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Retail Sales Tax Act
Loi sur la taxe de vente au détail

R.R.O. 1990, REGULATION 1012

Amended to O. Reg. 449/05

definitions, exemptions and rebates

Historical version for the period July 28, 2005 to May 15, 2006.

Disclaimer: This consolidation is not an official copy of the law because it is affected by one or more retroactive provisions which have not been incorporated into it. For information about the retroactive provisions, see O. Reg. 199/06, section 2 and O. Reg. 530/07, section 2.

This Regulation is made in English only.

1. (1) The following expressions used in subsection 7 (1) of the Act are defined by the Minister:

“agricultural feeds” includes all feed for livestock, all hay and straw and any drug or medicine fed to or injected into livestock;

“agricultural products” means,

(a) tobacco plants, livestock, food for livestock, trees, shrubs, bushes, growing plants and flowers,

(b) seeds, seedlings and bulbs from which plants or flowers may be grown,

(c) insecticides, herbicides, rodenticides, fungicides and fertilizers, including agricultural lime, peat moss and similar soil conditioners;

“aircraft” means any machine capable of deriving support in the atmosphere from reactions of the air, other than a machine designed to derive support in the atmosphere from reactions against the earth’s surface of air expelled from the machine, and includes a rocket;

“audio book” means an audio recording in which all or substantially all of the content is a spoken reading of a book;

“books” means books that are printed and bound and that are published solely for educational, technical, cultural or literary purposes and that contain no advertising, including pages that are printed for insertion in such books, but not directories, price lists, time tables, rate books, catalogues, reports, fashion books, albums, books ruled for accounting or bookkeeping purposes, blank exercise, drawing or work books or any similar books and loose leaf sheets or pages that are printed for insertion in such books;

“commercial aircraft” means an aircraft for the use of the general public and not primarily reserved for a particular person, if operated, or available for operation, for hire or reward;

“Commercial purposes” in paragraph 61 of subsection 7 (1) of the Act means,

(a) the use of a vessel exclusively for regularly scheduled public transportation services for profit or with a view to profit,

(b) the transportation of goods for profit or with a view to profit, and

(c) the operation of a tugboat for profit or with a view to profit,

but does not include,

(d) the operation of boats for tourists,

(e) the operation of boats for charter or tour services that may or may not make scheduled stops incidental to the service,

(f) the ferrying of pilots or workcrews, or

(g) the operation of vessels for sporting, entertaining or recreational purposes;

“eating establishment” means a restaurant, dining room, dairy bar, ice cream parlour or cafeteria including any such establishment providing take out or counter service, a convention centre, Royal Canadian Legion hall, private or social club, lodging house, summer camp, church hall, tavern, bar, cocktail lounge, coffee shop, mobile canteen, coffee wagon or vending machine, and includes a snack bar or a facility from which prepared food products are dispensed at an exhibition, fair, sporting event, theatre, cinema or store where food products are sold, an eating establishment on a water vessel, train or aircraft and any premises or location to which a caterer supplies prepared food products;

“equipment”, as used in paragraph 38 of subsection 7 (1) of the Act, means any patient care item or supply used in a patient room or any other area where the medical or surgical treatment of patients normally occurs, and laboratory research and diagnostic equipment, but does not include,

(a) accounting and bookkeeping equipment and office furniture and all similar office and administrative equipment,

(b) brooms, floor polishers, laundry carts, vacuum cleaners, and all similar housekeeping equipment,

(c) cutlery, dishes, glassware, kitchen utensils and all similar kitchen and dietary supplies,

(d) lawn mowers, maintenance staff uniforms, electrical tools, ladders, small tools, lathes, saws and all similar maintenance equipment,

(e) motion picture equipment, games, television sets and radios and all similar recreational equipment,

(f) motor vehicles,

(g) carpets, coat racks, chairs and any other furniture or furnishings that are not used in a part of the hospital where patients normally receive medical or surgical treatment, or

(h) any other piece of equipment that is not used directly in the medical or surgical treatment of patients;

“equipment”, as used in paragraph 54 of subsection 7 (1) of the Act, means fish nets, fur stretchers, snares and snare wire, skinning knives, snow shoes and steel traps of all makes;

“equipment”, as used in paragraph 53 of subsection 7 (1) of the Act, means,

altars, altar cloths and linens,

altar desks,

baptismal bowls, fonts and shells,

chairs, pews, stools and tables,

chimes and bells,

choir stalls,

collection plates,

communion ware,

confessionals and confessional counters,

draperies and carpets,

kneelers and prie-dieux lecterns and lectern cloths,

mass linen,

memorial plaques and tablets,

monuments and statues,

organs and pianos,

public address systems,

pulpits and pulpit cloths,

special lighting apparatus,

stained glass windows,

and similar equipment used exclusively in religious worship or Sabbath school, but does not include clothing or vestments;

“explosives” includes blasting agents, blasting supplies, and accessories such as blasting caps, boosters, plastic cap holders, electric starters, squibs, shunt connectors, safety fuse assemblies, igniter cord connectors, hot wire lighters, and primacord connectors and closing tubes;

“farm implements”, “farm machinery” and “farm equipment” includes all implements, machinery and equipment designed for farm use and vehicles that are manufactured or designed as, or have within 30 days of the date of purchase, been converted into an unlicensed self-propelled vehicle for a specific use in farming and does not include,

(a) all terrain vehicles with engine displacements of less than 200 cc.,

(b) all terrain vehicles sold without a carrying rack or a carrying platform,

(c) ammunition,

(d) automobiles and parts for automobiles,

(e) automobile trailers,

(f) domestic refrigerators,

(g) household equipment,

(h) lawn mowers,

(i) light bulbs,

(j) pipes for home use,

(k) snowmobiles, and

(l) trucks and parts for trucks;

“farm supplies” means antifreeze, calcium chloride, lubricating oil, lubricating grease and printed forms for recording weight and other data relating to farm animals;

“fire fighting vehicles” means motor vehicles specially designed and equipped at the time of purchase for use primarily in fire fighting, rescue and emergency response and includes pumpers, initial attack fire apparatus, mobile water supply apparatus, wildland fire apparatus, aerial ladder apparatus, aerial ladder platform or other types of platform apparatus, light, medium and heavy rescue vehicles, hazardous materials apparatus, mobile command post units and other similar vehicles, but does not include fire chief’s vehicles;

“footwear” means boots, shoes and other footwear, including any device, equipment or apparatus permanently attached thereto at the time of sale, the price of which does not exceed $30 per pair, but not including stockings, socks or similar apparel;

“hire or reward” means any payment, consideration, gratuity or benefit, directly or indirectly charged, demanded, received or collected by any person for the use of an aircraft;

“magazines” means bound printed publications that are issued annually or more frequently and that contain articles or contributions by various writers and may contain advertising and pictures, but does not include newspapers as defined in Regulation 1013 of the Revised Regulations of Ontario, 1990, newsletters and bulletins or any publications specifically excluded from the definition of books;

“manufactured gas” and “natural gas” mean a gas intended to be used as a source of energy or as fuel for heating or lighting but does not include oxygen, acetylene, argon, nitrogen, carbon dioxide, compressed air, nitrous oxide, helium or other gases used for purposes other than a source of energy or as fuel for heating or lighting;

“medical research” means,

(a) basic biomedical research to explore the fundamental biological processes underlying health and disease in humans, or

(b) applied clinical research to develop new technologies for disease prevention, diagnosis, treatment and rehabilitation,

but does not include,

(c) epidemiological population-based studies, the analysis of health care systems or the instruction of students;

“newsletters and bulletins” means printed publications that are produced by or for a group, club, society or organization for the interest of its members and that contain information or literary matter of a non-promotional nature and do not contain paid advertising;

“prosthetic appliance or equipment” means artificial devices, excluding wigs, designed to take the place of missing parts of the body;

“publications of a religious, charitable or benevolent organization” means,

(a) church calendars, hymn and mass cards, photographs, paintings, drawings, mottoes and similar artwork produced solely for the promotion of religion including any plates made to produce printed materials,

(b) bibles, scriptures, missals, prayer books, hymn books, pamphlets, booklets and similar printed matter published solely for the promotion of religion,

(c) printed instructional materials purchased for use and not resale by a religious, charitable or benevolent organization, and

(d) films, filmstrips, video tapes and video discs purchased by a religious, charitable or benevolent organization and used to promote the objects of the religious, charitable or benevolent organization, and not for commercial exhibition or for profit,

but does not include directories, price lists, time tables, rate books, catalogues, stationery, forms or any similar printed matter;

“refractory materials” includes fire bricks, plastic refractories, high temperature cement, fire clay and short lived refractories such as melting pots, crucibles and retorts;

“reserve” includes an Indian settlement located on Crown land, the Indian inhabitants of which are treated by the Department of Indian Affairs and Northern Development (Canada) in the same manner as Indians residing on a reserve as defined under the Indian Act (Canada);

“settler’s effects” means,

(a) household goods and equipment that are owned by an individual for at least thirty days immediately before taking up residence in Ontario if,

(i) the individual was resident outside Ontario for at least one year before taking up residence in Ontario,

(ii) the individual has entered Ontario with the intention of establishing or re-establishing a residence for a period longer than one year,

(iii) the household goods and equipment are brought into Ontario for use and consumption in Ontario within six months of the individual taking up residence in Ontario, and

(iv) the household goods and equipment were acquired in a province or territory of Canada other than Ontario, the individual has paid all applicable taxes in respect of their consumption or use to the province or territory and none of the tax is refundable or has been refunded to the individual, and

(b) tangible personal property that was acquired for consumption or use in a province or territory of Canada other than Ontario in the operation of a business located and carried on in the province or territory if,

(i) the tangible personal property was owned for at least thirty days immediately before the date that the business was relocated to Ontario,

(ii) the tangible personal property was brought into Ontario within six months of the date that the business was relocated to Ontario, and

(iii) the purchaser has paid all applicable taxes in respect of the consumption or use of the tangible personal property to the province or territory in Canada and none of the tax is refundable or has been refunded to the purchaser before the relocation of the business to Ontario;

“state aircraft” means an aircraft used exclusively in the service of Her Majesty in right of Canada or in right of a province;

“wood” means wood shavings and wood sawdust and any wood intended to be used as fuel but does not include any other kind of wood.  R.R.O. 1990, Reg. 1012, s. 1; O. Reg. 648/91, s. 1; O. Reg. 623/92, s. 1; O. Reg. 476/93, s. 1 (1); O. Reg. 162/95, s. 1; O. Reg. 1/97, s. 1; O. Reg. 383/99, s. 1; O. Reg. 236/00, s. 1; O. Reg. 266/01, s. 1 (1, 2); O. Reg. 379/01, s. 1; O. Reg. 118/02, s. 1.

(2) For the purposes of subclause (a) (i) of the definition of “settler’s effects” in subsection (1), a person who continues to maintain his or her residence in Ontario during a temporary absence from Ontario is not resident outside Ontario.  O. Reg. 476/93, s. 1 (2).

(3) The following are publications for the purposes of paragraph 44 of subsection 7 (1) of the Act if they are of an educational nature and not for commercial exhibition for profit:

1. Films and filmstrips.

2. Audio tapes and audio discs.

3. Video tapes and video discs.

4. Compact discs — read-only memory (CD-ROMs) that are not primarily computer programs.  O. Reg. 266/01, s. 1 (3).

(4) The following are not publications for the purposes of paragraph 44 of subsection 7 (1) of the Act:

1. Any written material.

2. Microfilm or microfiche.

3. Equipment to play or show material specified in paragraphs 1 to 4 of subsection (3).  O. Reg. 266/01, s. 1 (3).

1.1 (1) For the purposes of clause (c.1) of the definition of “taxable service” in subsection 1 (1) of the Act,

“to configure a computer program” means to perform work required to input customer-specific values and parameters into a computer program or hardware;

“to install a computer program” means to perform work required to load a computer program onto hardware in order to permit the user to set up or operate the computer program;

“to modify a computer program” means to change the source code of a computer program;

“to upgrade a computer program” means to remedy problems within a computer program or between computer programs, or provide an improvement to the computer program that is offered to or available to all licensees of that computer program.  O. Reg. 282/04, s. 1.

(2) For the purposes of clause (d.1) of the definition of “taxable service” in subsection 1 (1) of the Act,

“service or maintenance of a computer program” means the installation, configuration, modification or upgrading of a computer program;

“warranty of a computer program” means an undertaking that the computer program will function as required by the purchaser or as guaranteed by the producer or vendor.  O. Reg. 282/04, s. 1.

(3) Despite subsections (1) and (2), non-taxable services include,

(a) training with respect to the use of a computer program;

(b) advising users of a computer program;

(c) performing activities relating to the management of data;

(d) project planning, including the analysis of specifications, determination and verification of hardware and software prerequisites, scheduling, the preparation of reports, review of documentation and discussions of any kind; and

(e) testing a computer program, unless the testing is done in connection with a taxable service described in subsection (1) and the value of the taxable service exceeds 10 per cent of the value of the testing.  O. Reg. 282/04, s. 1.

(4) For the purposes of clause (3) (e),

“value” means, with respect to a taxable service or testing,

(a) the cost of the taxable service or testing,

(b) the fair value of the taxable service or testing,

(c) the value of the time spent by or on behalf of the vendor to provide the taxable service or the testing; or

(d) the value as determined by any other reasonable method.  O. Reg. 282/04, s. 1.

1.2 (1) If taxable and non-taxable services relating to a computer program are sold together on or after July 19, 2002 for one price, the fair value of the services sold to the purchaser is determined in accordance with this section for the purposes of subsection 2 (9) of the Act.  O. Reg. 282/04, s. 1.

(2) Subject to subsections (3), (4) and (5), the fair value of the services sold to the purchaser is the price paid by the purchaser for all of the services.  O. Reg. 282/04, s. 1.

(3) If all of the following circumstances exist, the fair value of the services sold to the purchaser is any separate and reasonable charge specified by the vendor for the taxable services:

1. The vendor specifies separate and reasonable charges for the taxable and the non‑taxable services.

2. The separate charges are clearly communicated to the purchaser.

3. The vendor maintains a record of the separate charges for the taxable services.  O. Reg. 282/04, s. 1.

(4) If any of the following circumstances exist, the fair value of the services sold to the purchaser is zero:

1. The cost, to the vendor, of the taxable services sold to the purchaser is a maximum of 10 per cent of the cost, to the vendor, of the non-taxable services sold to the purchaser.

2. The fair value of the taxable services sold to the purchaser is a maximum of 10 per cent of the fair value of the non-taxable services, if each of them were to be sold separately to the purchaser.

3. The time spent by or on behalf of the vendor to provide the taxable services sold to the purchaser is a maximum of 10 per cent of the time spent by or on behalf of the vendor to provide the non-taxable services sold to the purchaser.

4. On the basis of any other reasonable determination, the taxable services component of a contract is a maximum of 10 per cent of the non-taxable services component of the contract.  O. Reg. 282/04, s. 1.

(5) Subsection (4) applies to a contract entered into before September 14, 2004 for the sale of taxable and non-taxable services even if the contract specifies separate charges for the taxable and non-taxable services.  O. Reg. 282/04, s. 1.

1.3 (1) If one or more computer programs are sold together with taxable and non-taxable services relating to computer programs on or after July 19, 2002 for one price, the fair value of the combined computer programs and services sold to the purchaser is determined in accordance with this section for the purposes of subsection 2 (9) of the Act.  O. Reg. 282/04, s. 1.

(2) Subject to subsections (3), (4) and (5), the fair value of the combined computer programs and services sold to the purchaser is the price paid by the purchaser for all of the components.  O. Reg. 282/04, s. 1.

(3) If all of the following circumstances exist, the fair value of the combined computer programs and services sold to the purchaser is any separate and reasonable charge specified by the vendor for the taxable computer programs and taxable services related to computer programs:

1. The vendor specifies separate and reasonable charges for the exempt and taxable computer programs and for the taxable and the non-taxable services.

2. The separate charges are clearly communicated to the purchaser.

3. The vendor maintains a record of the separate charges for the taxable computer programs and taxable services.  O. Reg. 282/04, s. 1.

(4) If any of the following circumstances exist, the fair value of the combined computer programs and services sold to the purchaser is zero:

1. The cost, to the vendor, of the taxable computer programs and taxable services sold to the purchaser is a maximum of 10 per cent of the cost, to the vendor, of the exempt computer programs and non-taxable services sold to the purchaser.

2. The fair value of the taxable computer programs and taxable services sold to the purchaser is a maximum of 10 per cent of the fair value of the exempt computer programs and non-taxable services, if each of them were to be sold separately to the purchaser.

3. The time spent by or on behalf of the vendor to provide the taxable computer programs and taxable services sold to the purchaser is a maximum of 10 per cent of the time spent by or on behalf of the vendor to provide the exempt computer programs and non-taxable services sold to the purchaser.

4. On the basis of any other reasonable determination, the taxable computer programs and taxable services components of a contract are a maximum of 10 per cent of the exempt computer programs and non-taxable services components of the contract.  O. Reg. 282/04, s. 1.

(5) Subsection (4) applies to a contract entered into before September 14, 2004 for the sale of combined computer programs and services even if the contract specifies separate charges for the exempt and taxable computer programs and for the taxable and non-taxable services.  O. Reg. 282/04, s. 1.

2. Under subsection 2 (9) of the Act, it is hereby determined that the fair value of property that is stage props, sets and costumes, manufactured by a person that is a religious, charitable, benevolent or non-profit organization for use by that person in its staging of a live theatrical or musical performance does not include the cost of labour and manufacturing overhead incurred in the manufacture of such property.  R.R.O. 1990, Reg. 1012, s. 2.

