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chapter 7
An Act respecting
fiscal responsibility
Assented to December 18, 2003
CONTENTS
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Sections |
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1-6 |
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7-8 |
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9-13 |
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14 |
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15 |
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16 |
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17 |
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18 |
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19-20 |
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______________
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1. Clauses 11 (8.1) (e), (f) and (g) of the Corporations Tax Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 38, are repealed and the following substituted:
(e) 5/14 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year.
2. Clauses 38 (2) (e), (f) and (g) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 41, are repealed and the following substituted:
(e) 14 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year.
3. (1) Clauses 41 (1.1) (g) and (h) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 42, are repealed and the following substituted:
(g) 8.5 per cent, in respect of a taxation year that ends after December 31, 2003.
(2) Clause 41 (1.1) (i) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 42, is repealed.
(3) Subsection 41 (1.4) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 42, is repealed and the following substituted:
Same, 2000 and later
(1.4) Despite clauses (1.1) (d) to (g), if the taxation year begins on or before the particular September 30 or December 31 indicated in clause (d), (e), (f) or (g), the change in the percentage from the percentage set out in the preceding clause to the percentage set out in the applicable clause must be prorated according to the number of days in the taxation year that are after the particular September 30 or December 31, as the case may be.
(4) The definition of the variable “A” in subsection 41 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 4, is amended by striking out “clauses (3.2) (a) to (f)” and substituting “clauses (3.2) (a) to (e).”
(5) Subsection 41 (3.2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 4 and amended by 2001, chapter 23, section 32, is repealed and the following substituted:
Application of certain federal provisions
(3.2) In applying subsections 125 (2) and (3) of the Income Tax Act (Canada) to determine a corporation’s business limit under paragraph 125 (1) (c) of that Act for the purposes of this section and sections 43 and 51 of this Act for a taxation year, any reference to the amounts in subsection 125 (2) of that Act shall be read as a reference to the total of,
(a) $200,000 multiplied by the ratio of the number of days in the taxation year that are before January 1, 2001 to the total number of days in the taxation year;
(b) $240,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 and before October 1, 2001 to the total number of days in the taxation year;
(c) $280,000 multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(d) $320,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2002 and before January 1, 2004 to the total number of days in the taxation year; and
(e) $400,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year.
4. (1) The definition of the variable “B” in clause 41.1 (1) (b) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 5, is amended by striking out “clauses 41 (3.2) (a) to (f)” and substituting “clauses 41 (3.2) (a) to (e)”.
(2) The definition of the variable “D” in clause 41.1 (1) (b) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 5, is amended by striking out “clauses 41 (3.2) (a) to (f)” and substituting “clauses 41 (3.2) (a) to (e)”.
(3) Clauses 41.1 (3) (f), (g) and (h) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 43, are repealed and the following substituted:
(f) 4.667 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2002 to the total number of days in the taxation year.
(4) Clause 41.1 (3) (i) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 43, is repealed.
5. (1) Clauses 43 (1.1) (d), (e) and (f) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 44, are repealed and the following substituted:
(d) 2 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year.
(2) Clauses 43 (1.2) (c), (d) and (e) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 44, are repealed and the following substituted:
(c) 2 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year.
(3) Clauses 43 (1.3) (c), (d) and (e) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 44, are repealed and the following substituted:
(c) 2 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year.
(4) Paragraphs 7 and 8 of clause 43 (4) (b) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 44, are repealed and the following substituted:
7. B/C × J/Z × A/0.085
(5) Paragraph 9 of clause 43 (4) (b) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 44, is repealed.
(6) The definition of “J” in subsection 43 (5) of the Act, as enacted by the Statutes of Ontario 2000, chapter 10, section 6, is repealed and the following substituted:
“J” is the number of days in the taxation year that are after December 31, 2003, and
(7) The definition of “K” in subsection 43 (5) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 44, is repealed.
(8) The definition of “L” in subsection 43 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 44, is repealed.
6. (1) Clauses 51 (4.1) (e) and (f) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 48, are repealed and the following substituted:
(e) 8.5 per cent multiplied by the ratio of the number of days in the taxation year after December 31, 2003 to the total number of days in the taxation year.
