First

Session, 46th General Assembly

Elizabeth II, 2008

BILL 18

AN ACT TO AMEND THE

LIQUOR CONTROL ACT

RESPECTING A LICENSEE LEVY

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

Second Reading .................................................................................................................................

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

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

THOMAS W. MARSHALL, Q.C.

Minister

of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXLANATORY NOTES

Clause 1 of the Bill would add a

provision to the Liquor Control Act to

impose a tax on purchasers of liquor and to consider licensees and permittees to

be agents of the Crown in the collection of that tax.

This clause of the Bill would further

indicate that any money collected as a licensee levy after January 31, 2001 and before March 31, 2006

was collected as a payment for the tax.

Clause 2 of the Bill provides that the

amendment shall be considered to have come into force on February 1, 2001 .

A BILL

AN ACT TO AMEND THE LIQUOR CONTROL ACT

RESPECTING A LICENSEE LEVY

Analysis

S.56.1 Added

Tax

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cL-18 as

amended

1. The Liquor

Control Act is amended by adding immediately after

section 56 the

following:

Tax

56.1

(1) For

the purpose of this section,

(a) " licensee "

means a licensee as defined by this Act at any time after January 31, 2001 and before March 31, 2006 ;

(b) "permittee" means a person issued a

permit under this Act at any time after January 31, 2001 and before March 31,

2006; and

(c) " purchaser "

means a person who, in the province, at any time after January 31, 2001 and before March 31, 2006

(

i) purchased

liquor for his or her own use or consumption or for the use or consumption by

other persons at his or her expense, or

(ii) purchased liquor on

behalf of or as an agent for a principal who was acquiring that liquor for use

or consumption by the principal or by other persons at the expense of the

principal.

(2) A purchaser shall pay to the Crown for the

purpose of raising revenue for Crown purposes a tax respecting the use or

consumption of all liquor purchased by him or her in the licensed premises of a

licensee or permittee at any time after January 31, 2001 and before March 31, 2006 , computed at the

rate of

(a) 12% of the purchase price of liquor and wine

and $0.60 per dozen beer for the period of January 31, 2001 to March 31, 2005 inclusive; and

(b) 9% of the purchase price of liquor and wine

and $0.45 per dozen beer for the period of April 1, 2005 to March 31, 2006 inclusive.

(3) The tax shall be in addition to every other

tax paid by the purchaser in respect of the purchase of the liquor.

(4) A purchaser shall be considered to have paid

the tax at the time he or she purchased the liquor.

(5) At any time after January 31, 2001 and before March

31, 2006, a licensee or permittee shall be considered to have been an agent of

the Crown for the purpose of collecting the tax and shall be considered to have

collected the tax from the purchaser at the time the purchaser purchased the

liquor and to have remitted the tax to the Crown.

(6) An allowance or commission is not payable to

the licensees or permittees for their services in collecting and remitting the

tax.

(7) Where, at any time after January 31, 2001 and before March 31, 2006 , money was

collected or purported to have been collected as a licensee levy, the money

shall by this

section be conclusively considered to have been collected and

retained by the Crown, without compensation, as payment for the tax.

(8) An action or proceeding does not lie or shall

not be instituted or continued against the Crown or a minister, employee or

agent of the Crown based on a cause of action arising from, resulting from or

incidental to money collected or purported to have been collected as a licensee

levy.

(9) A cause of action against the Crown or a

minister, employee or agent of the Crown based on a cause of action arising

from, resulting from or incidental to money collected or purported to have been

collected as a licensee levy is extinguished.

Commencement

2. This Act shall be considered to have come into

force on February

1, 2001 .

Earl G. Tucker, Queen's Printer