3. Under subsection 2 (9) of the Act, it is hereby determined that the fair value of tangible personal property that is produced, fabricated, processed, printed or imprinted for the person’s own consumption or use, and not for resale, by a person who,

(a) is not a manufacturer as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990; and

(b) has paid tax at the time of sale on the materials purchased by the person for the purpose of being so produced, fabricated, processed, printed or imprinted, or, being a vendor, has reported the purchase in, and remitted the tax with, the return covering the period in which the vendor purchased the materials,

is the price for which those materials were purchased by the person who produced, fabricated, processed, printed or imprinted the tangible personal property.  R.R.O. 1990, Reg. 1012, s. 3.

3.1 (1) For the purposes of subsection 2 (9) of the Act, where tangible personal property consists of a package or arrangement of items of tangible personal property, the fair value of the package or arrangement, for the purposes of taxation under the Act, is the price paid by the purchaser for the package or arrangement if,

(a) some of the items of tangible personal property in the package or arrangement, if sold individually, could be acquired by a purchaser exempt from tax under the Act; and

(b) the package or arrangement, including the container and packaging, is sold for one price.  O. Reg. 476/93, s. 2.

(2) Despite subsection (1), the fair value of a package or arrangement of items of tangible personal property is the separate and reasonable charge made for the items of tangible personal property that are subject to tax, if,

(a) the vendor of the package or arrangement specifies a separate and reasonable charge for the items of tangible personal property that could be acquired by a purchaser exempt from tax under the Act and for the items that could be acquired by a purchaser subject to the payment of tax;

(b) each separate and reasonable charge is clearly communicated to the purchaser; and

(c) the vendor maintains a record of the separate and reasonable charge made for the items of tangible personal property that are subject to tax.  O. Reg. 476/93, s. 2.

(3) Despite subsections (1) and (2), where the package or arrangement of items of tangible personal property contains liquor, beer or wine, the fair value of the liquor, beer or wine contained in the package or arrangement is zero if,

(a) the vendor of the package or arrangement has paid the tax imposed under clause 2 (2) (b) of the Act upon acquiring the liquor, beer or wine; and

(b) the vendor has separated out the price of the liquor, beer or wine as provided under subsection (2).  O. Reg. 476/93, s. 2.

(4) Despite subsections (1) and (2), the fair value of a package or arrangement of items of tangible personal property is zero if,

(a) the package or arrangement contains items of tangible personal property that can be acquired by a purchaser exempt from tax under the Act; and

(b) the total cost to the vendor of the items of tangible personal property in the package or arrangement that are subject to tax under the Act and of the container and packaging is less than 10 per cent of the cost to the vendor of the items described in clause (a).  O. Reg. 383/99, s. 2.

3.1.1 (1) This section sets out the exclusions from the definition of “promotional distribution” in subsection 1 (1) of the Act.  O. Reg. 117/02, s. 1.

(2) The provision of a telecommunications device to a person (the “recipient”) at less than full fair value is excluded from the application of the definition of “promotional distribution” if all of the following criteria are met:

1. The telecommunications device is provided to the recipient on or after December 18, 1997.

2. Tax is or will be paid on any fair value paid at the time of retail sale.

3. The telecommunications device cannot be used to access services of a person other than the person (the “service provider”) who provided it or caused it to be provided to the recipient at less than full fair value.

4. The services of the service provider that can be accessed by using the telecommunications device include taxable services.

5. The service provider has the reasonable expectation that the revenue he, she or it receives from all taxable services described in paragraph 4 will equal or exceed the sum of,

i. the cost of all taxable services described in paragraph 4, and

ii. the amount by which the full fair value of all of the telecommunications devices described in paragraph 3 exceeds the amount, if any, that the recipients pay for them.  O. Reg. 333/03, s. 1.

(3) In this section,

“telecommunications device” means a cellular telephone or device with cellular telephone capabilities, a one-way pager, a digital satellite television device or a digital cable television device.  O. Reg. 333/03, s. 1.

3.2 For the purposes of clause 2.1 (8) (b) of the Act,

“agricultural property” means tangible personal property and real property that are used or located on a farm, including dwelling-houses, stables, barns, sheds and outbuildings and their contents, wagons, carriages and other vehicles except motor vehicles required to be insured under the Compulsory Automobile Insurance Act, saddles, harnesses, agricultural engines, implements, tools, instruments, appliances, machinery, household goods, wearing apparel, provisions, musical instruments, libraries, livestock, growing crops, crops severed from the land, fruit and ornamental trees, shrubs, plants and live and standing timber.  O. Reg. 162/95, s. 2.

3.3 (1) In subsection 2.2 (1) of the Act, the definition of “specified tangible personal property” includes,

(a) clothing described in Section VII, Chapter 39, Section VIII, Chapter 42, Section XI, Chapters 61 and 62, and Section XII, Chapter 65 of the Schedule to the Customs Tariff (Canada); and

(b) beverages described in Section IV, Chapter 22 of the Schedule to the Customs Tariff (Canada).  O. Reg. 384/99, s. 1.

(2) Despite clause (1) (a), the definition of “specified tangible personal property” in subsection 2.2 (1) of the Act does not include,

(a) clothing that, in the opinion of the collection agent, is labelled or is otherwise identifiable as boys’, girls’ or children’s clothing; or

(b) clothing that the returning resident declares, in the form and manner required by the collection agent, is intended to be worn by a child under 13 years of age.  O. Reg. 384/99, s. 1.

(3) Despite clause (1) (b), the definition of “specified tangible personal property” in subsection 2.2 (1) of the Act does not include,

(a) soda, sparkling water, mineral water or water sold in bottles or other containers each containing in excess of one litre; or

(b) non-carbonated fruit juice beverages or fruit drinks containing 25 per cent or more by volume of a natural fruit juice or combination of natural fruit juices or a natural fruit juice or combination of natural fruit juices that have been reconstituted into their original state.  O. Reg. 384/99, s. 1.

(4) For the purposes of clause (a) of the definition of “specified tangible personal property” in subsection 2.2 (1) of the Act, “vehicles” means,

(a) automobiles, motorcycles, mopeds, trucks, trailers and all other motor vehicles for which a permit is required under the Highway Traffic Act;

(b) off-road vehicles for which a permit is required under the Off-Road Vehicles Act; or

(c) motorized snow vehicles for which a permit is required under the Motorized Snow Vehicles Act.  O. Reg. 384/99, s. 1.

4. (1) A vendor who has no fixed place of business in Ontario shall keep his or her vendor’s permit on his or her person at all times while transacting business in Ontario and shall produce it upon request to any purchaser or a duly authorized representative of the Minister.  R.R.O. 1990, Reg. 1012, s. 4 (1).

(2) An agent who makes sales in Ontario on behalf of the agent’s principal shall keep a copy of the principal’s vendor’s permit on the agent’s person at all times while transacting business in Ontario and shall produce it upon request to a purchaser or a duly authorized representative of the Minister.  R.R.O. 1990, Reg. 1012, s. 4 (2).

(3) Where the vendor changes the name of the vendor’s business, the vendor shall forthwith notify the Minister of the change and return the vendor’s permit to the Minister for amendment.  R.R.O. 1990, Reg. 1012, s. 4 (3).

(4) Where a vendor ceases to carry on the business in respect of which a vendor’s permit has been issued, the permit is thereupon void and the vendor shall return it to the Minister within fifteen days of the date of cessation of the business.  R.R.O. 1990, Reg. 1012, s. 4 (4).

(5) Where a vendor’s permit is lost, stolen or destroyed, application for a copy of the original shall be made forthwith to the Minister.  R.R.O. 1990, Reg. 1012, s. 4 (5).

5. For the purpose of the definition of “telecommunication” in section 1 of the Act, “telecommunication” does not include any transmission, emission or reception of a class of signs, signals, writing, images or sound or intelligence of any nature to provide a telecommunication service for which a charge is made by a person who,

(a) owns or operates,

(i) a hotel or motel,

(ii) an apartment or condominium,

(iii) a school or university,

(iv) a hospital, and

(v) a taxi company in respect of the use of two-way radios;

(b) provides facsimile services;

(c) on or after the 1st day of April, 1993 provides a service that will take messages for a person who must contact the service by phone, voice-mail box, facsimile or computer in order to be advised of the messages taken, and that is not a paging service; or

(d) before the 1st day of April, 1993 provides a service that will take messages for a person who must contact the service by phone, voice-mail box, facsimile or computer in order to be advised of the messages taken, and that may be a paging service.  O. Reg. 759/92, s. 1.

5.1 The provision of the following telecommunication services is prescribed for the purposes of clause (k) of the definition of “sale” in subsection 1 (1) of the Act:

1. Telecommunication services that are transmitted and received within the province.

2. Telecommunication services that are transmitted from or received within the province if the instrument or facility for the emission, transmission or reception of the service in respect of which the charge for the provision of the telecommunication service is, or is to be, billed is ordinarily situated in the province.

3. Telecommunication services that are transmitted from the province and with respect to which the purchaser is not liable to pay tax on the telecommunication service to any other jurisdiction.

4. Private line telephone service which includes a service point in Ontario and which is provided to a person who contracts in Ontario for the provision of the service.

5. Telecommunication services for which the purchaser prepays a specified amount of money through the acquisition of a card or other device by means of which the purchaser acquires access to telecommunication services up to the specified amount without further payment.  O. Reg. 383/99, s. 3.

6. (1) In this section,

“blanket purchase exemption certificate” means a purchase exemption certificate provided by a person to a vendor that applies to one or more sales to the person by the vendor or to one or more premium payments to the vendor until the person revokes the certificate or the Minister cancels the certificate;

“single purchase exemption certificate” means a purchase exemption certificate provided by a person to a vendor that applies to only one sale, contract of insurance or benefits plan.  O. Reg. 449/05, s. 1.

(2) In each of the following circumstances, a person may provide a valid purchase exemption certificate to a vendor instead of paying to the vendor the amount of tax that would otherwise be levied and collected by the vendor under the Act:

1. On a sale of tangible personal property to the person if,

i. the person alleges he or she is exempt from tax under the Act, or

ii. the person alleges he or she is purchasing the property for the purposes of resale and, if the person is not resident in Ontario, he or she has a vendor permit under the Act and provides the number to the vendor.

2. On a sale to the person of a taxable service described in clause (a), (c), (c.1), (d) or (d.1) of the definition of “taxable service” in subsection 1 (1) of the Act if,

i. the person alleges that he or she is purchasing the service for the purposes of resale and, if the person is not resident in Ontario, he or she has a vendor permit under the Act and provides the number to the vendor, or

ii. the taxable service is supplied in respect of taxable tangible personal property with respect to which the person alleges he or she is exempt from tax under the Act.

3. On a payment by the person of a premium under a contract of insurance if,

i. the person is not required to pay tax under the Act in respect of premiums under the contract of insurance because the conditions under clause 2.1 (8) (b), (d), (e), (f), (j) or (k) of the Act are satisfied, or

ii. the contract of insurance has been prescribed for the purposes of clause 2.1 (8) (m) of the Act.

4. On a payment by the person of a premium or part of a premium under a benefits plan if the person is the planholder of the plan and is not required to pay tax under the Act in respect of the premium or the part of the premium because the conditions in subsection 2.1 (18) of the Act are satisfied.

5. On a sale to the person of tangible personal property or a taxable service if the person is a registrant and is not liable to pay tax under the Act in respect of the sale by reason of subsection 3 (5) of the Act.

6. On a sale in respect of railway rolling stock or on the payment of a premium under a contract of insurance in respect of railway rolling stock if the value on which the tax is payable under the Act is determined under section 15 and the person pays tax directly to the Minister.  O. Reg. 449/05, s. 1.

(3) Instead of providing a purchase exemption certificate to a vendor under subsection (2), a person who satisfies one of the following paragraphs may present to the vendor the identity card described in that paragraph:

1. An identity card issued by an accredited farm organization under the Farm Registration and Farm Organizations Funding Act, 1993 on the sale of tangible personal property or a taxable service or in respect of a contract of insurance on agricultural property if the person is engaged in the business of farming and is exempt from tax by reason of,

i. paragraph 13, 14 or 19 of subsection 7 (1) of the Act, in respect of the tangible personal property,

ii. subparagraph 2 ii or vi of subsection 7 (1) of the Act, in respect of the taxable service, or

iii. clause 2.1 (8) (b) of the Act, in respect of the contract of insurance.

2. An identity card issued by the Office of Protocol, Department of Foreign Affairs and International Trade (Canada), if the person is exempt from tax under subsection 7 (5) of the Act.

3. A Certificate of Indian Status identity card issued under the Indian Act (Canada) by the Government of Canada, if the person is exempt from tax in respect of the sale by reason of paragraph 59 of subsection 7 (1).

4. An identity card issued by the Canadian National Institute for the Blind on the sale of audio books, if the person is exempt from tax in respect of the sale by reason of paragraph 66 of subsection 7 (1) of the Act.  O. Reg. 449/05, s. 1.

(4) A purchase exemption certificate provided by a person under subsection (2) may be either a single purchase exemption certificate or blanket purchase exemption certificate and is valid only if it includes,

(a) the name of the person or name under which the person transacts business;

(b) the address of the person or the address at which the person carries on business;

(c) the name of the person who is authorized to acquire the tangible personal property or taxable service or enter into the contract of insurance or benefits plan;

(d) the reason for claiming the exemption from payment of tax;

(e) the person’s vendor permit number under the Act if the person is a vendor under the Act;

(f) the carrier account number issued by the Ministry of Transportation if the person is a registrant; and

(g) the date the person provided the purchase exemption certificate.  O. Reg. 449/05, s. 1.

(5) A person who provides a valid blanket purchase exemption certificate to a vendor is not required to supply any additional purchase exemption certificates on individual sales or premium payments until the blanket purchase exemption certificate is revoked or cancelled.  O. Reg. 449/05, s. 1.

(6) Every person who provides a blanket purchase exemption certificate shall promptly revoke the certificate if any information required to be included in the certificate was omitted or is not currently correct, but the person may provide a replacement certificate with the correct information, if the person is entitled under subsection (2) to use a valid blanket purchase exemption certificate.  O. Reg. 449/05, s. 1.

(7) If a person provides a purchase order to a vendor and intends to rely on a blanket purchase exemption certificate or on an identity card described in paragraph 1, 2, 3 or 4 of subsection (3), the person shall ensure that the purchase order contains,

(a) a notation that the purchaser is using a valid blanket purchase exemption certificate already provided to the vendor or an identity card to be presented to the vendor;

(b) the person’s vendor permit number if the person is registered under the Act as a vendor;

(c) the number or identifier from the identity card, if the person is entitled to present an identity card under subsection (3) on the sale; and

(d) the carrier account number issued by the Ministry of Transportation if the person is a registrant.  O. Reg. 449/05, s. 1.

(8) A person, other than a vendor who holds a “G” permit under subsection 4 (1) of Regulation 1013 of the Revised Regulations of Ontario, 1990 (General) made under the Act, shall not give a vendor a purchase exemption certificate but shall pay the tax under the Act to the vendor,

(a) on the price charged for tangible personal property purchased by the person for consumption or use in the course of carrying on a business;

(b) on the price charged for a taxable service purchased by the person in the course of carrying on a business; and

(c) on the payment of a premium charged for a contract of insurance or a benefits plan if the person entered into the contract of insurance or became a planholder of the benefits plan in the course of carrying on a business.  O. Reg. 449/05, s. 1.

(9) Every vendor shall maintain a record of the name and the number or other identifier on each identity card presented to the vendor.  O. Reg. 449/05, s. 1.

(10) A vendor shall not apply a valid single purchase exemption certificate to more than one sale, contract of insurance or benefits plan.  O. Reg. 449/05, s. 1.

(11) The Minister may cancel a blanket purchase exemption certificate if the person who provided it is not entitled to use it.  O. Reg. 449/05, s. 1.

7. Revoked:  O. Reg. 8/94, s. 1.

8. Revoked:  O. Reg. 8/94, s. 1.

9. Revoked:  O. Reg. 414/00, s. 1.

10. (1) In this section,

“bus” means a motor vehicle, excluding a van or a motorized mobile home within the meaning of Regulation 628 of the Revised Regulations of Ontario, 1990 (Vehicle Permits), designed to carry,

(a) ten or more persons who are not confined to wheelchairs and that is used to provide transportation, or

(b) three or more persons who are confined to wheelchairs and that is used to provide transportation for persons with physical disabilities;

“foster child” means a child who is receiving foster care within the meaning of the Child and Family Services Act;

“foster parent” means a foster parent within the meaning of the Child and Family Services Act;

“long-term lease” means a lease of a vehicle for a term of twelve months or longer;

“member of the family” means the daughter, daughter-in-law, son, son-in-law, foster child, spouse, parent, foster parent, father-in-law, mother-in-law, brother, brother-in-law, sister, sister-in-law, aunt, uncle, niece, nephew, grand aunt, grand uncle, grand niece, grand nephew, cousin, spouse of the aunt, uncle, niece, nephew, grand aunt, grand uncle, grand niece, grand nephew or cousin, grandparent or grandchild of the person with respect to whom the expression is being used;

“motor vehicle” means a motor vehicle for which a permit is required under section 7 of the Highway Traffic Act but does not include a motorcycle, a motor assisted bicycle, a motorized mobile home within the meaning of Regulation 628 of the Revised Regulations of Ontario, 1990 (Vehicle Permits) or a dune buggy within the meaning of Regulation 863 of the Revised Regulations of Ontario, 1990 (General);

“person with a permanent physical disability” means a person ordinarily resident in Ontario,

(a) who is permanently deprived of the use of an arm or leg,

(b) whose mobility within the usual surroundings that he or she lives or works in is permanently restricted to the use of a wheelchair, crutches, braces or other device designed to assist mobility,

(c) whose permanent visual acuity in both eyes with proper refractive lenses is 20/200 or less, or

(d) whose greatest diameter of field of vision is permanently less than 20 degrees;

“principal care giver” means an individual, other than a member of the family, who lives within 40 kilometres of the person with respect to whom the expression is being used and who maintains a care giving relationship with that person;

“purchaser of a motor vehicle” means a purchaser who acquires ownership of the vehicle or a purchaser who leases the vehicle under a long-term lease;

“spouse” means a spouse within the meaning of section 29 of the Family Law Act;

“van” means a motor vehicle having a body type described as “VN” on a permit issued under section 7 of the Highway Traffic Act.  R.R.O. 1990, Reg. 1012, s. 10 (1); O. Reg. 383/99, s. 4 (1, 2); O. Reg. 107/00, s. 1 (1); O. Reg. 325/05, s. 1 (1).

