Building a Strong Ontario Act (Budget Measures), 2023 — Bill 85 (43rd Parliament, 1st Session)

Bill 85, 43-1

Ontario — Bills

role="main" class="main-container container js-quickedit-main-content" id="main-content">

Bill 85, Building a Strong Ontario Act (Budget Measures), 2023

Bethlenfalvy, Hon. Peter Minister of Finance

Royal Assent received. Statutes of Ontario 2023,

chapter 8

Please select

View bill

Status

Debates

Acts affected

Votes

Royal Assent

Original

Bill 85 Royal Assent (PDF)

EXPLANATORY

NOTE

This Explanatory Note was written as a reader’s

aid to Bill 85 and does not form part of the law.

Bill 85 has been enacted as

Chapter 8 of the Statutes of Ontario, 2023.

SCHEDULE 1

DEDICATED FUNDING FOR PUBLIC TRANSPORTATION ACT, 2013

The

Schedule amends the Dedicated Funding for Public Transportation

Act, 2013 ,

which provides that a portion of the tax that is paid to Ontario under the Gasoline

Tax Act

in each fiscal year be dedicated to the provision of grants to municipalities

for public transportation. Subsection 1 (2) of the Act sets out the calculation

for determining the portion of the tax that is dedicated to that purpose.

Currently, subsection 1 (2) refers to the tax rate per litre of gasoline that

is specified in clause 2 (1) (

b) of the Gasoline Tax Act for the purposes of

that calculation. Subsection 1 (2) is re-made to provide instead that the

amount of the portion of the tax for a fiscal year be calculated using the tax

rate per litre of gasoline in effect for that fiscal year under

section 2 of

the Gasoline

Tax Act .

A new subsection 1 (2.1) is added to the Act that sets out how the portion is

to be calculated for a fiscal year during which more than one tax rate was in

effect.

SCHEDULE 2

FINANCIAL PROFESSIONALS TITLE PROTECTION ACT, 2019

The

Schedule amends the Financial Professionals Title Protection Act,

2019 to

give the Authority the power to make rules governing the use of protected

titles in certain circumstances. Clause 15 (2) (

d) of the Act is also repealed.

SCHEDULE 3

FUEL TAX ACT

The

Schedule amends the Fuel Tax Act .

The

definition of “fuel” in subsection 1 (1) is amended to exclude hydrogen.

Subsection

13 (12) authorizes the Minister, when assessing an interjurisdictional carrier

who has not kept adequate books of account, to deem certain vehicles to have

travelled a distance of 1.6 kilometres per litre of fuel consumed. The

subsection is amended to allow the Minister to deem the vehicles to have

travelled a distance of 1.7 kilometres per litre of fuel consumed or to reduce

the carrier’s reported kilometres per litre by 20 per cent.

SCHEDULE 4

GASOLINE TAX ACT

The

Schedule makes the following amendments to the Gasoline Tax Act :

1. The

definition of “gasoline” in subsection 1 (1) is amended to exclude hydrogen and

the definition of “fuel” for the purposes of

section 34 is amended to include

“hydrogen”.

2. Currently,

the definition of “propane” in subsection 1 (1) is defined with reference to

Standard CAN/CGSB-3.14-M88 of the National Standards of Canada. The definition

is amended to replace reference to that standard with reference to Standard

CAN/CGSB-3.14.

3. New

subsection 2 (4.3.1) imposes a tax rate of 0 cents per litre on hydrogen used

by an interjurisdictional carrier in Ontario to generate power in a qualified

motor vehicle.

4. Currently,

Subsections 4.1 (4.1) and 4.2 (3) provide penalties for unregistered importers

and exporters that import or export gasoline. These subsections are amended to

also provide for penalties for unregistered importers or exporters that import

or export aviation fuel or propane.

5. Subsection

11 (18) currently authorizes the Minister, when assessing an

interjurisdictional carrier who has not maintained adequate books of account,

to deem certain vehicles to have travelled 1.2 kilometres per litre of gasoline

consumed or 1 kilometre per litre of propane consumed. The subsection is amended

to allow the Minister to deem the vehicles to have travelled a distance of 1.7

kilometres per litre of gasoline or propane consumed or to reduce the carrier’s

reported kilometres per litre by 20 per cent.

SCHEDULE 5

INSURANCE ACT

Section

121.0.1 of the Insurance Act is amended to provide

the Financial Services Regulatory Authority of Ontario with the authority to

make rules governing what constitutes an individual variable insurance

contract.

SCHEDULE 6

LIQUOR TAX ACT, 1996

The

Schedule amends the Liquor Tax Act, 1996 .

Sections

23 and 24 of the Act are retroactively amended effective November 29, 2021.

Immediately prior to November 29, 2021, a purchaser of draft or non-draft beer

manufactured by a beer manufacturer was required to pay a volume tax and an environmental

tax in respect of the purchase in accordance with those sections. On November

29, 2021, those sections were amended to provide that the volume tax and

environmental tax was payable in respect of draft or non-draft beer generally.

These sections are amended retroactively to provide that they apply to draft

beer manufactured by a beer manufacturer or one of its affiliates.

Subsection

17 (1) of the Act is amended to provide for two new

definitions, “onsite winery

retail store” (a winery retail store that is located on the licensee’s

production site) and “offsite winery retail store” (a winery retail store that

is not located on the licensee’s production site). The

definitions of

“authorized grocery store” and “wine boutique” are repealed. In light of this

change in terminology, amendments are made to sections 27, 28 and 29, which

provide for the basic tax, volume tax and environmental tax payable in respect

of purchases of wine or wine cooler. In addition,

section 27 is amended such

that a single basic tax of 12 per cent rate applies in respect of the purchase

of wine or wine cooler from an off-site winery retail store.

SCHEDULE 7

MINISTRY OF REVENUE ACT

New

section 14.1 of the Ministry of Revenue Act authorizes the

collection of information and material relating to vessels and aircraft from

Transport Canada for specified purposes including the development and

evaluation of tax policy. The Minister is required to publish a notice with

respect to the collection of personal information under the section.

SCHEDULE 8

ONTARIO GUARANTEED ANNUAL INCOME ACT

The

Schedule makes the following amendments to the Ontario Guaranteed

Annual Income Act

that apply with respect to July 2024 and subsequent months:

1. The

amount of the monthly benefit under subsection 2 (4) of the Act is currently

reduced by one dollar for every full 24 or 48 dollars, depending on the

circumstances. The Act is amended so that the reduction is itself reduced to 50

cents for every full 24 or 48 dollars.

