BILL NO. 157
(as introduced)
2nd Session, 60th General Assembly
Nova Scotia
57 Elizabeth II, 2008
Financial Measures (2008) Act
The Honourable Michael G. Baker, Q.C.
Minister of Finance
First Reading: May 5, 2008
Second Reading: May 13, 2008
Third Reading: May 15, 2008 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)
Explanatory Notes
Clause 1 sets out the short title of the Act.
Clause 2 provides for a change in the fees payable under Section 12 of the Corporations Registration Act.
Clause 3 implements the terms of a memorandum of understanding with the Union of Nova Scotia Municipalities to phase out municipal funding to corrections over the next seven years.
Clause 4 implements the terms of a memorandum of understanding with the Union of Nova Scotia Municipalities to restrict the increase in the minimum municipal contribution to education costs to no greater than the increase in the cost of living as measured by the percentage increase in the Consumer Price Index for Nova Scotia for the preceding calendar year.
Clauses 5 and 6 adjust the tax payable under the Gypsum Mining Income Tax Act.
Clause 7 phases out municipal funding to public housing over a two-year period beginning April 1, 2010.
Clause 8 amends the provisions of the Income Tax Act dealing with the pension income amount deduction to allow the recipient of split pension income transferred from a spouse to claim the Provincial pension credit.
Clause 9 enacts a public transit tax credit.
Clause 10 amends the provisions of the Income Tax Act dealing with the deduction for charitable gifts to ensure that the amounts claimed are the same for Federal and Provincial deductions.
Clause 11 extends the sport and recreational activity tax credit to all Nova Scotians.
Clause 12 implements an alternative medical expense credit.
Clause 13 amends subclause 19(1)(b)(ii) of the Income Tax Act to add a reference to Section 10B.
Clause 14 amends the calculation in the Income Tax Act respecting part-year residents' ability to claim the transit tax credit, the graduate tax credit and the volunteer firefighters tax credit.
Clause 15 amends Section 24 of the Income Tax Act to add a reference to Section 10B and 12B.
Clause 16 amends Section 25 of the Income Tax Act to add a reference to Section 10B.
Clause 17 amends Section 26 of the Income Tax Act to add a reference to Sections 10B and 12B.
Clause 18 amends the provision in the Income Tax Act dealing with bankrupt individuals to restrict eligibility for the graduate tax credit for an individual who is bankrupt to the return that covers the post-bankruptcy period.
Subclause 19(1) amends the definition of "eligible individual" in Section 35 of the Income Tax Act.
Subclause 19(2) makes a change to disallow the low income tax reduction to be claimed on any of the elective returns that may be filed for a deceased taxpayer.
Clauses 20 and 21 expand the Volunteer Firefighter Tax Credit to include volunteer ground search and rescue workers.
Clause 22 expands the Film Industry Tax Credit.
Clause 23 increases the value of the Digital Media Tax Credit to match the increase in the Film Industry Tax Credit.
Clauses 24 to 26 provide that the tax on insurance premiums does not apply to contracts of insurance for farming and fishing property written on January 1, 2008, or after by mutual insurance companies designated in the regulations.
Clause 27 provides for a cost of living increase in the reinstatement fee for the restoration of a driver's licence following a revocation for an alcohol-related offence.
Clause 28 provides for a cost of living increase in the registration fees under the Personal Property Security Act.
Clauses 29 and 30 make changes in the Revenue Act that are necessary as a result of the reduction from fourteen to thirteen per cent in the HST that was effective January 1, 2008.
Clause 31 provides for a cost of living increase in the annual taxes charged under Section 16A of the Trust and Loan Companies Act.
Clause 32 sets out the effective dates for the Act.
An Act Respecting
Certain Financial Measures
1 This Act may be cited as the Financial Measures (2008) Act.
2 (1) Subsection 12(2) of Chapter 101 of the Revised Statutes, 1989, the Corporations Registration Act, as amended by Chapter 3 of the Acts of 2004 and Chapter 9 of the Acts of 2007, is further amended by striking out "four" in the third line and substituting "sixty-five".
(2) Subsection 12(2A) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004 and amended by Chapter 9 of the Acts of 2007, is further amended by striking out "one dollar and forty-six" in the second line and substituting "three dollars and thirty-nine".
(3) Subsection 12(2B) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004 and amended by Chapter 9 of the Acts of 2007, is further amended by striking out "thirty-four dollars and ninety-six" in the second and third lines and substituting "thirty-nine dollars and forty-two".