(2) In order to determine visual acuity for the purpose of clause (c) of the definition of “person with a permanent physical disability”, measurements shall be taken using a Snellen chart or a chart that is equivalent to a Snellen chart.  R.R.O. 1990, Reg. 1012, s. 10 (2).

(3) Subject to the limits set out in subsection (4), the Minister may, upon receipt of a written application, rebate to the purchaser of a motor vehicle the tax paid under section 2 or 4.2 of the Act by the purchaser if the Minister is satisfied that the purchaser is, at the time of the application, and was, at the time of the purchase, one of the following:

1. A person with a permanent physical disability who purchased the vehicle for his or her own transportation.

2. A person purchasing the vehicle to provide transportation for a person who,

i. is a member of the family,

ii. is a person with a permanent physical disability, and

iii. does not own a motor vehicle or lease a motor vehicle under a long-term lease.

2.1 A principal care giver purchasing the vehicle to provide transportation on a regular basis to a person with a permanent physical disability who does not own a motor vehicle or lease a motor vehicle on a long-term lease and who does not have a member of the family who is willing and able to provide transportation for that person.

3. A religious, charitable or non-profit organization, other than a municipality or local board, that purchased the vehicle for use, principally, to transport persons with a permanent physical disability.  R.R.O. 1990, Reg. 1012, s. 10 (3); O. Reg. 8/94, s. 2 (1); O. Reg. 383/99, s. 4 (3); O. Reg. 107/00, s. 1 (2); O. Reg. 325/05, s. 1 (2).

(4) The Minister may rebate the tax paid under,

(a) section 2 of the Act on modifications made to a motor vehicle purchased on or after June 1, 1989 if the modifications were solely to assist a person with a permanent physical disability; and

(b) section 2 or 4.2 of the Act on the purchase of a motor vehicle, before the modifications, if any, referred to in clause (a) were made, to a maximum of,

(i) $1,600, in respect of a motor vehicle that is not a van or a bus,

(ii) $2,400, in respect of a van, or

(iii) the tax paid, in respect of a bus.  O. Reg. 8/94, s. 2 (2).

(5) A rebate shall not be made under this section in respect of,

(a) an application submitted to the Minister more than four years after the tax was paid;

(b) a motor vehicle that will be used for profit or as part of an undertaking carried on for gain;

(c) a motor vehicle if, thirty days after the purchase or lease of that motor vehicle, the same purchaser or a member of the family of the purchaser or the person with a permanent physical disability or a member of the family of that person or the principal care giver owned or leased, under a long-term lease, another motor vehicle with respect to which a rebate has been made under this section, section 12 of Regulation 903 of the Revised Regulations of Ontario, 1980, as it existed on the 28th day of February, 1981 or section 32 of Regulation 904 of the Revised Regulations of Ontario, 1980, as it existed on the 31st day of May, 1989; or

(d) a motor vehicle that is,

(i) ordered from a vendor or purchased after May 18, 2004, or

(ii) ordered from a vendor or purchased before May 19, 2004 but not delivered before August 1, 2004.  R.R.O. 1990, Reg. 1012, s. 10 (5); O. Reg. 35/91, s. 2; O. Reg. 383/99, s. 4 (4); O. Reg. 107/00, s. 1 (3); O. Reg. 325/05, s. 1 (3); O. Reg. 364/05, s. 1.

(6) Clause (5) (c) does not apply to a religious, charitable or non-profit organization.  R.R.O. 1990, Reg. 1012, s. 10 (6).

(7) Despite clause (5) (c), a rebate may be made if,

(a) the motor vehicles are used to transport two or more persons each of whom is a person with a permanent physical disability;

(b) the other motor vehicle was purchased from the applicant by a member of the family or the principal care giver of the person with a permanent physical disability and the member of the family or the principal care giver paid tax under the Act on the fair value of the vehicle on its purchase or on the fair market value of the vehicle; or

(c) the owner or lessee of the other motor vehicle has been unable, after reasonable efforts, to expeditiously dispose of the vehicle.  R.R.O. 1990, Reg. 1012, s. 10 (7); O. Reg. 8/94, s. 2 (3); O. Reg. 383/99, s. 4 (5); O. Reg. 107/00, s. 1 (4); O. Reg. 325/05, s. 1 (4).

(8) A rebate may be paid in a situation described under clause (7) (c) only after the disposition of the other motor vehicle.  R.R.O. 1990, Reg. 1012, s. 10 (8).

(8.1) A rebate may be paid to a purchaser described in paragraph 2.1 of subsection (3) only in respect of applications submitted after May 5, 1998.  O. Reg. 383/99, s. 4 (6).

(9) An application for a rebate under this section must be accompanied by the following:

1. A copy of the purchase or long-term lease contract for the motor vehicle in respect of which a rebate is claimed setting out the purchase price or lease payments and the tax paid by the applicant.

2. If the applicant is purchasing the motor vehicle for the applicant’s own use, a physician’s certificate describing the nature of the physical disability of the applicant and stating whether the disability is permanent.

3. If the applicant is purchasing the motor vehicle to provide transportation for a member of the family who is a person with a permanent physical disability,

i. a physician’s certificate or an optometrist’s certificate of visual acuity describing the nature of the physical disability of the person and stating whether the disability is permanent, and

ii. a statement by the applicant of the applicant’s relationship to the person and the use the applicant will make of the vehicle to provide transportation for that person.

3.1 If the applicant is a principal care giver who is purchasing the motor vehicle to provide transportation for a person with a permanent physical disability,

i. a physician’s certificate or optometrist’s certificate of visual acuity describing the nature of the physical disability of the person and stating whether the disability is permanent,

ii. a statement by the applicant that he or she is a principal care giver of the person with a permanent physical disability and that no member of the family was willing and able to provide transportation for the person on a regular basis, and

iii. a statement by the applicant of the use the applicant will make of the vehicle to provide transportation for the person with a permanent physical disability.

4. If the applicant is a religious, charitable or non-profit organization, a statement certifying that the motor vehicle was purchased to be used principally to transport persons with permanent physical disabilities and that the applicant is a religious, charitable or non-profit organization other than a municipality or local board.  R.R.O. 1990, Reg. 1012, s. 10 (9); O. Reg. 383/99, s. 4 (7, 8); O. Reg. 107/00, s. 1 (5); O. Reg. 325/05, s. 1 (5).

(10) No more than one rebate may be made under this section in a twelve-month period to a purchaser leasing a motor vehicle under a long-term lease and the total amount of the rebates made under this section shall not exceed the amounts specified in subsection (4).  R.R.O. 1990, Reg. 1012, s. 10 (10).

(11) A rebate under this section may be made only to a purchaser of a motor vehicle who applies for it.  R.R.O. 1990, Reg. 1012, s. 10 (11).

(12) No tax imposed under section 4 of the Act is refundable under this section.  R.R.O. 1990, Reg. 1012, s. 10 (12); O. Reg. 8/94, s. 2 (4).

11. Where a refund claimed under subsection 2 (11) or (14) of the Act is sought with respect to an erroneous payment of tax made as the result of a sale under a contract in which a party other than the applicant for the refund is the purchaser who should have paid the tax or any part thereof a refund of which is sought, and where such tax, had it been properly paid, can reasonably be considered to have been likely to form a part of the contract price that would have been charged to the person claiming the refund, for the purposes of subsection 2 (17) of the Act it is determined that,

(a) there shall be refunded the amount by which the payment sought to be refunded exceeds the tax that would have been properly payable in the performance of the contract, if the amount of the excess can be clearly established to the satisfaction of the Minister; or

(b) where the amount of the excess referred to in clause (a) cannot be clearly established to the satisfaction of the Minister, there shall be refunded an amount equal to the product obtained by multiplying the amount of the refund for which a claim is made under subsection 2 (11) or (14) of the Act by 12 per cent.  R.R.O. 1990, Reg. 1012, s. 11; O. Reg. 704/92, s. 1.

12. The following persons or classes of persons are exempt from tax with respect to their consumption of prepared food products where the prepared food products are provided by them to others without specific charge:

1. Hospitals.

2. Nursing homes and homes for the aged.

3. Penal or correctional institutions.

4. Religious, charitable or benevolent organizations.

5. Employers where the prepared food products are provided to their employees in eating establishments operated by or on behalf of the employer.

6. Schools and universities where the prepared food products are provided to a student in an eating establishment operated by or on behalf of the school or university.  R.R.O. 1990, Reg. 1012, s. 12.

13. Revoked:  O. Reg. 414/00, s. 1.

14. (1) For purposes of paragraph 40 of subsection 7 (1) of the Act, the following machinery, equipment and processing materials are prescribed:

1. Machinery and apparatus used primarily and directly in,

i. the manufacture or production of tangible personal property,

ii. the development of manufacturing or production processes, or

iii. the development of tangible personal property for manufacture or production.

2. Machinery and apparatus used directly in the detection, prevention, measurement, treatment, reduction or removal of pollutants to water, soil or air if the pollutants are attributable to the manufacture or production of tangible personal property.

3. Equipment used in carrying refuse or waste from machinery or apparatus that is employed directly in the manufacture or production of tangible personal property or used for exhausting dust or noxious fumes produced by manufacturing or production operations.

4. Safety devices and equipment used in the prevention of accidents in the manufacture or production of tangible personal property.

5. Self-propelled trucks mounted on rubber-tired wheels for off-highway use exclusively at mines and quarries.

6. Internal combustion tractors, other than highway truck tractors, for use exclusively in “logging operations” as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990 made under the Act.

7. Logging wagons and logging sleds.

8. With respect to “logging operations” as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990 made under the Act, machinery, logging cars, cranes, captive balloons having a volume of 4,248 cubic metres or more, blocks and tackle, wire rope and logging boom chain, used exclusively in logging operations.

9. With respect to natural gas and oil wells, pipes or tubes commonly known as “oil-country goods” being casing or tubing and fittings, couplings, thread protectors and nipples for them, and drill pipe.

10. Machinery and apparatus, including wire rope, drilling bits and seismic shot-hole casing, used in exploration for or discovery or development of petroleum, natural gas or minerals.

11. Repair and maintenance equipment used in servicing machinery and equipment described in paragraphs 1 to 10.

12. Parts for machinery and equipment described in paragraphs 1 to 11.

13. Drilling mud and additives for it.

14. Geophysical surveying precision instruments and equipment for use exclusively in prospecting for, or in the exploration and development of, petroleum, natural gas, water wells or minerals, or for geophysical studies for engineering projects, including the following:

i. magnetometers,

ii. gravity meters and other instruments designed to measure the elements, variations and distortions of the natural gravitational force,

iii. field potentiometers, meggers, non-polarizing electrodes and electrical equipment for making measurements in drill holes,

iv. instruments and equipment for seismic prospecting,

v. geiger muller counters and other instruments for radioactive methods of geophysical prospecting,

vi. electrical and electronic amplifying devices and electrical thermostats designed to be used with any of the machinery and equipment described in subparagraphs i to v, and

vii. repair parts, tripods and fitted carrying cases for any of the machinery and equipment described in subparagraphs i to vi.

15. Materials, excluding grease, lubricating oils or fuel for use in internal combustion engines, consumed or expended by manufacturers or producers directly in,

i. the process of manufacture or production of tangible personal property,

ii. the development of manufacturing or production processes,

iii. the development of tangible personal property for manufacture or production, or

iv. the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 2.

16. Plans and drawings, related specifications and substitutes for them and reproductions of any of them used directly in,

i. the manufacture or production of tangible personal property,

ii. the development of manufacturing or production processes,

iii. the development of tangible personal property for manufacture or production, or

iv. the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 2.

17. Materials for use exclusively in the manufacture of plans, drawings, specifications, substitutes or reproductions referred to in paragraph 16.

18. Typesetting and composition, metal plates, cylinders, matrices, film, artwork, designs, photographs, rubber material, plastic material and paper material, when impressed with or displaying or carrying an image for reproduction by printing and used exclusively in the manufacture or production of printed material.  O. Reg. 288/91, s. 1 (1); O. Reg. 162/95, s. 4 (1).

(1.1) The following machinery and equipment are excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act:

1. Office equipment.

2. Any vehicle, and parts for it, that requires or has a permit issued under subsection 7 (7) of the Highway Traffic Act.

3. With respect to the production of electricity for use primarily in a building that normally utilizes electricity supplied by a public or private utility if that building is used primarily for activities other than the manufacture or production of tangible personal property,

i. electrical generators and electric alternators that are portable or mobile, including drive motors for them,

ii. generator and alternator sets that are portable or mobile,

iii. stand-by electric generators and stand-by electric alternators, including drive motors, and

iv. stand-by generator and stand-by alternator sets.

4. Containers designed for repeated use that are not for use exclusively and directly in the manufacture or production of tangible personal property.

5. Machinery and equipment, including transformers, used in the transmission or distribution of electricity, other than machinery and equipment used within the plant where the electricity is generated or within any other plant where tangible personal property, other than electricity, is manufactured or produced.

6. Pipes, valves, fittings, pumps, compressors, regulators and equipment ancillary to any such machinery or equipment, used in transporting or distributing tangible personal property, but not including pipes, valves, fittings, pumps, compressors, regulators or similar equipment used within a manufacturing or production facility or in gathering systems for natural gas, natural gas liquids or oil in natural gas fields or oil fields.  O. Reg. 288/91, s. 1 (1); O. Reg. 162/95, s. 4 (2).

(2) Revoked:  O. Reg. 379/01, s. 2 (1).

(3) For the purpose of paragraph 40 of subsection 7 (1) of the Act the following persons and corporations are prescribed as not entitled to the exemption, except for the exemption for processing materials conferred in paragraph 40:

1. Her Majesty in right of Ontario and all servants or agents of the Crown in right of Ontario with respect to machinery or equipment purchased by them as servants or agents of the Crown.

2. The corporation of a municipality including a district, metropolitan or regional municipal corporation.

3. A public utility commission, transportation commission, public library board, board of park management, board of health, police services board, planning board or any other board, commission, committee, body or local authority established or exercising any power or authority under any Act with respect to any of the affairs or purposes of a municipality or two or more municipalities or parts thereof.

4. Ontario Hydro, the Urban Transportation Development Corporation Ltd. or any corporation all of the directors of which are appointed by the Lieutenant Governor in Council.

5. Contractors and subcontractors in respect of their consumption of machinery and equipment to which paragraph 40 of subsection 7 (1) of the Act applies, consumed for the purpose of performing a contract or subcontract for the provision or installation of such machinery or equipment for any person or corporation to whom paragraph 1, 2, 3 or 4 applies.  R.R.O. 1990, Reg. 1012, s. 14 (3); O. Reg. 80/93, s. 1; O. Reg. 379/01, s. 2 (2).

(4) Every manufacturer or producer of electricity, other than a utility engaged in the manufacture or production of electricity for sale or a person or corporation referred to in subsection (3), is excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act with respect to the machinery or equipment used to produce the electricity.  R.R.O. 1990, Reg. 1012, s. 14 (4).

(5) Subsection (4) does not apply where the electricity is used,

(a) directly in the manufacture or production by the manufacturer or producer of tangible personal property other than electricity; or

(b) directly in and exclusively for the research or development by the manufacturer or producer of either goods for manufacture or production or manufacturing or production processes.  R.R.O. 1990, Reg. 1012, s. 14 (5).

(6) Every manufacturer or producer is excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act in respect of machinery, equipment and processing materials described in paragraph 18 of subsection (1) unless such machinery, equipment and processing materials are used exclusively in the manufacture or production of printed material by the manufacturer.  O. Reg. 162/95, s. 4 (3); O. Reg. 1/97, s. 2.

(7) For the purposes of paragraph 2.2 of subsection 7 (1) of the Act, telephone services that are acquired for domestic or family purposes are excluded from the exemption.  O. Reg. 404/96, s. 1.

14.1 Revoked:  O. Reg. 236/97, s. 1.

14.2 (1) In this section,

“affiliate” has the same meaning as in subsection 3 (14) of the Land Transfer Tax Act;

“custom computer program” means a computer program that is designed and developed solely to meet the specific requirements of, and that is intended for the exclusive use of, a particular person, and includes a computer program that is modified as described under clause (2) (c) or (d);

“modifications” means changes other than upgrades made to the source code of a computer program;

“pre-written computer program” means a pre-packaged computer program that may be purchased in a form that is ready for use without further modifications and includes a computer program that is designed and developed for the use of more than one person;

“upgrades” means improvements to a computer program that are offered to or available to all licensees of that computer program.  O. Reg. 383/99, s. 5; O. Reg. 282/04, s. 2 (1, 2).

