local improvement, the
council must apply the assistance to the cost of the local
improvement.
1994 cM-26.1 s405
Land required for local improvement
406(1) If a parcel of land is required before a local improvement
can be proceeded with, the council may agree with the owner of the
parcel that in consideration of
(a) the dedication or gift to the municipality of the parcel of
land required, or
(b) a release of or reduction in the owner's claim for
compensation for the parcel of land,
the remainder of the owner's land is exempt from all or part of the
local improvement tax that would otherwise be imposed.
(2) The tax roll referred to in section 327 must be prepared in
accordance with an agreement under this section, despite anything
to the contrary in this Act.
1994 cM-26.1 s406
Exemption from local improvement tax
407(1) If a sanitary or storm sewer or a water main is constructed
along a road or constructed in addition to or as a replacement of an
existing facility
(a) along which it would not have been constructed except to
reach some other area of the municipality, or
(b) in order to provide capacity for future development and the
existing sanitary and storm sewers and water mains are
sufficient for the existing development in the area,
the council may exempt from taxation under the local improvement
tax bylaw, to the extent the council considers fair, the parcels of
land abutting the road or place.
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(2) If a local improvement tax is imposed for a local improvement
that replaces a similar type of local improvement,
(a) the balance owing on the existing local improvement tax
must be added to the cost of the new local improvement, or
(b) the council must exempt the parcels of land in respect of
which the existing local improvement tax is imposed from
the tax that would be imposed for the new local
improvement.
1994 cM-26.1 s407
Sewers
408(1) A municipality may construct a local improvement for
sewer if
(a) the council approves the construction,
(b) the construction is recommend ed by the Minister of Health
or the medical health officer, and
(c) the council considers it to be in the public interest to do so.
(2) The owners of the parcels of land that benefit from a local
improvement for sewer have no right to petition against its
construction.
RSA 2000 cM-26 s408;2013 c10 s37
Private connection to a local improvement
409(1) If a local improvement for sewer or water has been
constructed, the municipality may construct private connections
from the local improvement to the street line if the council
approves the construction.
(2) The cost of constructing a private connection must be imposed
against the parcel of land that benefits from it and the owner of the
parcel has no right to petition against its construction.
1994 cM-26.1 s409
Division 7.1
Community Aggregate Payment Levy
Community aggregate payment levy bylaw
409.1(1) Each council may pass a community aggregate payment
levy bylaw.
(2) A community aggregate payment levy bylaw authorizes the
council to impose a levy in respect of all sand and gravel
businesses operating in the municipality to raise revenue to be used
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Section 409.2 MUNICIPAL GOVERNMENT ACT Chapter M-26
292
toward the payment of infrastructure and other costs in the
municipality.
2005 c14 s15
Person liable to pay levy
409.2 A levy imposed under this Division must be paid by the
persons who operate sand and gravel operations in the
municipality.
2005 c14 s15
Regulations
409.3(1) The Minister may make regulations
(a) respecting a levy referred to in section 409.1(2), including,
without limitation, regulations respecting the maximum levy
that may be imposed and the application of the levy;
(b) respecting the application of any provision of this Act, with
or without modification, to a community aggregate payment
levy bylaw or a community aggregate payment levy, or
both;
(c) respecting any other matter necessary or advisable to carry
out the intent and purpose of this Division.
(2) A regulation under subsection (1) may be specific to a
municipality or general in its application.
2005 c14 s15
Division 8
Recovery of Taxes Related to Land
Definitions
410 In this Division,
(a) "encumbrance" means an e ncumbrance as defined in the
Land Titles Act;
(b) "encumbrancee" means th e owner of an encumbrance;
(b.1) "parcel of land" means a parcel of land and the
improvements on it;
(c) "Registrar" means the Registrar, as defined in the Land
Titles Act, of the appropriate Land Titles Office;
(c.1) "remedial costs" means all expenses incurred by the
Government of Alberta to perform work under an
environmental protection order or an enforcement order
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issued under the Environmental Protection and
Enhancement Act;
(d) "reserve bid" means the minimum price at which a
municipality is willing to sell a parcel of land at a public
auction;
(e) "tax" means a property tax, a community revitalization levy,
a special tax, a clean energy improvement tax, a local
improvement tax or a community aggregate payment levy;
(f) "tax recovery notification" means a notice, in writing, that
part or all of the taxes imposed in respect of a parcel of land
by a municipality are in arrears.
RSA 2000 cM-26 s410;2005 c14 s16;2018 c6 s7
Methods of recovering taxes in arrears
411(1) A municipality may attempt to recover tax arrears in
respect of a parcel of land
(a) in accordance with this Division, and
(b) subject to subsection (2), i n accordance with any other Act
or common law right.
(2) A municipality may start an action under subsection (1)(b) at
any time before
(a) the parcel is sold at a public auction under section 418, or
(b) the parcel is disposed of in accordance with section 425,
whichever occurs first.
1994 cM-26.1 s411
Tax arrears list
412(1) A municipality must annually, not later than March 31,
(a) prepare a tax arrears list showing the parcels of land in the
municipality in respect of which there are tax arrears for
more than one year,
(b) send 2 copies of the tax a rrears list to the Registrar,
(b.1) send a copy of the tax ar rears list to the Minister responsible
for the Unclaimed Personal Property and Vested Property
Act, and
(c) post a copy of the tax ar rears list in a place that is accessible
to the public during regular business hours.
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Section 413 MUNICIPAL GOVERNMENT ACT Chapter M-26
294
(2) A tax arrears list must not include a parcel of land in respect of
which there is in existence a tax recovery notification from
previous years, unless that notification has been removed from the
certificate of title for that parcel.
(3) The municipality must notify the persons who are liable to pay
the tax arrears that a tax arrears list has been prepared and sent to
the Registrar.
RSA 2000 cM-26 s412;2007 cU-1.5 s73
Tax recovery notification
413(1) The Registrar must endorse on the certificate of title for
each parcel of land shown on the tax arrears list a tax recovery
notification.
(2) The Registrar must certify, on a copy of the tax arrears list, that
tax recovery notifications have been endorsed in accordance with
subsection (1) and return the certified copy of the tax arrears list to
the municipality with a statement of the costs payable to the Land
Titles Office by the municipality.
(3) The municipality is responsible for the payment of the costs
referred to in subsection (2) but may add the costs to the taxes
owing in respect of the parcels of land shown on the tax arrears list.
(4) The Registrar must not remove a tax recovery notification from
a certificate of title until the municipality at whose request it was
endorsed on the certificate of title requests its removal.