2. Amendments

are made so that the amount of the monthly guaranteed annual income increment

authorized to be paid under the Act is calculated in the same manner as the

monthly benefit under subsection 2 (4) of the Act.

addition, a new

section 1.1 provides for the automatic indexing of the maximum

amount of the increment for the purposes of the Act.

SCHEDULE 9

TAXATION ACT, 2007

The

Schedule amends the Taxation Act, 2007 . Here are some

highlights:

1. Currently,

section 8 of the Act sets out rules for determining the amount of non-refundable

tax credits. Paragraph 13.2 of that

section currently sets out rules for

determining an individual’s entitlement to the tax credit for unused tuition

and education, if the conditions set out in paragraph 13.3 are satisfied. One

of those conditions is amended on a retroactive basis to January 1, 2018.

2. The

Act is amended by adding a new subsection 9 (14.2), which provides that if an

individual was not resident in Ontario on the last day of a taxation year

ending after December 31, 2021, the amount of the individual’s tax credit for

the year in respect of unused tuition and education tax credits is nil. The

amendment is made retroactive to January 1,

Section

24 of the Act imposes the Ontario Health Premium. Various amendments are made

to the rules that apply in circumstances where an individual becomes or became

a bankrupt. The amendments are effective January 1, 2023.

4. Currently, subsection 31 (5.5) of the Act phases out the

small business deduction for corporations having taxable capital employed in

Canada between $10 million and $15 million. The small business deduction is

eliminated for corporations having more than $15 million of taxable capital

employed in Canada. Subsection 31 (5.5) is amended to provide that it applies

only to taxation years beginning before April 7, 2022. A new subsection 31

(5.5.1) is added and applies to taxation years beginning on or after April 7,

2022. The new subsection phases out the small business deduction for

corporations with taxable capital employed in Canada between $10 million and

$50 million. The deduction is eliminated for corporations with more than $50

million of taxable capital employed in Canada. The amendments are made

retroactive to April 7, 2022.

5. New

section 97.2 provides for the Ontario made manufacturing investment tax credit.

The credit is available in respect of eligible expenditures made by a

qualifying corporation. The criteria for a corporation to be a qualifying

corporation are set out in subsection 97.2 (3). The criteria for an expenditure

to be an eligible expenditure are set out in subsection 97.2 (4), which

includes requirements that the expenditure be incurred in respect of eligible

property. Eligible property is defined in subsection 97.2 (17). Rules are

included respecting qualifying corporations that are associated with one or

more other qualifying corporations at any time in a taxation year.

Consequential amendments are made to sections 84 and 176.

6. Technical

amendments are made to

section 103.14 of the Act.

SCHEDULE 10

TOBACCO TAX ACT

The

Schedule amends the Tobacco Tax Act by repealing the

provisions of the Act respecting tear tape, including

section 7.1 of the Act,

which requires tear tape manufacturers to hold a permit issued by the Minister.

addition, various amendments are made to the French version of the Act.

Bill 85 2023

Act to implement Budget measures and to amend various statutes

Contents

of this Act

Commencement

Short

title

Schedule 1

Dedicated

Funding for Public Transportation Act, 2013

Schedule 2

Financial

Professionals Title Protection Act, 2019

Schedule 3

Fuel

Tax Act

Schedule 4

Gasoline

Tax Act

Schedule 5

Insurance

Act

Schedule 6

Liquor

Tax Act, 1996

Schedule 7

Ministry

of Revenue Act

Schedule 8

Ontario

Guaranteed Annual Income Act

Schedule 9

Taxation

Act, 2007

Schedule 10

Tobacco

Tax Act

His

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

Province of Ontario, enacts as follows:

Contents

of this Act

1 This

Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

(1) Except

as otherwise provided in this section, this Act comes into force on the day it

receives Royal Assent.

(2) The

Schedules to this Act come into force as provided in each Schedule.

(3) If

Schedule to this Act provides that any provisions are to come into force on a

day to be named by proclamation of the Lieutenant Governor, a proclamation may

apply to one or more of those provisions, and proclamations may be issued at

different times with respect to any of those provisions.

Short

title

3 The

short title of this Act is the Building

a Strong Ontario Act (Budget Measures), 2023 .

SCHEDULE 1

DEDICATED FUNDING FOR PUBLIC TRANSPORTATION ACT, 2013

Subsection 1 (2) of the Dedicated Funding for Public

Transportation Act, 2013 is repealed and the following substituted:

Amount

(2) The

portion of the tax that is dedicated to that purpose in each fiscal year that

begins on or after April 1, 2013 is the amount calculated by multiplying 2

cents by the number of litres of gasoline on which tax was paid during the

previous fiscal year, that number being the number determined by dividing the

total revenue from gasoline tax for that fiscal year, as reported in the Public

Accounts, by the tax rate per litre of gasoline in effect for that fiscal year

under

section 2 of the Gasoline Tax Act .

Same, more than one rate in effect

(2.1) If

more than one tax rate was in effect during the previous fiscal year, the

number of litres of gasoline on which tax was paid during that fiscal year

shall be calculated by,

(

a) for each period of the fiscal year during which a different

tax rate was in effect, dividing the total revenue from gasoline tax for that

period by the tax rate that was in effect during that period to determine the

number of litres on which tax was paid during each period; and

(

b) adding together the number of litres determined under clause

(

a) for each period of the fiscal year during which a different tax rate was in

effect.

Commencement

This

Schedule comes into force on the day the Building a Strong

Ontario Act (Budget Measures), 2023 receives Royal Assent.

SCHEDULE 2

FINANCIAL PROFESSIONALS TITLE PROTECTION ACT, 2019

(1) Subsection 15 (1) of the Financial Professionals

Title Protection Act, 2019 is amended by adding the following paragraph:

10. Governing the use of protected titles in circumstances

where an approved credentialing body’s approval is revoked or where an approved

credentialing body ceases to operate or otherwise ceases to be an approved

credentialing body for the purposes of this Act.

(2) Clause

15 (2) (

d) of the Act is repealed.