(2) For the purpose of paragraph 62 of subsection 7 (1) of the Act, a computer program is considered to be designed and developed to meet the specific requirements of the initial purchaser if,

(a) the computer program is a custom computer program, whether designed and developed by the vendor or by an affiliate of the vendor;

(b) any modification to a custom computer program is made for the same person for whom the computer program was originally designed and developed;

(c) a modification is made before July 19, 2002 to a pre-written computer program solely to meet the specific requirements of a particular person and the price of, or payment for, the modification is separate from and is greater than the price of, or payment for, the computer program;

(c.1) one or more modifications are made to a pre-written computer program to meet the specific requirements of a particular person and the price of, or payment for, all such modifications made on or after July 19, 2002 is separate from and is greater than the price of, the payment for or the cost of the computer program;

(c.2) one or more modifications are made to a pre-written computer program by a particular person and the salary cost of making all such modifications made on or after July 19, 2002 is separate from and is greater than the price of, the payment for or the cost of the computer program;

(c.3) a combination of the modifications described in clauses (c.1) and (c.2) are made to a pre-written computer program and the price of, the payment for or the salary cost of all such modifications made on or after July 19, 2002 is separate from and is greater than the price of, the payment for or the cost of the computer program;

(d) a pre-written computer program is modified as a condition of its sale solely to meet the specific requirements of a particular person and the price of or payment for the computer program, as modified, is more than 200 per cent of the price that would have been the price of or payment for the computer program without the modifications;

(e) any further modifications to a computer program described in clause (a), (b), (c), (c.1), (c.2), (c.3) or (d) are made for the same person for whom the computer program was originally designed and developed; or

(f) a computer program described in clause (a), (b), (c), (c.1), (c.2), (c.3) or (d) that is used in a business is sold in a transaction in which the purchaser acquires all or substantially all of the business assets and will continue to carry on the business, and any modifications to the computer program provided to the purchaser.  O. Reg. 383/99, s. 5; O. Reg. 282/04, s. 2 (3-5).

(3) Subsection (2) does not apply to a computer program that is a copy of the computer program described in clause (2) (a), (b), (c) or (d) or that is sold or leased to or licensed for use by any person other than the person for whom the program was designed or developed.  O. Reg. 383/99, s. 5.

(4) For the purposes of clause (2) (c), (c.1), (c.2), (c.3) or (d), the price of or payment for a pre-written computer program is the price paid for the initial licence and does not include the price paid for any additional licences acquired by the purchaser.  O. Reg. 282/04, s. 2 (6).

14.3 (1) A purchaser of an audio book is exempt under paragraph 66 of subsection 7 (1) of the Act from tax,

(a) if he or she is legally blind and the audio book is purchased for his or her own use; or

(b) if he or she purchases the audio book on behalf of a person who is legally blind for that person’s own use.  O. Reg. 118/02, s. 2.

(2) For the purposes of subsection (1), a person is legally blind if his or her permanent visual acuity in both eyes with proper refractive lenses is 20/200 or less, when measured using a Snellen chart or a chart that is equivalent to a Snellen chart, or whose greatest diameter of field of vision is permanently less than 20 degrees.  O. Reg. 118/02, s. 2.

14.4 (1) For the purposes of paragraph 68 of subsection 7 (1) of the Act,

“reinforced concrete” means ready-mix concrete and includes any embedded or attached reinforcing material.  O. Reg. 291/03, s. 1.

(2) For the purposes of this section,

“exempt machinery” means machinery or equipment that is exempt from tax under paragraph 40 of subsection 7 (1) of the Act.  O. Reg. 291/03, s. 1.

(3) For the purposes of paragraph 68 of subsection 7 (1) of the Act, reinforced concrete used in the construction of a structure to be used by a manufacturer directly in the manufacture or production of tangible personal property is exempt from tax if any of the following circumstances exist:

1. The structure is used directly and exclusively as an integral component of exempt machinery.

2. The structure is used directly and exclusively to detect, prevent, measure, treat, reduce or remove pollutants to water, soil or air, but only if the pollutants are attributable to the manufacture or production of tangible personal property.

3. The structure is used as a foundation or base that forms an integral part of exempt machinery, but only if the structure is required by engineering specifications for the purpose of vibration protection or elevation in order to permit gravity feeds during the manufacturing or production process.

4. The structure is used as an elevated access to exempt machinery for operational and maintenance purposes.  O. Reg. 291/03, s. 1.

(4) Despite subsection (3), reinforced concrete is not exempt from tax if it is used in the construction of a floor or an environmental containment slab.  O. Reg. 291/03, s. 1.

15. (1) In this section,

“period” means the period authorized by the Minister under section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for accounting for the tax payable on railway rolling stock;

“railway rolling stock” means rolling stock capable of operating exclusively on rails as distinct from pavements or other roads.  R.R.O. 1990, Reg. 1012, s. 15 (1).

(2) In respect of railway rolling stock purchased, leased, manufactured or repaired by any person, the value on which the tax is payable under the Act shall be calculated, for any period, in accordance with the following formula:

where,

TV is the value on which the tax is payable,

FV is the total fair value of railway rolling stock, including repair parts therefor, purchased, leased or manufactured by the person during the period, and the total fair value of repair parts provided by the person for any other railway rolling stock used by the person during the period,

OD is the total distance travelled in Ontario by the railway rolling stock during the period,

TD is the total distance travelled anywhere by the railway rolling stock during the period.

R.R.O. 1990, Reg. 1012, s. 15 (2).

(3) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by any person in respect of railway rolling stock shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

OD and TD are the total distances specified in subsection (2).

O. Reg. 162/95, s. 5.

15.1 (1) For the purpose of this section,

“broker driver” means a person who has entered into a written agreement with a carrier to provide a tractor and driver for haulage of the carrier’s trailers or who provides a tractor, trailer and driver for use at the carrier’s direction, and who is under the direct control and vehicle registration of the carrier;

“international motor vehicle” means a motor vehicle used by a carrier or by the carrier’s broker drivers to travel exclusively between Ontario and any other jurisdiction or jurisdictions outside Canada;

“motor vehicle” means a self-propelled vehicle with a permanently attached truck body, bus body or delivery body, and includes truck tractors used for hauling purposes on public highways;

“Ontario-based international carrier” means a person who holds a vendor’s permit issued under the Act and who is a commercial or private carrier regularly operating a dedicated fleet of motor vehicles exclusively between Ontario and any other jurisdiction or jurisdictions outside Canada;

“parts” include repair parts and replacement parts, trailer tarps, tie-downs, equipment used on trailers, tires, antifreeze, oil, grease, mirrors and other accessories, but do not include maintenance tools and parts for repairs paid for by the driver during a trip;

“trailer” means a highway trailer or a trailer used in piggyback operations, including a container known as a “rail-tainer” or a “cargo-tainer”, or any container of a similar class or kind, that is either drawn on a highway by a motor vehicle or moved by rail and is considered a separate vehicle that is not part of the motor vehicle by which it is drawn.  O. Reg. 52/92, s. 1.

(2) In respect of motor vehicles purchased in or brought into Ontario or repaired inside or outside Ontario during any period, an Ontario-based international carrier shall pay tax on the international motor vehicles used by the carrier and the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the motor vehicle purchased during the period covered by the return, less the tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased during the same period or, if the motor vehicle was brought into Ontario for the first time for use during the period covered by the return, TV is the value determined under subsection (9) without the tax payable under section 3 of the Act, of the motor vehicle and of related repair parts,

OD is the total distance travelled in Ontario by the carrier’s international motor vehicles, including those of the carrier’s broker drivers,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TD is the total distance travelled both in and outside of Ontario by the carrier’s international motor vehicles, including those of the carrier’s broker drivers.

O. Reg. 52/92, s. 1.

(3) In respect of trailers purchased in or brought into Ontario or repaired inside or outside Ontario during any period, an Ontario-based international carrier shall pay tax on the trailers used by the carrier and the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the trailer purchased during the period covered by the return, less the tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased during the same period or, if the trailer was brought into Ontario for the first time for use during the period covered by the return, TV is the value determined under subsection (9) of the trailer and of related repair parts,

ODA is the total distance travelled in Ontario by all of the carrier’s motor vehicles, including those of the carrier’s broker drivers,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TDA is the total distance travelled both in and outside Ontario by all of the carrier’s motor vehicles and the motor vehicles of the carrier’s broker drivers.

O. Reg. 52/92, s. 1.

(4) For the purpose of determining the tax in subsection (2) or (3), if a motor vehicle or trailer used by the carrier or by any of the carrier’s broker drivers is leased or rented for a period in excess of thirty days, the fair value of the motor vehicle or of the trailer shall be the rental payments due during the period covered by the return.  O. Reg. 52/92, s. 1.

(5) The distances referred to in the formulas in subsections (2) and (3) shall be determined once a year at the beginning of the carrier’s fiscal year and shall be equal to the actual distances travelled by the motor vehicles in the preceding fiscal year.  O. Reg. 52/92, s. 1.

(6) Despite subsection (5), in respect of a carrier’s first year of operation, estimated distances may be used and, in the return for the first reporting period of the next fiscal year, the carrier shall recalculate the tax liability for the first year of operation based on the actual distance travelled by the motor vehicles during the year.  O. Reg. 52/92, s. 1.

(7) The fair value of repair parts on motor vehicles and trailers owned or leased by broker drivers shall not be included when calculating the amount denoted as TV in the formulas in subsections (2) and (3).  O. Reg. 52/92, s. 1.

(8) If an international motor vehicle or trailer was previously used only in Ontario or if the tax on it has been paid under this section or section 15.2 by the carrier or the carrier’s broker driver, its fair value shall not be included when calculating the amount denoted as TV in the formulas in subsections (2) and (3).  O. Reg. 52/92, s. 1.

(9) For the purpose of subsection 2 (18) of the Act, the tax shall be calculated using the value at the date of purchase outside Ontario less 1.5 per cent per month or part of a month to a maximum depreciation of 60 per cent from the date of purchase to the date of first importation into Ontario.  O. Reg. 52/92, s. 1.

(10) An Ontario-based international carrier shall remit the tax payable under this section at the time or times and in the manner specified in section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns by vendors.  O. Reg. 52/92, s. 1.

(11) This section does not apply to international motor vehicles that are subject to tax under section 15.2 as interprovincial motor vehicles.  O. Reg. 52/92, s. 1.

(12) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by an Ontario-based international carrier or the carrier’s broker drivers in respect of international motor vehicles used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

OD and TD are the total distances specified in subsection (2).

O. Reg. 162/95, s. 6.

(13) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by an Ontario-based international carrier or the carrier’s broker drivers in respect of trailers used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

ODA and TDA are the total distances specified under subsection (3).

O. Reg. 162/95, s. 6.

(14) This section does not apply to a multijurisdictional vehicle in respect of which tax is paid under subsection 3 (2) of the Act.  O. Reg. 379/01, s. 3.

15.2 (1) For the purpose of this section,

“broker driver” means a person who has entered into a written agreement with a carrier to provide a tractor and driver for haulage of the carrier’s trailers or who provides a tractor, trailer and driver for use at the carrier’s direction, and who is under the direct control and vehicle registration of the carrier with proper authorization of the province or provinces where required;

CAVR” means the Canadian Agreement on Vehicle Registration;

“international motor vehicle” means an international motor vehicle as defined in subsection 15.1 (1);

“interprovincial carrier” means a person based in Canada who regularly operates interprovincial transportation services including,

(a) carriers operating under extra-provincial licence granted under the Motor Vehicle Transport Act (Canada),

(b) furniture movers,

(c) bus operators providing scheduled or charter bus services, and

(d) private carriers;

“interprovincial motor vehicle” means a motor vehicle used by a carrier or by the carrier’s broker drivers to travel in Ontario and in at least one other Canadian province;

“intraprovincial motor vehicle” means a motor vehicle used by a carrier or by the carrier’s broker drivers to travel only in Ontario;

“large interprovincial carrier” means an interprovincial carrier who holds a vendor’s permit issued under section 5 of the Act and who operates more than ten interprovincial motor vehicles including those operated by the carrier’s broker drivers;

“motor vehicle” means a motor vehicle as defined in subsection 15.1 (1);

“parts” means parts as defined in subsection 15.1 (1);

“private carrier” means a person who transports the person’s own goods by means of motor vehicles and trailers on public highways;

“registration” means registration under CAVR;

“small interprovincial carrier” means an interprovincial carrier who operates ten interprovincial motor vehicles or less including those operated by the carrier’s broker drivers;

“trailer” means a trailer as defined in subsection 15.1 (1). O. Reg. 52/92, s. 1.

(2) In respect of motor vehicles purchased in or brought into Ontario or repaired inside or outside Ontario during any period, a large interprovincial carrier shall pay tax on interprovincial motor vehicles used by the carrier and all of the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the motor vehicle purchased during the period covered by the return, less the tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased by the carrier during the same period but not of related repair parts purchased by the carrier’s broker drivers or, if the motor vehicle was brought into Ontario for the first time for use during the period covered by the return, TV is the value of the motor vehicle determined under subsection (13) plus the fair value or value determined under subsection (13) of related repair parts purchased by the large interprovincial carrier, but not by any of the carrier’s broker drivers,

OD is the total distance travelled in Ontario by all of the carrier’s CAVR fleets of interprovincial motor vehicles, including those of the carrier’s broker drivers, unless the carrier chooses to prorate tax on broker drivers’ vehicles separately,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TD is the total distance travelled both in and outside of Ontario by all of the carrier’s CAVR fleets of interprovincial motor vehicles, including those of the carrier’s broker drivers, unless the carrier chooses to prorate tax on broker drivers’ vehicles separately.

O. Reg. 52/92, s. 1.

(3) In respect of motor vehicles purchased in or brought into Ontario during any period, a small interprovincial carrier shall pay tax on the interprovincial motor vehicles used by the carrier and all of the carrier’s broker drivers based on the formula set out in subsection (2), except that the carrier shall not include in the amount denoted as TV the fair value or the value determined under subsection (13) of repair parts purchased by the carrier.  O. Reg. 52/92, s. 1.

(4) In respect of trailers purchased in or brought into Ontario or repaired inside or outside Ontario during any period, a large interprovincial carrier shall pay tax on the trailers used by the carrier and all of the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the trailer purchased during the period covered by the return, less any tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased by the carrier during the same period but not of related repair parts purchased by the carrier’s broker drivers or, if the trailer was brought into Ontario for the first time for use during the period covered by the return, TV is the value of the trailer determined under subsection (13) plus the fair value or value determined under subsection (13) of related repair parts purchased by the large interprovincial carriers but not by the carrier’s broker drivers,

ODA is the total distance travelled in Ontario by all of the carrier’s CAVR interprovincial, intraprovincial and international motor vehicles, including those of the carrier’s broker drivers,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TDA is the total distance travelled both in and outside Ontario by all of the carrier’s CAVR interprovincial, intraprovincial and international motor vehicles, including those of the carrier’s broker drivers.

O. Reg. 52/92, s. 1.

(5) In respect of trailers purchased or brought into Ontario during any period, a small interprovincial carrier shall pay tax on the trailers used by the carrier and all of the carrier’s broker drivers based on the formula set out in subsection (4), except that the carrier shall not include in the amount denoted as TV the fair value or the value determined under subsection (13) of repair parts purchased by the carrier.  O. Reg. 52/92, s. 1.

(6) For the purpose of determining the tax in subsection (2) or (4), if a motor vehicle or trailer used by the carrier or any of the carrier’s broker drivers is leased or renewed for a period in excess of thirty days, the fair value of the motor vehicle or of the trailer shall be the rental payments due during the period covered by the return.  O. Reg. 52/92, s. 1.

(7) The distances referred to in the formulas in subsections (2) and (4) shall be determined annually for the one-year period ending on the 30th day of June and shall equal the actual distance travelled by the motor vehicles in that period.  O. Reg. 52/92, s. 1.

(8) Despite subsection (7), in respect of the carrier’s first year of operation, estimated distances may be used in the manner set out in subsection (9).  O. Reg. 52/92, s. 1.

(9) If, as of the 30th day of June, the carrier has been in operation for more than three months but less than twelve months, the carrier shall file a return for that period based on estimated distances and, in the return for the first reporting period following the 30th day of June, the carrier shall recalculate the tax liability for the first period of operation based on the actual distance travelled by the motor vehicles during the period.  O. Reg. 52/92, s. 1.

(10) If, as of the 30th day of June, the carrier has been in operation for three months or less, the carrier shall not file a return for that period and, in the return for the first reporting period following the 30th day of June, the carrier shall calculate the tax liability for the first period of operation of up to fifteen months based on the actual distance travelled by the motor vehicles during the period.  O. Reg. 52/92, s. 1.

(11) For the purpose of determining the tax in subsections (2) and (4), the Ontario sales tax distribution rate, being the amount designated by OD/TD and ODA/TDA in the formulas in subsections (2) and (4), shall be calculated to two decimal points and shall be the greater of 0.50 per cent and the actual distribution rate.  O. Reg. 52/92, s. 1.

(12) If an interprovincial motor vehicle or trailer was previously used only in Ontario or if the tax on it has been paid under this section or section 15.1 by the carrier or the carrier’s broker driver, its fair value shall not be included when calculating the amount denoted as TV in the formulas in subsections (2) and (4).  O. Reg. 52/92, s. 1.

(13) For the purpose of subsection 2 (18) of the Act, the tax shall be calculated using the value at the date of purchase outside Ontario less 1.5 per cent per month or part of the month to a maximum depreciation of 60 per cent from the date of purchase to the date of registration.  O. Reg. 52/92, s. 1.

(14) A large interprovincial carrier shall remit the tax payable under this section at the time or times and in the manner specified in section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns by vendors.  O. Reg. 52/92, s. 1.

(15) A small interprovincial carrier who purchases a motor vehicle or trailer in Ontario shall pay the tax on its fair value at the time of sale and may apply for a refund of the amount by which the tax paid exceeds the tax payable under this section.  O. Reg. 52/92, s. 1.