1994 cM-26.1 s413
Removal of improvements
414 When a tax recovery notification has been endorsed on a
certificate of title for a parcel of land, the person who is liable to
pay the taxes must not remove from the parcel, unless the
municipality at whose request the notification was endorsed on the
certificate of title consents, any improvements for which that
person is also liable to pay the taxes.
1994 cM-26.1 s414
Right to pay tax arrears
415(1) After a tax recovery notification has been endorsed on the
certificate of title for a parcel of land, any person may pay the tax
arrears in respect of the parcel.
(2) On payment of the tax arrears under subsection (1), the
municipality must ask the Registrar to remove the tax recovery
notification.
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(3) Subject to section 423(3), a person may exercise the right
under subsection (1) at any time before the municipality disposes
of the parcel in accordance with section 425.
1994 cM-26.1 s415
Right to collect rent to pay tax arrears
416(1) After a tax recovery notification has been endorsed on the
certificate of title for a parcel of land, the municipality may send a
notice to any person who holds the parcel under a lease from the
owner, requiring that person to pay the rent as it becomes due to
the municipality until the tax arrears have been paid.
(2) Not less than 14 days before a municipality sends a notice
under subsection (1), it must send a notice to the owner of the
parcel of land advising the owner of the municipality's intention to
proceed under subsection (1).
(2.1) When a parcel of land shown on a tax arrears list is land
described in section 304(1)(c) in respect of another municipality, or
in section 304(1)(d) or (e), the municipality may send a notice to
any person who holds the parcel or a portion of it under a lease,
licence or permit from the assessed person to pay the rent, licence
fees or permit fees, as the case may be, to the municipality as they
become due until the tax arrears have been paid.
(2.2) Not less than 14 days before a municipality sends a notice
under subsection (2.1), it must send a notice to the assessed person
advising the person of the municipality's intention to proceed under
subsection (2.1).
(2.3) Where a parcel of land described in section 304(1)(c) is held
under a lease, licence or permit from the Crown in right of Alberta,
(a) the Crown must, on a quarterly basis, notify the
municipality in which the parcel is located of any changes in
the status of the lease, licence or permit, as the case may be,
and
(b) the municipality must send t o the Crown that portion of the
tax arrears list showing the parcels of land described in
section 304(1)(c) that are held by the Crown.
(3) This section does not prevent the municipality from exercising
any other right it has to collect the tax arrears.
RSA 2000 cM-26 s416;2015 c8 s52
RSA 2000
Section 417 MUNICIPAL GOVERNMENT ACT Chapter M-26
296
Warning of sale
417(1) Not later than the August 1 following receipt of a copy of
the tax arrears list, the Registrar must, in respect of each parcel of
land shown on the tax arrears list, send a notice to
(a) the owner of the parcel of land,
(b) any person who has an interest in the parcel that is
evidenced by a caveat registered by the Registrar, and
(c) each encumbrancee shown on th e certificate of title for the
parcel.
(2) The notice must state
(a) that if the tax arrears in respect of the parcel of land are not
paid before March 31 in the next year, the municipality will
offer the parcel for sale at a public auction, and
(b) that the municipality may b ecome the owner of the parcel
after the public auction if the parcel is not sold at the public
auction.
(3) The notice must be sent to the address shown on the records of
the Land Titles Office for each person referred to in subsection (1).
1994 cM-26.1 s417;1995 c24 s61
Offer of parcel for sale
418(1) Each municipality must offer for sale at a public auction
any parcel of land shown on its tax arrears list if the tax arrears are
not paid.
(2) Unless subsection (4) applies, the public auction must be held
in the period beginning on the date referred to in section 417(2)(a)
and ending on March 31 of the year immediately following that
date.
(3) Subsection (1) does not apply to a parcel in respect of which
the municipality has started an action under section 411(2) to
recover the tax arrears before the date of the public auction.
(4) The municipality may enter into an agreement with the owner
of a parcel of land shown on its tax arrears list providing for the
payment of the tax arrears over a period not exceeding 3 years, and
in that event the parcel need not be offered for sale under
subsection (1) until
(a) the agreement has expired, or
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(b) the owner of the parcel breaches the agreement,
whichever occurs first.
1994 cM-26.1 s418;1995 c24 s62;1996 c30 s35
Reserve bid and conditions of sale
419 The council must set
(a) for each parcel of land to be offered for sale at a public
auction, a reserve bid that is as close as reasonably possible
to the market value of the parcel, and
(b) any conditions that apply to the sale.
1994 cM-26.1 s419
Right to possession
420(1) From the date on which a parcel of land is offered for sale
at a public auction, the municipality is entitled to possession of the
parcel.
(2) For the purposes of obtaining possession of a parcel of land, a
designated officer may enter the parcel and take possession of it for
and in the name of the municipality and, if in so doing resistance is
encountered, the municipality may apply to the Court of King's
Bench for an order for the possession of the parcel.
RSA 2000 cM-26 s420;2009 c53 s119;AR 217/2022
Advertisement of public auction
421(1) The municipality must advertise the public auction
(a) in one issue of The Alber ta Gazette, not less than 40 days
and not more than 90 days before the date on which the
public auction is to be held, and
(b) in one issue of a newspaper having general circulation in the
municipality, not less than 10 days and not more than 20
days before the date on which the public auction is to be
held.
(2) The advertisement must specify the date, time and location of
the public auction, the conditions of sale and a description of each
parcel of land to be offered for sale.
(3) The advertisement must state that the municipality may, after
the public auction, become the owner of any parcel of land not sold
at the public auction.
(4) Not less than 30 days before the date of the public auction, the
municipality must send a copy of the advertisement referred to in
subsection (1)(a) to
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Section 422 MUNICIPAL GOVERNMENT ACT Chapter M-26
298
(a) the owner of each parcel of land to be offered for sale,
(b) each person who has an inter est in any parcel to be offered
for sale that is evidenced by a caveat registered by the
Registrar, and
(c) each encumbrancee shown on th e certificate of title for each
parcel to be offered for sale.
RSA 2000 cM-26 s421;2023 c9 s19(7)
Adjournment of auction
422(1) The municipality may adjourn the holding of a public
auction to any date within 60 days after the advertised date.
(2) If a public auction is adjourned, the municipality must post a
notice in a place that is accessible to the public during regular
business hours, showing the new date on which the public auction
is to be held.
(3) If a public auction is cancelled as a result of the tax arrears
being paid, the municipality must post a notice in a place that is
accessible to the public during regular business hours stating that
the auction is cancelled.
