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Bill 114, HST Relief Implementation Act (Residential Property Rebates), 2026

Bethlenfalvy, Hon. Peter Minister of Finance

Current status:

Royal Assent received. Statutes of Ontario 2026,

chapter 5

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Bill 114 Royal Assent (PDF)

EXPLANATORY

NOTE

This Explanatory Note was written as a reader’s

aid to Bill 114 and does not form part of the law.

Bill 114 has been enacted as

Chapter 5 of the Statutes of Ontario, 2026.

The

Bill amends the Retail Sales Tax Act to enable the

Minister to, by regulation, provide for credits and payments to be made to a

person in respect of all or part of the federal component of the tax that is

paid or payable under

Part IX of the Excise Tax Act

(Canada) in respect of residential property and to provide for other related

matters, including measures to recover amounts credited or paid to a person who

was not entitled to the credit or payment.

Bill 114 2026

Act to amend the Retail Sales Tax Act to enable credits and payments to be made

respecting certain tax paid or payable in respect of residential property and to

provide for other related matters

His

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

(1) Subsections 20 (2.1), (4.1), (4.2) and (4.3) of the Retail Sales Tax Act are amended by adding “or subsection

51.2 (1)” after each instance of “subsection 51.1 (1) (Rebates for First

Nations)”.

(2) Subsection

20 (4.5) of the Act is amended by striking out “section 51.1” and substituting

“sections 51 to 51.3”.

(1) Subsections 32 (6) and (7) of the Act are amended by adding “or subsection

51.2 (1)” after each instance of “subsection 51.1 (1) (Rebates for First

Nations)”.

(2) Subsection 32 (8) of the Act is amended by adding “or subsection 51.2 (1)”

after “subsection 51.1 (1)”.

Subsection 48 (4) of the Act is amended by striking out “A regulation is” at

the beginning and substituting “Any regulation made under this Act is”.

The Act is amended by adding the following section:

Interpretation,

sections 51.1 to 51.3

51.0.1 Expressions used in

sections 51.1 to 51.3 have the same meaning as in

section 51 unless the context

requires otherwise.

(1) Subsection 51.1 (1) of the Act is amended by striking out “ Excise Tax Act (Canada)” and substituting “Federal Act”.

(2) Subsections

51.1 (3) to (7) of the Act are repealed.

The Act is amended by adding the following sections:

Rebates

re residential property

51.2

(1) The

Minister may, by regulation, provide for credits and payments to be made to a

person in respect of all or part of the federal component of the tax that is

paid or payable under

Part IX of the Federal Act in respect of residential

property.

Limitation

(2) A

credit or payment under a regulation under subsection (1) shall not exceed

$50,000.

Same

(3) If

a regulation under subsection (1) establishes as a condition for eligibility

for a given credit or payment that an agreement of purchase and sale for the

supply of a residential property must have been entered into by a certain date,

that date must be no later than March 31, 2027.

Scope

of regulation

(4) Without

limiting the generality of subsection (1), a regulation under that subsection

may,

(

a) set

out the amount of the credit or payment or a manner of determining the amount;

(

b) authorize

the Federal Minister or a supplier to credit or pay an amount on behalf of the

Crown in right of Ontario;

(

c) authorize

a person entitled to a payment under the regulation to assign the payment to

another person.

Authority

to pay

(5) The

Minister of Finance may make any payments provided for by a regulation under

subsection (1) out of the Consolidated Revenue Fund.

Rebates,

general rules

Obligation

to repay

51.3

(1) If a

person receives a credit or payment under a regulation under subsection 51.1

(1) or 51.2 (1) to which the person is not entitled, the person shall pay to the

Minister the amount to which the person was not entitled.

Assignment

(2) If

the payment referred to in subsection (1) is a payment under a regulation under

subsection 51.2 (1) that was assigned to another person, the person who

assigned the payment and the person to whom the payment was assigned are

jointly and severally liable to pay to the Minister the amount of the payment under

subsection (1).

Same

(3) This

Act applies in respect of an amount payable to the Minister under subsection

(1) as if the person were a purchaser and as if the amount were a tax payable under

this Act.

Same

(4) An

amount payable under subsection (1) that has not been paid to the Minister

constitutes a debt to the Crown in right of Ontario and may be recovered by way

of deduction or set-off or in proceedings commenced at any time in a court of

competent jurisdiction or in any other manner provided by this Act.