(4) Subsection 12(2C) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004 and amended by Chapter 9 of the Acts of 2007, is further amended by striking out "eighty-eight dollars and thirty-six" in the second and third lines and substituting "ninety-three dollars and eighty-four".
(5) Subsection 12(3A) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004 and amended by Chapter 9 of the Acts of 2007, is further amended by striking out "two thousand seven hundred and fifty" in the third line and substituting "one thousand".
(6) Subsection 12(7) of Chapter 101, as amended by Chapter 3 of the Acts of 2004 and Chapter 9 of the Acts of 2007, is further amended by striking out "eighty-eight dollars and thirty-six cents" in the second last and last lines and substituting "ninety-three dollars and eighty-four cents".
(7) Subsection 12(8) of Chapter 101, as amended by Chapter 3 of the Acts of 2004 and Chapter 9 of the Acts of 2007, is further amended by striking out "fifty-nine dollars and twenty-four cents" in the fourth line and substituting "sixty-seven dollars and ninety-seven cents".
3 Section 26 of Chapter 103 of the Revised Statutes, 1989, the Corrections Act, as amended by Chapter 19 of the Acts of 1990 and Chapter 7 of the Acts of 1994-95, is further amended by adding immediately after subsection (3) the following subsection:
(a) for the fiscal year commencing April 1, 2008, the contribution for the immediately preceding fiscal year;
(b) for the fiscal year commencing April 1, 2009, the contribution for the immediately preceding fiscal year;
(c) for the fiscal year commencing April 1, 2010, eighty per cent of the contribution for the fiscal year commencing April 1, 2009;
(d) for the fiscal year commencing April 1, 2011, sixty per cent of the contribution for the fiscal year commencing April 1, 2009;
(e) for the fiscal year commencing April 1, 2012, forty per cent of the contribution for the fiscal year commencing April 1, 2009;
(f) for the fiscal year commencing April 1, 2013, twenty per cent of the contribution for the fiscal year commencing April 1, 2009;
(g) for the fiscal year commencing April 1, 2014, and subsequent fiscal years, nil.
4 Section 73 of Chapter 1 of the Acts of 1995-96, the Education Act, is amended by adding immediately after subsection (2) the following subsection:
5 Subsection 7(1) of Chapter 190 of the Revised Statutes, 1989, the Gypsum Mining Income Tax Act, is amended by striking out "eighteen cents per ton of the gypsum so mined or at such higher rate as is determined by the Governor in Council" in the seventh, eighth and ninth lines and substituting "fifty-two cents per ton of the gypsum so mined".
6 Section 8 of Chapter 190 is amended by striking out "or at such higher rate as is determined by the Governor in Council" in the third and fourth lines.
7 Chapter 211 of the Revised Statutes, 1989, the Housing Act, is amended by adding immediately after Section 6 the following Section:
8 Subsection 10(3) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is repealed and the following subsection substituted:
A is the appropriate percentage for the year; and
B is the lesser of $1,000 and the eligible pension income of the individual for the taxation year.
A is the appropriate percentage for the taxation year; and
B is the amount determined by the formula
C is the total of all amounts each of which is the portion of the cost of an eligible public transit pass or of an eligible electronic payment card, attributable to the use of public commuter transit services in the taxation year by the individual or by a person who is in the taxation year a qualifying relation of the individual; and
D is the total of all amounts each of which is the amount of a reimbursement, allowance or any other form of assistance that any person is or was entitled to receive in respect of an amount included in computing the value of C, other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person.
(2) Where more than one individual is entitled to a deduction under this Section for a taxation year in respect of an eligible public transit pass or of an eligible electronic payment card, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that eligible public transit pass or eligible electronic payment card if that individual were the only individual entitled to deduct an amount for the year under this Section and, where the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(3) The definitions as set out in section 118.02 of the Federal Act apply for the purpose of this Section.
(a) striking out "the individual claims not exceeding the amount" in the fifth and sixth lines; and
(b) striking out paragraph D and substituting the following:
(a) the individual's spouse or common law partner at any time in the taxation year; or
(b) a child of the individual who has not, during the taxation year, attained the age of nineteen years.
