Financial Measures (1998) Act

BILL NO. 13

1st Session, 57th General Assembly
Nova Scotia
47 Elizabeth II, 1998



Government Bill



Financial Measures (1998) Act

WITH CHANGES RECOMMENDED BY THE LAW AMENDMENTS COMMITTEE TO THE COMMITTEE OF THE WHOLE HOUSE ON BILLS



The Honourable Donald R. Downe
Minister of Finance



First Reading: June 8, 1998

Second Reading: October 20, 1998

Law Amendments Committee: November 3, 1998

Committee of the Whole House on Bills: November 9, 1998

Third Reading: November 9, 1998

An Act Respecting Certain Financial Measures

Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Financial Measures (1998) Act.

PART I
ASSESSMENT ACT

2 Subsections 46(3), (4), (5) and (5A) of Chapter 23 of the Revised Statutes, 1989, the Assessment Act, are repealed and the following subsections substituted:

(3) For the 1998-99 fiscal year the Minister shall pay to the municipality in which the land is situate a grant equal to two dollars and ten cents per acre in respect of all land to which this Section applies.

(4) For each subsequent fiscal year the Minister shall pay to the municipality in which the land is situate a grant per acre equal to the grant paid for the immediately preceding fiscal year varied by the same percentage as the variation in the cost of living over the immediately preceding calendar year as measured by the change in the Consumer Price Index for Canada prepared by Statistics Canada.

PART II
HOME OWNERSHIP SAVINGS PLAN

3 Subsection 3(1) of Chapter 6 of the Acts of 1989, the Home Ownership Savings Plan (Nova Scotia) Act, as amended by Chapter 9 of the Acts of 1994, is further amended by striking out "1999" in the fourth line and substituting "2000".

PART III
INCOME TAX ACT

4 (1) Clause 6(1)(a) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is amended by striking out "paragraph (b)" in the last line and substituting "paragraphs (d) and (h)".

(2) Subsection 6(4) of Chapter 217, as amended by Chapter 9 of the Acts of 1994, is further amended by striking out "calculated pursuant to clause (b) of subsection (1)" in the second line and substituting "in respect of qualified expenditures incurred during the year".

5 (1) Subsection 13E(2) of Chapter 217, as enacted by Chapter 2 of the Acts of 1995, is amended by

(a) striking out "thirty" in the first line of clause (a) and substituting "thirty-two and one half"; and

(b) striking out "fifteen" in the first line of clause (b) and substituting "sixteen and one quarter".

(2) Subsection (1) has effect on and after June 4, 1998.

6 (1) Clause 13G(1)(a) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by

(a) striking out "with" in the sixth line of subclause (i) and substituting "without"; and

(b) striking out "with" in the eighth line of subclause (ii) and substituting "without".

(2) Subsection 13G(9) of Chapter 217 is repealed and the following subsection substituted:

(9) The corporation may renounce the investment tax credit in respect of qualified property acquired during the year in whole or in part on or before the time on or before which the corporation is required to file its return of income for the year pursuant to section 150 of the Federal Act and, where the corporation so renounces entitlement to that portion of the credit, the corporation is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the credit or that part of the credit.
(3) Subsection (2) applies to purchases made after December 31, 1997.

7 (1) Clauses 32C(1)(a) and (b) of Chapter 217 are repealed and the following clauses substituted:

(a) where the aggregate of the corporation's taxable capital for the year, as determined under subsection (4), and the taxable capital for the year of all related corporations is less than ten million dollars, 0.5% of the taxable capital employed in the Province for the year as determined under subsection (2); or

(b) where the aggregate of the corporation's taxable capital for the year, as determined under subsection (4), and the taxable capital for the year of all related corporations is ten million dollars or more, 0.25% of the taxable capital employed in the Province for the year as determined under subsection (2).

(2) Subsection 32C(2) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by

(a) striking out "employed in Canada" in the fourth line of clause (a); and

(b) striking out "employed in Canada" in the fifth and sixth lines of clause (b).

(3) Subsection 32C(4) of Chapter 217 is repealed and the following subsection substituted:

(4) Taxable capital for the year means

(a) in the case of a resident corporation, the taxable capital in accordance with section 181.2 of the Federal Act;

(b) in the case of a non-resident corporation, the taxable capital employed in Canada in accordance with section 181.4 of the Federal Act; or

(c) in the case of a corporation that is defined as a financial institution under the Federal Act but not under this Part, the taxable capital in accordance with section 181.3 of the Federal Act.

