Federal-Provincial Fiscal Arrangements Regulations, 2007 (SOR/2007-303)

Revenue Source

• 7 (1) The provincial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (z.5) of the definition revenue source in subsection 3.9(1) of the Act are

  • (a) in the case of personal income taxes referred to in paragraph (a) of that definition,

    • (i) taxes imposed by a province on the income of individuals or unincorporated businesses, including a levy other than a universal pension plan levy, and

    • (ii) revenues derived from the Ontario Health Premium and Quebec Health Contribution;

    • (iii) [Repealed, SOR/2013-225, s. 9]

  • (b) in the case of taxes and revenues referred to in paragraph (b) of that definition,

    • (i) taxes, other than those referred to in paragraphs (l) and (v), that are imposed by a province on the income of corporations, and

    • (ii) remittances to a provincial government of profits of business enterprises of the province, other than remittances by

      • (A) a liquor board, commission or authority of the province,

      • (A.1) a cannabis board, commission or authority of the province,

      • (B) an enterprise that is engaged, entirely or primarily, in the marketing of oil or natural gas, and

      • (C) an enterprise, board, commission or authority that is engaged in the administration of a provincial lottery;

  • (c) in the case of taxes on capital of corporations referred to in paragraph (c) of that definition,

    • (i) taxes imposed by a province on the paid-up capital of corporations, and

    • (ii) taxes, levies and fees imposed by a province on the provincially guaranteed debt of government business enterprises or municipalities and on all outstanding amounts advanced by the province to those enterprises or municipalities;

  • (d) in the case of general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes referred to in paragraph (d) of that definition,

    • (i) sales taxes – including those on meals, hotel services, telecommunications and cable television and amusement taxes – that are not described elsewhere in this subsection and that are imposed by a province or local government on final purchasers or on users of goods and services,

    • (ii) amounts paid to a province in accordance with a sales tax harmonization agreement,

    • (iii) a carbon levy or tax, including a tax that is imposed by a province on fuel and is proportional to the greenhouse gas emissions that are generated by the burning of fuel, and revenues raised from auctioning carbon allowances, credits or permits under an emissions trading system, and

    • (iv) revenues derived by a province from

      • (A) remittances, to the provincial government by a cannabis board, commission or authority of the province, of profits arising from sale of cannabis products,

      • (B) a specific sales tax imposed by the province on cannabis products by a cannabis board, commission or authority of the province,

      • (C) a specific sales tax imposed by the federal government on cannabis products that is shared with the province, and

      • (D) fees for licences and permits for the privilege of making, purchasing, distributing or selling cannabis products;

  • (e) in the case of tobacco taxes referred to in paragraph (e) of that definition, specific taxes imposed by a province on final purchasers of tobacco and tobacco products;

  • (f) in the case of motive fuel taxes derived from the sale of gasoline referred to in paragraph (f) of that definition, taxes imposed by a province on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, other than taxes or levies referred to in subparagraph (d)(iii) and taxes on the sale of liquefied petroleum gas;

  • (g) in the case of motive fuel taxes derived from the sale of diesel fuel referred to in paragraph (g) of that definition, taxes imposed by a province on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, other than taxes or levies referred to in subparagraph (d)(iii) and taxes on the sale of liquefied petroleum gas;

  • (h) in the case of non-commercial motor vehicle licensing revenues referred to in paragraph (h) of that definition, fees for

    • (i) driver’s and chauffeur’s licences, and

    • (ii) licences for, and registrations of, personal motor vehicles;

  • (i) in the case of commercial motor vehicle licensing revenues referred to in paragraph (i) of that definition, revenues derived by a province from fees for licences for and registrations of commercial motor vehicles, including

    • (i) fees for licences for, and registrations of, trucks, buses, trailers, tractors and passenger vehicles used for commercial purposes,

    • (ii) public service and common carrier fees, and

    • (iii) revenues derived under reciprocity agreements with other provinces in respect of the licensing of commercial vehicles;

  • (j) in the case of alcoholic beverage revenues referred to in paragraph (j) of that definition, revenues derived by a province from

    • (i) remittances to the provincial government by a liquor board, commission or authority of the province, of profits arising from sales of alcoholic beverages,

    • (ii) a specific sales tax imposed by the province on the sale of alcoholic beverages by a liquor board, commission or authority of the province, and

    • (iii) fees for licences and permits for the privilege of distilling, brewing, making, purchasing or dispensing alcoholic beverages;

