BILL NO. 62

(as introduced)

1st Session, 59th General Assembly
Nova Scotia
53 Elizabeth II, 2004



Government Bill



Financial Measures (2004) Act



The Honourable Peter G. Christie
Minister of Finance



First Reading: April 26, 2004

(Explanatory Notes)

Second Reading: May 6, 2004

Third Reading: May 20, 2004 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

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Explanatory Notes

Clause 1 sets out the short title of the Act.

Clause 2 increases the tax to be paid for the incorporation of an unlimited company from $2,000 to $4,000 and increases the amalgamation tax where the amalgamated company is an unlimited company from $2,000 to $4,000.

Clause 3 increases the tax payable under the Corporation Capital Tax Act from 3% to 4%.

Clause 4 increases the tax to be paid under the Corporations Registration Act for the certificate of registration for an unlimited company from $1,000 to $2,000 and provides for the pro-rating of the fee.

Clause 5 increases certain taxes and fees contained in Section 12 of the Corporations Registration Act and adds new fees to that Section.

Clauses 6 to 15 repeal the Schedules in the Costs and Fees Act and provide that the fees set out in the Schedules will now be set by regulation.

Clause 16 provides for the establishment of the South Shore Regional School Board and the Tri-county Regional School Board.

Clause 17 requires school boards to share services and meet certain performance standards.

Clause 18 adds to the circumstances in which a person may be appointed by the Minister to take over the operation of a school board.

Clause 19 adds to the regulation-making authority of the Governor in Council.

Clause 20 provides that the Minister of Environment and Labour may establish air quality service fees.

Clause 21 adds to the regulation-making power of the Governor in Council under Part II of the Environment Act.

Clause 22 extends the labour-sponsored venture-capital tax credit to December 31, 2009.

Clause 23 increases the tax credit for eligible shares issued by a labour-sponsored venture-capital corporation from 15% to 20% for eligible shares issued on or after January 1, 2005.

Clause 24 nullifies increases in remuneration for elected provincial officials scheduled for the month in which the next general election is held.

Clause 25 makes a technical change to subsection 19(1) of the Innovation Corporation Act.

Clause 26 partially reverses the recent tax cut and adds a fourth tax bracket.

Clause 27 increases the amount a taxpayer who has been issued a tax-credit certificate pursuant to subsection 18(2) of the Equity Tax Credit Act may deduct from tax otherwise payable for investments made after December 31, 2004.

Clause 28 increases the large corporation tax by 0.05%.

Clause 29 increases from 5% to 5.33% the deduction to be made by a prothonotary from the interest to be paid out under Section 4 of the Payment into Court Act.

Clauses 30 to 32 remove the "grow-in benefits" under the Pension Benefits Act.

Clause 33 adds a new Section to the Personal Property Security Act setting out various taxes that must be paid with respect to the registration of a financing statement.

Clause 34 increases the probate taxes paid under subsection 87(2) of the Probate Act.

Clause 35 changes the date for filing the Public Accounts from December 31st to September 30th of the calendar year in which the fiscal year to which the Public Accounts relate ends.

Clause 36 revises the provision in the Provincial Finance Act dealing with interest on overdue debt owed to the Province.

Clause 37 provides that where assets of the Crown are sold, the net proceeds of the sale shall be paid into the Debt Retirement Fund to be used to reduce the public debt.

Clause 38 changes the name of the Public Debt Retirement Fund in Section 62A of the Provincial Finance Act.

Clause 39 establishes the Debt Retirement Fund.

Clause 40 changes references in the Provincial Finance Act from "government service organizations" to "governmental units".

Clause 41 amends the Schedule to the Provincial Finance Act which lists governmental units and government business enterprises.

Clause 42 provides that deputy ministers and senior officials are not entitled to pay for performance increases if the Public Accounts are in a deficit position.

Clauses 43 and 44 authorize the Governor in Council to terminate for cause and without notice the employment of the chief executive officer of certain governmental units and government business enterprises if the unit or enterprise fails to comply with reporting requirements established by Treasury and Policy Board.

Clause 45 assigns to the Minister of Service Nova Scotia and Municipal Relations the responsibility for the collection of debts for departments and governmental units under programs designated by the Minister of Finance.

Clause 46 increases the contributions to the Superannuation Fund by 1%.