(4) Subsections 32C(6) and (7) of Chapter 217 are repealed and the following subsections substituted:
(6) Where a taxation year of a corporation begins before April 1, 1997, and ends after March 31, 1997, the tax otherwise payable under this Section for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year after March 31, 1997, is of the number of days in the taxation year.

(7) Where a taxation year of a corporation begins before April 1, 2002, and ends after March 31, 2002, the tax otherwise payable under this Section for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year prior to April 1, 2002, is of the number of days in the taxation year.

8 Subsection 32D(4) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by adding "mutatis mutandis" immediately after "apply" in the second line.

9 Subsection 34(1) of Chapter 217 is amended by adding immediately after clause (a) the following clauses:

(aa) defining the Nova Scotia Child Benefit Program;

(ab) prescribing the eligibility criteria and payment amounts for the Nova Scotia Child Benefit Program;

(ac) necessary or advisable to enable Her Majesty in right of Canada to administer on behalf of Her Majesty in right of the Province, the Nova Scotia Child Benefit Program;

PART IV
MUNICIPAL GRANTS ACT

10 (1) Subsection 20(2) of Chapter 302 of the Revised Statutes, 1989, the Municipal Grants Act, as enacted by Chapter 7 of the Acts of 1994-95, is amended by striking out "1994" in the fifth line and substituting "1997".

(2) Subsection 20(3) of Chapter 302 is repealed and the following subsections substituted:

(3) For the fiscal year commencing April 1, 1998, the amount by which the municipality's share of the residual capital grant exceeds the sharing of debt charges in the year commencing April 1, 1997, shall be reduced by five per cent.

(3A) Commencing April 1, 1999, the residual capital grant payable pursuant to this Section shall be the amount determined by the Governor in Council.

PART V
PROVINCIAL FINANCE ACT

11 Subsection 15(2) of Chapter 365 of the Revised Statutes, 1989, the Provincial Finance Act, is amended by striking out "by the Minister as a voucher" in the sixth and seventh lines and substituting "as a document".

12 Section 60A of Chapter 365, as enacted by Chapter 5 of the Acts of 1996, is amended by adding "(1)" immediately after the Section number and by adding the following subsections:

(2) The Governor in Council may define any word or expression used in subsection (1) but not defined in this Act.

(3) The exercise by the Governor in Council of the authority contained in subsection (2) is regulations within the meaning of the Regulations Act.

PART VI
PUBLIC SERVICE ACT

13 Section 4 of Chapter 376 of the Revised Statutes, 1989, is amended by adding immediately after subsection (2) the following subsection:

(3) Notwithstanding any enactment, where an affair or matter is assigned pursuant to subsection (1) or an affair or matter is assigned to a department or a member of the Executive Council pursuant to this Act or any other enactment, any amount appropriated by the Legislature with respect to that affair or matter may be assigned to the appropriate department or member of the Executive Council.
PART VII
PUBLIC SERVICE SUPERANNUATION ACT

14 Clause (k) of Section 2 of Chapter 377 of the Revised Statutes, 1989, the Public Service Superannuation Act, is repealed and the following clause substituted:

(k) "spouse" has the same meaning as in the Income Tax Act (Canada);
15 (1) Subsection 6(1) of Chapter 377 of the Revised Statutes, 1989, the Public Service Superannuation Act, as amended by Chapter 39 of the Acts of 1993, is further amended by

(a) striking out "sixty" in the second line of clause (a) and substituting "sixty-six and two thirds";

(b) striking out "forty" in the ninth last line of clause (b) and substituting "thirty-three and one third";

(c) striking out "sixty" in the fifth last line of clause (b) and substituting "sixty-six and two thirds"; and

(d) striking out "sixty" in the fifth line of clause (c) and substituting "sixty-six and two thirds".

(2) Subsection (1) has effect on and after July 1, 1998.

