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O. Reg. 364/05: DEFINITIONS, EXEMPTIONS AND REBATES

filed June 16, 2005 under Retail Sales Tax Act, R.S.O. 1990, c. R.31

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ontario regulation 364/05

made under the

Retail Sales Tax Act

Made: June 14, 2005
Filed: June 16, 2005
Printed in The Ontario Gazette: July 2, 2005

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

(Definitions, Exemptions and Rebates)

1. Subsection 10 (5) of Regulation 1012 of the Revised Regulations of Ontario, 1990 is amended by striking out “or” at the end of clause (b), by adding “or at the end of clause (c) and by adding the following clause:

(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.

2. Paragraph 2 of subsection 20 (3) of the Regulation is amended by striking out “May 9, 2001” and substituting “May 10, 2001”.

3. (1) Subsection 32 (1) of the Regulation is amended by adding the following definition:

“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;

(2) Clause 32 (2) (b) of the Regulation is amended by striking out “the first battery” at the beginning and substituting “the first battery or batteries”.

(3) Subsection 32 (5) of the Regulation is revoked and the following substituted:

(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.

(4) Subsection 32 (9) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(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:

. . . . .

(5) Section 32 of the Regulation is amended by adding the following subsection:

(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.

(6) Subsection 32 (11) of the Regulation is revoked and the following substituted:

(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.

4. The Regulation is amended by adding the following section:

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.

(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.

(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. 

(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.

(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.

(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.

(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. 

(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.

(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.

(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.

(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.

5. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.

(2) Section 2 shall be deemed to have come into force on November 4, 2002.

Made by:

Gregory Sorbara

Minister of Finance

Date made: June 14, 2005.