Clause 47 adds a new part to the Public Service Superannuation Act providing authority to pay supplementary pensions from the Consolidated Fund of the Province to members of the Public Service Superannuation Plan whose salaries are over the amount that produces the maximum pension under the Income Tax Act (Canada).

Clause 48 increases the tax on tobacco.

Clause 49 increases the charges that a defendant must pay under Section 4A of the Summary Proceedings Act.

Clause 50 adds new provisions to the Teachers' Pension Act providing authority to pay supplementary pensions from the Consolidated Fund of the Province to members of the teachers' pension plan whose salaries are over the amount that produces the maximum pension under the Income Tax Act (Canada).

Clause 51 sets out certain taxes that are payable under the Trust and Loan Companies Act.

Clause 52 changes a reference in any enactment to a government service organization to a governmental unit.

Clause 53 sets out the effective dates for the amendments contained in this Bill.

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An Act Respecting Certain
Financial Measures

1 This Act may be cited as the Financial Measures (2004) Act.

PART I

COMPANIES ACT

2 (1) Subsection 5(2) of Chapter 81 of the Revised Statutes, 1989, the Companies Act, as enacted by Chapter 5 of the Acts of 2002, is amended by striking out "two" in the second line and substituting "four".

(2) Subsection 5(3) of Chapter 81, as enacted by Chapter 5 of the Acts of 2002, is amended by striking out "two" in the second line and substituting "four".

PART II

CORPORATION CAPITAL TAX ACT

3 Section 9 of Chapter 99 of the Revised Statutes, 1989, the Corporation Capital Tax Act, as enacted by Chapter 10 of the Acts of 1990, is amended by

(a) striking out "and" at the end of clause (a); and

(b) striking out clause (b) and substituting the following clauses:

PART III

CORPORATIONS REGISTRATION ACT

4 (1) Section 5 of Chapter 101 of the Revised Statutes, 1989, the Corporations Registration Act, as amended by Chapter 5 of the Acts of 2002, is further amended by adding immediately after subsection (3) the following subsection:

(2) Subsection 5(4) of Chapter 101, as enacted by Chapter 5 of the Acts of 2002, is amended by

(a) striking out "one" in the third line and substituting "two"; and

(b) striking out "regulations" in the last line and substituting "Section 12".

5 (1) Subsection 12(1) of Chapter 101, as amended by Chapter 5 of the Acts of 2002, is further amended by

(a) striking out "Subject to subsections (2), (3) and (3A), every" in the first line and substituting "Every"; and

(b) striking out ", the amount of which shall be determined by the Governor in Council" in the fifth, sixth and seventh lines and substituting "as set out in this Section".

(2) Subsection 12(2) of Chapter 101 is amended by striking out "twenty-five" in the third line and substituting "thirty".

(3) Section 12 of Chapter 101, as amended by Chapter 5 of the Acts of 2002, is further amended by adding immediately after subsection (2) the following subsections:

(4) Subsection 12(3A) of Chapter 101, as enacted by Chapter 5 of the Acts of 2002, is amended by

(a) striking out "one" in the third line and substituting "two"; and

(b) striking out "regulations" in the last line and substituting "subsection (2A)".

(5) Subsection 12(5) of Chapter 101 is repealed.

(6) Subsection 12(7) of Chapter 101 is amended by

(a) adding "subsection (2C) or" immediately after "Notwithstanding" in the first line; and

(b) striking out "fifty" in the second last line and substituting "seventy".

(7) Subsection 12(8) of Chapter 101 is amended by adding "and thirty" immediately after "hundred" in the fourth line.

PART IV

COSTS AND FEES ACT

6 (1) Subsection 2(1) of Chapter 104 of the Revised Statutes, 1989, the Costs and Fees Act, is repealed and the following subsection substituted:

7 Section 6 of Chapter 104, as amended by Chapter 1 of the Acts of 1999 (2nd Sess.), is further amended by striking out "Schedule to Part I of this Act" in the fifth line and substituting "regulations".

8 Subsection 15(2) of Chapter 104 is amended by striking out "Schedule to this Part" in the fifth line and substituting "regulations".

9 (1) Subsection 16(1) of Chapter 104 is amended by striking out "Schedule to this Part" in the fifth line and substituting "regulations".

(2) Subsection 16(2) of Chapter 104 is amended by striking out "Schedule to this Part" in the third line and substituting "regulations".