(16) A small interprovincial carrier who purchases an interprovincial motor vehicle or trailer outside Ontario shall remit the tax payable under this section,

(a) in the case of an interprovincial motor vehicle, at the time of registration of the motor vehicle; and

(b) in the case of a trailer, at the time and in the manner provided under subsection 2 (18) of the Act.  O. Reg. 52/92, s. 1.

(17) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by a large interprovincial carrier, a small interprovincial carrier or such carrier’s broker drivers in respect of interprovincial motor vehicles used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

OD and TD are the total distances specified in subsection (2).

O. Reg. 162/95, s. 7.

(18) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by a large interprovincial carrier, a small interprovincial carrier or such carrier’s broker drivers in respect of trailers used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

ODA and TDA are the total distances specified in subsection (4).

O. Reg. 162/95, s. 7.

(19) This section does not apply to a multijurisdictional vehicle in respect of which tax is paid under subsection 3 (2) of the Act.  O. Reg. 379/01, s. 4.

15.3 (1) In this section,

“non-resident” means a person who is not ordinarily resident in Ontario;

“temporary use” means use in Ontario for a period not exceeding twelve months.  O. Reg. 52/92, s. 1.

(2) In respect of tangible personal property purchased by a non-resident and brought into Ontario for temporary use, the non-resident shall pay tax each month at the rate specified under section 2 of the Act on the tax value of the tangible personal property calculated in accordance with the following formula:

where,

NBV is the net book value of the tangible personal property at the time it is brought into Ontario.

O. Reg. 52/92, s. 1.

(3) Tax payable under subsection (2) shall be paid for each full month of temporary use and for each part of a month consisting of thirteen or more consecutive days.  O. Reg. 52/92, s. 1.

(4) Tax payable under subsection (2) shall be remitted at the time or times and in the manner specified in section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns by vendors.  O. Reg. 52/92, s. 1.

(5) Where tangible personal property brought into Ontario by a non-resident remains in Ontario for longer than twelve months, the non-resident shall pay tax at the rate specified under section 2 of the Act on the net book value of the tangible personal property at the time it was brought into Ontario less the tax paid or payable under subsection (2).  O. Reg. 52/92, s. 1.

(6) Tax payable by the non-resident under subsection (5) shall be remitted on or before the due date of the next remittance required to be made under section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 in respect of the first remittance period following the end of the twelve-month period.  O. Reg. 52/92, s. 1.

(7) This section does not apply to the tangible personal property of a non-resident who is required to pay tax on the use of the property under any other section of the Regulation.  O. Reg. 52/92, s. 1.

15.4 (1) In this section,

“temporary use” means use for a period not exceeding twelve months.  O. Reg. 784/92, s. 1.

(2) In respect of tangible personal property purchased, manufactured or produced by a vendor for resale but put to temporary use, the vendor shall pay tax each month at the rate specified under section 2 of the Act on the tax value of the tangible personal property calculated in accordance with the following formula:

where,

FV is the fair value of the tangible personal property at the time it was purchased, manufactured or produced by the vendor.

O. Reg. 784/92, s. 1.

(3) Tax payable under subsection (2) shall be paid for each full month of temporary use and for each part of a month consisting of thirteen or more days, calculated for the time that the tangible personal property was put to the temporary use.  O. Reg. 784/92, s. 1.

(4) Where the tangible personal property is a motor vehicle as defined in the Highway Traffic Act manufactured or produced by the vendor, the vendor shall pay, in addition to the tax payable under subsection (2), the tax levied under sections 3 and 4 of the Act in full at the time that the motor vehicle is first put to a temporary use.  O. Reg. 784/92, s. 1.

(5) Tax payable under this section shall be remitted at the times and in the manner specified in Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns and the remission of tax due by the vendor.  O. Reg. 784/92, s. 1.

(6) Where the vendor continues to use the tangible personal property for longer than twelve months, the vendor shall pay tax at the rate specified under section 2 of the Act on the fair value of the tangible personal property at the time it was purchased, manufactured or produced by the vendor less the tax paid or payable under subsection (2).  O. Reg. 784/92, s. 1.

(7) Tax payable by the vendor under subsection (6) shall be remitted on or before the due date of the next remittance required to be made under Regulation 1013 of the Revised Regulations of Ontario, 1990 in respect of the first remittance period following the end of the twelve-month period.  O. Reg. 784/92, s. 1.

(8) This section does not apply to tangible personal property of a vendor who is required to pay tax on the use of the property under any other section of this Regulation.  O. Reg. 784/92, s. 1.

(9) Despite this section, where the tangible personal property is taken out of inventory and capitalized as a fixed asset in the books and records of the vendor, tax is payable under section 2 of the Act on the fair value of the tangible personal property and under sections 3 and 4 of the Act at the time it was taken out of inventory.  O. Reg. 784/92, s. 1.

15.5 (1) In this section.

“dealer” means a vendor who is registered under the Motor Vehicle Dealers Act as a motor vehicle dealer;

“demonstrator” means a motor vehicle maintained by a dealer solely for use by the dealer and the dealer’s staff to demonstrate the motor vehicle to potential customers;

“motor vehicle” and “gross weight” have the same meaning as that contained in the Highway Traffic Act;

“temporary use” means use for a period not exceeding twelve months.  O. Reg. 784/92, s. 1.

(2) Despite section 15.4, in respect of motor vehicles having a gross weight of 4,100 kilograms or less, purchased for resale by a dealer, but taken out of inventory and put to a temporary use for business or personal use purposes by the dealer’s staff, family, customers or others without charge, the dealer shall pay tax each month at the rate specified under section 2 of the Act; the tax shall be calculated in accordance with the following formula:

where,

  ASP means total sales (including any taxes payable under sections 3 and 4 of the Act) of new and used motor vehicles sold in the month (before trade-in) divided by the total number of new and used motor vehicles sold in the month,

VU means those motor vehicles, having a gross weight of 4,100 kilograms or less, that are used for business or personal purposes by the dealer’s staff, family, customers or others without charge, but does not include demonstrators,

TR is the applicable tax rate.

O. Reg. 784/92, s. 1.

(3) For the purposes of subsection (2), where a dealer makes no sales during the reporting month, ASP shall be calculated using the total sales and number of new and used vehicles sold in the last previous month that sales were made.  O. Reg. 784/92, s. 1.

(4) Despite section 15.4, in respect of motor vehicles having a gross weight of more than 4,100 kilograms, purchased for resale by a dealer, but taken out of inventory and put to a temporary use for business or personal use purposes by the dealer’s staff, family, customers and others without charge, and not for use as a demonstrator, the dealer shall pay tax each month at the rate specified in section 2 of the Act; the tax shall be calculated in accordance with the following formula:

where,

FV is the fair value of the motor vehicle at the time it is purchased for resale by the dealer,

TR is the applicable tax rate.

O. Reg. 784/92, s. 1.

(5) If a dealer charges a person referred to in subsection (2) or (4) a fee for use of a motor vehicle and the tax payable on the fee is less than the amount of tax that the dealer would have been required to pay under subsection (2) or (4) if no fee had been charged, the dealer shall collect the tax payable under section 2 of the Act from the person and shall pay an amount equal to the difference between,

(a) the tax that would have been payable under,

(i) subsection (2), if VU were equal to one, or

(ii) subsection (4), if no fee had been charged; and

(b) the amount of the tax payable by the person under section 2 of the Act.  O. Reg. 784/92, s. 1.

(6) The tax payable under this section shall be paid for each full month of temporary use and for each part of a month consisting of thirteen or more days of temporary use, calculated for the time that the motor vehicle is taken out of inventory.  O. Reg. 784/92, s. 1.

(7) The tax payable under this section shall be remitted at the times and in the manner specified in Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns and the remission of tax due by the vendor.  O. Reg. 784/92, s. 1.

(8) Despite subsection (2) or (4), where a motor vehicle purchased for resale is taken out of inventory, used by a dealer and capitalized in the dealer’s books and records as a fixed asset, the tax is payable under section 2 of the Act by the dealer on the fair value of the motor vehicle at the time the motor vehicle is taken out of inventory.  O. Reg. 784/92, s. 1.

(9) In addition to the tax payable under this section, the dealer shall pay the tax levied under sections 3 and 4 of the Act, in full, at the time when the motor vehicle is first put to the temporary use.  O. Reg. 784/92, s. 1.

15.6 In respect of the provision of private line telephone service, as specified in paragraph 4 of section 5.1, the purchaser shall pay tax on that proportion of the fair value of the telecommunication service provided that the total length of the private line within the province bears to the total length through which the service is provided.  O. Reg. 383/99, s. 6.

16. (1) The class of transactions described in this section is prescribed for purposes of clause 2 (16) (d) of the Act.  R.R.O. 1990, Reg. 1012, s. 16 (1).

(2) The price of admission is reduced and the vendor agrees to refund all or part of the price of admission.  O. Reg. 623/92, s. 3.

17. For the purpose of clause 9 (2) (f) of the Act, the organizations named in the Schedule are prescribed.  R.R.O. 1990, Reg. 1012, s. 17.

17.1 (1) When tangible personal property is sold in Ontario and within 30 days of the sale the tangible personal property is taken out of Ontario by the purchaser or on the purchaser’s behalf to be used permanently outside of Ontario, the Minister may rebate to the purchaser the tax paid by the purchaser at the time of the sale.  O. Reg. 383/99, s. 7.

(2) No rebate under this section shall be made,

(a) if the tax is paid in respect of tobacco products, liquor, wine or beer;

(b) if the tax paid on each invoice is less than $50; or

(c) if the purchaser applies for the rebate more than four years after the payment of the tax for which the rebate is claimed.  O. Reg. 8/94, s. 3 (2).

(3) Despite subsection (1), the Minister shall not rebate any tax paid in respect of the purchase of tangible personal property made on or after the 1st day of October, 1991, unless the purchaser supplies proof that satisfies the Minister that all of the tax payable to another Canadian jurisdiction by the purchaser in respect of the tangible personal property has been paid and that none of the tax is refundable to the purchaser.  O. Reg. 176/91, s. 2.

17.2 A person applying for a rebate under section 17.1 shall provide such information in writing as the Minister may require to determine the person’s eligibility for the rebate.  O. Reg. 8/94, s. 3 (3).

17.3 Revoked:  O. Reg. 8/94, s. 3 (3).

18. (1) In this section,

“Ontario portion” means that portion of a premium under a contract of insurance that relates only to the risk, peril or events in Ontario where the contract applies to a risk, peril or events both inside and outside Ontario.  O. Reg. 162/95, s. 8.

(2) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion shall be determined in the following manner:

1. If the contract of insurance specifies the amount of the premium that applies to the insured value of real and tangible personal property in Ontario, that amount shall be the Ontario portion.

2. If the contract of insurance does not specify the amount of the premium that applies to the insured value of real and tangible personal property in Ontario, the Ontario portion shall be determined by multiplying the premium by the proportion that the insured value of the real and tangible personal property in Ontario is of the insured value of all the real and tangible personal property covered by the contract of insurance.

3. If the contract of insurance does not cover real or tangible personal property, the Ontario portion shall be calculated on a reasonable basis, taking into account the nature of the insurance and, based on information or estimates from the most recent fiscal period of the insured, the gross revenue earned by the insured inside and outside Ontario, salaries and wages paid by the insured inside and outside Ontario and any other information that may form a reasonable basis for apportionment.  O. Reg. 162/95, s. 8.

(3) Despite subsection (2), the Ontario portion with respect to insurance on railway rolling stock, as defined in subsection 15 (1), and a multijurisdictional vehicle shall be determined as provided under subsection 15 (3) or section 24.9.  O. Reg. 379/01, s. 5.

(4) In the circumstances described in paragraphs 2 and 3 of subsection (2) and subsection (3), the insured shall provide a purchase exemption certificate to the insurer for that portion of the premium that is not the Ontario portion.  O. Reg. 162/95, s. 8.

(5) For the purposes of subsection 2.1 (17) of the Act, the insurer shall calculate the portion of the premium that is taxable and exempt from tax or that is taxable at different rates as if rated under separate contracts of insurance.  O. Reg. 162/95, s. 8.

(6) If the insurer fails to comply with subsection (5), the appropriate rate of tax shall be paid and collected on the entire premium paid under a contract of insurance that relates to a risk, peril or event that is taxable and exempt or, if the contract of insurance relates to a risk, peril or event that is taxable at different rates, at the higher rate of tax levied under section 2.1 of the Act.  O. Reg. 162/95, s. 8.

19. (1) In this section,

“bus” means a motor vehicle designed to carry,

(a) ten or more persons who are not confined to wheelchairs and that is used to provide transportation, or

(b) three or more persons who are confined to wheelchairs and that is used to provide transportation for persons with physical disabilities;

“date of the sale”, in the case of a long-term lease, means the day the lease starts;

“hybrid electric vehicle” means a multipurpose passenger vehicle, a passenger car or a truck as those expressions are defined in subsection 2 (1) of the Motor Vehicle Safety Regulations made under the Motor Vehicle Safety Act (Canada), other than a bus, which has a gross vehicle weight rating of less than 10,000 pounds and which, at the time it is first sold at retail,

(a) has its motive power provided by an electric motor and internal combustion engine,

(b) has regenerative braking designed to recover energy released while the vehicle speed is reducing or the vehicle is stopping, and

(c) has an energy storage system such as a battery, ultra capacitor or flywheel;

“long-term lease” means a lease of a motor vehicle for a term of at least twelve months;

“purchaser of a motor vehicle” means a purchaser who acquires ownership of the vehicle or a purchaser who leases the vehicle under a long-term lease, but does not include a purchaser who acquires ownership of or leases under a long-term lease a vehicle that is not designed to carry goods or passengers.  R.R.O. 1990, Reg. 1012, s. 19 (1); O. Reg. 304/02, s. 1 (1).

(2) An application for a rebate of tax paid under section 2, 4 or 4.2 of the Act shall be made to the Minister in writing.  R.R.O. 1990, Reg. 1012, s. 19 (2); O. Reg. 8/94, s. 4 (1).

(3) An application for a rebate under this section shall be accompanied by,

(a) in the case of a rebate provided for under subclause 48 (3) (g) (i) of the Act, for a motor vehicle purchased to operate on an alternative fuel,

(i) the original purchase or lease contract for the vehicle setting out the purchase price or lease payments and the tax paid under section 2 or 4.2 of the Act on the purchase or lease or, where no written contract is executed, the original retail sales tax receipt issued by a person authorized to issue permits under section 7 of the Highway Traffic Act,

(ii) proof of the amount of tax paid under section 2 or 4.2 of the Act on the purchase of the vehicle, and

(iii) for a previously owned vehicle that uses any form of energy described in sub-subclause 48 (3) (g) (i) (A) or (B) of the Act, a description of the fuel system written by the person who issued the safety standards certificate for the vehicle;

(b) in the case of a rebate referred to in subclause 48 (3) (g) (ii) or clause 48 (3) (h) of the Act, for a vehicle converted to operate on an alternative fuel,

(i) the original purchase or lease contract for the vehicle setting out the purchase price or lease payments and the tax paid under section 2, 4 or 4.2 of the Act on the purchase or lease or, where no written contract has been executed, the original retail sales tax receipt issued by a person authorized to issue permits under section 7 of the Highway Traffic Act,

(ii) proof of the amount of tax paid under section 2, 4 or 4.2 of the Act on the purchase of the vehicle,

(iii) the original purchase contract or other document that evidences the conversion of the vehicle showing the date on which the conversion took place and the tax paid under section 2 of the Act, and

(iv) for a motor vehicle converted to operate on any form of energy described in sub-subclause 48 (3) (g) (i) (A) or (B) of the Act, a description of the fuel system written by the person who made the conversion;

(c) in the case of a rebate provided for under subclause 48 (3) (g) (iii) of the Act, for tangible personal property sold as a conversion kit and the labour to install it, the documents required under subclauses (b) (iii) and (iv);

(d) in the case of a rebate for a hybrid electric vehicle, as referred to in clause 48 (3) (i) of the Act,

(i) the original purchase or lease contract for the vehicle setting out the purchase price or lease payments and the tax paid under section 2 or 4.2 of the Act on the purchase or lease or, where no written contract is executed, the original retail sales tax receipt issued by a person authorized to issue permits under section 7 of the Highway Traffic Act, and

(ii) proof of the amount of tax paid under section 2 or 4.2 of the Act on the purchase of the vehicle.  R.R.O. 1990, Reg. 1012, s. 19 (3); O. Reg. 648/91, s. 4 (1-3); O. Reg. 784/92, s. 2; O. Reg. 8/94, s. 4 (2-6); O. Reg. 304/02, s. 1 (2).

(3.1) The original of any document submitted under subsection (3) shall be returned promptly to the person who submitted it.  O. Reg. 648/91, s. 4 (4).

(4) The Minister may, upon receipt of a written application,

(a) rebate the tax paid under section 2 or 4.2 of the Act to the purchaser of,

(i) a motor vehicle purchased to operate on energy described in sub-subclause 48 (3) (g) (i) (A) or (B) of the Act,

(ii) a motor vehicle and any tangible personal property sold as a conversion kit as well as the labour provided to install it, if the vehicle is converted to permit it to operate in a manner described in subclause 48 (3) (g) (i) of the Act within 180 days of the date of sale of the vehicle,

(iii) tangible personal property sold as a conversion kit to permit a motor vehicle to operate on energy described in sub-subclause 48 (3) (g) (i) (A) or (B) of the Act, including the labour, if any, to install it;

(b) rebate the tax paid under section 4 of the Act to the purchaser if the vehicle is converted to permit it to operate in a manner described in sub-subclause 48 (3) (g) (i) (A) of the Act within 180 days of the date of sale of the vehicle;

(c) rebate the tax paid under section 2 or 4.2 of the Act to the purchaser of a hybrid electric vehicle.  R.R.O. 1990, Reg. 1012, s. 19 (4); O. Reg. 52/92, s. 2; O. Reg. 8/94, s. 4 (7-9); O. Reg. 304/02, s. 1 (3).