  • (k) in the case of hospital and medical care insurance premiums referred to in paragraph (k) of that definition, revenues derived by a province from taxes, levies or premiums imposed by a province specifically for the purpose of financing hospitalization insurance, medical care insurance or drug insurance, other than those described in subparagraph (a)(ii) and paragraph (y);

  • (l) in the case of forestry revenues derived from the revenue sources referred to in subparagraphs (l)(i) and (ii) of that definition, as the case may be, a tax imposed specifically on income from logging on Crown lands or on private lands and royalties, stumpage fees, licences, rentals and fees that are related to the exploitation of forestry resources on those lands;

  • (m) in the case of conventional new oil revenues referred to in paragraph (m) of that definition, revenues derived by a province – other than those described in paragraphs (o) and (p) – that are attributable to new oil that is from hydrocarbon deposits in the province, including revenues derived from

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (n) in the case of conventional old oil revenues referred to in paragraph (n) of that definition, revenues derived by a province – other than those described in any of paragraphs (m) and (o) to (r) – that are attributable to oil from hydrocarbon deposits in the province, including revenues derived from

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (o) in the case of heavy oil revenues referred to in paragraph (o) of that definition, revenues – other than those described in paragraph (p) – derived by a province that are attributable to oil from hydrocarbon deposits in the province, that has a density of at least 935 kg/m³ and is not third tier oil, including revenues derived from

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (p) in the case of mined oil revenues referred to in paragraph (p) of that definition, revenues derived by a province by means of a levy imposed by the province for the privilege of

    • (i) mining and carrying out the in-situ production of bitumen that may be used to produce synthetic petroleum, and

    • (ii) producing oil from the experimental oil sands project that is subject to approval number 2943 of the Alberta Energy and Utilities Board;

  • (q) in the case of the revenues referred to in paragraph (q) of that definition, revenues – other than those described in paragraphs (p) and (r) – derived by a province that are attributable to third tier oil from hydrocarbon deposits in the province, including

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (r) in the case of the revenues referred to in paragraph (r) of that definition, revenues – other than those described in paragraph (p) – derived by a province that are attributable to third tier oil that is from hydrocarbon deposits in the province and that has a density of at least 935 kg/m³, including

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (s) in the case of revenues from domestically sold natural gas and exported natural gas referred to in paragraph (s) of that definition, revenues that are attributable to gas that is from hydrocarbon deposits in the province, including those derived by a province from

    • (i) a levy imposed by the province for the privilege of producing gas or gas by-products from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of gas reserves, and

    • (iii) remittances to the provincial government of the profits of the business enterprises of the province that are engaged, entirely or primarily, in the marketing of gas or gas by-products from hydrocarbon deposits;

  • (t) in the case of sales of Crown leases and reservations on oil and natural gas lands referred to in paragraph (t) of that definition, revenues that are derived by a province from the granting of leases, reservations or other rights in relation to Crown land in the province for the purpose of exploration or exploitation of that land for the production of crude oil or the production of gas or gas by-products from hydrocarbon deposits;

  • (u) in the case of oil and gas revenues referred to in paragraph (u) of that definition, revenues that are derived by a province from the exploration for and the development and production of oil, natural gas, gas by-products, helium or other gaseous products from hydrocarbon deposits in the province, including oil and gas revenues of a kind that fall within the description of a revenue source set out in any of paragraphs (m) to (s) but that cannot be attributed only to that revenue source;

  • (v) in the case of mining revenues referred to in paragraph (v) of that definition, revenues that are derived by a province from

    • (i) a tax imposed by the province specifically on income from the mining of minerals, and

    • (ii) royalties, licences, rentals and fees that are related to the exploration, development or production of minerals;

  • (w) in the case of water power rentals referred to in paragraph (w) of that definition, revenues that are derived by a province from the right to use, or the use of, water resources;

  • (x) in the case of insurance premium taxes referred to in paragraph (x) of that definition, taxes imposed by a province on insurance premiums;

  • (y) in the case of payroll taxes referred to in paragraph (y) of that definition, taxes imposed by a province on the payroll of employers;

  • (z) in the case of provincial and local government property taxes referred to in paragraph (z) of that definition,

    • (i) taxes imposed by a province or local government

      • (A) on the owner of real or immovable property,

      • (B) on the occupant of real or immovable property, if the owner is exempt from property taxes in relation to that property, and

      • (C) on a person occupying or using real or immovable property for the purpose of carrying on a business if the taxes are computed in relation to that occupation or use by the person,