10 Section 17 of Chapter 104 is amended by striking out "Schedule to this Part" in the fifth line and substituting "regulations".

11 Section 19 of Chapter 104 is amended by striking out "Schedule to this Part" in the second line and substituting "regulations".

12 Subsection 21(1) of Chapter 104 is amended by

(a) striking out "Part" in the second line and substituting "Act"; and

(b) striking out clause (a) and substituting the following clauses:

(a) prescribe fees and allowances for the purpose of this Act and change the fees and allowances;

(aa) prescribe the forms to be used under this Act;

13 Section 25 of Chapter 104 is amended by striking out "(Form C in the Schedule to this Part)" in the first and second lines.

14 The Schedule to Part I and the Schedule to Part II to Chapter 104 are repealed.

15 The fees and allowances set out in the Schedule to Part I and the Schedule to Part II to Chapter 104 of the Revised Statutes, 1989, the Costs of Fees Act, immediately before the coming into force of Section 14 of this Act, are deemed to be regulations made pursuant to subsection 2(1) of that Act until the fees or allowances are amended or repealed pursuant to that subsection.

PART V

EDUCATION ACT

16 Sections 10A to 10K of Chapter 1 of the Acts of 1995-96, the Education Act, are repealed and the following Sections substituted:

17 Section 64 of Chapter 1, as amended by Chapter 5 of the Acts of 2002, is further amended by adding immediately after subsection (4) the following subsections:

18 Subsection 68(2) of Chapter 1, as amended by Chapter 5 of the Acts of 2002, is further amended by

(a) striking out "or" at the end of clause (a); and

(b) adding the following clause:

(aa) a school board has failed to meet the standards referred to in subsection 64(6); or

19 Subsection 146(1) of Chapter 1, as amended by Chapter 11 of the Acts of 2000 and Chapter 5 of the Acts of 2002, is further amended by adding immediately after clause (x) the following clauses:

PART VI

ENVIRONMENT ACT

20 Clause 8(2)(k) of Chapter 1 of the Acts of 1994-95, the Environment Act, is repealed and the following clause substituted:

21 Subsection 25(1) of Chapter 1 is amended by adding immediately after clause (f) the following clause:

PART VII

EQUITY TAX CREDIT ACT

22 Subsection 15(1) of Chapter 3 of the Acts of 1993, the Equity Tax Credit Act, as amended by Chapter 3 of the Acts of 2001 and Chapter 4 of the Acts of 2003, is further amended by striking out "2004" in the second line and substituting "2009".

23 Subsection 18(1) of Chapter 3 is repealed and the following subsection substituted:

PART VIII

HOUSE OF ASSEMBLY ACT

24 Section 45 of Chapter 1 (1992 Supplement) of the Revised Statutes, 1989, the House of Assembly Act, as amended by Chapter 47 of the Acts of 2001 and Chapter 34 of the Acts of 2002, is further amended by adding immediately after subsection (6) the following subsections:

PART IX

INNOVATION CORPORATION ACT

25 Subsection 19(1) of Chapter 5 of the Acts of 1994-95, the Innovation Corporation Act, is amended by striking out "transfer" in the second line and substituting "advance".

PART X

INCOME TAX ACT

26 Section 8 of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, as enacted by Chapter 4 of the Acts of 2000 and amended by Chapter 4 of the Acts of 2003, is further amended by

(a) striking out "13.58%" in the first line of clause (b) and substituting "14.95%";

(b) striking out "and" at the end of clause (b);

(c) striking out clause (c) and substituting the following clause:

and

(d) adding the following clause:

27 Clause 38(2)(b) of Chapter 217 is repealed and the following clause substituted:

(b) either

28 Subsection 71(1) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000, is amended by

(a) adding "multiplied by the amount that the number of days in the year that are before April 1, 2004, is of three hundred and sixty-five and 0.6% of taxable capital employed in the Province for the years as determined under subsection (2) multiplied by the amount that the number of days in the year that are after March 31, 2004, is of three hundred and sixty-five" immediately after "(2)" in the last line of clause (a); and

(b) adding "multiplied by the amount that the number of days in the year that are before April 1, 2004, is of three hundred and sixty-five and 0.30% of the taxable capital employed in the Province for the year as determined under subsection (2) multiplied by the amount that the number of days in the year that are after March 31, 2004, is of three hundred and sixty-five" immediately after "(2)" in the last line of clause (b).

