BILL NO. 13
1st Session, 57th General Assembly
Nova Scotia
47 Elizabeth II, 1998
Financial Measures (1998) Act
The Honourable Donald R. Downe
Minister of Finance
First Reading: June 8, 1998
Second Reading: October 20, 1998
Law Amendments Committee: November 3, 1998
Committee of the Whole House on Bills: November 9, 1998
Third Reading: November 9, 1998 (WITH COMMITTEE AMENDMENTS)
Explanatory Notes
Clause 1 gives the Act a short title.
Clause 2 requires the Minister of Housing and Municipal Affairs to pay an annual grant to municipalities with respect to farm property that is exempt from property taxation pursuant to the Assessment Act.
Clause 3 extends the home ownership savings plan to December 31, 1999.
Clause 4 amends a cross-reference to the Income Tax Act (Canada) and clarifies the amount with respect to the research and development tax credit renunciation clause.
Clause 5 increases the film-industry tax credit.
Subclause 6(1) corrects an error in the Income Tax Act (Nova Scotia).
Subclause 6(2) enables a company to renounce in whole or in part the investment tax credit.
Subclauses 7(1) and (2) make a number of changes in the corporate capital tax provisions of the Income Tax Act (Nova Scotia) to ensure that the appropriate ratio is applied to allocate the taxable capital of a company employed in the Province.
Subclause 7(3) ensures that institutions classified as financial by federal legislation but non-financial by the Income Tax Act (Nova Scotia) apply the most appropriate calculation to determine taxable capital.
Subclause 7(4) ensures that firms with a tax year straddling the implementation or termination date are taxed on a prorated basis.
Clause 8 ensures that subsections referenced in the Income Tax Act (Canada) are read as appropriate to the smaller capital deduction in determining the taxable base.
Clause 9 provides regulation-making authority to implement the Nova Scotia Child Benefit Program.
Clause 10 continues the scheduled reductions in the residual capital grant begun under the Expenditure Control Act.
Clause 11 makes a minor clarification in the Provincial Finance Act.
Clause 12 provides that a person designated by the Minister of Finance may authorize advances out of the Consolidated Fund for travelling or other contingency expenses incurred.
Clause 13 gives the Governor in Council the authority to define words or expressions used in the Section of the Provincial Finance Act dealing with the sale of Crown assets.
Clause 14 provides that when an affair or matter is assigned to a department or a member of the Executive Council any budgetary appropriation may also be assigned.
Clause 15 increases the pension paid to a surviving spouse pursuant to the Public Service Superannuation Act where death occurs before retirement from sixty per cent to sixty-six and two thirds per cent.
Clause 16 provides that where an employee dies before retirement, the surviving spouse and any dependants are entitled to the pension the deceased employee would have been entitled to for the first five years following the date of death rather than the survivor's pension referred to in the Public Service Superannuation Act.
Clause 17 puts in place a procedure for contribution holidays for employers and employees who contribute to the Public Service Superannuation Fund.
Clause 18 increases the pension paid to a surviving spouse from sixty per cent to sixty-six and two thirds per cent.
Clause 19 provides that where a pensioner dies within five years of having retired, the surviving spouse and any dependants are guaranteed full pension benefits to the end of the five-year period.
Clause 20 increases the tax on cigarettes and pre-proportioned tobacco sticks.
An Act Respecting Certain Financial Measures
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Financial Measures (1998) Act.
2 Subsections 46(3), (4), (5) and (5A) of Chapter 23 of the Revised Statutes, 1989, the Assessment Act, are repealed and the following subsections substituted:
(4) Subject to subsection (5), for each subsequent fiscal year the Minister shall pay to the municipality in which the land is situate a grant per acre equal to the grant paid for the immediately preceding fiscal year varied by the same percentage as the variation in the cost of living over the immediately preceding calendar year as measured by the change in the Consumer Price Index for Canada prepared by Statistics Canada.
(5) The Governor in Council may by regulation change the amount of the grant per acre set out in subsections (3) and (4).
