BILL NO. 158

(as introduced)

1st Session, 60th General Assembly
Nova Scotia
56 Elizabeth II, 2007



Government Bill



Financial Measures (2007) Act



The Honourable Michael G. Baker, Q.C.
Minister of Finance



First Reading: March 28, 2007

(Explanatory Notes)

Second Reading: April 3, 2007

Third Reading: April 13, 2007 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

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Explanatory Notes

Clause 1 sets out the short title of the Act.

Clauses 2 and 3 change the definition of a seasonal tourist business in the Assessment Act to a business that is closed for a total of four months of the year rather than for four consecutive months. A seasonal tourist business is taxed at 75% of the commercial tax rate.

Clause 4 reduces the tax for the incorporation of an unlimited company from $4,000 to $1,000.

Clause 5 provides that no fee shall be paid for the certificate of registration of an unlimited company incorporated under the Companies Act and requires every unlimited company to hold a certificate of registration under the Corporations Registration Act.

Clause 6 increases the amounts for annual registration fees and taxes and clarifies that all unlimited companies are required to pay the annual registration tax.

Clause 7 amends the filing requirements for a community economic-development corporation.

Clause 8 amends the Freedom of Information and Protection of Privacy Act to provide that there is no fee for the first two hours spent locating and retrieving a record.

Clause 9 repeals three subsections of the Freedom of Information and Protection of Privacy Act respecting the payment of fees for reviews under the Act.

Clause 10 repeals the Home Ownership Savings Plan (Nova Scotia) Act.

Clauses 11 and 12 amend the Homes for Special Care Act to

(a) allow the Minister of Community Services to guarantee payment of a mortgage made by a person who is, with the approval of the Minister, constructing or refinancing a nursing home, residential care facility, home for the aged or home for the disabled; and

(b) provide the Governor in Council with a power to make regulations respecting such a guarantee.

Clause 13 amends the Young Children Tax Credit.

Clause 14 makes changes to the post-secondary graduate tax credit.

Clause 15 specifies the Dividend Tax Credit percentage received on dividend income.

Clause 16 updates the provisions of the Income Tax Act dealing with the restrictions on credits.

Clause 17 adds the Young Children Tax Credit and the Sports Activity Tax Credit to Section 32A of the Income Tax Act.

Subclause 18(1) allows an individual in the year of death to take advantage of the low income tax reduction.

Subclause 18(2) eliminates the possibility that a trustee filing an in-bankruptcy return and a taxpayer filing a post-bankruptcy return could both claim the low income tax reduction in the same year.

Clause 19 deletes the Nova Scotia Home Ownership Savings Plan Tax Credit and adds new provisions dealing with the Nova Scotia Post-Secondary Graduate Tax Credit.

Clause 20 increases the amount that can be deducted for investments made in Labour-Sponsored Venture-Capital Corporations from $1,000 to $2,000 for investments made after a prescribed date.

Clause 21 implements a Volunteer Firefighter Tax Credit.

Clause 22 clarifies language in Section 42 of the Income Tax Act.

Clause 23 clarifies language in Section 47 of the Income Tax Act.

Clause 24 provides for a Digital Media Tax Credit.

Clauses 25 and 26 make grammatical and consistency changes in Sections 71 and 77 of the Income Tax Act.

Clause 27 makes changes to the Energy Tax Credit.

Clause 28 provides that certain fees paid under the Liquor Control Act are deemed to be licence fees for the purpose of raising a revenue for the Province.

Clause 29 amends the Part of the Members and Public Employees Disclosure Act that deals with the financing of political parties to replace the requirement that a recognized party have received at least fifteen per cent of the votes cast in the most recent general election to elect to take advantage of a financing option in the Act with a requirement that the party have been recognized pursuant to the Elections Act on January 1, 2007.

Clause 30 increases from $100.00 to $106.80 the re-instatement fee under the Motor Vehicle Act for the restoration of a driver's licence or the privilege of obtaining a driver's licence following a revocation for an alcohol-related offence.

Clause 31 amends Part XX (Freedom of Information and Protection of Privacy) of the Municipal Government Act to provide that there is no fee for the first two hours spent locating and retrieving a record.