PART XI

PAYMENT INTO COURT ACT

29 Section 4 of Chapter 338 of the Revised Statutes, 1989, the Payment into Court Act, is amended by adding "and thirty-three one hundredths" immediately after "five" in the sixth line.

PART XII

PENSION BENEFITS ACT

30 Subsection 77(2) of Chapter 340 of the Revised Statutes, 1989, the Pension Benefits Act, as amended by Chapter 21 of the Acts of 2002, is further amended by striking out everything after "therefor" in the fifth line to the end of the subsection and substituting a period.

31 Clause 78(1)(c) of Chapter 340 is repealed.

32 Section 79 of Chapter 340 is repealed.

PART XIII

PERSONAL PROPERTY SECURITY ACT

33 Chapter 13 of the Acts of 1995-96, the Personal Property Security Act, is amended by adding immediately after Section 44 the following Section:

PART XIV

PROBATE ACT

34 Subsection 87(2) of Chapter 31 of the Acts of 2000, the Probate Act, as amended by Chapter 5 of the Acts of 2001 and Chapter 5 of the Acts of 2002, is further amended by

(a) striking out "$165" in the second line of clause (b) and substituting "$176";

(b) striking out "$275" in the second line of clause (c) and substituting "$293";

(c) striking out "$770" in the second line of clause (d) and substituting "$820";

(d) striking out "$770" in the first line of clause (e) and substituting "$820"; and

(e) striking out "$13" in the second line of clause (e) and substituting "$13.85".

PART XV

PROVINCIAL FINANCE ACT

35 Section 10 of Chapter 365 of the Revised Statutes, 1989, the Provincial Finance Act, as enacted by Chapter 3 of the Acts of 1997, is amended by striking out "December 31st" in the second and third lines and substituting "September 30th".

36 Section 19 of Chapter 365 is repealed and the following Section substituted:

37 Subsection 60A(1) of Chapter 365, as enacted by Chapter 5 of the Acts of 1996 and amended by Chapter 13 of the Acts of 1998, is further amended by adding "shall be paid into the Debt Retirement Fund and" immediately preceding "be" in the third line.

38 (1) Subsection 62A(1) of Chapter 365, as enacted by Chapter 29 of the Acts of 1994, is amended by striking out "Retirement" in the third line and substituting "Management".

(2) Subsection 62A(2) of Chapter 365, as enacted by Chapter 29 of the Acts of 1994, is amended by

(a) striking out "Retirement" in the first and second lines of clause (a) and substituting "Management"; and

(b) striking out "Retirement" in the first and second lines of clause (b) and substituting "Management".

39 Chapter 365 is further amended by adding immediately after Section 62A the following Section:

40 Chapter 365 is further amended by striking out "government service organization" or "government service organizations" wherever they appear in Chapter 365 and substituting "governmental unit" or "governmental units", respectively.

41 The Schedule to Chapter 365 is repealed and the following Schedule substituted:

SCHEDULE

PART XVI

PUBLIC SERVICE ACT

42 Chapter 376 of the Revised Statutes, 1989, the Public Service Act, is amended by adding immediately after Section 7 the following Section:

43 Clause 10(1)(a) of Chapter 376, as enacted by Chapter 4 of the Acts of 2001, is amended by striking out "designated pursuant to" in the second and third lines and substituting "as defined in".

44 Chapter 376 is further amended by adding immediately after Section 12 the following Section:

45 Section 68 of Chapter 376, as enacted by Chapter 4 of the Acts of 2001, is amended by

(a) striking out "and" immediately after clause (l); and

(b) adding immediately after clause (l) the following clause:

PART XVII

PUBLIC SERVICE SUPERANNUATION ACT

46 Subsection 9(1) of Chapter 377 of the Revised Statutes, 1989, the Public Service Superannuation Act, is amended by

(a) striking out "five" in the first line of clause (a) and substituting "six";

(b) striking out "seven" in the first line of clause (b) and substituting "eight"; and

(c) striking out "seven" in the first line of clause (c) and substituting "eight".

47 Chapter 377 is further amended by adding immediately after Section 37 the following heading and Sections:

38 In this Part,

(a) "employee" means a person to whom this Act applies and, for greater certainty, does not include a person to whom the Provincial Court Act applies or a person to whom Section 88 of the Public Service Act applies;

(b) "pension plan" means the pension established pursuant to this Act;

(c) "school board" means a school board as defined in the Education Act.

