397 Extent Of Exemption

• 397 (1) The exemptions provided for under clause (c) of section 396(1) shall extend to so much real property as is reasonably necessary for the purposes of the institution, hospital, or religious organization, and no further; provided that if a parcel is partly exempt and partly taxable, it need not be severed, but the taxes on the taxable portion shall be deemed to apply to the whole parcel.

Change of status

• (2) Where a transfer, sale, or lease is made of real property theretofore exempt from taxation under clauses (a) and (c) of section 396(1) to some person not entitled to such exemption, or where real property used for some purpose which would entitle it to exemption thereunder ceases to be so used, or where a sale of real property theretofore exempt from taxation under clause (b) of section 396(1) is made to a person not otherwise entitled to exemption from taxes, such real property shall be liable to taxation from the date of such transfer, sale, lease, or cesser of user, as the case may be.
• (3) Where the assessment roll is completed before the transfer, sale, or lease comes to the attention of the assessor, the assessor must

• (a) provide an assessment notice to the transferee, purchaser, lessee, or other person who, but for the exemption, would have been liable to taxation, and
• (b) assess the property on a supplementary assessment roll.

• (4) Residential property that is only partly exempt from taxation under section 396(1) or a by-law under section 396A is liable to taxation under section 374.3.

1953-55-397; 1966-69-16; 1967-63-6; 1968-71-18; 1973-93-14; 1977-30-158, proclaimed effective September 30, 1977; 1990-31-19; 1990-32-12; 1992-57-8; 1994-43-93; 2021-18-83.