Commencement

This

Schedule comes into force on the day the Building a Strong

Ontario Act (Budget Measures), 2023 receives Royal Assent.

SCHEDULE 3

FUEL TAX ACT

The definition of “fuel” in subsection 1 (1) of the Fuel

Tax Act is amended by striking out “or” at the end of clause (a), by adding

“or” at the end of clause (

b) and by adding the following clause:

(

c) hydrogen;

Subsection 13 (12) of the Act is repealed and the following substituted:

Notice

of assessment

(12) The

Minister may, at any time the Minister considers reasonable, assess an

interjurisdictional carrier, who has failed or refused to maintain adequate

books of account as required by this Act and the regulations, the tax payable

under this Act by the interjurisdictional carrier and, for the purpose of such

assessment, the Minister may,

(

a) deem

the interjurisdictional carrier’s interjurisdictional vehicles or fleet of

interjurisdictional vehicles to have travelled a distance equal to 1.7

kilometres for each litre of fuel consumed by the vehicles or fleet of

vehicles; or

(

b) reduce

the interjurisdictional carrier’s reported kilometres per litre by 20 per cent.

Commencement

This

Schedule comes into force on the day the Building a

Strong Ontario Act (Budget Measures), 2023 receives Royal Assent.

SCHEDULE 4

GASOLINE TAX ACT

(1) The definition of “gasoline” in subsection 1 (1) of the Gasoline

Tax Act

is amended by,

(

a) striking

out “other than methanol and natural gas” in the portion before clause (

a) and

substituting “other than hydrogen, methanol and natural gas”; and

(

b) striking

out “except methanol and natural gas” in clause (

e) and substituting “except

hydrogen, methanol and natural gas”.

(2) The

definition of “propane” in subsection 1 (1) of the Act is amended by striking

out “CAN/CGSB-3.14-M88” and substituting “CAN/CGSB-3.14”.

(3) Clause

(

b) of the definition of “qualified motor vehicle” in subsection 1 (1) of the

Act is amended by striking out “gasoline, natural gas or propane” and

substituting “gasoline, hydrogen, natural gas or propane”.

Section 2 of the Act is amended by adding the following subsection:

Same,

hydrogen

(4.3.1) Every

interjurisdictional carrier who acquires hydrogen anywhere shall pay a tax at

the rate of 0 cents per litre on all hydrogen used by the interjurisdictional

carrier in Ontario to generate power in a qualified motor vehicle.

Subsection 4.1 (4.1) of the Act is amended by striking out “the gasoline that

the person imported into Ontario” and substituting “the gasoline, aviation fuel

or propane that the person imported into Ontario”.

Subsection 4.2 (3) of the Act is amended by striking out “the gasoline that the

person exported out of Ontario” and substituting “the gasoline, aviation fuel

or propane that the person exported out of Ontario”.

Subsection 11 (18) of the Act is repealed and the following substituted:

Assessment

— interjurisdictional carriers

(18) The

Minister may, at any time the Minister considers reasonable, assess an

interjurisdictional carrier, who has failed or refused to maintain adequate

books of account as required by this Act and the regulations, the tax payable

by the interjurisdictional carrier under this Act and, for the purposes of such

assessment, the Minister may,

(

a) deem

the interjurisdictional carrier’s qualified motor vehicles or fleet of

qualified motor vehicles to have travelled a distance equal to 1.7 kilometres

for each litre of gasoline or for each litre of propane consumed by the

qualified motor vehicle or fleet of qualified motor vehicles; or

(

b) reduce

the interjurisdictional carrier’s reported kilometres per litre by 20 per cent.

Subsection 34 (1) of the Act is repealed and the following substituted:

Interjurisdictional

agreements

(1) In

this section,

“fuel”

means gasoline, hydrogen, natural gas or propane.

Commencement

This

Schedule comes into force on the day the Building a Strong

Ontario Act (Budget Measures), 2023 receives Royal Assent.

SCHEDULE 5

INSURANCE ACT

Paragraph 11.1 of subsection 121.0.1 (1) of the Insurance

Act is amended by adding the following subparagraph:

v. Governing

what constitutes an individual variable insurance contract.

Commencement

This

Schedule comes into force on the day the Building a

Strong Ontario Act (Budget Measures), 2023 receives Royal Assent.

SCHEDULE 6

LIQUOR TAX ACT, 1996

(1) The definition of “authorized grocery store” in subsection 17

(1) of the Liquor Tax Act, 1996 is repealed.

(2) The

definition of “beer manufacturer” in subsection 17 (1) of the Act is repealed

and the following substituted:

“beer

manufacturer” means the holder of a manufacturer’s licence to sell that

authorizes the sale of beer; (“fabricant de bière”)

(3) Subsection

17 (1) of the Act is amended by adding the following

definitions:

“offsite

winery retail store” means a winery retail store that is not located on the

licensee’s production site; (“magasin de détail d’établissement vinicole hors

site”)

“onsite

winery retail store” means a winery retail store that is located on the

licensee’s production site; (“magasin de détail d’établissement vinicole sur

les lieux”)

(4) The

definition of “wine boutique” in subsection 17 (1) of the Act is repealed.

Section 23 of the Act is amended by striking out “draft or non-draft beer” and

substituting “draft beer manufactured by a beer manufacturer or one of its

affiliates or of non-draft beer”.

Section 24 of the Act is amended by striking out “non-draft beer or draft beer”

and substituting “draft beer manufactured by a beer manufacturer or one of its

affiliates or of non-draft beer”.

(1) Subsection 27 (1) of the Act is amended by striking out “from a

winery retail store or an authorized grocery store” and substituting “from an

onsite winery retail store”.

(2) Subsection

27 (1.1) of the Act is repealed.

(3) Subsection

27 (2) of the Act is amended by striking out “from a winery retail store or an

authorized grocery store” and substituting “from an onsite winery retail

store”.

(4) Subsection

27 (2.1) of the Act is repealed and the following substituted:

Same,

purchases from offsite winery retail stores

(2.1) A

purchaser who purchases from an offsite winery retail store wine or wine cooler

manufactured by the owner of the offsite winery retail store shall pay a basic

tax in respect of the purchase at the basic tax rate of 12 per cent of the

retail price of the wine or wine cooler.