(2) Clause 51 (4.1) (g) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 48, is repealed.
7. Subsection 9 (2) of the GO Transit Act, 2001 is repealed and the following substituted:
Payment by municipalities
(2) A municipality may enter into an agreement under clause (1) (c), (d) or (l) and if it does so, it may agree to pay to GO Transit all or any portion of the operating or capital expenditures required to meet the terms of the agreement.
8. (1) Section 35 of the Act is amended by adding the following subsection:
Same
(1.1) Despite subsection 9 (1) of the Development Charges Act, 1997, a development charge by-law described in subsection (1) that would, if not for this subsection, expire on December 31, 2003 shall remain in force until the earlier of,
(a) the day it is repealed; and
(b) December 31, 2004.
(2) Subsection 35 (3) of the Act is repealed and the following substituted:
Deemed capital costs
(3) If a municipality agrees to pay a capital cost that is required for the purposes of this Act, the amount that the municipality agrees to pay shall be deemed to be a capital cost for the purposes of subsection 5 (3) of the Development Charges Act, 1997 and may be collected by the municipality under a development charge by-law described in subsection (1) or under another development charge by-law passed for the purpose.
9. (1) Paragraph 10 of subsection 3 (1) of the Income Tax Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 127 and amended by 2002, chapter 22, section 104, is amended by striking out the portion before subparagraph i and substituting the following:
10. The additional tax for the 2002 taxation year is the aggregate of,
. . . . .
(2) Paragraph 11 of subsection 3 (1) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 127 and amended by 2002, chapter 22, section 104, is repealed and the following substituted:
11. The additional tax for the 2003 taxation year is the aggregate of,
i. 20 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $3,747, and
ii. 36 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,727.
12. The additional tax for the 2004 taxation year is the aggregate of,
i. 20 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $3,856, and
ii. 36 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,864.
13. The additional tax for each taxation year after 2004 is the aggregate of,
i. 20 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds the amount calculated by adjusting $3,856 in accordance with subsection 4.0.2 (2), and
ii. 36 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds the amount calculated by adjusting $4,864 in accordance with subsection 4.0.2 (2).
10. (1) Clauses (c) and (d) of the definition of “lowest tax rate” in subsection 4 (1) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 105, are repealed and the following substituted:
(c) 6.05 per cent for the 2002 and each subsequent taxation year;
(2) Clauses (c) and (d) of the definition of “middle tax rate” in subsection 4 (1) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 105, are repealed and the following substituted:
(c) 9.15 per cent for the 2002 and each subsequent taxation year;
11. Subsection 4.0.2 (2) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 8, section 38, is repealed and the following substituted:
Indexing, surtax
(2) For each taxation year ending after December 31, 2004, each dollar amount in paragraph 13 of subsection 3 (1) is adjusted to the amount calculated using the formula in subsection (3).
12. (1) Clause 8 (3.1) (a) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 4, section 11, is repealed and the following substituted:
(a) a property tax credit equal to the sum of,
(i) the lesser of the senior’s occupancy cost for the taxation year and $500, and
(ii) an amount equal to 10 per cent of the senior’s occupancy cost for the taxation year; and
(2) Subsection 8 (8.6) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 4, section 11, is repealed.
(3) Subsection 8 (15.5) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 40, is amended by adding “and before January 1, 2003” after “taxation year ending after December 31, 2001”.
13. (1) Paragraph 2 of subsection 8.4.2 (3) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 5, section 1, is repealed.
(2) Paragraphs 3, 4 and 5 of subsection 8.4.2 (3) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 5, section 1, are repealed.
14. (1) Subsections 319 (2.1), (2.2) and (3.1) of the Municipal Act, 2001, as enacted by the Statutes of Ontario, 2003, chapter 4, section 12, are repealed.
(2) Subsection 319 (5) of the Act, as amended by the Statutes of Ontario, 2003, chapter 4, section 12, is amended by striking out “but not tax increases attributable to taxes described in subsection (2.1)” at the end.
Ontario Home Property Tax Relief
for Seniors Act, 2003
15. (1) The Ontario Home Property Tax Relief for Seniors Act, 2003 is repealed.