RSA 2000 cM-26 s422;2023 c9 s19(8)
Right to a clear title
423(1) A person who purchases a parcel of land at a public
auction acquires the land free of all encumbrances, except
(a) encumbrances arising from claims of the Crown in right of
Canada,
(b) irrigation or drainage debentures,
(c) caveats referred to in section 39.2(11) of the Condominium
Property Act,
(d) registered easements and instruments registered pursuant to
section 69 of the Land Titles Act,
(e) right of entry orders as defined in the Surface Rights Act
registered under the Land Titles Act,
(e.1) a caveat that, pursuant to section 3(1.2), 3.01(4) or 3.1(5) of
the New Home Buyer Protection Act, remains registered
against the certificate of title to the land,
(f) a notice of lien filed pursuant to section 38 of the Rural
Utilities Act,
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(g) a notice of lien filed pursuant to section 20 of the Rural
Electrification Loan Act, and
(h) liens registered pursuant to section 21 of the Rural
Electrification Long-term Financing Act.
(2) A parcel of land is sold at a public auction when the person
who is acting as the auctioneer declares the parcel sold.
(3) There is no right under section 415 to pay the tax arrears in
respect of a parcel after it is declared sold.
RSA 2000 cM-26 s423;2014 c10 s59;2015 c8 s53;2025 c13 s2(12)
Transfer of parcel to municipality
424(1) The municipality at whose request a tax recovery
notification was endorsed on the certificate of title for a parcel of
land may become the owner of the parcel after the public auction, if
the parcel is not sold at the public auction.
(2) If the municipality wishes to become the owner of the parcel of
land, it must request the Registrar to cancel the existing certificate
of title for the parcel of land and issue a certificate of title in the
name of the municipality.
(3) A municipality that becomes the owner of a parcel of land
pursuant to subsection (1) acquires the land free of all
encumbrances, except
(a) encumbrances arising from claims of the Crown in right of
Canada,
(b) irrigation or drainage debentures,
(c) registered easements and instruments registered pursuant to
section 69 of the Land Titles Act,
(d) right of entry orders as defined in the Surface Rights Act
registered under the Land Titles Act,
(e) a notice of lien filed pursuant to section 38 of the Rural
Utilities Act,
(f) a notice of lien filed pursuant to section 20 of the Rural
Electrification Loan Act, and
(g) liens registered pursuant to section 21 of the Rural
Electrification Long-term Financing Act.
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Section 425 MUNICIPAL GOVERNMENT ACT Chapter M-26
300
(4) A certificate of title issued to the municipality under this
section must be marked "Tax Forfeiture" by the Registrar.
1994 cM-26.1 s424;1995 c24 s64;1996 c30 s36;1998 c24 s38;
1999 c11 s23
Right to dispose of parcel
425(1) A municipality that becomes the owner of a parcel of land
pursuant to section 424 may dispose of the parcel
(a) by selling it at a price that is as close as reasonably possible
to the market value of the parcel, or
(b) by depositing in the accoun t referred to in section 427(1)(a)
an amount of money equal to the price at which the
municipality would be willing to sell the parcel under clause
(a).
(2) The municipality may grant a lease, licence or permit in respect
of the parcel.
(3) Repealed 1995 c24 s65.
(4) If a parcel of land is disposed of under subsection (1), the
municipality must request the Registrar to delete the words "Tax
Forfeiture" from the certificate of title issued in the name of the
municipality for the parcel.
1994 cM-26.1 s425;1995 c24 s65
Minister's authority to transfer parcel
425.1(1) The Minister may administer, transfer to another
Minister, transfer to the municipality in which the land is situated
or, subject to section 425, dispose of any parcel of land acquired by
the Minister under this Part or a predecessor of this Part.
(2) The Minister may cancel the tax arrears on any land referred to
in subsection (1) and require the Registrar to remove the tax
recovery notification caveat respecting those tax arrears.
1995 c24 s66
Revival of title on payment of arrears
426(1) If the tax arrears in respect of a parcel of land are paid after
the municipality becomes the owner of the parcel under section 424
but before the municipality disposes of the parcel under section
425(1), the municipality must notify the Registrar.
(2) The Registrar must cancel the certificate of title issued under
section 424(2) and revive the certificate of title that was cancelled
under section 424(2).
(3) A certificate of title revived by the Registrar is subject
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(a) to the same notifications , charges and encumbrances to
which it would have been subject if it had not been
cancelled under section 424(2), and
(b) to any estate, interest or e ncumbrance created while the
parcel was registered in the name of the municipality.
1994 cM-26.1 s426;1996 c30 s37
Separate account for sale proceeds
427(1) The money paid for a parcel of land at a public auction or
pursuant to section 425
(a) must be deposited by the municipality in an account that is
established solely for the purpose of depositing money from
the sale or disposition of land under this Division, and
(b) must be paid out in accordance with this section and section
428.
(2) The following must be paid first and in the following order:
(a) any remedial costs relating to the parcel;
(a.1) the tax arrears in respect of the parcel;
(b) any lawful expenses of the municipality in respect of the
parcel;
(c) any expenses owing to the Crown that have been charged
against the parcel of land under section 553;
(d) an administration fee of 5% of the amount paid for the
parcel, payable to the municipality.
(3) If there is any money remaining after payment of the tax
arrears and costs listed in subsection (2), the municipality must
notify the previous owner that there is money remaining.
(3.1) Subject to subsection (3.3), if the municipality is satisfied
that there are no debts that are secured by an encumbrance on the
certificate of title for the parcel of land, the municipality may pay
the money remaining to the previous owner.
(3.2) If the municipality is not satisfied that there are no debts that
are secured by an encumbrance on the certificate of title for the
parcel of land, the municipality must notify the previous owner that
an application may be made under section 428(1) to recover all or
part of the money.
RSA 2000
Section 428 MUNICIPAL GOVERNMENT ACT Chapter M-26
302
(3.3) For the purposes of this Division, "previous owner" includes
the Crown in right of Alberta if the municipality has been notified
by the Minister responsible for the Unclaimed Personal Property
and Vested Property Act that the land has vested in the Crown, and
any money remaining after payment of the tax arrears and costs set
out in subsection (2) must be paid to the Minister responsible for
the Unclaimed Personal Property and Vested Property Act.
(4) Money paid to a municipality under a lease, licence or permit
granted under section 425(2) must be placed in the account referred
to in subsection (1) and distributed in accordance with this section
and section 428.
RSA 2000 cM-26 s427;2007 cU-1.5 s73
Distribution of surplus sale proceeds
428(1) A person may apply to the Court of King's Bench for an
order declaring that the person is entitled to a part of the money in
the account referred to in section 427(1).
(2) An application under this section must be made within 10 years
after
(a) the date of the public auction, if the parcel was sold at a
public auction, or
(b) the date of a sale under s ection 425, if the parcel was sold at
a sale under that section.