(2) For the purpose of computing tax payable under this Part for a taxation year by an individual, there may be deducted in respect of the individual and each person who is in the taxation year a qualifying relation of the individual an amount determined by the formula
A is the appropriate percentage for the year;
(b) the total of all amounts attributable for the registration in the taxation year of the individual or a person who is in the taxation year a qualifying relation of the individual in a designated sport or recreational activity.
(3) Where more than one individual is entitled to a deduction under this Section for a taxation year in respect of an eligible registration in a designated sport or recreational activity,
(a) the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that eligible registration in a designated sport or recreational activity if that individual were the only individual entitled to deduct an amount for the year under this Section; and
(b) where the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(4) The extended meaning of "child" in subsection 252(1) of the Federal Act applies for the purpose of this Section.
(5) The Governor in Council may make regulations designating sport or recreational activities for the purpose of this Section.
(a) is a graduate of a naturopathic school accredited by the Council on Naturopathic Medical Education;
(b) has successfully completed all parts of the Naturopathic Physicians Licensure Examination;
(c) has malpractice insurance coverage; and
(d) is a member in good standing of the Canadian Association of Naturopathic Doctors.
(2) For the purpose of computing the tax payable under this Part by an individual for a taxation year ending after December 31, 2007, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year;
B is the total of the amounts paid by the individual for the taxation year to a qualified naturopath or such other medical professional as may be designated by the Governor in Council in respect of medical services provided to the individual, the individual's spouse or common-law partner, or a child of the individual who has not attained the age of eighteen years before the end of the taxation year;
C is the total of all amounts each of which
(a) is in respect of a dependant of the individual, within the meaning assigned by subsection 118(6) of the Federal Act, other than a child of the individual who has not attained the age of eighteen years before the end of the taxation year; and
(b) is, in respect of the dependant, the lesser of $10,000, and the total of the amounts paid by the individual for the taxation year to a qualified naturopath or such other medical professional as may be designated by the Governor in Council in respect of medical services provided to the dependant.
(3) The definitions and interpretations contained in section 118.2 of the Federal Act apply for the purpose of this Section, except that, for the purpose of subsection (1), a reference to a "medical practitioner" in section 118.2 is a reference to a qualified naturopath or such other medical professionals as may be designated by the Governor in Council.
(4) Medical expenses in respect of an individual, the individual's spouse, the individual's common-law partner, a child of the individual or a dependent of the individual in this Section must not include an amount for which the individual may claim a tax credit under Section 12.
(5) The Governor in Council may make regulations designating other medical professionals for the purpose of this Section.
14 Subclause 23(1)(b)(i) of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is amended by
(a) striking out "11, 12, 12A, 14, 15, 17, 18, 36 and 38A" in the second and third lines and substituting "11, 12, 12A, 12B, 14, 15, 17 and 18"; and
(b) adding "10B," immediately after "Sections" in the second line.
15 Section 24 of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is amended by
(a) adding "10B," immediately after "Sections" in the fourth line; and
(b) adding ", 12B" immediately after "12" in the fifth line.
16 Section 25 of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is amended by adding "10B", immediately after "Sections" in the eighth line.
17 Section 26 of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is amended by
(a) adding ", 12B" immediately after "12" in the first line; and
(b) adding "10B," immediately after "Sections" in the first line.
18 Section 27 of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is amended by
(a) striking out "and 36" in the first line;
(b) adding "10B," immediately after "Sections" in the second line of clause (a);
(c) adding ", 12B" immediately after "12A" in the third line of clause (a); and
(d) striking out ", 18 and 36" in the third line of clause (a) and substituting "and 18".
19 (1) Clause 35(1)(b) of Chapter 217 is repealed and the following clause substituted:
20 The heading immediately preceding Section 38A of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is amended by adding "and Volunteer Ground Search and Rescue Worker" immediately after "Firefighter".
21 (1) Subsection 38A(1) of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is amended by striking out the period at the end of clause (d) and substituting a semicolon and by adding the following clause:
(3) Section 38A of Chapter 217, as enacted by Chapter 9 of the Acts of 2007, is further amended by adding immediately after subsection (3) the following subsection:
(a) other than an individual that is a trust, was resident in the Province on December 31st of the taxation year, and includes an individual who died in the taxation year and was a resident of the Province on the day of death;
(b) was a volunteer ground search and rescue worker for a minimum of six months during the period January 1st to December 31st in the taxation year in which the individual claims the deduction;
(c) has not received salary, wages or compensation or anything in lieu of salary, wages or compensation, other than reasonable reimbursement or allowance for expenses, in respect of ground search and rescue services; and
(d) files with the individual's annual return for the taxation year in which the deduction is claimed documentation in a form satisfactory to the Minister.