16 (1) Chapter 377 is further amended by adding immediately after Section 6 the following Section:

6A (1) Notwithstanding Section 6, where an employee dies on or after the first day of July, 1998, and the surviving spouse is entitled to a superannuation allowance pursuant to Section 6, the superannuation allowance the employee would have been entitled to receive, less any superannuation allowance paid pursuant to clause (b) of subsection (1) of Section 6, shall be paid to the surviving spouse for five years.
(2) For greater certainty, clauses 6(1)(a) and (b) apply after the period referred to in subsection (1).

(2) Subsection (1) has effect on and after July 1, 1998.

17 Chapter 377 is further amended by adding immediately after Section 9 the following Section:

9A (1) In this Section, "surplus" means the excess of the actuarial value of the assets of the Superannuation Fund over the actuarial value of the liabilities under this Act as determined by the Minister as confirmed by the report of an independent actuary.

(2) Notwithstanding any enactment, where there is a surplus in the Superannuation Fund, the Minister may prescribe a period of time, between the first day of April, 1997, and the thirty-first day of March, 1999, inclusive, during which all payments and deductions required pursuant to subsection (1) of Section 9 in respect of an employee's service to the extent of the surplus shall not be required and, if already made, such deductions and payments are deemed not to have been made.

(3) The period of time referred to in subsection (2) may be for periods of service already completed, current service or future service.

(4) Where the period of time referred to in subsection (2) is for a current or future period of service, the Minister may continue to make all deductions and payments otherwise required pursuant to subsection (1) of Section 9 until the end of the prescribed period.

(5) On or after the conclusion of any period referred to in subsection (2), the Minister shall return from the Superannuation Fund any employee's salary deductions remaining in the Superannuation Fund with respect to service during the prescribed period to the employees from whom the deductions were made and shall return an equal amount to the Consolidated Fund of the Province.

(6) No reduction in contributions pursuant to this Section affects the amount of service of an employee or the entitlement to or amount of annual superannuation allowance or any other benefits that would otherwise be payable to an employee pursuant to this Act.

18 (1) Subsection 17(1) of Chapter 377, as amended by Chapter 39 of the Acts of 1993, is further amended by

(a) striking out "sixty" in the fourth line of clause (a) and substituting "sixty-six and two thirds";

(b) striking out "forty" in the ninth last line of clause (b) and substituting "thirty-three and one third";

(c) striking out "sixty" in the fifth last line of clause (b) and substituting "sixty-six and two thirds"; and

(d) striking out "sixty" in the eleventh line of clause (c) and substituting "sixty-six and two thirds".

(2) Subsection (1) has effect on and after July 1, 1998.

(3) Clause 17(5A)(a) of Chapter 377, as enacted by Chapter 24 of the Acts of 1995-96, is amended by striking out "husband and wife" in the third line and substituting "spouses".

19 (1) Chapter 377 is further amended by adding immediately after Section 17 the following Section:

17A (1) Notwithstanding Section 17, where an employee who has been granted a superannuation allowance pursuant to Section 17 dies on or after the first day of July, 1998, and within five years of retirement, the surviving spouse shall, for the remainder of the five-year term, be paid the superannuation allowance being paid to the deceased person at the date of death less any superannuation allowance paid pursuant to clause (b) of subsection (1) of Section 17.

(2) For greater certainty, clauses 17(1)(a) and (b) apply after the period referred to in subsection (1).

(2) Subsection (1) has effect on and after July 1, 1998.

20 Subclause 27(1)(b)(ii) of Chapter 377 is amended by

(a) striking out "husband and wife" in the second line and substituting "spouses"; and

(b) striking out "a person of the opposite sex" in the last line and substituting "another person".

21 Within six months of the coming into force of this Section, the Minister of Finance shall report to the House of Assembly on progress of discussions towards joint governance of the pension plan under the Public Service Superannuation Act by the Minister, the employees contributing to the Fund and pensioners under the Act.

PART VIII
REVENUE ACT

22 (1) Subsection 34(1) of Chapter 17 of the Acts of 1995-96, the Revenue Act, as amended by Chapter 21 of the Acts of 1996 and Chapter 3 of the Acts of 1997, is further amended by

(a) striking out "twenty-two" in the first line of clause (a) and substituting "fifty-two"; and

(b) striking out "forty" in the first line of clause (c) and substituting "eighty".

(2) Subsection (1) has effect on and after February 14, 1998.

This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 1998 Crown in right of Nova Scotia. Updated November 10, 1998. Send comments to legc.office@gov.ns.ca.