    • (ii) grants in lieu of taxes described in subparagraph (i) received by a provincial or local government in relation to real or immovable property that is exempt from taxation, other than that owned by Her Majesty in right of the province and occupied by a provincial government department or owned by the local government, and

    • (iii) taxes imposed by a province or local government on the sale price or value of real or immoveable property when it is transferred;

  • (z.1) in the case of race track taxes referred to in paragraph (z.1) of that definition, taxes imposed by a province on amounts wagered in the province on harness and running horse races;

  • (z.2) in the case of revenues from lottery ticket sales referred to in paragraph (z.2) of that definition, profits that are derived from the operation of the games described in paragraph (a) of the definition games of chance in section 3 and are remitted to a provincial government by

    • (i) a business enterprise, commission, authority or board of the province that conducts and manages games of chance in the province,

    • (ii) a business enterprise, commission, authority or board that is jointly owned by the province and one or more other provinces and that conducts and manages games of chance in the province, or

    • (iii) a business enterprise, commission, authority or board of another province that conducts and manages games of chance in the province;

  • (z.3) in the case of revenues referred to in paragraph (z.3) of that definition,

    • (i) profits derived from the operation of the games described in paragraphs (b) to (e) of the definition “games of chance” in section 3 that are remitted to a provincial government by

      • (A) a business enterprise, commission, authority or board of the province that conducts and manages games of chance in the province,

      • (B) a business enterprise, commission, authority or board that is jointly owned by the province and one or more other provinces and that conducts and manages games of chance in the province, or

      • (C) a business enterprise, commission, authority or board of another province that conducts and manages games of chance in the province,

    • (ii) revenues derived by a province from a tax imposed on casino winnings or from any other similar direct or indirect tax that is imposed in relation to the sale of the games described in paragraphs (b) to (e) of the definition “games of chance” in section 3, and

    • (iii) profits that are derived from the sale of goods and services – including the sale of food, drink, lodging and parking space – that are remitted to a provincial government by a casino that is owned or controlled by a business enterprise, commission, authority or board of the province or another province;

  • (z.4) in the case of miscellaneous provincial taxes and revenues, provincial revenues from sales of goods and services, local government revenues from sales of goods and services, and miscellaneous local government taxes and revenues referred to in paragraph (z.4) of that definition,

    • (i) subject to subsection (2), any other revenues derived by a province that are not included as revenues elsewhere in this subsection, including

      • (A) those included in the “Sales of goods and services” revenue category of the Government Finance Statistics, other than those described in subparagraphs (c)(ii) and (h)(i),

      • (B) those derived from natural resources, other than those described in paragraphs (l) to (w) and (z.5),

      • (C) those derived from fines and penalties imposed by a province,

      • (D) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations, and

      • (E) taxes on the sale of liquefied petroleum gas, and

    • (ii) subject to subsection (2), any other revenues derived by a local government that are not included as revenues elsewhere in this subsection, including

      • (A) those included in the “Sales of goods and services” revenue category of the Government Finance Statistics,

      • (B) those derived from fines and penalties imposed by a local government, and

      • (C) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations; and

  • (z.5) in the case of the revenues derived from the revenue sources referred to in subparagraphs (z.5)(i), (ii) and (iii) of that definition, respectively,

    • (i) revenues received by Newfoundland and Labrador from the Government of Canada under the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act,

    • (ii) revenues received by Nova Scotia from the Government of Canada under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, and

    • (iii) revenues derived by a province from the province’s share of revenue from any other revenue source referred to in that definition that is shared by the Government of Canada and the province.

• (2) The following revenues are excluded from subparagraphs (1)(z.4)(i) and (ii), as applicable:

  • (a) revenues included in the “Social contributions” category of the Government Finance Statistics;

  • (b) revenues included in the “Property income revenue” category of the Government Finance Statistics, other than any natural resource royalties or other natural resource revenues described in clause (1)(z.4)(i)(B);

  • (c) any transfer payments received from other governments;

  • (d) payments to a province by the Government of Canada under section 99 of the Softwood Lumber Products Export Charge Act, 2006;

  • (e) revenues derived by the provincial and territorial government sub-sector, the local government sub-sector or the school boards sub-sector from the sale of goods and services to any government sub-sector other than one that is a component of the federal government sector;

  • (f) taxes, levies or fees imposed by a province on the provincially guaranteed debt of government business enterprises and municipalities and on all outstanding amounts advanced by the province to those enterprises and municipalities; and

  • (g) personal and commercial auto insurance premiums.

• (3) [Repealed, SOR/2013-225, s. 9]