Clause 32 repeals three subsections of Part XX (Freedom of Information and Protection of Privacy) of the Municipal Government Act respecting the payment of fees for reviews under the Act.

Clause 33 increases the interest rate referred to in Section 4 of the Payment into Court Act.

Clause 34 increases certain taxes payable under Section 44A of the Personal Property Security Act.

Clause 35 increases taxes charged under Section 87 of the Probate Act.

Clause 36 increases the contribution rates under the Public Service Superannuation Act.

Clause 37 increases the tax on tobacco.

Clause 38 adds to the regulation-making authority of the Governor in Council under the Sales Tax Act.

Clause 39 provides that certain fees paid under the Securities Act are deemed to be licence fees for the purpose of raising a revenue for the Province.

Clause 40 increases the taxes charged under Section 16A of the Trust and Loan Companies Act.

Clause 41 changes from September 1, 2005, to March 1, 2005, the deemed date of commissioning of wind turbine facilities built on or before March 31, 2005, so that they are taxable on and after September 1, 2005.

Clause 42 clarifies language respecting the calculation of uniform assessment under the Municipal Grants Act.

Clause 43 sets out the effective dates for the Act.

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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 (2007) Act.

PART I

ASSESSMENT ACT

2 Clause 2(tc) of Chapter 23 of the Revised Statutes, 1989, the Assessment Act, as enacted by Chapter 9 of the Acts of 2005, is amended by striking out "consecutive" in the third line.

3 Subsection 14A(6) of Chapter 23, as enacted by Chapter 9 of the Acts of 2005, is amended by striking out "consecutive" in the ninth line.

PART II

COMPANIES ACT

4 (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 and amended by Chapter 3 of the Acts of 2004, is further amended by striking out "four" in the second line and substituting "one".

(2) Subsection 5(3) of Chapter 81, as enacted by Chapter 5 of the Acts of 2002 and amended by Chapter 3 of the Acts of 2004, is further amended by striking out "four" in the second line and substituting "one".

PART III

CORPORATIONS REGISTRATION ACT

5 Subsection 5(4) of Chapter 101 of the Revised Statutes, 1989, the Corporations Registration Act, is repealed and the following subsections substituted:

6 (1) Section 12 of Chapter 101, as amended by Chapter 5 of the Acts of 2002 and Chapter 3 of the Acts of 2004, is further amended by adding immediately after subsection (1) the following subsection:

(2) Subsection 12(2) of Chapter 101, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "thirty dollars" in the third line and substituting "thirty-two dollars and four cents".

(3) Subsection 12(2A) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004, is amended by striking out "ninety-five dollars" in the second line and substituting "one hundred and one dollars and forty-six cents".

(4) Subsection 12(2B) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004, is amended by striking out "two hundred and twenty dollars" in the second and third lines and substituting "two hundred and thirty-four dollars and ninety-six cents".

(5) Subsection 12(2C) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004, is amended by striking out "two hundred and seventy dollars" in the second and third lines and substituting "two hundred and eighty-eight dollars and thirty-six cents".

(6) Subsection 12(3A) of Chapter 101, as enacted by Chapter 5 of the Acts of 2002 and amended by Chapter 3 of the Acts of 2004, is further amended by striking out "two thousand" in the third line and substituting "two thousand seven hundred and fifty".

(7) Subsection 12(7) of Chapter 101, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "seventy dollars" in the second last and last lines and substituting "eighty-eight dollars and thirty-six cents".

(8) Subsection 12(8) of Chapter 101, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "thirty dollars" in the fourth line and substituting "fifty-nine dollars and twenty-four cents".