(2) Despite subsection 2 (1) of the Ontario Home Property Tax Relief for Seniors Act, 2003, no person is entitled to be paid the amount of the tax credit calculated under that Act for the period commencing on July 1, 2003 and ending immediately before that Act is repealed.
16. The Ontario Loan Act, 2003, as set out in Schedule A, is enacted.
17. (1) The definition of “energy-efficient appliance” in subsection 9.1 (1) of the Retail Sales Tax Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 5, is amended by striking out “2002 or 2003” and substituting “2002, 2003 or 2004”.
(2) Clause 9.1 (2) (a) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 5, is repealed and the following substituted:
(a) the contract for the sale is entered into after November 25, 2002 and on or before March 31, 2004;
(3) Clause 9.1 (2) (c) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 5, is repealed and the following substituted:
(c) delivery of the appliance occurs on or before May 15, 2004;
18. (1) Subsection 2 (1) of the Tobacco Tax Act, as re-enacted by the Statutes of Ontario, 2002, chapter 8, Schedule M, section 1, is repealed and the following substituted:
Tax on consumers
(1) Subject to subsection (1.1), every consumer shall pay to Her Majesty in right of Ontario a tax at the rate of 74 per cent of the taxable price per cigarette on every cigarette and on every gram or part gram of any tobacco, other than cigars and cigarettes, purchased by the consumer.
(2) Subsections 2 (1.1) and (1.1.1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule M, section 1, are repealed and the following substituted:
Adjustment to tax
(1.1) If the federal duty in respect of a cigarette increases or decreases after November 24, 2003, the tax payable by a consumer under subsection (1) shall be increased or decreased, as the case may be, by the full amount of the change in the federal duty, effective on the same day as the change in the federal duty.
Same
(1.1.1) For the purposes of subsection (1.1), the federal duty in respect of a cigarette as of November 24, 2003 is the duty of $0.079251 per cigarette that is imposed under paragraph 1 (b) of Schedule 1 of the Excise Act, 2001 (Canada).
(3) Subsections 2 (1.3) and (1.4) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 8, Schedule M, section 1, are repealed and the following substituted:
Retail price of cigarettes
(1.3) The following shall be excluded in determining the retail price of a package of 25 cigarettes for the purposes of subsection (1.2):
1. The total amount of tax imposed on the package of cigarettes under this Act and under Part IX of the Excise Tax Act (Canada).
2. The amount of duty imposed on the package of cigarettes under the Excise Act, 2001 (Canada).
Transition
(1.4) Until the taxable price per cigarette is prescribed by the Minister, every consumer shall pay to Her Majesty in right of Ontario a tax at the rate of 9.85 cents on every cigarette and on every gram or part gram of tobacco, other than cigars and cigarettes, purchased by the consumer, rather than at the rate of 74 per cent of the taxable price per cigarette.
Commencement
19. (1) Subject to subsections (2), (3) and (4), this Act comes into force on the day it receives Royal Assent.
Same
(2) The following provisions come into force on January 1, 2004:
1. Sections 1 and 2.
2. Subsections 3 (1) to (4).
3. Sections 4 to 6.
4. Sections 9 to 11.
5. Subsection 13 (2).
Same
(3) Subsections 3 (5), 12 (3) and 13 (1) shall be deemed to have come into force on January 1, 2003.
Same
(4) Section 18 shall be deemed to have come into force on November 25, 2003.
Short title
20. The short title of this Act is the Fiscal Responsibility Act, 2003.
schedule A
ontario loan act, 2003
Borrowing authorized
1. (1) The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $7.1 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.
Other Acts
(2) The authority to borrow conferred by this Act is in addition to that conferred by any other Act.
Expiry
2. (1) No order in council authorizing borrowing under this Act shall be made after December 31, 2005.
Same
(2) The Crown shall not borrow money after December 31, 2006 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2006,
(a) the Crown has entered into an agreement to borrow the money under the order in council; or
(b) the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.
Commencement
3. The Act set out in this Schedule comes into force on the day the Fiscal Responsibility Act, 2003 receives Royal Assent.
Short title
4. The short title of the Act set out in this Schedule is the Ontario Loan Act, 2003.