Deduction

or set-off from payment to Ontario

(5) Subsections

51 (9) and (10) apply, with necessary modifications, with respect to amounts

credited or paid under

section 51.1 by the Federal Minister.

Same

(6) Subsection

51 (9) applies, with necessary modifications, with respect to amounts credited

or paid under

section 51.2 by the Federal Minister, and the Minister may, by

regulation, provide that subsection 51 (10) also applies, with necessary

modifications, with respect to those amounts.

Commencement

This Act comes into force on the day it receives Royal Assent.

Short

title

The

short title of this Act is the HST Relief

Implementation Act (Residential Property Rebates), 2026 .

Bill 114 Original (PDF)

EXPLANATORY

NOTE

The

Bill amends the Retail Sales Tax Act to enable the

Minister to, by regulation, provide for credits and payments to be made to a

person in respect of all or part of the federal component of the tax that is

paid or payable under

Part IX of the Excise Tax Act

(Canada) in respect of residential property and to provide for other related

matters, including measures to recover amounts credited or paid to a person who

was not entitled to the credit or payment.

Bill 114 2026

Act to amend the Retail Sales Tax Act to enable credits and payments to be made

respecting certain tax paid or payable in respect of residential property and to

provide for other related matters

His

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

(1) Subsections 20 (2.1), (4.1), (4.2) and (4.3) of the Retail Sales Tax Act are amended by adding “or subsection

51.2 (1)” after each instance of “subsection 51.1 (1) (Rebates for First

Nations)”.

(2) Subsection

20 (4.5) of the Act is amended by striking out “section 51.1” and substituting

“sections 51 to 51.3”.

(1) Subsections 32 (6) and (7) of the Act are amended by adding “or subsection

51.2 (1)” after each instance of “subsection 51.1 (1) (Rebates for First

Nations)”.

(2) Subsection 32 (8) of the Act is amended by adding “or subsection 51.2 (1)”

after “subsection 51.1 (1)”.

Subsection 48 (4) of the Act is amended by striking out “A regulation is” at

the beginning and substituting “Any regulation made under this Act is”.

The Act is amended by adding the following section:

Interpretation,

sections 51.1 to 51.3

51.0.1 Expressions used in

sections 51.1 to 51.3 have the same meaning as in

section 51 unless the context

requires otherwise.

(1) Subsection 51.1 (1) of the Act is amended by striking out “ Excise Tax Act (Canada)” and substituting “Federal Act”.

(2) Subsections

51.1 (3) to (7) of the Act are repealed.

The Act is amended by adding the following sections:

Rebates

re residential property

51.2

(1) The

Minister may, by regulation, provide for credits and payments to be made to a

person in respect of all or part of the federal component of the tax that is

paid or payable under

Part IX of the Federal Act in respect of residential

property.

Limitation

(2) A

credit or payment under a regulation under subsection (1) shall not exceed

$50,000.

Same

(3) If

a regulation under subsection (1) establishes as a condition for eligibility

for a given credit or payment that an agreement of purchase and sale for the

supply of a residential property must have been entered into by a certain date,

that date must be no later than March 31, 2027.

Scope

of regulation

(4) Without

limiting the generality of subsection (1), a regulation under that subsection

may,

(

a) set

out the amount of the credit or payment or a manner of determining the amount;

(

b) authorize

the Federal Minister or a supplier to credit or pay an amount on behalf of the

Crown in right of Ontario;

(

c) authorize

a person entitled to a payment under the regulation to assign the payment to

another person.

Authority

to pay

(5) The

Minister of Finance may make any payments provided for by a regulation under

subsection (1) out of the Consolidated Revenue Fund.

Rebates,

general rules

Obligation

to repay

51.3

(1) If a

person receives a credit or payment under a regulation under subsection 51.1

(1) or 51.2 (1) to which the person is not entitled, the person shall pay to the

Minister the amount to which the person was not entitled.

Assignment

(2) If

the payment referred to in subsection (1) is a payment under a regulation under

subsection 51.2 (1) that was assigned to another person, the person who

assigned the payment and the person to whom the payment was assigned are

jointly and severally liable to pay to the Minister the amount of the payment under

subsection (1).

Same

(3) This

Act applies in respect of an amount payable to the Minister under subsection

(1) as if the person were a purchaser and as if the amount were a tax payable under

this Act.

