Fuel and Gasoline Tax Amendment Act, 1998 Hodgson, Hon. Chris Chair of the Management Board of Cabinet — Bill 74 (36th Parliament, 2nd Session)

Bill 74, 36-2

Ontario — Bills

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Bill 74, Fuel and Gasoline Tax Amendment Act, 1998

Hodgson, Hon. Chris Chair of the Management Board of Cabinet

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[36] Bill 74 Original (PDF)

B074_e

Bill 74 1998

An Act to amend the Fuel Tax Act and the Gasoline Tax Act

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

Assembly of the Province of Ontario, enacts as follows:

Fuel Tax Act

1. (1) Subsection 1 (1) of the Fuel Tax Act , as amended

by the Statutes of Ontario, 1991,

chapter 49,

section 1, 1994,

chapter 18,

section 2 and 1996,

chapter 10,

section 1, is further amended by adding the

following definition:

adjusted temperature method" means the method of measuring the dispensed

volume of fuel by adjusting the volume to the volume at a reference

temperature of 15 degrees Celsius, by means of a dispensing pump or other

metering assembly that is equipped to effect the adjustment in accordance

with the specifications established under the Weights and Measures

Act (Canada). ("méthode de correction en fonction de la

température")

(2) The

definitions of "clear fuel", "coloured fuel", "colouring"

and "colour" in subsection 1 (1) of the Act are repealed and the following

substituted:

clear fuel" means fuel that contains no dye or less dye than the minimum

quantity established by the Minister; ("carburant incolore")

coloured fuel" means fuel which contains dye in a quantity greater than or

equal to the amount established by the Minister; ("carburant

coloré")

colouring" and "colour" mean, in respect of fuel, the addition to the fuel

of dye in the proportion established by the Minister by a person authorized

to do so by the Minister. ("coloration", "colorer")

(3) Subsection 1 (1) of the Act, as amended by the Statutes of

Ontario, 1991,

chapter 49,

section 1, 1994,

chapter 18,

section 2 and 1996,

chapter 10,

section 1, is further amended by adding the following

definition:

distributor" means a person who sells special products only and who is

designated as a distributor by the Minister. ("distributeur")

(4) The definition of "dye" in subsection 1 (1) of the Act is

repealed and the following substituted:

dye" means chemical substances that are approved by the Minister for the

purpose of blending with fuel to make coloured fuel. ("colorant")

(5) Subsection 1 (1) of the Act, as amended by the Statutes of

Ontario, 1991,

chapter 49,

section 1, 1994,

chapter 18,

section 2 and 1996,

chapter 10,

section 1, is further amended by adding the following

definition:

facility" means a facility that is owned or operated by a distributor and

that meets the requirements set out in the regulations. ("installation")

(6) The definition of "fuel" in subsection 1 (1) of the Act, as

re-enacted by the Statutes of Ontario, 1991,

chapter 49,

section 1, is

amended by striking out the portion before clause (

a) and substituting the

following:

fuel" means any gas or liquid that may be used for the purpose of

generating power by internal combustion, and includes any special product or

any substance added to the gas or liquid, but does not include,

. . . . .

(7) The definition of "registered dyer" in subsection 1 (1) of the

Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 1, is

repealed and the following substituted:

registered dyer" means a collector or distributor who holds a certificate

of registration under the Act as a dyer. ("préposé à la

coloration inscrit")

(8) Subsection 1 (1) of the Act, as amended by the Statutes of

Ontario, 1991,

chapter 49,

section 1, 1994,

chapter 18,

section 2 and 1996,

chapter 10,

section 1, is further amended by adding the following

definitions:

special products" means products prescribed by the Minister as special

products; ("produits spéciaux")

unauthorized fuel" means fuel that has been acquired exempt from tax in

another jurisdiction and that contains a substance that colours the fuel in

any manner, whether or not the colouring has been carried out in accordance

with the Act; ("carburant non autorisé")

(9) Subsection 1 (1) of the Act, as amended by the Statutes of

Ontario, 1991,

chapter 49,

section 1, 1994,

chapter 18,

section 2 and 1996,

chapter 10,

section 1, is further amended by adding the following

definition:

unadjusted temperature method" means a method of measuring the dispensed

volume of fuel that does not adjust the volume to the volume at a reference

temperature of 15 degrees Celsius. ("méthode traditionnelle")

(1) Section 2 of the Act, as re-enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 2 and amended by 1994,

chapter 18,

section

2, is further amended by adding the following subsections:

Measuring volume and calculating tax

(4.1) The tax imposed by this Act shall be computed in accordance with the

following rules:

1. If the volume of fuel is measured by the adjusted temperature method

for the purpose of determining price, the volume of the fuel shall be

measured using that method for the purpose of computing amounts in respect of

the tax imposed by this Act.

2. If the volume of fuel is measured by the unadjusted temperature method

for the purpose of determining price, the volume of the fuel shall be

measured using that method for the purpose of computing amounts in respect of

the tax imposed by this Act.

3. A person who is a collector or wholesaler shall use the same method of

measuring the volume of fuel on all sales to the same person during the same

year.