39 Subject to Section 41, where an employee retires or has retired pursuant to the terms of the pension plan and the pension calculated under the terms of the pension plan without reference to the maximum pension rules under the Income Tax Act (Canada) is greater than the maximum retirement benefit prescribed by the Income Tax Act (Canada), the employee is entitled to a supplementary pension equal to the difference between the two, on the same terms and conditions as the pension payable pursuant to the rules of the pension plan and the Income Tax Act (Canada).

40 The supplementary pension payable pursuant to Section 39 shall be paid

(a) where the employee is employed by the Province or a school board, from the Consolidated Fund of the Province; or

(b) where the employee is employed by an employer other than the Province or a school board, by the employer.

41 Notwithstanding anything contained in this Act, the pension contributions made by the Province or any other employer in respect of an employee to whom Section 39 applies shall be made only on those salaries up to a level equal to the salaries upon which the maximum pension payable pursuant to the Income Tax Act (Canada) is calculated.

42 Notwithstanding Section 39 and clause (b) of Section 40, an employer, other than the Province or a school board, may advise the Minister, in writing, at any time that Section 39 does not apply to its employees, in which case the limitation on pension plan contributions referred to in Section 41 applies to the employer and its employees.

43 (1) The Governor in Council may make regulations

(a) respecting the payment of supplementary pensions pursuant to this Part;

(b) defining any word or expression used but not defined in this Part;

(c) deemed necessary or advisable to carry out effectively the intent and purpose of this Part.

(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.

(3) A regulation made pursuant to this Section may, if it so provides, be made retroactive in its operation to a date not earlier than January 1, 2000.

PART XVIII

REVENUE ACT

48 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, Chapter 3 of the Acts of 1997, Chapter 13 of the Acts of 1998, Chapter 5 of the Acts of 1999 (2nd Session), Chapter 3 of the Acts of 2001, Chapter 48 of the Acts of 2001, Chapter 5 of the Acts of 2002 and Chapter 4 of the Acts of 2003, is further amended by

(a) striking out "thirteen and two" in the first line of clause (a) and substituting "fifteen and fifty-two";

(b) striking out "eleven and seventy-four" in the first line of clause (b) and substituting "fourteen and zero";

(c) striking out "thirteen and two" in the first line of clause (c) and substituting "fifteen and fifty-two"; and

(d) striking out "four and twenty-six" in the first line of clause (e) and substituting "six and fifty-two".

PART XIX

SUMMARY PROCEEDINGS ACT

49 Section 4A of Chapter 450 of the Revised Statutes, 1989, the Summary Proceedings Act, as enacted by Chapter 4 of the Acts of 2000 and amended by Chapter 5 of the Acts of 2001, is further amended by

(a) adding "and seven" immediately after "hundred" in the second line; and

(b) striking out "thirty dollars" in the last line and substituting "thirty-one dollars and ninety-five cents".

PART XX

TEACHERS' PENSION ACT

50 Chapter 26 of the Acts of 1998, the Teachers' Pension Act, is amended by adding immediately after Section 20 the following Sections:

PART XXI

TRUST AND LOAN COMPANIES ACT

51 Chapter 7 of the Acts of 1991, the Trust and Loan Companies Act, is amended by adding immediately after Section 16 the following Section:

PART XXII

GENERAL

52 A reference in any Act of the Legislature or in any rule, order, regulation, by-law, ordinance or proceeding or in any document whatsoever to a government service organization or government service organizations shall, as regards any subsequent transaction, matter or thing, be held and construed to be a reference to a governmental unit or governmental units, respectively.

PART XXIII

EFFECTIVE DATES

53 (1) Sections 47 and 50 have effect on and after January 1, 2000.

(2) Section 26 has effect on and after January 1, 2004.

(3) Section 48 has effect on and after March 17, 2004.

(4) Sections 2 to 5, 28, 29, 33, 34, 49 and 51 have effect on and after April 1, 2004.

(5) Section 46 has effect on and after June 1, 2004.

(6) Sections 16 to 18 have effect on and after August 1, 2004.

(7) Section 38 has effect on and after April 1, 2005.

(8) Sections 6 to 15, 19, 43 and 44 come into force on such day as the Governor in Council orders and declares by proclamation.

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