Same

(4) An

amount payable under subsection (1) that has not been paid to the Minister

constitutes a debt to the Crown in right of Ontario and may be recovered by way

of deduction or set-off or in proceedings commenced at any time in a court of

competent jurisdiction or in any other manner provided by this Act.

Deduction

or set-off from payment to Ontario

(5) Subsections

51 (9) and (10) apply, with necessary modifications, with respect to amounts

credited or paid under

section 51.1 by the Federal Minister.

Same

(6) Subsection

51 (9) applies, with necessary modifications, with respect to amounts credited

or paid under

section 51.2 by the Federal Minister, and the Minister may, by

regulation, provide that subsection 51 (10) also applies, with necessary

modifications, with respect to those amounts.

Commencement

This Act comes into force on the day it receives Royal Assent.

Short

title

The

short title of this Act is the HST Relief Implementation Act (Residential Property Rebates),

2026 .

Date Bill stage Event Outcome Committee

May 12, 2026

Royal Assent

Royal Assent received

May 12, 2026

Third Reading

Vote

Carried on division

May 12, 2026

Third Reading

Question put

May 12, 2026

Third Reading

Debated

May 12, 2026

Second Reading

Ordered for Third Reading pursuant to the Order of the House

May 12, 2026

Second Reading

Vote

Carried

May 12, 2026

Second Reading

Question put

May 12, 2026

Second Reading

Time allocated

May 7, 2026

Second Reading

Debated

Debate adjourned

May 7, 2026

Second Reading

Debated

Debate adjourned

May 6, 2026

Second Reading

Debated

Debate adjourned

May 5, 2026

First Reading

Ordered for Second Reading

May 5, 2026

First Reading

Vote

Carried

First Reading

May 5, 2026

Carried

Ordered for Second Reading

Second Reading

May 6, 2026

Principal Debaters

Bethlenfalvy, Hon. Peter

Pickering—Uxbridge

Flack, Hon. Rob

Elgin—Middlesex—London

Smith, Laura

Thornhill

Questions and Responses

Dowie, Andrew

Windsor—Tecumseh

Gates, Wayne

Niagara Falls

Pierre, Natalie

Burlington

Sattler, Peggy

London West

Tabuns, Peter

Toronto—Danforth

May 7, 2026

Principal Debaters

Bell, Jessica

University—Rosedale

Blais, Stephen

Orléans

Bowman, Stephanie

Don Valley West

Cooper, Michelle

Eglinton—Lawrence

Fraser, John

Ottawa South

Schreiner, Mike

Guelph

Shamji, Adil

Don Valley East

Smith, Dave

Peterborough—Kawartha

Stevens, Jennifer (Jennie)

St. Catharines

Tsao, Jonathan

Don Valley North

Vanthof, John

Timiskaming—Cochrane

Wong-Tam, Kristyn

Toronto Centre

Questions and Responses

Allsopp, Tyler

Bay of Quinte

Cerjanec, Rob

Ajax

Cuzzetto, Rudy

Mississauga—Lakeshore

Darouze, George

Carleton

Fife, Catherine

Waterloo

Firin, Mohamed

York South—Weston

Gilmour, Alexa

Parkdale—High Park

Glover, Chris

Spadina—Fort York

Jordan, John

Lanark—Frontenac—Kingston

Kanapathi, Logan

Markham—Thornhill

McKenney, Catherine

Ottawa Centre

Pierre, Natalie

Burlington

Racinsky, Joseph

Wellington—Halton Hills

Rae, Matthew

Perth—Wellington

Smyth, Stephanie

Toronto—St. Paul's

Tabuns, Peter

Toronto—Danforth

Vaugeois, Lise

Thunder Bay—Superior North

West, Jamie

Sudbury

May 7, 2026

Debated

May 12, 2026

Time allocated

May 12, 2026

Question put

Carried

Ordered for Third Reading pursuant to the Order of the House

Third Reading

May 12, 2026

Principal Debaters

Blais, Stephen

Orléans

Bowman, Stephanie

Don Valley West

Clancy, Aislinn

Kitchener Centre

Downey, Hon. Doug

Barrie—Springwater—Oro-Medonte

French, Jennifer

Oshawa

Rakocevic, Tom

Humber River—Black Creek

Schreiner, Mike

Guelph

Tangri, Hon. Nina

Mississauga—Streetsville

Watt, Tyler

Nepean

May 12, 2026

Question put

Carried on division

Royal Assent

May 12, 2026

Royal Assent received