Exception

(4.2) Despite subsection (4.1), a person who is a collector or wholesaler

may change to the other method of measuring the volume of fuel on sales to a

particular person,

(

a) if a change in method is made only once; and

(

b) if the determination of the amount of tax in respect of sales after

the change in method is based on volumes measured by the new method.

(2) Subsection 2 (6) of the Act, as re-enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 2 and amended by 1994,

chapter 18,

section

2, is further amended by striking out "the fuel tank" in the second line and

substituting "a fuel tank".

(3) Section 2 of the Act, as re-enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 2 and amended by 1994,

chapter 18,

section

2, is further amended by adding the following subsection:

Prohibition, unauthorized fuel

(7.1) No person shall place or cause to be placed any unauthorized fuel in

a fuel tank of a motor vehicle to which a number plate is attached as

required under the Highway Traffic Act .

3. The Act is amended by adding the following

section:

Designation of distributor

3.0.1

(1) The Minister may designate in writing as a

distributor a person who sells only special products.

Conditions and limitations

(2) The Minister may attach such conditions and limitations to the

designation as the Minister considers appropriate.

Termination

(3) The Minister may terminate a person's designation,

(

a) if the person has not sold or delivered any special product for which

the designation was issued for a period of six consecutive months;

(

b) if the person ceases to sell the special product for which the

designation was issued;

(

c) if the product sold by the person ceases to be a special product;

(

d) if the person changes the nature of the person's business or ceases to

operate the business of selling special products; or

(

e) if the requirements relating to the facility owned or operated by the

person are not met.

Notice of termination

(4) The termination of a designation is effective 14 days after the date

on which the Minister mails notice of the termination.

Distributor as agent

(5) Every distributor is an agent of the Minister for the purpose of

collecting and remitting the tax imposed by this Act.

Agreements

(6) The Minister may enter into such arrangements and agreements with a

distributor as the Minister considers appropriate to ensure and facilitate

the collection of tax under this Act.

4. Subsection 3.1 (1) of the Act, as enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 3, is amended,

(

a) by inserting after "collector" in the first line "or

distributor"\; and

(

b) by striking out "the collector" in the third line of the

(1) Subsection 3.2 (1) of the Act, as enacted by the Statutes

of Ontario, 1991,

chapter 49,

section 3, and amended by 1994,

chapter 18,

section 2, is further amended,

(

a) by inserting after "collector" in the first line "or

distributor"\; and

version and substituting "him, her or it".

(2) Subsection 3.2 (2) of the Act, as enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 3 and amended by 1994,

chapter 18,

section

2, is further amended,

(

a) by inserting after "collector" in the first line "or

distributor"\; and

(

b) by striking out "the collector" in the fourth line of the

6. Subsection 3.4 (4) of the Act, as enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 3, is amended by inserting after

"collector" in the second line "a distributor".

(1) Subsection 3.5 (1) of the Act, as enacted by the Statutes

of Ontario, 1991,

chapter 49,

section 3, is amended by inserting after

"collector" in the second and third lines "distributor".

(2) Subsection 3.5 (2) of the Act, as enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 3, is amended by inserting after

"collector" in the second line "distributor".

(1) Subsection 3.6 (1) of the Act, as enacted by the Statutes

of Ontario, 1991,

chapter 49,

section 3, is amended by inserting after

"collector" in the last line "distributor".

(2) Subsection 3.6 (2) of the Act, as enacted by the Statutes of

Ontario, 1991,

chapter 49,

section 3 and amended by 1994,

chapter 18,

section

2, is repealed.

9. The Act is amended by adding the following

section:

Trust for moneys collected

3.6.1

(1) Any amount collected or collectable as or on

account of tax under this Act by a collector, distributor or registered

importer shall be deemed, despite any security interest in the amount so

collected or collectable, to be held in trust for Her Majesty in right of

Ontario and separate and apart from the property of the collector,

distributor or registered importer, and from property held by any secured

creditor that but for the security interest would be the property of the

collector, distributor or registered importer, and shall be paid over by the

collector, distributor or registered importer in the manner and at the time

provided under this Act and the regulations.

Extension of trust

(2) Despite any provision of this or any other Act, where at any time an

amount deemed by subsection (1) to be held in trust is not paid as required

under this Act, property of the collector, distributor or registered importer

and property held by any secured creditor of the collector, distributor or

registered importer that, but for a security interest would be property of

the collector, distributor or registered importer, equal in value to the

amount so deemed to be held in trust shall be deemed,

(

a) to be held, from the time the amount was collected or collectable by

the collector, distributor or registered importer, separate and apart from

the property of the collector, distributor or registered importer in trust

for Her Majesty in right of Ontario whether or not the property is subject to

a security interest; and

(

b) to form no part of the estate or property of the collector,

distributor or registered importer from the time the amount was so collected

or collectable whether or not the property has in fact been kept separate and

apart from the estate or property of the collector, distributor or registered

importer and whether or not the property is subject to such security

interest.

Same

(3) The property described in subsection (2) shall be deemed to be

beneficially owned by Her Majesty in ri

Document details

Collection	Ontario — Bills
Citation	Bill 74, 36-2
Type	bill
Volume / chapter	p36 s2 bill 74 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	f38cd1ca93f8eedcea58a1c2e5b5fc0869b89532

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