(5) Subsection

27 (3) of the Act is amended by striking out “or an authorized grocery store”

in the portion before paragraph

Section 28 of the Act is repealed and the following substituted:

Volume

tax

(1) A

purchaser who purchases wine or wine cooler shall pay a volume tax in respect

of the purchase at the rate specified in subsection (2) if,

(

a) the

wine or wine cooler is purchased from an onsite winery retail store; or

(

b) the

wine or wine cooler is purchased from an offsite winery retail store and the

wine or wine cooler was manufactured by the owner of the store.

Rate

(2) The

rate mentioned in subsection (1) is,

(a) 29

cents per litre, in the case of wine; or

(b) 28

cents per litre, in the case of wine cooler.

Section 29 of the Act is repealed and the following substituted:

Environmental

tax

purchaser who purchases wine or wine cooler shall pay an environmental tax of

8.93 cents for each non-refillable container in which the wine or wine cooler

is purchased if,

(

a) the

wine or wine cooler is purchased from an onsite winery retail store; or

(

b) the

wine or wine cooler is purchased from an offsite winery retail store and the

wine or wine cooler was manufactured by the owner of the store.

Commencement

(1) Except as otherwise provided in this section, this

Schedule

comes into force on July 1, 2023.

(2) Subsection

1 (2) and sections 2 and 3 are deemed to have come into force on November 29,

SCHEDULE 7

MINISTRY OF REVENUE ACT

The Ministry

of Revenue Act

is amended by adding the following section:

Collection

of information from Transport Canada

14.1

(1) For any

of the following purposes, the Minister and any public servant employed under

Part III of the Public Service of Ontario Act, 2006 who is engaged,

directly or indirectly, in the administration and enforcement of

an Act that

imposes a tax may collect information and material relating to vessels and

aircraft in the course of the Minister’s or the public servant’s duties from

Transport Canada, whether directly or indirectly:

1. For

use in the administration and enforcement of

an Act described in subsection (2)

an Act that imposes a tax.

2. For

use in developing or evaluating tax policy for the Crown.

Same

(2) Subsection

(1) applies despite any provision in

an Act administered by the Minister or in

an Act under which the Minister exercises powers or performs duties as assigned

to the Minister under the Executive Council Act .

Notice

of collection of personal information

(3) The

Minister shall ensure that a notice is published on a Government of Ontario

website that contains the following information respecting personal information

that is collected under this section:

1. The

legal authority for the collection.

2. The

types of personal information that may be collected.

3. The

sources of the personal information that may be collected.

4. The

purpose for which the personal information is collected and may be used and

disclosed, including the general nature of the linkages that may be made with

the personal information.

5. The

title and contact information of the ministry representative who can answer

questions about the collection, use and disclosure of the personal information

that is collected.

Commencement

This

Schedule comes into force on the day the Building a Strong

Ontario Act (Budget Measures), 2023 receives Royal Assent.

SCHEDULE 8

ONTARIO GUARANTEED ANNUAL INCOME ACT

The definition of “increment” in subsection 1 (1) of the Ontario

Guaranteed Annual Income Act is repealed and the following substituted:

“increment”

means the monthly guaranteed annual income increment authorized to be paid

under this Act; (“suppl ément provincial ”)

The Act is amended by adding the following section:

Maximum

increment

1.1

(1) In this

section,

“base

maximum increment” means the amount by which one-twelfth of the guaranteed

income limit applicable to a beneficiary in respect of a quarter exceeds the

sum of the maximum pension payable to an individual for a month in the quarter

and the maximum supplement payable to a single or married individual, as the

case may be, for a month in the quarter; (“supplément provincial maximal de base”)

“change

to the cost of living” means, for a given fiscal year, the amount calculated

using the following formula and rounded to the nearest thousandth:

÷ B) - 1

which,

“A” represents

the cost of living index for the fiscal year in question, and

“B” represents

the cost of living index for the fiscal year immediately preceding the fiscal

year in question; (“variation du coût de la vie”)

“cost

of living index” means, for a given fiscal year, the average Consumer Price

Index for Ontario (All-Items), as published by Statistics Canada under the

authority of the Statistics Act (Canada), for the

months that make up the 12-month period ending on September 30 of the previous

fiscal year. (“indice du coût de la vie”)

Amount

(2) For

the fiscal year commencing on July 1, 2024 and subsequent fiscal years, the

maximum increment payable for a month under this Act is the amount as most

recently adjusted under this section, except that, if no adjustment occurs on

July 1, 2024, the maximum increment payable for a month is the base maximum

increment until the first adjustment occurs under this section.

Adjustment

(3) Subject

to subsection (5), if the change to the cost of living for the fiscal year

commencing on July 1, 2024 or a subsequent fiscal year is a positive number, on

July 1 of that fiscal year the maximum increment payable for a month shall be

adjusted using the formula,

+ (C ×

D) which,

“C” represents,

(

a) in

the case of the first adjustment under this section, the base maximum

increment, or

(

b) in

the case of subsequent adjustments under this section, the maximum increment

payable for a month, and

“D” represents

the change to the cost of living for the fiscal year in which the adjustment

occurs.

Whole

dollar amount

(4) If

an adjusted amount is not a whole dollar amount, it shall be rounded up to the

next whole dollar.

Exception

(5) No

adjustment shall occur during a fiscal year if the cost of living index for the

year is equal to or less than the cost of living index for the last fiscal year

during which an adjustment occurred.

Subsequent

adjustment

(6) If

no adjustment occurs in a fiscal year by application of subsection (5), for the

first subsequent fiscal year during which an adjustment is to occur, the value

of “D” in subsection (3) shall represent the change to the cost of living for

that fiscal year, calculated using the cost of living index for the last fiscal

year during which an adjustment occurred as the value of “B” in the definition

of “change to the cost of living” in subsection (1).

(1) Subsection 2 (4) of the Act is amended by striking out “minus

$1.00” in the portion before clause (

a) and substituting “minus the applicable

amount set out in subsection (4.1) for every full”.

(2) The

striking out “for every full” at the beginning of each clause.

(3) Section

2 of the Act is amended by adding the following subsection:

Same

(4.1) The

amount mentioned in subsection (4) is,

(

a) for

a month before July 2024, $1.00; and

(

b) for

July 2024 and subsequent months, $0.50.