(3) The Court must decide if notice must be given to any person
other than the applicant and in that event the hearing must be
adjourned to allow notice to be given.
(4) In making an order, the Court must have regard to the priorities
in which sale proceeds are distributed in a foreclosure action.
RSA 2000 cM-26 s428;2009 c53 s119;AR 217/2022
Payment of undistributed money to municipality
428.1 If no application is made under section 428 within the
10-year period referred to in section 428(2), the municipality may,
for any purpose, use the money deposited in accordance with
section 427 that remains undistributed.
1995 c24 s68
Transfer to municipality after 15 years
428.2(1) Despite anything in this Division, where a parcel of land
has been offered for sale but not sold at a public auction and the
certificate of title for the parcel has been marked "Tax Forfeiture"
by the Registrar, the municipality may request the Registrar to
cancel the existing certificate of title for the parcel of land and
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issue a certificate of title in the name of the municipality on the
expiry of 15 years following the date of the public auction.
(1.1) This section does not apply to land respecting which the
Minister responsible for the Unclaimed Personal Property and
Vested Property Act has notified the municipality that the land has
vested in the Crown.
(2) On the issuance of a certificate of title in the name of the
municipality, all responsibilities of the municipality under this
Division to the previous owner of the parcel of land cease.
(3) Where a certificate of title is issued to a municipality under
subsection (1) and there are remedial costs owing in respect of the
parcel of land, the municipality must reimburse the Crown in right
of Alberta the lesser of
(a) the fair market value o f the parcel of land, and
(b) the amount of the remedial costs.
(4) A municipality that becomes the owner of a parcel of land
pursuant to subsection (1) acquires the land free of all
encumbrances, except
(a) encumbrances arising from claims of the Crown in right of
Canada,
(b) irrigation or drainage debentures,
(c) registered easements and instruments registered pursuant to
section 69 of the Land Titles Act,
(d) right of entry orders as defined in the Surface Rights Act
registered under the Land Titles Act,
(e) a notice of lien filed pursuant to section 38 of the Rural
Utilities Act,
(f) a notice of lien filed pursuant to section 20 of the Rural
Electrification Loan Act, and
(g) liens registered pursuant to section 21 of the Rural
Electrification Long-term Financing Act.
RSA 2000 cM-26 s428.2;2007 cU-1.5 s73;2019 c20 s23
Prohibited bidding and buying
429(1) When a municipality holds a public auction or another sale
under section 425, the auctioneer, the councillors, the chief
administrative officer and the designated officers and employees of
RSA 2000
Section 429.1 MUNICIPAL GOVERNMENT ACT Chapter M-26
304
the municipality must not bid for or buy, or act as an agent in
buying, any parcel of land offered for sale, unless subsection (2)
applies.
(2) A municipality may direct a designated officer or employee of
the municipality to bid for or buy a parcel of land that the
municipality wishes to become the owner of.
1994 cM-26.1 s429
Right to place tax arrears on new parcels of land
429.1 When there are tax arrears in respect of a parcel of land
that is to be subdivided, the municipality may distribute the tax
arrears and any taxes that may be imposed in respect of the parcel
among the parcels of land that are created by the subdivision in a
manner the municipality considers appropriate.
1995 c24 s69
Minerals
430 If, as a result of proceedings under this Act or any other Act
providing for the forfeiture of land or minerals, or both, for arrears
of taxes, minerals are vested in the Minister or in a municipality
that later passed or passes to the control of the Minister, the
minerals are the property of the Crown and no person has any
claim to or interest in them, despite anything in this Act or the Act
under which the minerals were forfeited.
1994 cM-26.1 s430
Acquisition of minerals
431(1) In respect of any parcel of land or minerals
(a) acquired by a municipality b efore or after March 5, 1948,
pursuant to a tax recovery notification or caveat endorsed on
the certificate of title by the Registrar, and
(b) subsequently registered in the name of the municipality,
the municipality is deemed to have taken or to take title only to
those minerals that the municipality was authorized and
empowered to assess at the time of the issuance of the certificate of
title in the name of the municipality, and any corrections to the
records of any Land Titles Office made before March 5, 1948 to
effect this purpose are hereby confirmed and validated.
(2) A municipality must not transfer, lease, mortgage or otherwise
dispose of or deal in any minerals or any interest in minerals
without first obtaining the written consent of the Minister, and any
disposition or dealing made without the consent of the Minister has
no effect.
RSA 2000
(3) Any certificate of title issued in the name of a municipality
before or after March 5, 1948 to or including any minerals, other
than minerals that the municipality was authorized and empowered
to assess at the time of the acquisition, may be corrected under the
Land Titles Act to limit the certificate of title to the minerals the
municipality was authorized and empowered to acquire, and all
other necessary corrections may be made under the Land Titles Act
on other certificates of title.
(4) This section does not affect an interest in minerals acquired by
any person from a municipality before March 5, 1948.
1994 cM-26.1 s431
Right of way
432 After the date on which a municipality becomes the owner of
a parcel of land under section 424, if an application is made to a
municipality
(a) for a right of entry by an operator entitled to apply for a
right of entry order under the Surface Rights Act, or
(b) for a right of way for a railway, pipeline, transmission line,
pole line, conduit, irrigation or drainage ditch or other
similar purpose, by an applicant entitled to expropriate for
that purpose under any Act,
the municipality may grant the right of entry or right of way.
1994 cM-26.1 s432
When parcel becomes part of another municipality
433(1) If proceedings affecting a parcel of land have been started
under this Division and the parcel of land later becomes part of
another municipality, the proceedings must be continued by that
municipality as if the parcel had always been included in it, and
that municipality must pay to the municipality that started the
proceedings, to the extent that municipality receives sufficient
money to do so, the costs incurred by the original municipality in
connection with the parcel.
(2) When a parcel of land becomes part of another municipality,
the Registrar must, on receipt of an order of the Minister, issue a
new certificate of title showing the parcel to be registered in the
name of that municipality.
1994 cM-26.1 s433
RSA 2000
Section 434 MUNICIPAL GOVERNMENT ACT Chapter M-26
306
Non-liability for condition of land
434 If the Minister becomes the owner of a parcel of land
pursuant to this Division, the Minister is not liable in respect of the
state and condition of the parcel or any improvements to it.
1994 cM-26.1 s434
Action for condition of land prohibited
434.1(1) No action for damages may be commenced against a
municipality with respect to the state and condition of a parcel of
land, or any improvements to it, shown on the tax arrears list of the
municipality unless
(a) after the date on which the municipality is entitled to
possession of the parcel under section 420, or
(b) after the date on which t he municipality becomes the owner
of the parcel under section 424,
the municipality releases on that parcel a new or additional
substance into the environment that may cause, is causing or has
caused an adverse effect or the municipality aggravates the adverse
effect of the release of a substance into the environment on that
parcel.