(a) striking out paragraphs (a)(ii)(B) and (C) and substituting the following paragraphs:
(C) where 50% or greater of the days for principal photography for the production are spent in the eligible geographic area, 40% of the eligible salaries paid after June 30, 2006, and before October 1, 2007, and
(D) where 50% or greater of the days for principal photography for the production are spent in the eligible geographic area, 60% of the eligible salaries paid after September 30, 2007, and before 2016,
- (A) 40% of the eligible salaries paid times the proportion of time the days for principal photography are spent inside an eligible geographic area are out of the total days for principal photography for the production, paid after June 30, 2006, and before October 1, 2007, and
(B) 35% of the eligible salaries paid times the proportion of time the days for principal photography are spent outside an eligible geographic area are out of the total days for principal photography for the production, paid after June 30, 2006, and before October 1, 2007, and
(v) for film production activity where less than 50% of principal photography is undertaken after September 30, 2007, in an eligible geographic area of the Province as prescribed by regulation,
- (A) 60% of the eligible salaries paid times the proportion of time the days for principal photography are spent inside an eligible geographic area are out of the total days for principal photography for the production, paid after September 30, 2007, and before 2016, and
(B) 50% of the eligible salaries paid times the proportion of time the days for principal photography are spent outside an eligible geographic area are out of the total days for principal photography for the production, paid after September 30, 2007, and before 2016;
(c) striking out clause (b) and substituting the following clause:
(ii) 50% of the qualifying expenditure incurred after December 31, 2007, and before January 1, 2013 for an eligible product developed by the eligible corporation otherwise than in an eligible geographic area of the Province as prescribed by regulation,
(iii) 40% of the qualifying expenditure incurred before January 1, 2008, for an eligible product developed by the eligible corporation in an eligible geographic area of the Province as prescribed by regulation, and
(iv) 60% of the qualifying expenditure incurred after December 31, 2007, and before January 1, 2013, for an eligible product developed by the eligible corporation in an eligible geographic area of the Province as prescribed by regulation;
(ii) 25% of the total expenditure incurred after December 31, 2007, and before January 1, 2013, for an eligible product developed by an eligible corporation in the case of subclause 47A(2)(a)(ii),
(iii) 20% of the total expenditures incurred before January 1, 2008, for an eligible product developed by an eligible corporation in the case of subclause 47A(2)(a)(iii), and
(iv) 30% of the total expenditures incurred after December 31, 2007, and before January 1, 2013, for an eligible product developed by an eligible corporation in the case of subclause 47A(2)(a)(iv).
24 Subclause 2(a)(ii) of Chapter 232 of the Revised Statutes, 1989, the Insurance Premiums Tax Act, is amended by striking out "to the extent of not less than fifty per cent thereof derived from the insurance of farm property or" in the fourth and fifth lines.
25 Section 3 of Chapter 232 is amended by adding immediately after subsection (3) the following subsection:
26 Chapter 232 is further amended by adding immediately after Section 14 the following Section:
(a) designating mutual insurance companies for the purpose of subsection 3(4);
(b) defining any word or expression used but not defined in this Act;
(c) deemed necessary or advisable by the Governor in Council to carry out effectively the intent and purpose of this Act.
(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.
(3) A regulation made pursuant to subsection (1) may, where it so provides, be made retroactive in its operation to a date not earlier than January 1, 2008.
27 Subsection 68(1) of Chapter 293 of the Revised Statutes, 1989, the Motor Vehicle Act, as amended by Chapter 9 of the Acts of 2007, is further amended by striking out "one hundred and six dollars and eighty cents" in the fourth line and substituting "one hundred and eight dollars and eighty-three cents".
28 Subsection 44A(1) of Chapter 13 of the Acts of 1995-96, the Personal Property Security Act, as enacted by Chapter 3 of the Acts of 2004 and amended by Chapter 9 of the Acts of 2007, is further amended by
(a) striking out "22.75"' in the fifth line of clause (a) and substituting "23.18";
(b) striking out "7.96" in the seventh line of clause (a) and substituting "8.10";
(c) striking out "534.00" in the fourth line of clause (b) and substituting "544.15";
(d) striking out "7.96" in the fifth line of clause (c) and substituting "8.10";
(e) striking out "534.00" in the fourth line of clause (d) and substituting "544.15";
(f) striking out "10.68" in clause (e) and substituting "10.90"; and
(g) striking out "534.00" in the second line of clause (f) and substituting "544.15".