Section 3 of the Act is amended by adding the following subsection:

Amount

(1.1) The

increment is an amount equal to,

(

a) if

the increment is payable for a month before July 2024, the amount by which

one-twelfth of the guaranteed income limit applicable to a beneficiary exceeds

the beneficiary’s basic monthly income for the month for which the payment

authorized under this Act is being made; or

(

b) if

the increment is payable for July 2024 or a subsequent month, an amount

calculated in the same manner as a “monthly benefit” under subsection 2 (4).

Commencement

This

Schedule comes into force on the day the Building a

Strong Ontario Act (Budget Measures), 2023 receives Royal Assent.

SCHEDULE 9

TAXATION ACT, 2007

Subparagraph 13.3 ii of

section 8 of the Taxation Act,

2007 is repealed and the following substituted:

ii. The

individual was resident in a province other than Ontario on the last day of the

taxation year preceding the particular taxation year.

Section 9 of the Act is amended by adding the following subsection:

Unused

tuition and education tax credits, taxation years ending after 2021

(14.2) Despite

subsection (14), for a taxation year ending after December 31, 2021, if an

individual was not resident in Ontario on the last day of the year, the amount

of the individual’s tax credit for the year in respect of unused tuition and

education tax credits is nil.

Subsections 24 (4) and (4.1) of the Act are repealed and the following

substituted:

Bankruptcy

(4) The

following rules apply if an individual becomes a bankrupt in a calendar year:

1. The

individual’s taxable income for the calendar year for the purposes of this

section is deemed to be the sum of all amounts, each of which is their taxable

income for a taxation year ending in the calendar year of bankruptcy.

2. The

amount of the individual’s Ontario Health Premium is,

i. for

a taxation year that is deemed to end under paragraph 128 (2) (

d) of the

Federal Act on the day immediately before the day on which the individual

became a bankrupt, the amount that would be determined under subsection (2) if

the taxation year were the only taxation year of the individual ending in the

calendar year, and

ii. for

any other taxation year ending in the calendar year, the amount calculated

using the formula,

- K

which,

“J” is

the individual’s Ontario Health Premium determined under subsection (2) as if

each reference to “taxation year” in subsections (1) and (2) were read as a

reference to “calendar year”, and

“K” is

the amount of the individual’s Ontario Health Premium payable for the taxation

year described in subparagraph i.

Exception,

bankruptcy returns

(4.1) If

a return of income is required to be filed under paragraph 128 (2) (

e) of the

Federal Act for a taxation year, the amount of the Ontario Health Premium for

the year under that return is deemed to be nil.

(1) Subsection 31 (5.5) of the Act amended by adding “and beginning

before April 7, 2022” before “is the amount” in the portion before the formula.

(2) Section

31 of the Act is amended by adding the following subsection:

Same,

tax years beginning on or after April 7, 2022

(5.5.1) Despite

subsections (5) to (5.5), a Canadian-controlled private corporation’s Ontario

business limit for a particular taxation year beginning on or after April 7,

2022 and ending in a calendar year is the amount, if any, by which its Ontario

business limit otherwise determined under subsections (5) to (5.4) for the

particular taxation year exceeds the amount determined by the formula,

× (B/$90,000)

which,

“A” is

the amount that would, but for this subsection, be the corporation’s business

limit for the particular taxation year, and

“B” is

the amount determined by the formula,

0.225%

× (D − $10 million)

which,

“D” is,

(

a) if,

in both the particular taxation year and the preceding taxation year, the

corporation is not associated with any corporation, the taxable capital

employed in Canada (within the meaning assigned by subsection 181.2 (1) or

181.3 (1) or

section 181.4 of the Federal Act, as the case may be) of the

corporation for the preceding taxation year,

(

b) if,

in the particular taxation year, the corporation is not associated with any

corporation but was associated with one or more corporations in the preceding

taxation year, the taxable capital employed in Canada (within the meaning by

subsection 181.2 (1) or 181.3 (1) or

section 181.4 of the Federal Act, as the

case may be) of the corporation for the particular taxation year, or

(

c) if,

in the particular taxation year, the corporation is associated with one or more

particular corporations, the total of all amounts each of which is the taxable

capital employed in Canada (within the meaning assigned by subsection 181.2

(1) or 181.3 (1) or

section 181.4 of the Federal Act, as the case may be) of the

corporation or of any of the particular corporations for its last taxation year

that ended in the preceding calendar year.

(3) Subsection

31 (5.6) of the Act is amended by striking out “(5.5) is reduced” and

substituting “(5.5) or (5.5.1), as the case may be, is reduced”.

Subsection 84 (1) of the Act is amended by adding the following paragraph:

11.2 An

Ontario made manufacturing investment tax credit under

section 97.2.

Section 97.1 of the Act is amended by adding the following section:

Interpretation,

capital cost

(16) For

the purposes of this section, capital cost is determined under the Federal Act,

except that a credit claimed under this

section or

section 97.2 that would

otherwise be government assistance for the purposes of determining capital cost

under the Federal Act shall be deemed not to be government assistance and shall

not reduce the capital cost.

The Act is amended by adding the following section:

Ontario

made manufacturing investment tax credit

97.2

(1) A

corporation that is a qualifying corporation and that complies with the

requirements of this

section may claim an amount for a taxation year in respect

of and not exceeding the corporation’s Ontario made manufacturing investment

tax credit for the year.

Amount

of tax credit

(2) The

amount of a qualifying corporation’s Ontario made manufacturing investment tax

credit for a taxation year is the amount equal to 10 per cent of the amount calculated

using the formula,

A/365

× B

which,

“A” is

the number of days in the taxation year, and

“B” is

the lesser of,

(

a) the

sum of the qualifying corporation’s eligible expenditures in the taxation year,

and

(b) $20,000,000,

if the corporation is not associated with any qualifying corporation in the

taxation year, or the amount determined under subsections (6) and (11), if the

corporation is associated with any other qualifying corporation in the taxation

year.

Qualifying

corporation

(3) A

corporation is a qualifying corporation for a taxation year for the purposes of

this

section if,

(

a) it

is a Canadian-controlled private corporation throughout the year;

(

b) it

is not exempt from tax for the year under

Part III; and

(

c) it

carries on business in Ontario in the year through a permanent establishment in

Ontario.

