BILL NO. 13

1st Session, 57th General Assembly
Nova Scotia
47 Elizabeth II, 1998



Government Bill



Financial Measures (1998) Act



The Honourable Donald R. Downe
Minister of Finance



First Reading: June 8, 1998

(Explanatory Notes)

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)

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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.

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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.

PART I

ASSESSMENT 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:

PART II

HOME OWNERSHIP SAVINGS PLAN

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".

PART III

INCOME TAX ACT

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:

(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:

(4) Subsections 32C(6) and (7) of Chapter 217 are repealed and the following subsections substituted:

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:

PART IV

MUNICIPAL GRANTS ACT

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:

PART V

PROVINCIAL FINANCE ACT

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:

PART VI

PUBLIC SERVICE ACT

14 Section 4 of Chapter 376 of the Revised Statutes, 1989, is amended by adding immediately after subsection (2) the following subsection:

PART VII

PUBLIC SERVICE SUPERANNUATION ACT

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) 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:

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) Subsection (1) has effect on and after July 1, 1998.

PART VIII

REVENUE ACT

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.

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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.