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O. Reg. 379/01: DEFINITIONS BY MINISTER, EXEMPTIONS, FORMS AND REBATES

filed September 28, 2001 under Retail Sales Tax Act, R.S.O. 1990, c. R.31

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ONTARIO regulation 379/01

made under the

RETAIL SALES TAX ACT

Made: September 26, 2001
Filed: September 28, 2001
Printed in The Ontario Gazette: October 13, 2001

Amending Reg. 1012 of R.R.O. 1990

(Definitions by Minister, Exemptions, Forms and Rebates)

Note: Since the end of 2000, Regulation 1012 has been amended by Ontario Regulation 266/01.  Previous amendments are listed in the Table of Regulations published in The Ontario Gazette dated January 20, 2001.

1. The definition of “gross vehicle mass rating” in section 1 of Regulation 1012 of the Revised Regulations of Ontario, 1990 is revoked.

2. (1) Subsection 14 (2) of the Regulation is revoked.

(2) Subsection 14 (3) of the Regulation is amended by striking out the portion preceding paragraph 1 and substituting the following:

(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:

. . . . .

3. Section 15.1 of the Regulation is amended by adding the following subsection:

(14) This section does not apply to a multijurisdictional vehicle in respect of which tax is paid under subsection 3 (2) of the Act.

4. Section 15.2 of the Regulation is amended by adding the following subsection:

(19) This section does not apply to a multijurisdictional vehicle in respect of which tax is paid under subsection 3 (2) of the Act.

5. Subsection 18 (3) of the Regulation is revoked and the following substituted:

(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.

6. The Regulation is amended by adding the following sections:

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.

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.

(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

 

(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.

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.

(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.

(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.

(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

 

(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.

(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.

(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.

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.

(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.

(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.

(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.

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.

(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).

(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.

(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.

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.

(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).

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.

(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.

(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.

(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.

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.

(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.

(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.

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.

(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.

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.

(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.

7. Paragraph 3 of subsection 28 (7) of the Regulation is revoked and the following substituted:

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.

8. The Regulation is amended by adding the following Schedules:

Schedule 2

New Value

 

Tractor

Vehicle other than a tractor or bus

Bus

Year

2 Axles

3 or more Axles

2 Axles

3 or more Axles

 

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

 

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%

 

9. (1) Sections 1 and 2 shall be deemed to have come into force on June 29, 2001.

(2) Sections 3, 4, 5, 6 and 8 come into force on the day that section 228 of the Responsible Choices for Growth and Accountability Act (2001 Budget), 2001 comes into force.

(3) Section 7 shall be deemed to have come into force on March 1, 2000.

James M. Flaherty

Minister of Finance

Dated on September 26, 2001.