3 Subsection 3(1) of Chapter 6 of the Acts of 1989, the Home Ownership Savings Plan (Nova Scotia) Act, as amended by Chapter 9 of the Acts of 1994, is further amended by striking out "1999" in the fourth line and substituting "2000".
4 (1) Clause 6(1)(a) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is amended by striking out "paragraph (b)" in the last line and substituting "paragraphs (d) and (h)".
(2) Subsection 6(4) of Chapter 217, as amended by Chapter 9 of the Acts of 1994, is further amended by striking out "calculated pursuant to clause (b) of subsection (1)" in the second line and substituting "in respect of qualified expenditures incurred during the year".
5 Clause 13E(2)(a) of Chapter 217, as enacted by Chapter 2 of the Acts of 1995, is amended by striking out "thirty" in the first line and substituting "thirty-two and one half".
6 (1) Clause 13G(1)(a) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by
(a) striking out "with" in the sixth line of subclause (i) and substituting "without"; and
(b) striking out "with" in the eighth line of subclause (ii) and substituting "without".
(2) Subsection 13G(9) of Chapter 217 is repealed and the following subsection substituted:
7 (1) Clauses 32C(1)(a) and (b) of Chapter 217 are repealed and the following clauses substituted:
(b) where the aggregate of the corporation's taxable capital for the year, as determined under subsection (4), and the taxable capital for the year of all related corporations is ten million dollars or more, 0.25% of the taxable capital employed in the Province for the year as determined under subsection (2).
(2) Subsection 32C(2) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by
(a) striking out "employed in Canada" in the fourth line of clause (a); and
(b) striking out "employed in Canada" in the fifth and sixth lines of clause (b).
(3) Subsection 32C(4) of Chapter 217 is repealed and the following subsection substituted:
(b) in the case of a non-resident corporation, the taxable capital employed in Canada in accordance with section 181.4 of the Federal Act; or
(c) in the case of a corporation that is defined as a financial institution under the Federal Act but not under this Part, the taxable capital in accordance with section 181.3 of the Federal Act.
(4) Subsections 32C(6) and (7) of Chapter 217 are repealed and the following subsections substituted:
(7) Where a taxation year of a corporation begins before April 1, 2002, and ends after March 31, 2002, the tax otherwise payable under this Section for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year prior to April 1, 2002, is of the number of days in the taxation year.
8 Subsection 32D(4) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by adding "mutatis mutandis" immediately after "apply" in the second line.
9 Subsection 34(1) of Chapter 217 is amended by adding immediately after clause (a) the following clauses:
(ab) prescribing the eligibility criteria and payment amounts for the Nova Scotia Child Benefit Program;
(ac) necessary or advisable to enable Her Majesty in right of Canada to administer on behalf of Her Majesty in right of the Province, the Nova Scotia Child Benefit Program;
10 (1) Subsection 20(2) of Chapter 302 of the Revised Statutes, 1989, the Municipal Grants Act, as enacted by Chapter 7 of the Acts of 1994-95, is amended by striking out "1994" in the fifth line and substituting "1997".
(2) Subsection 20(3) of Chapter 302 is repealed and the following subsections substituted:
(3A) Commencing April 1, 1999, the residual capital grant payable pursuant to this Section shall be the amount determined by the Governor in Council.
11 Subsection 15(2) of Chapter 365 of the Revised Statutes, 1989, the Provincial Finance Act, is amended by striking out "by the Minister as a voucher" in the sixth and seventh lines and substituting "as a document".
12 Subsection 22(1) of Chapter 365 is amended by adding "or a person designated by the Minister" immediately after "Minister" in the second line.
13 Section 60A of Chapter 365, as enacted by Chapter 5 of the Acts of 1996, is amended by adding "(1)" immediately after the Section number and by adding the following subsections:
(3) The exercise by the Governor in Council of the authority contained in subsection (2) is regulations within the meaning of the Regulations Act.