(2) Subsection (1) does not relieve a municipality of liability
respecting a parcel of land, or any improvement to it, that was
owned by the municipality before the parcel was placed on the
municipality's tax arrears list.
1996 c30 s40
Continuation of proceedings
435(1) With respect to Edmonton, Calgary and Medicine Hat, all
proceedings taken or that were required to be taken under any
predecessor of this Act, as modified or varied by any special
provisions of the charters of the respective cities, must be
continued or taken, as the case may be, under this Division
wherever possible.
(2) The Minister may make regulations or orders for the purpose
of overcoming any procedural or other difficulty occasioned by the
differences between this Division and the charters of Edmonton,
Calgary and Medicine Hat.
1994 cM-26.1 s435
Deemed compliance with Act
436 Any municipality that acquired land under a predecessor of
this Act is deemed to have complied with the requirements of that
Act.
1994 cM-26.1 s436
RSA 2000
Division 8.1
Recovery of Taxes Related to
Designated Manufactured Homes
Definitions
436.01 In this Division,
(a) "financing change statement" means a financing change
statement as defined in the Personal Property Security Act;
(b) "financing statement" mean s a financing statement as
defined in the Personal Property Security Act;
(c) "register", except where the context otherwise requires,
means to register by means of a financing statement in the
Registry in accordance with the Personal Property Security
Act and the regulations made under that Act;
(d) "Registry" means the Personal Property Registry;
(e) "reserve bid" means the minimum price at which a
municipality is willing to sell a designated manufactured
home at a public auction;
(f) "security interest" means a security interest as defined in the
Personal Property Security Act;
(g) "tax" means a property tax or a community revitalization
levy imposed in respect of property referred to in section
304(1)(j)(i) or (k);
(h) "tax arrears list" means a tax arrears list prepared by a
municipality under section 436.03(1)(a);
(i) "tax recovery lien" means a charge to secure the amount of
taxes owing to a municipality in respect of a designated
manufactured home.
RSA 2000 cM-26 s436.01;2005 c14 s17
Methods of recovering taxes in arrears
436.02(1) A municipality may attempt to recover tax arrears in
respect of a designated manufactured home
(a) in accordance with this Division, or
(b) subject to subsection (2), i n accordance with Division 9 or
with any other Act or common law right.
(2) A municipality may start an action under subsection (1)(b) at
any time before
RSA 2000
Section 436.03 MUNICIPAL GOVERNMENT ACT Chapter M-26
308
(a) the designated manufactur ed home is sold at a public
auction under section 436.09, or
(b) the designated manufactured home is disposed of in
accordance with section 436.15(a),
whichever occurs first.
1998 c24 s40
Tax arrears list
436.03(1) A municipality must annually, not later than March 31,
(a) prepare a tax arrears lis t that shows the designated
manufactured homes in the municipality in respect of which
there are tax arrears for more than one year, and that may
also show the designated manufactured homes in the
municipality in respect of which there are tax arrears for less
than one year,
(b) register a tax recovery lien against each designated
manufactured home shown on the tax arrears list, and
(c) post a copy of the tax ar rears list in a place that is accessible
to the public during regular business hours.
(2) A municipality must not register a tax recovery lien against a
designated manufactured home in respect of which there exists a
tax recovery lien registered from previous years unless that lien has
first been discharged.
(3) If a subsequent tax recovery lien is registered in error, it is
deemed to be of no effect.
(4) The municipality must give written notice to the owner of each
designated manufactured home shown on the tax arrears list that a
tax recovery lien has been registered against the designated
manufactured home.
(5) The municipality must give written notice to the owner of each
manufactured home community containing one or more designated
manufactured homes shown on the tax arrears list that a tax
recovery lien has been registered against the designated
manufactured home or homes.
1998 c24 s40
Costs of recovery
436.04(1) A municipality is responsible for the payment of the
costs it incurs in carrying out the measures referred to in section
436.03, but it may add the costs to the tax roll in respect of the
designated manufactured home shown on the tax arrears list.
RSA 2000
(2) No person shall register a financing change statement to
discharge the registration of a tax recovery lien against a
designated manufactured home without the authorization of the
municipality in whose favour the lien is registered.
(3) If a tax recovery lien is discharged in error, the municipality
may, within 30 days after the discharge and without any
administration fee charged by the Government of Alberta,
re-register the tax recovery lien, which has the same effect as if the
original tax recovery lien had not been discharged.
1998 c24 s40
Removal of designated manufactured home or improvements
436.05 When a tax recovery lien has been registered against a
designated manufactured home, no person shall remove from the
site the designated manufactured home or any other improvements
located on the site for which the owner of the designated
manufactured home is also liable to pay the taxes, unless the
municipality that registered the lien consents.
1998 c24 s40
Right to pay tax arrears
436.06(1) When a tax recovery lien has been registered against a
designated manufactured home, any person may pay the tax arrears
in respect of that designated manufactured home.
(2) On payment of the tax arrears under subsection (1), the
municipality must register a financing change statement to
discharge the registration of the tax recovery lien.
(3) A person may exercise the right under subsection (1) at any
time before
(a) the designated manufactur ed home is sold at a public
auction under section 436.09, or
(b) the designated manufactured home is disposed of in
accordance with section 436.15(a).
1998 c24 s40
Right to collect rent to pay tax arrears
436.07(1) When a tax recovery lien has been registered against a
designated manufactured home, the municipality may send a
written notice to any person who rents or leases the designated
manufactured home from the owner of the designated
manufactured home, requiring that person to pay the rent or lease
payments, as the case may be, to the municipality until the tax
arrears have been paid.
RSA 2000
Section 436.08 MUNICIPAL GOVERNMENT ACT Chapter M-26
310
(2) Not less than 14 days before a municipality sends a notice
under subsection (1), it must send a notice to the owner of the
designated manufactured home advising the owner of the
municipality's intention to proceed under subsection (1).
(3) The municipality must send a copy of the notice under
subsection (2) to the owner of the manufactured home community
where the designated manufactured home is located.
(4) This section does not prevent the municipality from exercising
any other right it has to collect the tax arrears.
1998 c24 s40
Warning of sale
436.08(1) Not later than August 1 following preparation of the tax
arrears list, the municipality must, in respect of each designated
manufactured home shown on the tax arrears list, send a written
notice to
(a) the owner of the desi gnated manufactured home,
(b) the owner of the manufactured home community where the
designated manufactured home is located, and
(c) each person who has a secur ity interest in or a lien, writ,
charge or other encumbrance against the designated
manufactured home as disclosed by a search of the Registry
using the serial number of the designated manufactured
home.