Eligible

expenditure

(4) An

expenditure is an eligible expenditure of the qualifying corporation for a

taxation year for the purposes of this

section if,

(

a) the

expenditure is incurred by the qualifying corporation in respect of the

acquisition of eligible property,

(

b) the

expenditure is incurred,

(

i) in

the taxation year or a previous taxation year, if the expenditure is in respect

of eligible property that satisfies the criteria set out in subparagraph 1 i of

the definition of “eligible property” in subsection (17), or

(ii) in

the taxation year and on or after March 23, 2023, if the expenditure is in

respect of eligible property that satisfies any of the criteria set out in

subparagraphs 1 ii to v of the definition of “eligible property” in subsection

(17).

(

c) the

expenditure is part of the capital cost of the property to the qualifying

corporation at the end of the taxation year;

(

d) the

expenditure is not in respect of eligible property for which a credit under

this

section has been claimed by the qualifying corporation in a previous year

or by a corporation associated with the qualifying corporation in any year.

Expenditure

under a contract

(5) If

a corporation incurs an expenditure in respect of eligible property under a

contract with a person or partnership with which the corporation does not deal

at arm’s length at the time the expenditure was incurred or at the time the

contract was entered into, the expenditure shall not be included in the

corporation’s eligible expenditures in respect of the eligible property.

Associated

corporations

(6) Subject

to subsection (11), if a qualifying corporation is associated in the taxation

year with one or more other qualifying corporations, the corporation’s amount

for the purposes of clause (

b) of the definition of “B” in subsection (2) is the amount designated

to the corporation under subsection (7).

Same,

agreement re designation

(7) For

a calendar year, a qualifying corporation that is associated with one or more

other qualifying corporations in a taxation year ending in that calendar year

may enter into an agreement with all those corporations designating the amount

for the purposes of subsection (6) for each taxation year ending in that

calendar year.

Same,

total amount designated

(8) For

the purposes of subsection (7), the maximum amount that may be designated by a

group of associated corporations is $20,000,000.

Same,

more than one taxation year

(9) For

the purposes of subsection (7), if a qualifying corporation (the “first

corporation”) has more than one taxation year ending in the same calendar year

and it is associated in two or more of those taxation years with another

qualifying corporation that has a taxation year ending in the same calendar

year, the following rules apply:

1. Except

as may be provided otherwise by the regulations made by the Minister of

Finance, the amount, if any, designated to the first corporation for the first

taxation year ending in the calendar year shall be the same as the amount

designated to the first corporation for any other taxation year ending in the

calendar year.

2. Except

as may be provided otherwise by the regulations made by the Minister of

Finance, for the purposes of determining the maximum amount that may be

designated to a group of associated corporations under subsection (7), only the

amount designated to the first corporation in the first taxation year ending in

the calendar year shall be included.

3. Such

other rules as may be prescribed by the Minister of Finance.

Same,

agreement must be filed with Ontario Minister

(10) The

agreement referred to in subsection (7) must be filed with the Ontario

Minister.

Same,

failure to enter agreement, etc.

(11) The

amount for the purposes of clause (

b) of the definition of “B” in subsection

(2) for a qualifying corporation that is associated with any other qualifying

corporations in a taxation year is nil if,

(

a) the

corporation fails to enter into an agreement referred to in subsection (7);

(

b) the

corporation fails to file the agreement with the Ontario Minister under

subsection (10); or

(

c) the

agreement does not comply with subsection (8) or (9).

Corporations

deemed to be associated

(12) If the Ontario Minister

reasonably believes that one of the reasons for the separate existence of two

or more corporations in a taxation year is to entitle a corporation to the

Ontario made manufacturing investment tax credit or to increase the tax credit

for a taxation year of any of the corporations, the corporations are deemed to

be associated with each another in the taxation year for the purposes of this

section.

Amalgamation

(13) Despite

any other provision of this section, a qualifying corporation formed as a

result of the amalgamation of two or more predecessor corporations shall not

claim a credit under this

section for any expenditure incurred in respect of

eligible property by a predecessor corporation that was not a qualifying

corporation at the time the expenditure was incurred.

Available

for use

(14) For

the purposes of this section, a property is considered to have become available

for use at the time the property is considered to have become available for use

under subsection 13 (26) of the Federal Act.

Review

(15) The

Minister of Finance shall conduct a review of the effectiveness of the Ontario

made manufacturing investment tax credit not later than the third anniversary

of the day the Building a Strong Ontario Act (Budget

Measures), 2023 received Royal Assent, and not later than every third

anniversary thereafter.

Interpretation,

capital cost

(16) For the purposes of this

section, capital cost is determined under the Federal Act, except that a credit

claimed under this

section or

section 97.1 that would otherwise be government

assistance for the purposes of determining capital cost under the Federal Act

shall be deemed not to be government assistance and shall not reduce the

capital cost.

Definitions

(17) In

this section,

“eligible

property” means property that satisfies all of the following criteria:

1. The

property is capital property of the qualifying corporation for the taxation

year, and is,

i. a

building, or part of a building, included in Class 1 of

Schedule II to the

Federal regulations to which paragraph 1100 (1) (a.1) of the Federal

regulations applies as a result of an election made under subsection 1101

(5b.1) of that regulation,

ii. property

acquired on or after March 23, 2023 and before 2026 that is included in Class

53 of

Schedule II to the Federal regulations,

iii. property

acquired after 2025 that is included in paragraph (

a) of Class 43 of

Schedule

II of the Federal regulations,

iv. property

that is prescribed by the Minister of Finance for the purposes of this

paragraph, or

v. property

that meets the conditions prescribed by the Minister of Finance.

2. The

property is considered to have become available for use by the qualifying

corporation in the taxation year and on or after March 23, 2023.

3. The

property is,

i. a

building, or part of a building, located in Ontario, or

ii. property,

other than a building or part of a building, that is,

A. to

be used by the qualifying corporation in Ontario primarily in the manufacturing

or processing of goods for sale or lease, or

B. to

be leased, in the ordinary course of carrying on a business in Ontario of the

qualifying corporation, to a lessee who can reasonably be expected to use the

property in Ontario primarily in the manufacturing or processing by the lessee

of goods for sale or lease.