PART IV

EQUITY TAX CREDIT ACT

7 Clause 20(b) of Chapter 3 of the Acts of 1993, the Equity Tax Credit Act, is repealed and the following clause substituted:

PART V

FREEDOM OF INFORMATION AND
PROTECTION OF PRIVACY ACT

8 Section 11 of Chapter 5 of the Acts of 1993, the Freedom of Information and Protection of Privacy Act, as amended by Chapter 5 of the Acts of 2002, is further amended by adding immediately after subsection (2) the following subsection:

9 Subsections 32(4) to (6) of Chapter 5 are repealed.

PART VI

HOME OWNERSHIP SAVINGS PLAN (NOVA SCOTIA) ACT

10 Chapter 6 of the Acts of 1989, the Home Ownership Savings Plan (Nova Scotia) Act, is repealed.

PART VII

HOMES FOR SPECIAL CARE ACT

11 Chapter 203 of the Revised Statutes, 1989, the Homes for Special Care Act, is amended by adding immediately after Section 18, the following Section:

12 Subsection 19(1) of Chapter 203 is amended by adding immediately after clause (h), the following clause:

PART VIII

INCOME TAX ACT

13 Subsections 10(5) to (8) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, are repealed and the following subsections substituted:

14 (1) Clause 17A(1)(e) of Chapter 217, as enacted by Chapter 2 of the Acts of 2006, is amended by striking out "in which a qualified individual graduates from an eligible program" in the second and third lines.

(2) Section 17A of Chapter 217, as enacted by Chapter 2 of the Acts of 2006, is further amended by adding immediately after subsection (6) the following subsections:

15 Section 21 of Chapter 217 is repealed and the following Section substituted:

16 Sections 23 to 29 of Chapter 217 are repealed and the following Sections substituted:

17 The description of A in Section 32A of Chapter 217 is repealed and the following substituted:

18 (1) Clause 35(1)(b) of Chapter 217 is repealed and the following clause substituted:

(2) Subsection 35(4) of Chapter 217 is repealed and the following subsection substituted:

19 The heading immediately preceding Section 36 and Section 36 of Chapter 217 are repealed and the following heading and Section substituted:

36 (1) In this Section,

(a) "approved institution" means

(b) "eligible taxation year" means the year an individual graduates from an approved institution and the two taxation years immediately following;

(c) "program of studies" means a program of studies as defined by the Canada Financial Assistance Regulations;

(d) "proof of graduation" means

(2) Subject to subsection (3), an individual may deduct from tax otherwise payable pursuant to this Act in an eligible taxation year

(a) an amount not exceeding the aggregate amount of $1,000 if the individual graduates from an approved institution in the year 2007; or

(b) an amount not exceeding the aggregate amount of $2,000 if the individual graduates from an approved institution after the year 2007.

(3) An individual may claim a deduction pursuant to this Section if the individual

(a) other than an individual that is a trust, was resident in the Province on December 31st of the taxation year, and includes an individual who died in the taxation year and was a resident of the Province on the day of death;

(b) provides proof of graduation from an approved institution for a taxation year after 2006; and

(c) files proof of graduation for the eligible taxation year with the individual's annual return for the taxation years in respect of which the deduction is claimed.

(4) An individual is not entitled to claim the deduction referred to in this Section if the individual completed a program of studies at an approved institution since 2006 and has previously received the deduction under this Section or Section 17A.

(5) No amount may be deducted pursuant to this Section on a separate return of income filed pursuant to subsection 70(2) or 150(4), paragraph 104(23)(d) or paragraph 128(2)(e) of the Federal Act.

(6) For the purpose of computing an individual's deduction under this Section for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the total of the amounts deductible for all taxation years of the individual in the calendar year under this Section cannot exceed the amount that would have been deductible under this Section with respect to the calendar year if the individual had not become bankrupt.

(7) The Governor in Council may make regulations

(a) respecting criteria or requirements for a program of studies at a post-secondary level at an approved institution;

(b) designating approved institutions;

(c) respecting such other requirements for documentation as proof of graduation;

(d) defining, expanding or restricting the meaning of any word or expression used but not defined in this Section;

(e) respecting any other matter that the Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Section.

(8) A regulation made pursuant to this Section may be made retroactive to a day not earlier than January 1, 2007.

20 (1) Clauses 38(2)(a) and (b) of Chapter 217 are repealed and the following clauses substituted:

(2) Section 38 of Chapter 217 is further amended by adding immediately after subsection (5) the following subsections:

21 Chapter 217 is further amended by adding immediately after Section 38 the following heading and Section:

22 (1) Subsection 42(2) of Chapter 217 is repealed and the following subsection substituted:

(2) Subsection 42(3) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000, is amended by adding "for the Province" immediately after "Finance" in the second line.