(5) A rebate under clause (4) (a) shall not exceed,

(a) in the case of a motor vehicle that is not a bus and that uses propane, $750; and

(b) in the case of a motor vehicle that is not a bus and that uses a form of energy described in sub-subclause 48 (3) (g) (i) (A) or (B) of the Act, other than propane, $1,000.  R.R.O. 1990, Reg. 1012, s. 19 (5).

(6) A rebate under clause (4) (b) shall be the amount of tax paid under section 4 of the Act.  R.R.O. 1990, Reg. 1012, s. 19 (6).

(6.1) A rebate under clause (4) (c) shall not exceed $1,000.  O. Reg. 304/02, s. 1 (4).

(7) No more than one rebate may be made under this section in a twelve-month period to a purchaser leasing a motor vehicle that is not a bus under a long-term lease and the total amount of the rebates made under this section shall not exceed the aggregate of,

(a) the tax paid under section 4 of the Act; and

(b) the lesser of,

(i) the tax paid under section 2 of the Act with respect to the leasing of that vehicle, and

(ii) the following amount for the type of vehicle indicated:

A. $750 for a vehicle that uses propane.

B. $1,000 for a vehicle that uses a form of energy described in sub-subclause 48 (3) (g) (i) (A) or (B) of the Act, other than propane.

C. $1,000 for a hybrid electric vehicle.  R.R.O. 1990, Reg. 1012, s. 19 (7); O. Reg. 304/02, s. 1 (5).

20. (1) No rebate is payable under section 19 unless the conditions set out in this section are met.  O. Reg. 304/02, s. 2.

(2) The application for the rebate must be made within four years after the payment of the tax under section 2, 4 or 4.2 of the Act.  O. Reg. 304/02, s. 2.

(3) Delivery of the vehicle must have been taken by the purchaser on or after the following date:

1. For a vehicle other than a hybrid electric vehicle, February 17, 1989.

2. For a hybrid electric vehicle that is a passenger car, May 10, 2001.

3. For a hybrid electric vehicle that is a multipurpose passenger vehicle or a truck, June 18, 2002.  O. Reg. 304/02, s. 2; O. Reg. 364/05, s. 2.

21. (1) Every person required to keep records under section 16 of the Act shall keep records at the person’s place of business or residence in Ontario in sufficient form and containing sufficient information in order that the Minister may determine the amount of tax charged, collected, payable and remitted.  R.R.O. 1990, Reg. 1012, s. 21 (1).

(2) Records may be kept in a form that is a reproduction made by any photographic, photostatic, microfilming or other process that reproduces an exact copy of the original record, if the person required to keep the records provides reasonable access to any equipment required in order to read the reproduced record.  R.R.O. 1990, Reg. 1012, s. 21 (2).

(3) Records may be kept by the use of electronic data processing media if the person required to keep the records,

(a) allows the Minister to conduct reasonable tests on the hardware and software comprising the system in order to verify the accuracy of the processing of transactions and the accuracy of data processing controls;

(b) provides full information on all computer programs and changes thereto; and

(c) maintains an accounting system designed to provide access to primary source documents and data containing the transactions recorded by the data processing system.  R.R.O. 1990, Reg. 1012, s. 21 (3).

22. The records required by the Act and this Regulation to be kept by a vendor, manufacturer, wholesaler, importer, jobber and agent may be destroyed if written authorization has been obtained from the Minister or,

(a) the records relate to a fiscal year that ended not later than seventy-two months prior to the start of the fiscal year during which the records will be destroyed;

(b) the records are for a period for which all returns required by the Act have been filed and all tax assessed by the Minister has been paid;

(c) the records are for a period for which there is no unresolved dispute concerning any tax payable by the person retaining the records, and for which the time limit for filing a Notice of Objection to any Assessment of tax or Statement of Disallowance has expired;

(d) any demand for the production of the records has been met to the satisfaction of the Minister; and

(e) written notice has not been given by the Minister requiring the retention of the records.  R.R.O. 1990, Reg. 1012, s. 22; O. Reg. 35/91, s. 4.

23. (1) In this section,

“sheet metal contractor” means a contractor who manufactures and installs sheet metal products;

“sheet metal products” means components and fixtures preassembled or manufactured from galvanized metal, aluminum, painted galvanized metal, copper, stainless steel and roofdeck for incorporation into real property.  R.R.O. 1990, Reg. 1012, s. 23 (1).

(2) If a sheet metal contractor fails to keep records that will enable the contractor to determine the costs of the sheet metal products the contractor manufactures and installs, the fair value of the sheet metal products is, where the sheet metal products are manufactured from,

(a) galvanized metal, 1.88 times the cost of the galvanized metal;

(b) aluminum, 1.63 times the cost of the aluminum;

(c) painted galvanized metal, 1.63 times the cost of the galvanized metal;

(d) copper, 1.38 times the cost of the copper;

(e) stainless steel, 1.38 times the cost of the stainless steel; and

(f) roofdeck, 1.13 times the cost of the roofdeck.  O. Reg. 420/91, s. 1.

23.1 (1) For the purpose of subsection 2 (9) of the Act, the fair value of telecommunication services produced by a person for that person’s own consumption or use shall be the produced cost of the telecommunication services.  O. Reg. 759/92, s. 3.

(2) If the person is in the business of selling telecommunication services, the tax payable on telecommunication services referred to in subsection (1) shall be calculated on their tax value determined in accordance with the following formula:

where,

  RSP is the average retail selling price of the services to the person’s customers.

O. Reg. 759/92, s. 3.

Multijurisdictional Vehicles

Interpretation

24. (1) In this section and in sections 24.1 to 24.9,

“acquisition date” means, in respect of a multijurisdictional vehicle,

(a) the date on which the vehicle is purchased,

(b) in the case of a leased vehicle, the date on which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the date the recipient of the gift receives possession of the vehicle;

“acquisition year” means, in respect of a multijurisdictional vehicle,

(a) the calendar year in which the vehicle is purchased,

(b) in the case of a leased vehicle, the calendar year in which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the calendar year in which the recipient of the gift receives possession of the vehicle;

“broker driver” means a person who has entered into a written agreement with a registrant to provide a multijurisdictional vehicle and driver for haulage of the registrant’s trailers or who provides a multijurisdictional vehicle, trailer and driver for use at the registrant’s direction, and who is under the direct control and vehicle registration of the registrant;

“bus” means a multijurisdictional vehicle designed for carrying 10 or more passengers and used for the transportation of individuals;

“calculation year” means the period beginning on July 1 of a year and ending on the following June 30;

“fleet of vehicles” means one or more multijurisdictional vehicles that are designated as a fleet by the registrant;

“fleet registration date” means the date in the year that the fleet of vehicles is licensed in Ontario, including licensing renewals or re‑registration;

“fleet registration year” means, in respect of a fleet of vehicles, the period, not exceeding 12 months, beginning on the fleet registration date;

“Ontario travel ratio” means, in respect of a multijurisdictional vehicle,

(a) in respect of the fleet registration year, if a fleet of vehicles operated in Ontario for at least 90 days during the previous calculation year, the ratio that the actual distance travelled in Ontario by the fleet of vehicles during the previous calculation year is of the total actual distance travelled by the fleet of vehicles during that same period, or

(b) if clause (a) does not apply, the ratio that a reasonable estimate of the distance that the fleet of vehicles will travel in Ontario during the fleet registration year is of a reasonable estimate of the total distance that the fleet of vehicles will travel in the fleet registration year;

“registration date”, in respect of a fleet of vehicles, means the first date in the calendar year that the vehicle or fleet is registered under the International Registration Plan;

“tractor” means a motor vehicle that is designed and used primarily to draw other vehicles, but is not built to carry a load other than part of the weight of the vehicle and load being drawn;

“vehicle taxable value” means,

(a) the fair value of the multijurisdictional vehicle, if acquired new, including the purchase price of any accessories and modifications made to the vehicle at the vehicle’s acquisition date, but excluding any credit under subsection 2 (20) of the Act,

(b) if the multijurisdictional vehicle is leased, the purchase price of the vehicle as described in the lease agreement or, if no purchase price is provided in the lease agreement, the value of the vehicle determined in accordance with subsection (3), including the purchase price of any accessories and modifications made to the vehicle at the vehicle’s acquisition date, or

(c) the fair value of the multijurisdictional vehicle, if acquired used, or the value of the vehicle as determined in accordance with subsection (3), whichever is greater, including the purchase price of any accessories and modifications made to the vehicle at the used vehicle’s acquisition date, but excluding any credit under subsection 2 (20) of the Act.

(2) Where, by reason of severe damage or excess use of the multijurisdictional vehicle, the value of the used vehicle, as determined in accordance with subsection (3), exceeds its purchase price, the Minister may, upon submission of proof satisfactory to the Minister, accept its purchase price as the vehicle taxable value.

(3) For the purpose of determining the value of the vehicle in clauses (b) and (c) of the definition of “vehicle taxable value” and in subsection (2), the following formula shall be used:

V = N × D

where,

V is the value of the used vehicle for the purposes of clause (b) and (c) of the definition of “vehicle taxable value”,

N is the new value for the vehicle as set out in Schedule 2,

D is the depreciation percentage for the year of acquisition for the used vehicle as set out in Schedule 3.

O. Reg. 379/01, s. 6.

Calculation of tax

24.1 (1) The tax payable under subsection 3 (2) of the Act shall be calculated in accordance with the following formula:

Tax = VTV × R × OTR × M

where,

VTV is the vehicle taxable value,

R is the tax rate established under subsection  (2),

OTR is the Ontario travel ratio for the fleet of vehicles,

M is the number of whole or partial calendar months in the fleet registration year of the vehicle at the time that the vehicle is registered divided by 12,

and rounded to the nearest cent, and every fraction of less than one-half cent shall not be counted and every fraction of one-half cent or more shall be counted as one cent.  O. Reg. 379/01, s. 6.

(2) For the purposes of subsection (1), the tax rate with respect to a multijurisdictional vehicle is the rate determined by reference to the applicable year and type of vehicle in the following table:

 

Tax Rate for a Year

Tax Rate for a vehicle other than a bus (%)

Tax Rate for a bus (%)

acquisition year

3.000

2.491

first calendar year following the acquisition year

2.700

1.841

second calendar year following the acquisition year

2.250

1.372

third calendar year following the acquisition year

1.901

1.074

fourth calendar year following the acquisition year

1.612

0.845

fifth calendar year following the acquisition year

1.570

0.830

sixth calendar year following the acquisition year

1.483

0.705

seventh calendar year following the acquisition year

1.447

0.575

eighth calendar year following the acquisition year

1.448

0.506

ninth and subsequent calendar years following the acquisition year

1.475

0.438

O. Reg. 379/01, s. 6.

(3) Where the tax payable under subsection 3 (2) of the Act for a fleet registration year has been calculated using clause (b) of the definition of “Ontario travel ratio” and the actual calculation for the fleet registration year is different, the registrant shall recalculate the tax owing under this section and, if tax is owing, the registrant shall remit the tax to the Minister at the beginning of the next fleet registration year or, if tax has been overpaid, the registrant may apply to the Minister for a refund.  O. Reg. 379/01, s. 6.

Tax credit for relief from double taxation

24.2 (1) The Minister, on application and on receipt of evidence satisfactory to the Minister, shall provide a credit in respect of tax paid under section 2 or subsection 3 (9) of the Act to a registrant liable to pay tax under subsection 3 (2) of the Act if,

(a) the registrant or the owner paid tax under section 2 of the Act upon the purchase of the multijurisdictional vehicle or upon bringing or sending the vehicle into Ontario or paid tax under subsection 3 (9) of the Act when the multijurisdictional vehicle ceased to be registered under the International Registration Plan; and

(b) the tax had been paid within five years, for a vehicle other than a bus, or eight years for a bus, before the date the vehicle becomes a multijurisdictional vehicle.  O. Reg. 379/01, s. 6.

(2) For the purposes of subsection (1), if the multijurisdictional vehicle was purchased by a broker driver of the registrant, the credit shall be given to the registrant on behalf of the broker driver.  O. Reg. 379/01, s. 6.

(3) The credit to which a person is entitled under this section shall be calculated in accordance with the following formula:

Credit = VTV × CR × OTR × M

where,

VTV is the vehicle taxable value,

CR is the credit tax rate established under subsection (4),

OTR is the Ontario travel ratio for the fleet of vehicles,

M is the number of whole or partial calendar months in the fleet registration year of the vehicle at the time that the vehicle is registered divided by 12,

and rounded to the nearest cent, and every fraction of less than one-half cent shall not be counted and every fraction of one-half cent or more shall be counted as one cent.  O. Reg. 379/01, s. 6.

(4) For the purposes of subsection (3), the credit tax rate with respect to a multijurisdictional vehicle is the rate determined by reference to the appropriate calendar year and type of vehicle in the following table:

 

Calendar Year

Tax Rate for a vehicle other than a bus (%)

Tax Rate for a bus (%)

acquisition year

2.143

2.411

first calendar year following the acquisition year

1.871

1.761

second calendar year following the acquisition year

1.522

1.292

third calendar year following the acquisition year

1.279

0.884

fourth calendar year following the acquisition year

1.185

0.610

fifth calendar year following the acquisition year

0.000

0.600

sixth calendar year following the acquisition year

0.000

0.402

seventh calendar year following the acquisition year

0.000

0.040

O. Reg. 379/01, s. 6.

(5) The credit to which a person is entitled under this section shall be applied against any tax payable under subsection 3 (2) of the Act in respect of the multijurisdictional vehicle on which the tax under section 2 or subsection 3 (9) of the Act was paid.  O. Reg. 379/01, s. 6.

(6) The registrant shall apply for the credit provided under this section at the time the registrant is required to pay tax under subsection 3 (2) of the Act in respect of the fleet of vehicles of which the multijurisdictional vehicle referred to in this section is a part.  O. Reg. 379/01, s. 6.

(7) Despite subsection (1), no credit for any tax paid under section 2 of the Act on lease payments shall be provided in respect of a multijurisdictional vehicle acquired under a lease agreement.  O. Reg. 379/01, s. 6.

Tax credit for changes in fleets

24.3 (1) If a multijurisdictional vehicle that was registered as part of a fleet is, before the end of the fleet registration year, registered as part of another fleet of the same registrant, the Minister may provide a credit for the tax liability of the registrant under subsection 3 (2) of the Act with respect to the first fleet may be calculated in accordance with the following formula:

Credit = TP – (TP × MR)

where,

TP is the tax paid under subsection 3 (2) of the Act to licence the vehicle for the registration year as part of the first fleet,

  MR is the number of whole or partial calendar months in the fleet registration year of the vehicle that have elapsed at the time that the vehicle is transferred divided by 12.

O. Reg. 379/01, s. 6.

(2) If a multijurisdictional vehicle owned by a registrant or a broker driver ceases to be part of a registrant’s fleet of vehicles before the end of the fleet registration year, the Minister may provide a credit for the tax liability of the registrant in respect of its fleet registration year, which, if the owner is a broker driver, would be provided to the registrant on behalf of the broker driver, calculated in accordance with the following formula:

Credit = TP – (TP × MR)

where,

TP is the tax paid under subsection 3 (2) of the Act to licence the vehicle for the registration year as part of the first fleet,

  MR is the number of whole or partial calendar months in the fleet registration year of the vehicle that have elapsed at the time that the vehicle is transferred divided by 12.

O. Reg. 379/01, s. 6.

(3) A credit provided under subsection (2) to a registrant may be applied to any tax liability under subsection 3 (2) of the registrant in respect of the fleet of vehicles for the fleet registration year or for the immediately following registration year, but not to any subsequent registration year.  O. Reg. 379/01, s. 6.

(4) If the registrant has not received the credit or any portion of the credit provided under this section by May 31, 2002, the registrant may apply to the Minister for a refund of the amount not credited.  O. Reg. 379/01, s. 6.

Depreciated value of vehicle

24.4 (1) For the purposes of subsection 3 (9) of the Act, the depreciated value of the multijurisdictional vehicle shall be determined in accordance with the following formula:

DPV = VTV – (VTV × 1.00% × M)

where,

DPV is the depreciated value of the vehicle,

VTV is the vehicle taxable value,

M is the number of months or partial calendar months that the vehicle was owned by the owner of the vehicle.

O. Reg. 379/01, s. 6.

(2) Despite subsection (1), the depreciated value of the multijurisdictional vehicle cannot be less than 40 per cent of the vehicle taxable value as specified in subsection 24.1 (1).  O. Reg. 379/01, s. 6.

(3) The owner shall pay the tax owing under subsection 3 (9) of the Act at the time that the multijurisdictional vehicle is registered under the Highway Traffic Act for use in Ontario only.  O. Reg. 379/01, s. 6.

(4) No tax is payable under subsection 3 (9) of the Act upon any subsequent registration of the same vehicle by the same owner under the Highway Traffic Act for use in Ontario only.  O. Reg. 379/01, s. 6.

Tax credit for change in vehicle status

24.5 (1) If tax had been paid under section 2 of the Act by the owner on the basis that the multijurisdictional vehicle was used solely in Ontario prior to the vehicle being registered under the International Registration Plan, the owner, upon application and upon providing proof of the amount of tax paid, is entitled to a credit equal to the tax payable under subsection 3 (9) of the Act.  O. Reg. 379/01, s. 6.