(2) The notice must state that if the tax arrears in respect of the
designated manufactured home are not paid before March 31 in the
next year, the municipality will offer the designated manufactured
home for sale at a public auction.
(3) The notice under subsection (1) must be sent to the address
shown on the records of the Registry for each person referred to in
subsection (1)(c).
1998 c24 s40;1999 c11 s25
Offer of designated manufactured home for sale
436.09(1) Each municipality must offer for sale at a public
auction any designated manufactured home shown on its tax arrears
list if the tax arrears are not paid.
(2) Unless subsection (4) applies, the public auction must be held
in the period beginning on the date referred to in section 436.08(2)
and ending on March 31 of the year immediately following that
date.
RSA 2000
(3) Subsection (1) does not apply to a designated manufactured
home in respect of which the municipality has started an action
under section 436.02(2) to recover the tax arrears before the date of
the public auction.
(4) The municipality may enter into an agreement with the owner
of a designated manufactured home shown on its tax arrears list
providing for the payment of the tax arrears over a period not
exceeding 3 years, and in that event the designated manufactured
home need not be offered for sale under subsection (1) until
(a) the agreement has expired, or
(b) the owner of the designate d manufactured home breaches
the agreement,
whichever occurs first.
1998 c24 s40
Reserve bid and conditions for sale
436.1 The council must set for each designated manufactured
home to be offered for sale at a public auction,
(a) a reserve bid that is as close as reasonably possible to the
market value of the designated manufactured home, and
(b) any conditions that apply to the sale.
1998 c24 s40
Right to possession
436.11(1) From the date on which a designated manufactured
home is offered for sale at a public auction, the municipality is
entitled to possession of the designated manufactured home.
(2) For the purpose of obtaining possession of a designated
manufactured home, a designated officer may enter the designated
manufactured home and take possession of it for and in the name of
the municipality, and if in so doing the designated officer
encounters resistance, the municipality may apply to the Court of
King's Bench for an order for possession of the designated
manufactured home.
RSA 2000 cM-26 s436.11;2009 c53 s119;AR 217/2022
Advertisement of public auction
436.12(1) The municipality must advertise the public auction in at
least one issue of a newspaper having general circulation in the
municipality, not less than 10 days and not more than 30 days
before the date on which the public auction is to be held.
RSA 2000
Section 436.13 MUNICIPAL GOVERNMENT ACT Chapter M-26
312
(2) The advertisement must specify the date, time and location of
the public auction, the conditions of sale and a description of each
designated manufactured home to be offered for sale.
(3) Not less than 30 days before the date of the public auction, the
municipality must send a copy of the advertisement referred to in
subsection (1) to each person referred to in section 436.08(1).
RSA 2000 cM-26 s436.12;2023 c9 s19(9)
Adjournment of auction
436.13(1) The municipality may adjourn the holding of a public
auction to any date within 60 days after the advertised date.
(2) If a public auction is adjourned, the municipality must
(a) post a notice in a place th at is accessible to the public during
regular business hours, showing the new date on which the
public auction is to be held, and
(b) send a copy of the notice to each person referred to in
section 436.08(1).
(3) If a public auction is cancelled as a result of the payment of the
tax arrears, the municipality must
(a) post a notice in a place th at is accessible to the public during
regular business hours stating that the auction is cancelled,
and
(b) send a copy of the notice to each person referred to in
section 436.08(1).
RSA 2000 cM-26 s436.13;2023 c9 s19(10)
Unencumbered ownership
436.14(1) A person who purchases a designated manufactured
home at a public auction or pursuant to section 436.15(a) acquires
the designated manufactured home free of all security interests,
liens, writs, charges and other encumbrances, except encumbrances
arising from claims of the Crown in right of Canada, and all
obligations secured by the security interests, liens, writs, charges
and other encumbrances are, as regards the purchaser, deemed
performed.
(2) When a person purchases a designated manufactured home at a
public auction or pursuant to section 436.15(a), the municipality
must, in respect of any security interest in or lien, writ, charge or
other encumbrance against the designated manufactured home that
exists on the date of sale as disclosed by a search of the Registry
using the serial number of the designated manufactured home,
register a financing change statement
RSA 2000
(a) to amend the collateral desc ription in the registration to
exclude the designated manufactured home, or
(b) if the designated manufactured home is the only collateral
described in the registration, to discharge the registration.
(3) Subsection (2) does not apply to a registration for which the
purchaser is named as a debtor in a registered financing statement.
(4) Subsection (2) operates despite section 68 of the Personal
Property Security Act.
(5) A designated manufactured home is sold at a public auction
when the person who is acting as the auctioneer declares the
designated manufactured home sold.
1998 c24 s40
Right to sell or dispose of designated manufactured home
436.15 If a designated manufactured home is not sold at a public
auction under section 436.09, the municipality may
(a) dispose of it
(i) by selling it at a price that is as close as reasonably
possible to the market value of the designated
manufactured home, or
(ii) by depositing in the acc ount referred to in section
436.17(1)(a) an amount of money equal to the price at
which the municipality would be willing to sell the
designated manufactured home under subclause (i),
or
(b) grant a lease in respect of it.
1998 c24 s40
Payment of tax arrears
436.16(1) If the tax arrears in respect of a designated
manufactured home are paid before the municipality disposes of it
under section 436.15(a) or while the designated manufactured
home is being leased under section 436.15(b), the municipality
must return the designated manufactured home to its owner.
(2) Before returning the designated manufactured home to its
owner under subsection (1), the municipality must send a written
notice
(a) to each person referred to in section 436.08(1), and
RSA 2000
Section 436.17 MUNICIPAL GOVERNMENT ACT Chapter M-26
314
(b) if the municipality has leased the designated manufactured
home under section 436.15(b), to the person leasing it.
(3) The notice must state that
(a) the designated manufactured home will be returned to the
owner after 30 days from the date of the notice, and
(b) despite any provision to th e contrary in a lease agreement in
respect of the designated manufactured home, the lease
expires 30 days after the date of the notice.
(4) Subsection (3) applies despite anything contained in the
Residential Tenancies Act.
1998 c24 s40
Separate account for sale proceeds
436.17(1) The money paid for a designated manufactured home at
a public auction or pursuant to section 436.15(a)
(a) must be deposited by the municipality in an account that is
established solely for the purpose of depositing money from
the sale or disposition of designated manufactured homes
under this Division, and
(b) must be paid out in accordance with this section and section
436.18.
(2) Money paid to a municipality as rent under a lease granted
under section 436.15(b) must be placed in the account referred to in
subsection (1) and distributed in accordance with this section and
section 436.18.