23 (1) Subsection 47(1) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000, is amended by striking out "by the Minister of Finance" in the third line.

(2) Subsection 47(2) of Chapter 217, as amended by Chapter 2 of the Acts of 2006, is further amended by

(a) striking out "to residents of the Province" in the last lines of paragraphs (a)(ii)(B) and (C) and (iii)(B);

(b) striking out subclause (a)(iv) and substituting the following subclause:

and

(c) striking out "or" in the fourth line of clause (b) and substituting "and".

(3) Clause 47(2A)(b) of Chapter 217 is repealed and the following clause substituted:

(4) Subsection 47(3) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000, is amended by striking out "subsection (2)" in the second line and substituting "subsections (2) and (2A)".

24 Chapter 217 is further amended by adding immediately after Section 47 the following heading and Section:

Subdivision ha - Digital Media Tax Credit

25 Subsection 71(1) of Chapter 217, as enacted by Chapter 6 of the Acts of 2005 and amended by Chapter 2 of the Acts of 2006, is further amended by

(a) striking out "years" in the second lines of subclauses (a)(ii) to (ix) and substituting in each case "year"; and

(b) striking out "years" in the second lines of subclauses (b)(vii) to (ix) and substituting in each case "year".

26 Section 77 of Chapter 217, as enacted by Chapter 4 of the Acts of 2000 and amended by Chapter 5 of the Acts of 2002, Chapter 4 of the Acts of 2003, Chapter 6 of the Acts of 2005 and Chapter 2 of the Acts of 2006, is further amended by striking out "June 30" in the last line and substituting "July 1".

27 (1) Clauses 78A(1)(a) and (b) of Chapter 217 are repealed and the following clauses substituted:

(2) Subsections 78A(2) to (4) of Chapter 217 are repealed and the following subsections substituted:

PART IX

LIQUOR CONTROL ACT

28 Chapter 260 of the Revised Statutes, 1989, the Liquor Control Act, is amended by adding immediately after Section 50 the following Section:

PART X

MEMBERS AND PUBLIC EMPLOYEES DISCLOSURE ACT

29 Subclause 21A(1)(a)(ii) of Chapter 4 of the Acts of 1991, the Members and Public Employees Disclosure Act, as enacted by Chapter 1 of the Acts of 2007, is amended by striking out "received at least fifteen per cent of the votes cast" in the third and fourth lines and substituting "was registered pursuant to Section 177A of the Elections Act on January 1, 2007".

PART XI

MOTOR VEHICLE ACT

30 Subsection 68(1) of Chapter 293 of the Revised Statutes, 1989, the Motor Vehicle Act, is amended by striking out "one hundred dollars" in the fourth line and substituting "one hundred and six dollars and eighty cents".

PART XII

MUNICIPAL GOVERNMENT ACT

31 Section 471 of Chapter 18 of the Acts of 1998, the Municipal Government Act, as amended by Chapter 9 of the Acts of 2003, is further amended by adding immediately after subsection (2) the following subsection:

32 Subsections 487(4) to (6) of Chapter 18 are repealed.

PART XIII

PAYMENT INTO COURT ACT

33 Section 4 of Chapter 338 of the Revised Statutes, 1989, the Payment into Court Act, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "thirty-three" in the sixth line and substituting "sixty-nine".

PART XIV

PERSONAL PROPERTY SECURITY ACT

34 Subsection 44A(1) of Chapter 13 of the Acts of 1995-96, the Personal Property Security Act, as enacted by Chapter 3 of the Acts of 2004, is amended by

(a) striking out "$21.30" in the fifth line of clause (a) and substituting "$22.75";

(b) striking out "$7.45" in the seventh line of clause (a) and substituting "$7.96";

(c) striking out "$500.00" in the fourth line of clause (b) and substituting "$534.00";

(d) striking out "$7.45" in the fifth line of clause (c) and substituting "$7.96";

(e) striking out "$500.00" in the fourth line of clause (d) and substituting "$534.00";

(f) striking out "$10.00" in clause (e) and substituting "$10.68"; and

(g) striking out "$500.00" in the second line of clause (f) and substituting "$534.00".

