Federal-Provincial Fiscal Arrangements Regulations, 2007

20 (1) For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, the definition revenue to be equalized in that subsection is, in respect of a revenue source for a province or territory for a fiscal year, more particularly defined to

• (a) include

  • (i) revenues of the provincial and territorial government sub-sector, the local government sub-sector and the school boards sub-sector, other than revenues of provincial, territorial or municipal housing authorities and revenues of local transit authorities and the Caisse de dépôt et placement du Québec, and

  • (ii) any grant in lieu of a tax, levy or fee referred to in subsection 18(1) that is paid to a province or territory by the Government of Canada for that fiscal year; and

• (b) exclude

  • (i) revenues of the universities and colleges sub-sector and the health and social service institutions sub-sector,

  • (ii) any revenue that the province or territory receives from a local government or any revenue that a local government receives from the province or territory,

  • (iii) any revenue that the province or territory or a local government in the province or territory paid to itself,

  • (iv) any remittance received in respect of that year by any specified Yukon Aboriginal government under a personal income tax room sharing agreement between that government and the Government of Yukon,

  • (v) revenues, fees or tax bases referred to in any of clauses 7.30 to 7.34 of the Yukon Northern Affairs Program Devolution Transfer Agreement,

  • (vi) revenues that are Resource Revenues derived from Onshore lands, as those terms are defined in the Canada Yukon Oil and Gas Accord, and

  • (vii) Resource Revenues as defined in the Northwest Territories Lands and Resources Devolution Agreement.

(2) In respect of the revenues described in paragraph 18(1)(g), the sum of the amounts referred to in subparagraphs (1)(b)(ii) and (iii) shall be the amount by which the product described in paragraph (a) exceeds the amount described in paragraph (b):

• (a) the product of the payroll tax rate imposed by the province or territory in the fiscal year and the sum of the wages and salaries paid in the province or territory in the calendar year that ends in the fiscal year by the provincial and territorial general government sector and by the local general government sector to their employees, as determined by Statistics Canada for the purpose of its System of Macroeconomic Accounts;

• (b) the amount of any payroll tax paid by the province or territory’s government departments that the Chief Statistician of Canada has excluded from the payroll tax revenue for the fiscal year for the province or territory, as set out in the certificate.

(3) For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, the following constitute miscellaneous revenues for the purpose of paragraph (b) of the definition revenue to be equalized in that subsection:

• (a) subject to subsection (4), any revenues derived by a province or territory that are not included as revenues under subsection 18(1), including

  • (i) those derived from fines and penalties imposed by the province or territory, other than those imposed on businesses, and

  • (ii) 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;

• (b) subject to subsection (4), any revenues derived by a local government that are not included as revenues under subsection 18(1), including

  • (i) those derived from fines and penalties imposed by a local government, other than those imposed on businesses, and

  • (ii) 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

• (c) territorial quarry revenues that are not included as resource revenues under the Yukon Northern Affairs Program Devolution Transfer Agreement and territorial forestry revenues that are not included as resource revenues under the Northwest Territories Lands and Resources Devolution Agreement.

(4) The following revenues are excluded from paragraphs (3)(a) and (b), as applicable:

• (a) revenues included in the “Sales of goods and services” revenue category of the Government Finance Statistics;

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

• (c) revenues included in the “Property income” revenue category of the Government Finance Statistics;

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

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

• (f) personal and commercial auto insurance premiums; and

• (g) agricultural insurance premiums.