(3) The following must be paid first and in the following order:
(a) the tax arrears in respect o f the designated manufactured
home;
(b) any lawful expenses of the municipality in respect of the
designated manufactured home;
(c) an administration fee of 5% of the amount deposited in
respect of the designated manufactured home pursuant to
subsection (1), payable to the municipality.
(4) If there is any money remaining after payment of the tax
arrears and costs listed in subsection (3), the municipality must
notify the previous owner of the designated manufactured home
that there is money remaining.
RSA 2000
(5) If the municipality is satisfied after a search of the Registry
using the serial number of the designated manufactured home that
there are no security interests in or liens, writs, charges or other
encumbrances against the designated manufactured home, the
municipality may pay the money remaining after the payments
under subsection (3) to the previous owner of the designated
manufactured home.
(6) If the municipality is not satisfied after a search of the Registry
using the serial number of the designated manufactured home that
there are no security interests in or liens, writs, charges or other
encumbrances against the designated manufactured home, the
municipality must notify the previous owner that an application
may be made under section 436.18 to recover all or part of the
money.
1998 c24 s40
Distribution of surplus sale proceeds
436.18(1) A person may apply to the Court of King's Bench for
an order declaring that the person is entitled to a part of the money
in the account referred to in section 436.17(1).
(2) An application under this section must be made within 5 years
after
(a) the date of the public auction, if the designated
manufactured home was sold at a public auction, or
(b) the date of a sale under section 436.15(a), if the designated
manufactured home was sold under that section.
(3) The Court must decide if notice must be given to any person
other than the applicant and in that event the hearing must be
adjourned to allow notice to be given.
RSA 2000 cM-26 s436.18;2009 c53 s119;AR 217/2022
Payment of undistributed money to municipality
436.19 If no application is made under section 436.18 within the
5-year period referred to in section 436.18, the municipality may,
for any purpose, use the money deposited in accordance with
section 436.17 that remains undistributed.
1998 c24 s40
Transfer to municipality after 10 years
436.2(1) Despite anything in this Division, where a designated
manufactured home has been offered for sale but not sold at a
public auction and the municipality has not disposed of it under
section 436.15(a) within 10 years following the date of the public
auction,
RSA 2000
Section 436.21 MUNICIPAL GOVERNMENT ACT Chapter M-26
316
(a) sections 436.16, 436.17 and 436.18 cease to apply with
respect to that designated manufactured home, and
(b) the municipality becomes the owner of the designated
manufactured home free of all security interests, liens, writs,
charges and other encumbrances, except encumbrances
arising from claims of the Crown in right of Canada, and all
obligations secured by the security interests, liens, writs,
charges or encumbrances are, as regards the municipality,
deemed performed.
(2) When the municipality becomes the owner of a designated
manufactured home under subsection (1), the municipality may, in
respect of any security interest in or lien, writ, charge or other
encumbrance against the designated manufactured home as
disclosed by a search of the Registry using the serial number of the
designated manufactured home, register a financing change
statement
(a) to amend the collateral desc ription in the registration to
exclude the designated manufactured home, or
(b) if the designated manufactured home is the only collateral
described in the registration, to discharge the registration.
(3) Subsection (2) operates despite section 68 of the Personal
Property Security Act.
1998 c24 s40
Prohibited bidding and buying
436.21(1) When a municipality holds a public auction under
section 436.09 or a sale under section 436.15(a), the auctioneer, the
councillors, the chief administrative officer and the designated
officers and employees of the municipality must not bid for or buy,
or act as an agent in buying, any designated manufactured home
offered for sale, unless subsection (2) applies.
(2) A municipality may direct a designated officer or employee of
the municipality to bid for or buy a designated manufactured home
of which the municipality wishes to become the owner.
1998 c24 s40
Manufactured home moved to another municipality
436.22 If, after tax recovery proceedings affecting a designated
manufactured home are started under this Division, the designated
manufactured home is moved to another municipality or its site
becomes part of another municipality,
RSA 2000
(a) the proceedings must be continued by that other
municipality as if the designated manufactured home had
always been included in it, and
(b) the other municipality must pay to the municipality that
commenced the proceedings, to the extent that the other
municipality receives sufficient money to do so, the costs
incurred by the original municipality in connection with the
tax recovery proceedings.
1998 c24 s40
Regulations
436.23 The Minister may make regulations
(a) respecting the rights and obligations of a municipality in
relation to its possession of a designated manufactured
home under this Division;
(b) respecting any other matter related to the recovery of taxes
under this Division that the Minister considers necessary to
carry out the intent of this Division.
1998 c24 s40
Reporting requirements
436.24(1) Unless a municipality passes a bylaw to the contrary,
the owner of a manufactured home community must provide
monthly reports to the chief administrative officer or a designated
officer of the municipality regarding
(a) the ownership of all design ated manufactured homes in the
manufactured home community, including the serial
numbers of the designated manufactured homes, and
(b) the movement of all designated manufactured homes in and
out of the manufactured home community.
(2) Despite subsection (1), a municipality may pass a bylaw
requiring the owner of the manufactured home community to
provide the reports required under subsection (1) to the
municipality on the dates specified by the municipality, but not
more than once a month.
1998 c24 s40
Division 9
Recovery of Taxes Not Related to Land
Definitions
437 In this Division,
RSA 2000
Section 438 MUNICIPAL GOVERNMENT ACT Chapter M-26
318
(a) "distress warrant" means a written instruction to seize goods
of the person named in the warrant;
(b) "period for payment" means,
(i) in respect of tax imposed on linear property, machinery
and equipment or property referred to in section
304(1)(f), the 120 days following the sending of the tax
notice by the municipality, or
(ii) in respect of tax imposed on any other property,
(A) if the person liable to pay the tax is a resident of the
municipality, the 14 days following the sending of
the tax notice by the municipality, or
(B) if the person liable to pay the tax is not a resident of
the municipality, the 30 days following the sending
of the tax notice by the municipality;
(c) "tax" means
(i) a business tax,
(ii) a well drilling equipment tax,
(ii.1) a community aggregate payment levy, or
(iii) a property tax or community revitalization levy imposed
in respect of property referred to in section 304(1)(c),
(f), (g), (h), (i), (j)(i), (k) or (l);
(d) "tax arrears" means taxes th at remain unpaid after the expiry
of the period for payment.
RSA 2000 cM-26 s437;2005 c14 s18;2021 c22 s7;2024 c11 s2(27)
Methods of recovering taxes in arrears
438(1) A municipality may attempt to recover tax arrears
(a) in accordance with this Division, and
(b) subject to subsection (2), i n accordance with any other Act
or common law right.