(2) If tax had been paid under subsection 15.1 (2) or 15.2 (2) on the multijurisdictional vehicle prior to the vehicle being registered under the International Registration Plan, the owner, upon application and upon providing proof of the amount of tax paid, is entitled to a credit against the tax payable under subsection 3 (9) of the Act calculated in accordance with the following formula:

TC1 = DPV × 8% × OTR

where,

TC1 is the amount of the credit available,

DPV is the depreciated value of the vehicle, as determined under subsection 24.4 (1),

OTR is the proportion that the distance travelled in Ontario is of the total distance travelled both inside and outside Ontario used in the calculation of the tax under subsection 15.1 (2) or 15.2 (2).

O. Reg. 379/01, s. 6.

Refund for trade-in vehicle

24.6 (1) In this section,

“trade-in vehicle” means a multijurisdictional vehicle on which tax has been paid under subsection 3 (2) of the Act and that, before the expiration of its current registration year, is accepted at the time of sale on account of the purchase price of another multijurisdictional vehicle.  O. Reg. 379/01, s. 6.

(2) The Minister may, upon receipt of an application and evidence satisfactory to the Minister, refund tax paid under subsection 3 (2) of the Act on a trade-in multijurisdictional vehicle to the registrant registering a new multijurisdictional vehicle.  O. Reg. 379/01, s. 6.

(3) For the purposes of this section, the refund shall be calculated as follows:

TC = T × MR

where,

TC is the amount of the refund,

T is the amount of tax paid under subsection 3 (2) of the Act on the trade-in vehicle,

  MR is the number of whole or partial calendar months in the vehicle’s registration year remaining at the time that the vehicle is traded in divided by 12.

O. Reg. 379/01, s. 6.

(4) In the application made under subsection (2), the registrant may request that the credit be applied to the tax payable under subsection 3 (2) of the Act on the new vehicle.  O. Reg. 379/01, s. 6.

Refund for temporary replacement vehicle

24.7 (1) In this section,

“replacement vehicle” means a vehicle that is leased to be used as a replacement for a multijurisdictional vehicle that is being repaired and unavailable for use during a portion of the vehicle’s registration year.  O. Reg. 379/01, s. 6.

(2) Subject to subsection (3), if tax is paid under subsection 3 (2) of the Act on a replacement vehicle, the Minister may, upon receipt of an application and evidence satisfactory to the Minister, refund the tax paid under subsection 3 (2) of the Act on the multijurisdictional vehicle being repaired so long as the replacement vehicle is used only in accordance with the terms of the licence issued for the multijurisdictional vehicle.  O. Reg. 379/01, s. 6.

(3) No refund under this section shall exceed the amount of tax paid on lease payments for the replacement vehicle in respect of rental periods that are within the period during which the multijurisdictional vehicle is being repaired and the registration year of the multijurisdictional vehicle.  O. Reg. 379/01, s. 6.

Refund re registration in another jurisdiction

24.8 (1) The Minister may, upon receipt of an application and evidence satisfactory to the Minister, refund to a person who registers a vehicle under the International Registration Plan in a jurisdiction other than Ontario an amount equal to the credit determined under section 24.2 if the person,

(a) had previously paid tax on the vehicle under section 2 or subsection 3 (9) of the Act; and

(b) pays tax to Ontario pursuant to the person’s registration under the International Registration Plan in respect of the vehicle.  O. Reg. 379/01, s. 6.

(2) The Minister may, upon receipt of an application and evidence satisfactory to the Minister, refund to a person who registers a vehicle under the International Registration Plan in a jurisdiction other than Ontario an amount equal to the credit that the person would have been entitled to under section 24.3 if,

(a) the person pays tax to Ontario under section 3 of the Act; and

(b) the vehicle has been transferred to another fleet which travels in Ontario during the fleet registration year.  O. Reg. 379/01, s. 6.

Ontario portion of insurance premium

24.9 (1) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by a person for a multijurisdictional vehicle shall be determined by multiplying the premium paid under the contract of insurance by the Ontario travel ratio for the vehicle.  O. Reg. 379/01, s. 6.

(2) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by a person with respect to a trailer used by the person in Ontario shall be determined by multiplying the premium paid under the contract of insurance by the Ontario travel ratio for the vehicle.  O. Reg. 379/01, s. 6.

25. (1) Revoked:  O. Reg. 266/01, s. 2.

(2) Revoked:  O. Reg. 266/01, s. 2.

(3) Revoked:  O. Reg. 266/01, s. 2.

(4) Revoked:  O. Reg. 266/01, s. 2.

(5) Revoked:  O. Reg. 266/01, s. 2.

(6) For the purposes of subsections 4 (10) and (11) of the Act, the information to be provided to the Minister consists of,

(a) a description of each make and model of vehicle to be offered for sale including the motor size, in litres, and type of transmission;

(b) the highway fuel consumption rating for each model as determined in accordance with the standards and procedures required by Transport Canada for inclusion in the Fuel Consumption Guide;

(c) sufficient information for the Minister to determine whether the vehicle is a sport utility vehicle or a passenger vehicle;

(d) estimates of highway fuel economy prepared for and submitted to the Environmental Protection Agency (United States of America), specifications, background materials or any other information necessary to determine the highway fuel consumption rating when requested by the Minister.  O. Reg. 469/92, s. 1.

26. For the purposes of subsection 4.2 (2) of the Act, the appraised value of a used motor vehicle means the value determined in a form satisfactory to the Minister by,

(a) a person who is recognized by an insurer licensed under the Insurance Act to appraise motor vehicles; or

(b) a new or used motor vehicle dealer licensed under the Motor Vehicle Dealers Act who sells at retail an average of twenty-five motor vehicles in a year.  O. Reg. 8/94, s. 6.

27. (1) For the purposes of the definition of “fair market value” in subsection 4.2 (3) of the Act, the average wholesale price of a used motor vehicle, other than a motorcycle, is the amount, without adjustment, specified in the most recent edition of the Canadian Red Book or the Canadian Older Car/Truck Red Book that describes the make, model and year of the used motor vehicle.  O. Reg. 8/94, s. 6; O. Reg. 383/99, s. 8.

(2) Where the amount is not specified for the make or model of the used motor vehicle in either publication referred to in subsection (1), the average wholesale price shall be the amount specified for the make or model that is, in the opinion of the Minister, most similar to the make or model of the used motor vehicle.  O. Reg. 8/94, s. 6.

(3) Where the amount is not specified for the year of the used motor vehicle in either publication referred to in subsection (1), the average wholesale price shall be the amount specified for the year nearest to the year of the used motor vehicle.  O. Reg. 8/94, s. 6.

(4) Where an application is made to register an antique or other motor vehicle for which the average wholesale price cannot be determined under subsection (1), (2) or (3), the average wholesale price shall be the sale price, the replacement value for insurance purposes or the appraised value determined under section 26, whichever is the greatest.  O. Reg. 8/94, s. 6.

(5) For the purposes of the definition of “fair market value” in subsection 4.2 (3) of the Act, the average wholesale price of a used motorcycle is equal to its fair value under the Act.  O. Reg. 8/94, s. 6.

28. (1) For the purposes of this section,

“carrier” means a person who engages in the commercial transportation of goods or passengers and who operates for such purpose one or more motor vehicles licensed or required to be licensed under the Highway Traffic Act.  O. Reg. 8/94, s. 6.

(2) A person claiming exemption from tax under clause 4.2 (4) (a) of the Act shall complete the form provided by the Minister and provide to the person authorized by the Minister proof that the vehicle was previously licensed in another jurisdiction.  O. Reg. 8/94, s. 6.

(3) A person claiming exemption from tax under clause 4.2 (4) (b) of the Act shall complete the form provided by the Minister and provide to the person authorized by the Minister proof of Indian status and reserve residency.  O. Reg. 8/94, s. 6.

(4) A person claiming exemption from tax under clause 4.2 (4) (c), (d) or (e) of the Act shall complete the form provided by the Minister and provide to the person authorized by the Minister,

(a) a copy of the will under which the bequest was made;

(b) a document that evidences the making of the gift; or

(c) a copy of the separation agreement or divorce documentation under which the motor vehicle was transferred.  O. Reg. 8/94, s. 6.

(5) Instead of providing the documents referred to in subsection (4), the person may provide an affidavit verifying that the vehicle was acquired in the circumstances described in clause 4.2 (4) (c), (d) or (e) of the Act.  O. Reg. 8/94, s. 6.

(6) For the purposes of clause 4.2 (4) (d) of the Act, the person’s step-father, step-mother, step-grandfather, step-grandmother, step-son, step-daughter, step-grandson and step-granddaughter are prescribed as a class.  O. Reg. 8/94, s. 6.

(7) For the purposes of clause 4.2 (4) (f) of the Act, the following transactions are prescribed:

1. The transfer of a vehicle between a carrier and another person if the transferee,

i. completes the form provided by the Minister and provides to the person authorized by the Minister a copy of the bill of sale showing that the owner paid the applicable tax, and a copy of the Transfer of Vehicle Registration made under the Highway Traffic Act, or

ii. provides an affidavit sworn by the person and the carrier stating the reasons for the transfer.

2. The transfer of a vehicle between the holder of a taxi licence and another person if,

i. the transfer is solely to comply with municipal requirements,

ii. the transferee completes the form provided by the Minister, and

iii. an affidavit is provided to the person authorized by the Minister stating the reasons for the transfer.

3. The transfer of a vehicle to a person or entity specified in subsection 7 (5) of the Act if the person’s identification card issued by the Department of Foreign Affairs and International Trade of Canada or documentation from the entities referred to in paragraph 1 or 2 of that subsection or letter of accreditation from the Department is shown to the person authorized by the Minister and the person or official of the entities referred to in paragraph 1 or 2 of that subsection.

4. The transfer of the registration of a vehicle for insurance, security or other purposes satisfactory to the Minister if the transferor retains possession of the motor vehicle and the transferee completes the form provided by the Minister.

5. The transfer of a vehicle donated to a religious, charitable or benevolent organization if the donor has paid the applicable tax under the Act and the organization,

i. provides to the person authorized by the Minister an affidavit stating that the transfer is a gift and that the tax was paid upon the purchase of the vehicle, and

ii. completes the form provided by the Minister.  O. Reg. 8/94, s. 6; O. Reg. 379/01, s. 7.

29. On an application for a refund under subsection 4.2 (9) of the Act, the purchaser shall provide to the Minister,

(a) proof of the amount of tax paid to the person authorized by the Minister;

(b) a bill of sale or other document signed by the seller that specifies the total consideration paid for the vehicle; and

(c) the appraised value of the vehicle determined under section 26 provided that the appraisal was made within sixty days of the date of sale.  O. Reg. 8/94, s. 6.

30. (1) The Minister may rebate to a person engaged in the business of farming the amount calculated under subsection (4), (5) or (5.1) with respect to tangible personal property that is,

(a) purchased on or after May 8, 1996; and

(b) incorporated into structures to be used exclusively for farm purposes.  O. Reg. 404/96, s. 2; O. Reg. 97/97, s. 1 (1); O. Reg. 383/99, s. 9 (1); O. Reg. 236/00, s. 2 (1).

(2) Subsection (1) does not apply to a structure that is or will be on completion,

(a) a dwelling house;

(b) an office;

(c) a residential garage;

(d) a road or sidewalk; or

(e) a bridge.  O. Reg. 404/96, s. 2.

(3) A person engaged in the business of farming is not eligible for a rebate with respect to the purchase, lease or acquisition of an existing structure.  O. Reg. 404/96, s. 2.

(4) If a person engaged in the business of farming applies for a rebate with respect to tangible personal property the person purchased, the amount of the rebate comprises the tax paid on the tangible personal property.  O. Reg. 404/96, s. 2.

(5) If a person engaged in the business of farming applies for a rebate with respect to tangible personal property incorporated into a structure on or after May 8, 1996 under a written construction contract for the supply and incorporation of the property into the structure, the amount of the rebate is determined as follows:

1. For those payments made in satisfaction of the contract price that are subject to the tax imposed by Part IX of the Excise Tax Act (Canada), 3 per cent of the sum of those payments and that tax.

2. For all other payments made in satisfaction of the contract price, 3.4 per cent of those payments.  O. Reg. 404/96, s. 2; O. Reg. 383/99, s. 9 (2); O. Reg. 236/00, s. 2 (2).

(5.1) If a person eligible to claim a rebate under subsection (5) can establish that the amount of the rebate determined under subsection (5) is less than the amount of tax paid on the tangible personal property by the contractor, the amount of the rebate shall be equal to the amount of the tax paid by the contractor, instead of the amount determined under subsection (5).  O. Reg. 97/97, s. 1 (2).

(6) No rebate shall be made under subsection (5) with respect to that portion of the contract price that is attributable to,

(a) land or land improvement costs;

(b) the value of performance bonds;

(c) equipment rental charges;

(d) charges for temporary facilities;

(e) building permit fees;

(f) demolition charges;

(g) charges for development or project consulting services; or

(h) the cost of tangible personal property eligible for exemption under any other section of the Act.  O. Reg. 404/96, s. 2.

(7) An application for a rebate under this section shall be made in writing, and shall set out the information the Minister requires to determine the eligibility of the applicant for the rebate.  O. Reg. 404/96, s. 2.

(8) No application for a rebate shall be made in an amount that is less than $100 unless the application constitutes a final claim under this section.  O. Reg. 404/96, s. 2.

(9) No rebate is payable under this section unless the application for it is made within four years after the day on which the tax to be rebated was paid.  O. Reg. 236/00, s. 2 (3).

31. (1) In this section,

“eligible conservation or restoration project” means work that maintains, preserves or restores the heritage elements or features of a qualifying heritage property;

“qualifying heritage property” means a property that is protected under the Ontario Heritage Act as a heritage property and includes,

(a) buildings or structures designated by a municipality under Part IV of that Act,

(b) buildings or structures in a heritage conservation district designated under Part V of that Act, and

(c) buildings or structures protected by an easement or covenant described in section 22 or 37 of that Act;

“qualifying tangible personal property” means tangible personal property that is incorporated into an eligible conservation or restoration project.  O. Reg. 236/00, s. 3.

(2) The Minister may rebate to the owner of a qualifying heritage property the amount calculated under subsection (4), (5) or (7) with respect to qualifying tangible personal property to a maximum of $3,000 for each qualifying heritage property.  O. Reg. 236/00, s. 3.

(3) No rebate shall be made under this section unless application for it is made on or before September 30, 2001.  O. Reg. 236/00, s. 3.

(4) Subject to subsection (2), if the owner purchases the qualifying tangible personal property after May 4, 1999 and before January 1, 2001, the amount of the rebate is the tax paid on the qualifying tangible personal property.  O. Reg. 236/00, s. 3.

(5) Subject to subsections (2), (6) and (7), if the qualifying tangible personal property is incorporated into the eligible conservation or restoration project after May 4, 1999 and before January 1, 2001 under a written construction contract for its supply and incorporation into the project, the amount of the rebate is determined as follows:

1. For the payments made in satisfaction of the contract price that are subject to the tax imposed by Part IX of the Excise Tax Act (Canada), 3 per cent of the sum of those payments and that tax.

2. For all other payments made by the owner of the qualifying heritage property in satisfaction of the contract price, 3.4 per cent of those payments.  O. Reg. 236/00, s. 3.

(6) No rebate shall be made under subsection (5) with respect to the portion of the contract price that is attributable to any of the following:

1. Land or land improvement costs.

2. The cost of obtaining performance bonds.

3. Equipment rental charges.

4. Charges for temporary facilities.

5. Building permit fees.

6. Demolition charges.

7. Charges for development or project consulting services.

8. The cost of tangible personal property eligible for exemption under any other section of the Act.  O. Reg. 236/00, s. 3.

(7) If a person eligible to receive a rebate under subsection (5) establishes that the amount of the rebate under that subsection is less than the amount of tax paid on the qualifying tangible personal property incorporated by the contractor in to the qualifying heritage property, the amount of the rebate is, subject to subsection (2), the amount of the tax paid by the contractor instead of the amount determined under subsection (5).  O. Reg. 236/00, s. 3.

(8) An application for a rebate under this section must be made in writing and must set out such information as the Minister may require to determine the eligibility of the applicant for the rebate.  O. Reg. 236/00, s. 3.

(9) The application must be accompanied by a certificate from the municipality in which the qualifying heritage property is located, confirming that either,

(a) municipal approval, as required under the Ontario Heritage Act or under any easement or covenant under that Act, has been obtained for the alteration of the qualifying heritage property; or

(b) the consent of the municipality is not required for the eligible conservation or restoration project.  O. Reg. 236/00, s. 3.

(10) If the property is subject to an easement or covenant entered into by the Ontario Heritage Foundation, the application must also be accompanied by a certificate from the Foundation confirming that either,

(a) the approval of the Foundation, as required under the easement or covenant, has been obtained for the alteration of the qualifying heritage property; or

(b) the consent of the Foundation is not required for the eligible conservation or restoration project.  O. Reg. 236/00, s. 3.

Rebate under Clause 48 (3) (q) of the Act

31.1 (1) Subject to subsection (12), the Minister may rebate to the owner of an eligible electricity generating facility or eligible deep lake-water cooling facility an amount with respect to the tax paid under the Act in respect of eligible tangible personal property,

(a) that is purchased and incorporated after November 25, 2002 and before January 1, 2008 into an eligible electricity generating facility that is not a qualifying nuclear facility or into an eligible deep lake-water cooling facility; or

(b) that is purchased and incorporated after June 1, 2003 and before January 1, 2008 into an eligible electricity generating facility that is a qualifying nuclear facility.  O. Reg. 284/03, s. 2.

(2) The following property is eligible tangible personal property for the purposes of clause 48 (3) (q) of the Act and this section:

1. Tangible personal property that is incorporated into an eligible electricity generating facility, but not tangible personal property that is otherwise eligible for exemption under the Act.