PART XV

PROBATE ACT

35 Subsection 87(2) of Chapter 31 of the Acts of 2000, the Probate Act, as amended by Chapter 5 of the Acts of 2001, Chapter 5 of the Acts of 2002 and Chapter 3 of the Acts of 2004, is further amended by

(a) striking out "70" in clause (a) and substituting "74.76";

(b) striking out "176" in the second line of clause (b) and substituting "187.97";

(c) striking out "293" in the second line of clause (c) and substituting "312.92";

(d) striking out "820" in the second line of clause (d) and substituting "875.76";

(e) striking out "820" in the first line of clause (e) and substituting "875.76"; and

(f) striking out "$13.85" in the second line of clause (e) and substituting "14.79".

PART XVI

PUBLIC SERVICE SUPERANNUATION ACT

36 Subsection 9(1) of Chapter 377 of the Revised Statutes, 1989, the Public Service Superannuation Act, as amended by Chapter 3 of the Acts of 2004, is further amended by

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

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

and

(c) striking out "eight" in the first line of clause (c) and substituting "nine and six-tenths".

PART XVII

REVENUE ACT

37 Subsection 34(1) of Chapter 17 of the Acts of 1994-95, 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, Chapter 4 of the Acts of 2003 and Chapter 3 of the Acts of 2004, is further amended by

(a) striking out "fifteen" in the first line of clause (a) and substituting "sixteen";

(b) striking out "fourteen" in the first line of clause (b) and substituting "fifteen";

(c) striking out "fifteen" in the first line of clause (c) and substituting "sixteen"; and

(d) striking out "six" in the first line of clause (e) and substituting "seven".

PART XVIII

SALES TAX ACT

38 (1) Subsection 13(1) of Chapter 31 of the Acts of 1996, the Sales Tax Act, as amended by Chapter 2 of the Acts of 2006, is further amended by

(a) adding immediately after clause (d) the following clause:

and

(b) adding "or (da)" immediately after "(d)" in the last line of clause (fa).

(2) Section 13 of Chapter 31, as amended by Chapter 2 of the Acts of 2006, is further amended by adding immediately after subsection (3) the following subsections:

PART XIX

SECURITIES ACT

39 Chapter 418 of the Revised Statutes, 1989, the Securities Act, is amended by adding immediately after Section 150C the following Section:

PART XX

TRUST AND LOAN COMPANIES ACT

40 Section 16A of Chapter 7 of the Acts of 1991, the Trust and Loan Companies Act, is repealed and the following Section substituted:

PART XXI

WIND TURBINE FACILITIES MUNICIPAL TAXATION ACT

41 Subsection 2(2) of Chapter 22 of the Acts of 2006, the Wind Turbine Facilities Municipal Taxation Act, is amended by striking out "September" in the second line and substituting "March".

42 Section 10 of Chapter 22 is repealed and the following Section substituted:

PART XXII

EFFECTIVE DATES

43 (1) This Act, except Sections 4 to 7, 13 to 19, 21, 23, 25 to 27, 29, 30, 33 to 37 and 40 to 42, come into force on such day as the Governor in Council orders and declares by proclamation.

(2) Section 17, subsection 18(2) and Section 23 have effect on and after January 1, 2005, upon the Governor in Council so ordering and declaring by proclamation.

(3) Sections 14 and 15 and subsection 18(1) have effect on and after January 1, 2006, upon the Governor in Council so ordering and declaring by proclamation.

(4) Sections 7, 13 and 25 to 27 have effect on and after July 1, 2006, upon the Governor in Council so ordering and declaring by proclamation.

(5) Sections 16, 19, 21 and 29 have effect on and after January 1, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(6) Sections 41 and 42 have effect on and after January 12, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(7) Section 37 has effect on and after March 24, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(8) Sections 4 to 6, 33 to 36 and 40 have effect on and after April 1, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(9) Section 30 has effect on and after June 1, 2007, upon the Governor in Council so ordering and declaring by proclamation.

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This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2007 Crown in right of Nova Scotia. Created April 18, 2007. Send comments to legc.office@gov.ns.ca.