(2) A municipality may start an action under subsection (1)(b) at
any time before the goods are sold at a public auction or the
municipality becomes the owner of the goods under section 448,
whichever occurs first.
1994 cM-26.1 s438
RSA 2000
Right to issue distress warrant
439(1) A municipality wishing to recover tax arrears pursuant to
this Division may issue a distress warrant.
(2) Each municipality may, in writing, authorize a designated
officer or appoint a person to the position of designated officer to
prepare and issue distress warrants and seize goods pursuant to
distress warrants on behalf of the municipality.
1994 cM-26.1 s439
Seizure of goods
440(1) When a distress warrant has been issued, a civil
enforcement agency or a person referred to in section 439(2) must
place sufficient goods under seizure to satisfy the amount of the
claim shown in the warrant.
(2) The person placing goods under seizure may ask the person
who owns or has possession of the seized goods to sign a bailee's
undertaking agreeing to hold the seized goods for the municipality.
(3) If a person refuses to sign a bailee's undertaking, the person
placing goods under seizure may remove the goods from the
premises.
(4) When a bailee's undertaking has been signed under subsection
(2), the goods specified in it are deemed to have been seized.
(5) A seizure under this section continues until the municipality
(a) abandons the seizure by written notice, or
(b) sells the goods.
(6) The municipality is not liable for wrongful or illegal seizure or
for loss of or damage to goods held under a seizure under this
section if a bailee's undertaking relating to the seized goods has
been signed pursuant to subsection (2).
1994 cM-26.1 s440;1994 cC-10.5 s146;1997 c19 s3
Goods affected by distress warrant
441(1) A person may seize the following goods pursuant to a
distress warrant:
(a) goods belonging to the pers on who is liable to pay the tax
arrears or in which that person has an interest;
(b) goods of a business that is liable to pay business tax arrears,
even if the goods have been sold to a purchaser of the
business;
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Section 442 MUNICIPAL GOVERNMENT ACT Chapter M-26
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(c) goods of a corporation that are in the hands of
(i) a receiver appointed for the benefit of creditors,
(ii) an authorized trustee in bankruptcy, or
(iii) a liquidator appointed under a winding-up order.
(2) If a person who is liable to pay tax arrears is in possession of
goods belonging to others for the purpose of storing the goods,
those goods must not be seized pursuant to the distress warrant.
1994 cM-26.1 s441
Date for issuing distress warrant
442(1) A distress warrant must not be issued until the period for
payment expires, unless subsection (2) applies.
(2) If, before the period for payment expires, a municipality has
reason to believe that a person is about to move out of the
municipality goods that are to be seized under a distress warrant,
the municipality may apply to a justice of the peace for an order
authorizing the municipality to issue the distress warrant before the
period for payment expires.
1994 cM-26.1 s442
Right to pay tax arrears
443(1) After goods have been seized under a distress warrant, any
person may pay the tax arrears.
(2) On payment of the tax arrears under subsection (1), the
municipality must release the goods from seizure.
(3) A person may exercise the right under subsection (1) at any
time before the municipality sells the goods at a public auction or
becomes the owner of the goods under section 448.
1994 cM-26.1 s443
Right to collect rent to pay tax arrears
444(1) If a distress warrant has been issued to recover tax arrears
in respect of a business and the person who is liable to pay the
business tax arrears owns property that is leased to one or more
tenants, the municipality may send a notice to each tenant requiring
the tenant to pay the rent as it becomes due to the municipality until
the business tax arrears have been paid.
(2) Not less than 14 days before a municipality sends a notice
under subsection (1), it must send a notice to the owner of the
property advising the owner of the municipality's intention to
proceed under subsection (1).
RSA 2000
(3) This section does not prevent the municipality from exercising
any other right it has to collect the tax arrears.
1994 cM-26.1 s444
Sale of property
445(1) The municipality must offer for sale at a public auction
goods that have been seized under a distress warrant if the tax
arrears are not paid, unless the municipality starts an action under
section 438(2) to recover the tax arrears before the date of the
public auction.
(2) The municipality must advertise a public auction by posting a
notice in at least 3 public places in the municipality near the goods
to be sold not less than 10 days before the date of the auction.
(3) The advertisement must specify the date, time and location of
the public auction, the conditions of sale, a description of the goods
to be sold and the name of the person whose goods are to be sold.
(4) The advertisement must state that the municipality will become
the owner of any goods not sold at the public auction, immediately
after the public auction.
1994 cM-26.1 s445
Date of public auction
446(1) The public auction must be held not more than 60 days
after the goods are seized under the distress warrant.
(2) The municipality may adjourn the holding of a public auction
but must post a notice in accordance with section 445(2) showing
the new date on which the public auction is to be held.
1994 cM-26.1 s446
Exception to sale at auction
447 Despite section 445(1), a municipality may have grain seized
under a distress warrant hauled to the nearest elevator or other
convenient place of storage and may dispose of the grain at the
current market price.
1994 cM-26.1 s447
Transfer to municipality
448 The municipality becomes the owner of any goods offered
for sale but not sold at a public auction, immediately after the
public auction and may dispose of the goods by selling them.
1994 cM-26.1 s448
Separate account for sale proceeds
449(1) The money paid for goods at a public auction or pursuant
to section 448
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(a) must be deposited by the municipality in an account that is
established solely for the purpose of depositing money from
the sale of goods under this Division, and
(b) must be paid out in accordance with this section and section
450.
(2) The following must be paid first and in the following order:
(a) the tax arrears;
(b) any lawful expenses of the municipality in respect of the
goods.
(3) If there is any money remaining after payment of the tax
arrears and expenses listed in subsection (2), the municipality must
notify the previous owner that there is money remaining and that an
application may be made under section 450 to recover all or part of
the money.
1994 cM-26.1 s449
Distribution of surplus sale proceeds
450(1) A person may apply to the Court of King's Bench for an
order declaring that the person is entitled to a part of the money in
the account referred to in section 449(1).
(2) An application under this section may be made within 5 years
after the date of the public auction.
(3) The Court must decide if notice must be given to any person
other than the applicant and in that event the hearing must be
adjourned to allow notice to be given.
RSA 2000 cM-26 s450;2009 c53 s119;AR 217/2022
Seizure of designated manufactured home
451 Part 10 of the Civil Enforcement Act does not apply to a
designated manufactured home in a manufactured home
community that has been seized under a distress warrant.
1994 cM-26.1 s451;1994 cC-10.5 s146;1998 c24 s41
Regulations
452 The Minister may make regulations respecting any other
matter related to the recovery of taxes under this Division that is
considered necessary to carry out the intent of this Division.
1994 cM-26.1 s452
RSA 2000