Third

Session, 48th General Assembly

Elizabeth II, 2018

BILL 9

AN ACT TO AMEND THE REVENUE

ADMINISTRATION ACT NO. 2

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE TOM

OSBORNE

Minister of Finance

and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Revenue Administration Act to gradually

decrease the tax on insurance premiums relating to automobiles by 5 percent

over the next 4 years commencing on January 1, 2019.

A BILL

AN ACT TO AMEND THE REVENUE ADMINISTRATION

ACT

Analysis

S.91.1 Amdt.

Tax on insurance premiums

S.91.2 Amdt.

Registration certificate

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2009 cR-15.01

as amended

(1) Section 91.1 of the Revenue Administration Act is amended by adding immediately after

subsection (1) the following:

(1.1) Notwithstanding subsection (1), a person who

enters into, renews or amends a contract of insurance relating to an automobile

in the province shall pay to the Crown a tax as follows:

(

a) where the contract of insurance has an

effective date between January 1, 2019 and December 31, 2019, a tax at the rate of 13%

of the premium for that insurance;

(

b) where the contract of insurance has an

effective date between January 1, 2020 and December 31, 2020, a tax at the rate of 12%

of the premium for that insurance;

(

c) where the contract of insurance has an

effective date between January 1, 2021 and December 31, 2021, a tax at the rate of 11%

of the premium for that insurance; and

(

d) where the contract of insurance has an

effective date on or after January 1, 2022, a tax at the rate of 10% of the premium

for that insurance.

(2) Subsection 91.1(2) of the Act is repealed and

the following substituted:

(2) The tax imposed under this

section shall be collected

and this Act and the regulations applied for the purpose of the imposition, assessment,

collection and enforcement of the payment of the tax, as if

(

a) the contract of insurance were tangible personal

property; and

(

b) there were on each occasion when the premium

is due, a retail sale in the province at which the person paying the premium

was the retail purchaser and the insurer or insurer's agent was the seller.

(3) Subsections 91.1(4) to (6) of the Act are

repealed and the following substituted:

(4) A seller is considered to be an agent of the

Crown and as an agent shall levy and collect the tax imposed under this

section

from a retail purchaser.

(5) The tax imposed under this

section shall be collected

on each occasion when the premium is paid and shall not be collected in its

entirety when a contract of insurance is entered into, amended or renewed.

(6) Notwithstanding subsection (5), where a

contract of insurance is entered into, amended or renewed and the premium for

that insurance is to be paid in its entirety at the time the contract is

entered into, amended or renewed, the tax imposed under this

section shall be

collected in its entirety at that time.

(4) Subsection 91.1(10) of the Act is repealed and

the following substituted:

(10) A person who enters into, amends or renews a

contract of insurance referred to in subsection (1) or (1.1) is required to pay

the tax imposed under this

section whether or not the insurer or insurer's

agent is registered under this Part, and that person shall remit the tax in the

manner referred to in subsection (7).

(5) Section 91.1 of the Act is amended by adding

immediately after subsection (11) the following:

(12) For the purpose of this section, "automobile"

means an automobile as defined in the Insurance

Companies Act .

2. Subsection 91.2(2) of the Act is repealed and

the following substituted:

(2) The minister may issue to a seller a registration

certificate, which is not transferable, authorizing that seller to collect the

tax referred to in

section 91.1.

Commencement

3. This Act comes into force on January 1, 2019.

Queen's Printer