2. Tangible personal property that is incorporated into an eligible deep lake-water cooling facility, but not tangible personal property that is otherwise eligible for exemption under the Act.  O. Reg. 284/03, s. 2.

(3) In this section,

“alternative or renewable source of energy” has the same meaning as in section 204 of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) made under the Corporations Tax Act;

“district cooling” means the cooling of more than one building through the distribution by underground pipes of cooling fluid from a central location;

“district heating” means the heating of more than one building through the distribution by underground pipes of steam or heated water from a central location;

“eligible deep lake-water cooling facility” means a facility in Ontario, including qualifying property, that uses the constantly cold water found at the bottom of a lake to cool the fluid circulated through a district cooling system;

“eligible electricity generating facility” means a facility in Ontario, excluding residential premises and multi-residential premises and including qualifying property incorporated into the facility,

(a) that is substantially used to generate electricity all or substantially all of which is generated from alternative or renewable sources of energy, and

(b) that generates the electricity for its own consumption or for delivery to a person in Ontario or to the IMO-controlled grid, and

(c) that is not a non-qualifying nuclear facility;

IMO-controlled grid” has the same meaning as in subsection 2 (1) of the Electricity Act, 1998;

“non-qualifying nuclear facility” means a nuclear facility that is not a qualifying nuclear facility;

“owner” includes, in respect of an eligible deep lake-water cooling facility or an eligible electricity generating facility, the lessee of the facility;

“qualifying nuclear facility” has the same meaning as in section 204 of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) made under the Corporations Tax Act;

“qualifying property” means,

(a) tangible personal property used to deliver electricity to a person in Ontario or to the IMO-controlled grid,

(b) tangible personal property used to convey water to a hydro-electric turbine or to a reservoir that supplies water to a hydro-electric turbine,

(c) tangible personal property used to collect water for a deep lake-water cooling facility or to distribute fluid through a district cooling system, and includes production machinery and equipment that is not otherwise eligible for exemption under the Act, and

(d) tangible personal property used in the distribution of steam or heated water for the purposes of district heating.  O. Reg. 284/03, s. 2.

(4) For the purposes of the definition of “eligible electricity generating facility”, the facility is substantially used to generate electricity if the total useful energy output of the facility is at least 20 per cent of the total energy input to the facility, and if the electrical energy output of the facility is at least 25 per cent of the total useful energy output of the facility.  O. Reg. 284/03, s. 2.

(5) The amount of the rebate is determined as follows:

1. If the eligible tangible personal property was purchased by the owner of the eligible electricity generating facility or eligible deep lake-water cooling facility, the amount of the rebate is the amount of the tax paid under the Act by the owner in respect of the eligible tangible personal property.

2. Subject to subsection (6), if the eligible tangible personal property was purchased by a contractor and incorporated into the eligible electricity generating facility or eligible deep lake-water cooling facility under a written construction contract, the amount of the rebate is determined as follows:

i. For payments made by the owner of the facility in satisfaction of the contract price that are subject to the tax imposed by Part IX of the Excise Tax Act (Canada), 3 per cent of the sum of those payments and that tax.

ii. For all other payments made by the owner of the facility in satisfaction of the contract price, 3.4 per cent of those payments.  O. Reg. 284/03, s. 2.

(6) The payments referred to in paragraph 2 of subsection (5) that are used to calculate the amount of a rebate under this section shall not include any amount paid under the construction contract that can reasonably be attributed to the following:

1. Land or land improvement cost.

2. The cost of obtaining a performance bond.

3. Charges for development or for project consulting services.

4. Architect’s fees.

5. Building permit fees.

6. Charges for temporary facilities.

7. The costs of demolition.

8. Equipment rental charges.

9. The cost of tangible personal property that may be exempt from tax under the Act otherwise than under this section.  O. Reg. 284/03, s. 2.

(7) If the amount of the rebate is determined under paragraph 2 of subsection (5) and the owner of the facility establishes that the amount of the rebate determined under that paragraph is less than the amount of the tax paid under the Act by the contractor on the purchase of the eligible tangible personal property, the amount of the rebate is the amount of the tax paid by the contractor.  O. Reg. 284/03, s. 2.

(8) The Minister of Energy or his or her delegate may give opinions to taxpayers or to the Minister of Finance relating to engineering and scientific matters raised in the interpretation of the definitions in subsection (3) and in the interpretation of subsection (4) or (5), and any opinion given by the Minister of Energy or his or her delegate with respect to those matters is conclusive for the purposes of this section.  O. Reg. 284/03, s. 2.

(9) If the construction contract requires that progress payments on account of the contract price be made by the owner, the rebate may be paid by instalments equal to the appropriate percentage of each progress payment made by the owner.  O. Reg. 284/03, s. 2.

(10) If an eligible electricity generating facility ceases to be an eligible electricity generating facility on or before the fourth anniversary of the last rebate payment made under this section in respect of the facility, the owner shall repay the amount of the rebate in full at the time and in the manner specified by the Minister.  O. Reg. 284/03, s. 2.

(11) For the purposes of subsection (10), an eligible electricity generating facility ceases to be an eligible electricity generating facility if more than 10 per cent of the electricity generated by the facility in a year, other than amounts conveyed to the IMO-controlled grid, is used outside Ontario.  O. Reg. 284/03, s. 2.

(12) No rebate is payable under this section unless an application for the rebate,

(a) is made in writing and includes such information and documents as the Minister may specify; and

(b) is made before the fourth anniversary of the day on which the tax or payment under the contract was made to which the rebate relates.  O. Reg. 284/03, s. 2.

Rebate under Clause 48 (3) (r) of the Act

32. (1) In this section,

“contractor” means, in respect of an solar energy system incorporated into residential premises, the person other, than the owner or builder of the residential premises,

(a) who installs or contracts to install the system in the residential premises, or

(b) who upgrades or expands or contracts to upgrade or expand an existing alternate energy system in the residential premises;

“newly-constructed home” means a residential premises in respect of which the purchaser is entitled to a warranty under section 13 of the Ontario New Home Warranties Plan Act and which is sold to the purchaser by a vendor as defined in that Act;

“residential premises” means a premises that is used, or is intended to be used, for residential purposes and includes a multi-residential building;

“solar energy system” means a system that operates solar photovoltaic collector panels or solar thermal collector panels and includes any expansion or upgrade to such a system.  O. Reg. 189/03, s. 1; O. Reg. 364/05, s. 3 (1).

(2) A solar energy system that operates solar photovoltaic collector panels includes,

(a) wiring, controllers and devices that convert direct current into alternate current, if the wiring, controller or device is sold to be used as part of the system or an expansion or upgrade to the system; and

(b) the first battery or batteries used to store the energy produced by the system.  O. Reg. 189/03, s. 1; O. Reg. 364/05, s. 3 (2).

(3) A solar energy system that operates solar thermal collector panels includes wiring, pumps, tubing, heat exchangers and insulated energy storage tanks, if the wiring, pump, tubing, heat exchanger or storage tank is sold to be used as part of the system or an expansion or upgrade to the system.  O. Reg. 189/03, s. 1.

(4) The Minister may rebate tax in accordance with this section in respect of solar energy systems purchased and incorporated into residential premises after November 25, 2002 and before November 26, 2007.  O. Reg. 189/03, s. 1.

(5) No rebate is payable under this section unless an application for the rebate is made on or before the fourth anniversary of the day on which the tax to be rebated was paid.  O. Reg. 364/05, s. 3 (3).

(6) The Minister may rebate tax under this section to the owner of residential premises in an amount equal to the amount of tax paid under the Act by the owner for the purchase of the solar energy system.  O. Reg. 189/03, s. 1.

(7) The Minister may rebate tax under this section to the builder of a newly-constructed home in an amount equal to the amount of tax paid under the Act by the builder for the purchase of the solar energy system.  O. Reg. 189/03, s. 1.

(8) The owner of residential premises is not eligible for a rebate under this section for the purchase of a solar energy system if a builder is eligible for a rebate under this section in respect of the same purchase.  O. Reg. 189/03, s. 1.

(9) The Minister may rebate tax under this section in respect of a solar energy system purchased and incorporated into residential premises by a contractor under a written contract and the amount of the rebate is determined as follows:

1. For payments made by the owner of the residential premises in satisfaction of the contract price that are subject to the tax imposed by Part IX of the Excise Tax Act (Canada), 3 per cent of the sum of those payments and that tax.

2. For all other payments made by the owner of the residential premises in satisfaction of the contract price, 3.4 per cent of those payments.  O. Reg. 189/03, s. 1; O. Reg. 364/05, s. 3 (4).

(10) For the purposes of subsection (9), the contract price does not include any amount attributable to any of the following:

1. Land or land improvement costs.

2. The cost of obtaining a performance bond.

3. Charges for development or for project consulting services.

4. Building permit fees.

5. Equipment rental charges.

6. The cost of tangible personal property that may be exempt from tax under the Act otherwise than under this section.  O. Reg. 189/03, s. 1.

(10.1) A rebate referred to in subsection (9) shall be made to,

(a) the owner of the residential premises, if the contract is with the owner; or

(b) the builder of the residential premises, if the premises is a newly-constructed home and the contract is with the builder.  O. Reg. 364/05, s. 3 (5).

(11) If an owner or builder who is entitled to a rebate under subsection (10.1) establishes that the amount of the rebate determined under subsection (9) is less than the amount of tax paid under the Act by the contractor for the purchase of the solar energy system, the amount of the rebate to the owner or builder is the amount of tax paid under the Act by the contractor.  O. Reg. 364/05, s. 3 (6).

(12) An application for a rebate under this section must be made in writing and must include such information and documents as the Minister may specify.  O. Reg. 189/03, s. 1.

Rebate under Clause 48 (3) (s) of the Act

33. (1) In this section,

“alternate energy system” means a wind energy system, micro hydro-electric system or geothermal energy system;

“contractor” means, in respect of an alternate energy system incorporated into residential premises, the person other than the owner or builder of the premises,

(a) who installs or contracts to install the system in the residential premises, or

(b) who upgrades or expands or contracts to upgrade or expand an existing alternate energy system in the residential premises;

“geothermal energy system” means, in respect of residential premises, a system that is designed to absorb heat from solar-heated ground and that,

(a) includes,

(i) ground or water pipes incorporating either an open-loop or a closed-loop system and the associated civil works for the system, and

(ii) fluid pumps and heat pumps, including the heat exchanger, when sold for use as part of the system, and

(b) excludes the heat distribution system in the residential premises; 

“micro hydro-electric energy system” means a system of turbines and generators designed to produce mechanical or electrical energy from water and includes,

(a) controllers, wiring, interconnection equipment and devices that convert direct current to alternating current, when sold for use as part of the system,

(b) the first battery or batteries used to store the energy produced by the system, and

(c) pipes and associated civil works used to deliver water from the intake point to the turbine and to the discharge point, when sold for use as part of the system;

“newly-constructed home” means residential premises in respect of which the purchaser is entitled to a warranty under section 13 of the Ontario New Home Warranties Plan Act and that is sold to the purchaser by a vendor as defined in that Act;

“residential premises” means premises used or intended to be used for residential purposes and includes a multi-residential building;

“wind energy system” means a system of power generating equipment consisting of a turbine, gear box and generator designed to produce mechanical or electrical energy from wind and includes,

(a) generators, controllers, wiring, interconnection equipment and devices that convert direct current to alternating current, when sold for use as part of the system,

(b) the first battery or batteries used to store the energy produced by the system, and

(c) the tower and associated civil works used to construct the tower and to provide support for the generating equipment that produces the mechanical or electrical energy from wind.  O. Reg. 364/05, s. 4.

(2) The Minister may rebate tax in accordance with this section in respect of,

(a) alternate energy systems purchased and incorporated into residential premises after March 27, 2003 and before November 26, 2007; and

(b) upgrades and expansions after March 27, 2003 and before November 26, 2007 to alternate energy systems.  O. Reg. 364/05, s. 4.

(3) No rebate is payable under this section unless an application for the rebate is made on or before the fourth anniversary of the day on which the tax to be rebated was paid.  O. Reg. 364/05, s. 4.

(4) The Minister may rebate tax under this section to the owner of the residential premises in an amount equal to the amount of tax paid under the Act by the owner for the purchase of the alternate energy system or for the purchase of the upgrade or expansion to the existing alternate energy system.  O. Reg. 364/05, s. 4.

(5) The Minister may rebate tax under this section to the builder of a newly-constructed home in an amount equal to the amount of tax paid under the Act by the builder for the purchase of the alternate energy system.  O. Reg. 364/05, s. 4.

(6) The owner of residential premises is not eligible for a rebate under this section if the builder of the premises is eligible for a rebate under this section in respect of the same purchase.  O. Reg. 364/05, s. 4.

(7) The Minister may rebate tax under this section where the alternate energy system is purchased and incorporated into the residential premises or is upgraded or expanded by a contractor under a written contract and the amount of the rebate is determined as follows:

1. For payments made in satisfaction of the contract price that are subject to the tax imposed by Part IX of the Excise Tax Act (Canada), 3 per cent of the sum of those payments and that tax.

2. For all other payments made in satisfaction of the contract price, 3.4 per cent of those payments.  O. Reg. 364/05, s. 4.

(8) For the purposes of subsection (7), the contract price does not include any amount attributable to any of the following:

1. Land or land improvement costs.

2. The cost of obtaining a performance bond.

3. Charges for development or for project consulting services.

4. Building permit fees.

5. Equipment rental charges.

6. The cost of tangible personal property that may be exempt from tax under the Act otherwise than under this section.  O. Reg. 364/05, s. 4.

(9) A rebate referred to in subsection (7) shall be made to,

(a) the owner of the residential premises, if the contract is with the owner; or

(b) the builder of the residential premises, if the premises are a newly-constructed home and the contract is with the builder.  O. Reg. 364/05, s. 4.

(10) If an owner or builder who is entitled to a rebate under subsection (9) establishes that the amount of the rebate determined under subsection (7) is less than the amount of tax paid under the Act by the contractor for the purchase of the alternate energy system or the upgrade or expansion, the amount of the rebate to the owner or builder is the amount of tax paid under the Act by the contractor.  O. Reg. 364/05, s. 4.

(11) An application for a rebate under this section must be made in writing and must include such information and documents as the Minister may specify.  O. Reg. 364/05, s. 4.

Schedule 1
Organizations Substantially Assisted or Supported Financially from Public Funds of the Province of Ontario Prescribed by the Minister for the Purpose of Clause 9 (2) (f) of the Act

1. Art Gallery of Ontario.

2. Board of Governors of an Ontario College of Applied Arts and Technology.

3. Board of Governors of the Ontario College of Art.

4. Board of Governors of an Ontario University and Ryerson Polytechnical Institute.

5. CJRT-FM Inc.

6. College of Agricultural Technology (Alfred).

7. College of Agricultural Technology (Centralia).

8. College of Agricultural Technology (Kemptville).

9. College of Agricultural Technology (New Liskeard).

10. College of Agricultural Technology (Ridgetown).

11. Huronia Historical Advisory Council.

12. McMichael Canadian Art Collection.

13. Old Fort William Advisory Committee.

14. Ontario Agricultural Museum.

15. Ontario Heritage Foundation.

16. Ontario Institute for Studies in Education.

17. Ontario Place Corporation.

18. Ontario Science Centre.

19. Provincial Parks Council.

20. Royal Botanical Gardens.

21. Royal Ontario Museum.

22. St. Lawrence Parks Commission.

23. Science North.

24. Thunder Bay Ski Jumps Limited.

R.R.O. 1990, Reg. 1012, Sched. 1.

Schedule 2
New Value

Year

Tractor - 2 Axles

Tractor - 3 or more Axles

Vehicle other than a tractor or bus - 2 Axles

Vehicle other than a tractor or bus - 3 or more Axles

Bus

2001 & Newer

$101,200

$127,510

$79,950

$97,150

$541,420

2000

$100,000

$126,000

$79,000

$96,000

$535,000

1999

$97,660

$123,052

$77,151

$93,754

$522,481

1998

$97,460

$122,800

$76,993

$93,562

$521,411

1997

$95,740

$120,632

$75,635

$91,910

$512,209

1996

$94,320

$118,843

$74,513

$90,547

$504,612

1995

$88,040

$110,930

$69,552

$84,518

$471,014

1994

$85,230

$107,390

$67,332

$81,821

$455,981

1993

$81,170

$102,274

$64,124

$77,923

$434,260

1992 & Older

$78,050

$98,343

$61,660

$74,928

$417,568

O. Reg. 379/01, s. 8.

Schedule 3
Depreciation percentage

 

Tractor and Vehicle other than a tractor or a bus discount from New Value

Bus Discount from New Value

First calendar year following new value year

70.0%

80.0%

Second calendar year following new value year

50.0%

70.0%

Third calendar year following new value year

45.0%

55.0%

Fourth calendar year following new value year

40.0%

40.0%

Fifth calendar year following new value year

35.0%

35.0%

Sixth calendar year following new value year

30.0%

30.0%

Seventh calendar year following new value year

25.0%

25.0%

Eighth calendar year following new value year

20.0%

20.0%

Ninth calendar year or earlier following new value year

15.0%

15.0%

O. Reg. 379/01, s. 8.

Schedules 4-14 Revoked:  O. Reg. 266/01, s. 3.

Form 1/Formule 1 Revoked:  O. Reg. 236/00, s. 4.

Forms 2-6 Revoked:  O. Reg. 236/00, s. 4.

Form 7/Formule 7 Revoked:  O. Reg. 8/94, s. 7.

Form 8/Formule 8 Revoked:  O. Reg. 8/94, s. 7.

Forms 9-11 Revoked:  O. Reg. 414/00, s. 2.