29 Section 31B of Chapter 17 of the Acts of 1995-96, the Revenue Act, is repealed and the following Section substituted:
31 Section 16A of Chapter 7 of the Acts of 1991, the Trust and Loan Companies Act, is repealed and the following Section substituted:
- 16A The annual taxes and taxes for letters patent of incorporation and supplementary letters patent and the taxes in respect of the functions performed by the Superintendent under this Act or the regulations are as follows:
- (i) filing and processing an application for letters
patent or supplementary letters patent $579.52,
(ii) letters patent of incorporation for a
trust or loan company $5,795.15,
(iii) supplementary letters patent
- (A) to change a company's name $579.52,
(B) to continue a provincial loan company
as a trust company $2,318.06,
(C) to continue a provincial trust company
as a loan company $2,318.06,
(D) to change the municipal unit in which the
principal place of business of the company
is to be located $579.52,
(E) to amalgamate two or more companies
and to continue them as one company $4,636.12,
(F) to modify or alter the share structure
of the company $1,159.03;
(b) the tax for processing an application for
- (i) initial licensing of a company $1,159.03,
(ii) changing a loan company to a trust company
or changing a trust company to
a loan company $1,159.03,
(iii) changing terms, conditions and restrictions
of registration $1,159.03;
(c) the annual tax for companies to be paid as of the 30th day of June
in each year
exceed $50,000,000 $3,477.09, (ii) where the assets of the company are
over $50,000,000 but do not
exceed $100,000,000 $4,636.12,
(iii) where the assets of the company are
over $100,000,000 but do not
exceed $500,000,000 $5,795.15,
(iv) where the assets of the company are
over $500,000,000 but do not
exceed $1,000,000,000 $6,954.19,
(v) where the assets of the company are
over $1,000,000,000 but do not
exceed $5,000,000,000 $9,272.25,
(vi) where the assets of the company are
over $5,000,000,000 11,590.31,
(vii) in addition to the amount prescribed in
subclause (vi), for every
$1,000,000,000 in assets in excess
of $5,000,000,000 $1,159.03;
(e) the tax for processing an application for an
increase in borrowing multiple $1,159.03;
(f) the tax for a copy of a decision of the
Superintendent or Appeal Board, per
page (minimum fee $10.00) $2.32;
(g) the tax for a certificate issued by the
Superintendent with respect to the licence
of a company $23.18;
(h) the tax for copies of extracts from documents
filed with the Superintendent, per
page (minimum fee $10.00) $2.32;
(i) the tax for a certificate issued by the
Superintendent other than the certificate
referred to in clause (g) $23.18;
(j) the tax for examining and passing on
applications or documents not specifically
referred to in the regulations $1,159.03;
(k) the tax for an application to obtain consent
of the Superintendent to the transfer of shares $289.76;
(l) the tax for an application to obtain consent
of the Superintendent to the transfer of shares
where such transfer results in the change of
control of the company $2,318.06;
(m) the tax for examining the Loan or Trust Register
or the public file of a company, per register or file $11.59.
32 (1) This Act, except Sections 2 to 6 and 8 to 31, comes into force on such day as the Governor in Council orders and declares by proclamation.
(2) Section 8, clauses 18(a) and (d) and Sections 19 and 22 have effect on and after January 1, 2007, upon the Governor in Council so ordering by proclamation.
(3) Sections 5, 6 and 12, clause 14(a), clause 15(b), clause 17(a) and clause 18(c) and Sections 20, 21, 23, 29 and 30 have effect on and after January 1, 2008.
(4) Sections 10 and 24 to 26 have effect on and after January 1, 2008, upon the Governor in council so ordering by proclamation.
(5) Sections 2 to 4, 27, 28 and 31 have effect on and after April 1, 2008, upon the Governor in Council so ordering by proclamation.
(6) Sections 9, 11 and 13, clause 14(b), clause 15(a), Section 16, clause 17(b) and clause 18(b) have effect on and after January 1, 2009, upon the Governor in Council so ordering by proclamation.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2008 Crown in right of Nova Scotia. Created June 5, 2008. Send comments to legc.office@novascotia.ca.