4. The

property is not excluded property; (“bien admissible”)

“excluded

property” means,

(

a) property

that was owned, at any time, by a person or partnership with which the

qualifying corporation did not deal at arm’s length at the time the property

was acquired,

(

b) property

that the qualifying corporation or a corporation associated with the qualifying

corporation held a leasehold interest in at any time before the acquisition of

the property,

(

c) property

that was acquired from a person or partnership that has a right or option to

acquire or lease all or part of the property at any time,

(

d) property

in respect of which, at the time it was acquired, the qualifying corporation

granted any other person or partnership a right or option to acquire,

(

e) property

included in Class 1 of

Schedule II to the Federal regulations as a result of an

election made under subsection 1103 (1) of those regulations,

(

f) property

that is leased to a lessee that is exempt from tax under

section 149 of the

Federal Act,

(

g) property

that is prescribed by the Minister of Finance for the purposes of this

definition, or

(

h) property

that meets the conditions prescribed by the Minister of Finance; (“bien exclu”)

“permanent

establishment” has the meaning assigned by subsection 400 (2) of the Federal

regulations as if,

(

a) the

reference to “an office, a branch, a mine, an oil well, a farm, a timberland, a

factory, a workshop or a warehouse” in the portion before paragraph (

a) of the

definition were read as “an office, a factory or a workshop”, and

(

b) the

definition were read without reference to paragraphs (a), (b), (c), (

d) and

(e.1). (“établissement stable’”)

(1) Subsection 103.14 (1) of the Act is amended by striking out the

portion before clause (

a) and substituting the following:

Effect

of death of eligible individual, etc., on calculations

(1) Subsection

(2) applies in respect of an individual for the purposes of this

Part if the

individual has died (in this

section referred to as the “deceased individual”),

the deceased individual’s death occurred after December 31 of a base taxation

year to which a particular month relates and before the beginning of the

particular month and the deceased individual would have been, but for their

death,

. . . .

(2) Subsection

103.14 (2) of the Act is amended by striking out “specified individual”

wherever it appears and substituting in each case “deceased individual”.

Paragraph 1 of

section 176 of the Act is amended by adding the following

subparagraph:

xii.ii The

Ontario made investment tax credit under

section 97.2.

Commencement

(1) Except as otherwise provided in this section, this

Schedule

comes into force on the day the Building a Strong Ontario

Act (Budget Measures), 2023 receives Royal Assent.

(2) Section

1 is deemed to have come into force on January 1, 2018.

(3) Section

2 is deemed to have come into force on January 1, 2022.

(4) Section

4 is deemed to have come into force on April 7, 2022.

(5) Section

3 is deemed to have come into force on January 1, 2023.

SCHEDULE 10

TOBACCO TAX ACT

(1) The French version of the definition of “reserve” in subsection 1

(1) of the Tobacco Tax Act is amended by striking

out “habitants” and substituting “habitants indiens”.

(2) The

French version of the definition of “consumer” in subsection 1 (1) of the Act

is amended by,

(

a) striking

out “obtenu” in clause (

b) and substituting “acquis”; and

(

b) striking

out “obtenir” in the portion after clause (

b) and substituting “acquérir ”.

(3) The

definitions of “tear tape” and “tear tape manufacturer” in subsection 1 (1) of

the Act are repealed.

The French version of subsection 5 (6) of the Act is amended by,

(

a) striking

out “obtient” and substituting “acquiert”; and

(

b) striking

out “qu’il a vendu ou obtenu” at the end and substituting “qu’il a acheté ou

acquis ”.

Section 7.1 of the Act is repealed.

(1) Subsection 8 (7.1) of the Act is repealed.

(2) Subsection

8 (8) of the Act is amended by striking out “and all tear tape received from

the holder of a permit to manufacture tear tape under

section 7.1” at the end.

(3) Subsection

8 (9) of the Act is amended by striking out “or tear tape” wherever it appears.

(4) Subsection

8 (9.1) of the Act is repealed.

(5) Subsection

8 (9.2) of the Act is amended by striking out “or tear tape” wherever it

appears.

(6) Subsection

8 (9.3) of the Act is repealed.

(1) The French versions of clauses 12 (2) (

b) and (b.1) of the Act

are amended by striking out “obtient” wherever it appears and substituting in

each case “acquiert”.

(2) Subsection

12 (2) of the Act is amended by adding “and” at the end of clause (f), by striking

out “and” at the end of clause (f.1) and by repealing clause (g).

The French version of

section 13 of the Act is amended by striking out “désire

obtenir” and substituting “désire acquérir”.

(1) Subsection 17 (1) of the Act is amended by striking out “to

manufacture tear tape” in the portion before clause (a).

(2) Subsections

17 (3.1) and (4.2) of the Act are repealed.

Subsection 22.1 (1.1) of the Act is repealed.

Subsection 23 (2.1) of the Act is repealed.

(1) Clause 28 (3) (

b) of the Act is amended by striking out “or to

manufacture tear tape” at the end.

(2) Clause

28 (3) (

c) of the Act is amended by striking out “or to manufacture tear tape”

at the end.

Paragraph 6 of subsection 32.1 (1) of the Act is repealed.

(1) Clause 33 (1) (

a) of the Act is amended by striking out “or to

the tear tape of a package of cigarettes”.

(2) Clause

33 (1) (

b) of the Act is amended by striking out “or to the tear tape of a

package of fine cut tobacco”.

Subsection 34 (1) of the Act is amended by striking out “or the tear tape of a

package of cigarettes”.

Subsection 34.0.1 (1) of the Act is amended by striking out “or to the tear

tape of a package of fine cut tobacco”.

Section 34.1 of the Act is repealed.

(1) The French version of subsection 35 (2.0.1) of the Act is

amended by striking out “obtenu” and substituting “acquis auprès”.

(2) The

French version of subsection 35 (4) of the Act is amended by striking out

“obtenu” in the portion before paragraph 1 and substituting “acquis auprès”.

Clause 41 (2) (

c) of the Act is repealed and the following substituted:

(

c) prescribing

the responsibilities of holders of permits to mark or stamp cigarettes with

respect to the receipt, use of and accounting for indicia;

Commencement

This

Schedule comes into force on the day the Building a

Strong Ontario Act (Budget Measures), 2023 receives Royal Assent.

Bill 85 Original (PDF)

EXPLANATORY

NOTE

SCHEDULE 1

DEDICATED FUNDING FOR PUBLIC TRANSPORTATION ACT, 2013

The

Schedule amends the Dedicated Funding for Public Transportation

Act, 2013 ,

which provides that a portion of the tax that is paid to Ontario under the Gasoline

Tax Act

in each fiscal year be dedicated to the provision of grants to municipalities

for public transportation. Subsection 1 (2) of the Act sets out the calculation

for determining the portion of the tax that is dedicated to that purpose.

