BILL NO. 4

(as introduced)

2nd Session, 62nd General Assembly
Nova Scotia
63 Elizabeth II, 2014

Private Member's Bill

Tax-free Zone for Small Business Act

Karla MacFarlane
Pictou West

First Reading: September 29, 2014

(Explanatory Note)

Second Reading:

Third Reading:

This Bill increases the small-business threshold for provincial income tax to $500,000 and reduces the small-business income-tax rate to zero over four years.

1 This Act may be cited as the Tax-free Zone for Small Business Act.

2 (1) Subsection 40(4) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, as enacted by Chapter 6 of the Acts of 2005 and amended by Chapter 3 of the Acts of 2013, is further amended by

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

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

(c) for the first amount, "$350,000" and, for the second amount, "$959" for the period commencing on January 1, 2014, and ending on December 31, 2014; and

(d) for the first amount, "$500,000" and, for the second amount, "$1,370" for the period commencing on January 1, 2015.

(2) Subsection 40(6) of Chapter 217, as enacted by Chapter 3 of the Acts of 2013, is amended by

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

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

(b) $350,000 for the period commencing on January 1, 2014, and ending on December 31, 2014; and

(c) $500,000 for the period commencing on January 1, 2015.

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

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

(e) 3.0% for the period commencing on January 1, 2014, and ending on December 31, 2014;

(f) 2.25% for the period commencing on January 1, 2015, and ending on December 31, 2015;

(g) 1.5% for the period commencing on January 1, 2016, and ending on December 31, 2016;

(h 0.75% for the period commencing on January 1, 2017, and ending on December 31, 2017; and

(i) 0.0% for the period commencing on January 1, 2018.