14 Section 4 of Chapter 376 of the Revised Statutes, 1989, is amended by adding immediately after subsection (2) the following subsection:
15 (1) Subsection 6(1) of Chapter 377 of the Revised Statutes, 1989, the Public Service Superannuation Act, as amended by Chapter 39 of the Acts of 1993, is further amended by
(a) striking out "sixty" in the second line of clause (a) and substituting "sixty-six and two thirds";
(b) striking out "forty" in the ninth last line of clause (b) and substituting "thirty-three and one third";
(c) striking out "sixty" in the fifth last line of clause (b) and substituting "sixty-six and two thirds"; and
(d) striking out "sixty" in the fifth line of clause (c) and substituting "sixty-six and two thirds".
(2) Subsection (1) has effect on and after July 1, 1998.
16 (1) Chapter 377 is further amended by adding immediately after Section 6 the following Section:
(2) For greater certainty, clauses 6(1)(a) and (b) apply after the period referred to in subsection (1).
(2) Subsection (1) has effect on and after July 1, 1998.
17 Chapter 377 is further amended by adding immediately after Section 9 the following Sections:
(2) The Minister shall return from the Superannuation Fund any deductions from an employee's salary remaining in the Superannuation Fund with respect to service from the first day of April, 1997, to the thirty-first day of March, 1998, to the employees from whom the deductions were made and shall return an equal amount to the Consolidated Fund of the Province.
(3) No reduction in contributions pursuant to this Section affects the number of years of pensionable service of an employee or the amount of annual superannuation allowance that would otherwise be payable to an employee pursuant to this Act.
9B (1) In this Section, "surplus" means the excess of the actuarial value of the assets of the Superannuation Fund over the actuarial value of the liabilities under this Act as determined by the Minister in accordance with generally accepted actuarial principles.
(2) Notwithstanding any enactment, where there is a surplus in the Superannuation Fund, the Governor in Council may prescribe a period of time during which all payments and deductions required pursuant to subsection (1) of Section 9 in respect of an employee's service to the extent of the surplus shall not be required and, if already made, such deductions and payments are deemed not to have been made.
(3) The period of time referred to in subsection (2) may be for periods of service already completed, current service or future service.
(4) Where the period of time referred to in subsection (2) is for a current or future period of service, the Minister may continue to make all deductions and payments otherwise required pursuant to subsection (1) of Section 9 until the end of the prescribed period.
(5) On or after the conclusion of any period referred to in subsection (2), the Minister shall return from the Superannuation Fund any employee's salary deductions remaining in the Superannuation Fund with respect to service during the prescribed period to the employees from whom the deductions were made and shall return an equal amount to the Consolidated Fund of the Province.
(6) No reduction in contributions pursuant to this Section affects the amount of service of an employee or the entitlement to or amount of annual superannuation allowance or any other benefits that would otherwise be payable to an employee pursuant to this Act.
18 (1) Subsection 17(1) of Chapter 377, as amended by Chapter 39 of the Acts of 1993, is further amended by
(a) striking out "sixty" in the fourth line of clause (a) and substituting "sixty-six and two thirds";
(b) striking out "forty" in the ninth last line of clause (b) and substituting "thirty-three and one third";
(c) striking out "sixty" in the fifth last line of clause (b) and substituting "sixty-six and two thirds"; and
(d) striking out "sixty" in the eleventh line of clause (c) and substituting "sixty-six and two thirds".
(2) Subsection (1) has effect on and after July 1, 1998.
19 (1) Chapter 377 is further amended by adding immediately after Section 17 the following Section:
(2) For greater certainty, clauses 17(1)(a) and (b) apply after the period referred to in subsection (1).
(2) Subsection (1) has effect on and after July 1, 1998.
20 (1) Subsection 34(1) of Chapter 17 of the Acts of 1995-96, the Revenue Act, as amended by Chapter 21 of the Acts of 1996 and Chapter 3 of the Acts of 1997, is further amended by
(a) striking out "twenty-two" in the first line of clause (a) and substituting "fifty-two"; and
(b) striking out "forty" in the first line of clause (c) and substituting "eighty".
(2) Subsection (1) has effect on and after February 14, 1998.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 1998 Crown in right of Nova Scotia. Updated December 9, 1998. Send comments to legc.office@gov.ns.ca.