Currently, subsection 1 (2) refers to the tax rate per litre of gasoline that

is specified in clause 2 (1) (

b) of the Gasoline Tax Act for the purposes of

that calculation. Subsection 1 (2) is re-made to provide instead that the

amount of the portion of the tax for a fiscal year be calculated using the tax

rate per litre of gasoline in effect for that fiscal year under

section 2 of

the Gasoline

Tax Act .

A new subsection 1 (2.1) is added to the Act that sets out how the portion is

to be calculated for a fiscal year during which more than one tax rate was in

effect.

SCHEDULE 2

FINANCIAL PROFESSIONALS TITLE PROTECTION ACT, 2019

The

Schedule amends the Financial Professionals Title Protection Act,

2019 to

give the Authority the power to make rules governing the use of protected

titles in certain circumstances. Clause 15 (2) (

d) of the Act is also repealed.

SCHEDULE 3

FUEL TAX ACT

The

Schedule amends the Fuel Tax Act .

The

definition of “fuel” in subsection 1 (1) is amended to exclude hydrogen.

Subsection

13 (12) authorizes the Minister, when assessing an interjurisdictional carrier

who has not kept adequate books of account, to deem certain vehicles to have

travelled a distance of 1.6 kilometres per litre of fuel consumed. The

subsection is amended to allow the Minister to deem the vehicles to have

travelled a distance of 1.7 kilometres per litre of fuel consumed or to reduce

the carrier’s reported kilometres per litre by 20 per cent.

SCHEDULE 4

GASOLINE TAX ACT

The

Schedule makes the following amendments to the Gasoline Tax Act :

1. The

definition of “gasoline” in subsection 1 (1) is amended to exclude hydrogen and

the definition of “fuel” for the purposes of

section 34 is amended to include

“hydrogen”.

2. Currently,

the definition of “propane” in subsection 1 (1) is defined with reference to

Standard CAN/CGSB-3.14-M88 of the National Standards of Canada. The definition

is amended to replace reference to that standard with reference to Standard CAN/CGSB-3.14.

3. New

subsection 2 (4.3.1) imposes a tax rate of 0 cents per litre on hydrogen used

by an interjurisdictional carrier in Ontario to generate power in a qualified

motor vehicle.

4. Currently,

Subsections 4.1 (4.1) and 4.2 (3) provide penalties for unregistered importers

and exporters that import or export gasoline. These subsections are amended to

also provide for penalties for unregistered importers or exporters that import

or export aviation fuel or propane.

5. Subsection

11 (18) currently authorizes the Minister, when assessing an

interjurisdictional carrier who has not maintained adequate books of account,

to deem certain vehicles to have travelled 1.2 kilometres per litre of gasoline

consumed or 1 kilometre per litre of propane consumed. The subsection is

amended to allow the Minister to deem the vehicles to have travelled a distance

of 1.7 kilometres per litre of gasoline or propane consumed or to reduce the

carrier’s reported kilometres per litre by 20 per cent.

SCHEDULE 5

INSURANCE ACT

Section

121.0.1 of the Insurance Act is amended to provide

the Financial Services Regulatory Authority of Ontario with the authority to

make rules governing what constitutes an individual variable insurance

contract.

SCHEDULE 6

LIQUOR TAX ACT, 1996

The

Schedule amends the Liquor Tax Act, 1996 .

Sections

23 and 24 of the Act are retroactively amended effective November 29, 2021.

Immediately prior to November 29, 2021, a purchaser of draft or non-draft beer

manufactured by a beer manufacturer was required to pay a volume tax and an

environmental tax in respect of the purchase in accordance with those sections.

On November 29, 2021, those sections were amended to provide that the volume

tax and environmental tax was payable in respect of draft or non-draft beer

generally. These sections are amended retroactively to provide that they apply

to draft beer manufactured by a beer manufacturer or one of its affiliates.

Subsection

17 (1) of the Act is amended to provide for two new

definitions, “onsite winery

retail store” (a winery retail store that is located on the licensee’s

production site) and “offsite winery retail store” (a winery retail store that

is not located on the licensee’s production site). The

definitions of

“authorized grocery store” and “wine boutique” are repealed. In light of this

change in terminology, amendments are made to sections 27, 28 and 29, which

provide for the basic tax, volume tax and environmental tax payable in respect

of purchases of wine or wine cooler. In addition,

section 27 is amended such

that a single basic tax of 12 per cent rate applies in respect of the purchase

of wine or wine cooler from an off-site winery retail store.

SCHEDULE 7

MINISTRY OF REVENUE ACT

New

section 14.1 of the Ministry of Revenue Act authorizes the

collection of information and material relating to vessels and aircraft from

Transport Canada for specified purposes including the development and

evaluation of tax policy. The Minister is required to publish a notice with

respect to the collection of personal information under the section.

SCHEDULE 8

ONTARIO GUARANTEED ANNUAL INCOME ACT

The

Schedule makes the following amendments to the Ontario Guaranteed

Annual Income Act

that apply with respect to July 2024 and subsequent months:

1. The

amount of the monthly benefit under subsection 2 (4) of the Act is currently

reduced by one dollar for every full 24 or 48 dollars, depending on the

circumstances. The Act is amended so that the reduction is itself reduced to 50

cents for every full 24 or 48 dollars.

2. Amendments

are made so that the amount of the monthly guaranteed annual income increment

authorized to be paid under the Act is calculated in the same manner as the

monthly benefit under subsection 2 (4) of the Act.

addition, a new

section 1.1 provides for the automatic indexing of the maximum

amount of the increment for the purposes of the Act.

SCHEDULE 9

TAXATION ACT, 2007

The

Schedule amends the Taxation Act, 2007 . Here are some

highlights:

1. Currently,

section 8 of the Act sets out rules for determining the amount of

non-refundable tax credits. Paragraph 13.2 of that

section currently sets out

rules for determining an individual’s entitlement to the tax credit for unused

tuition and education, if the conditions set out in paragraph 13.3 are

satisfied. One of those conditions is amended on a retroactive basis to January

1, 2018.