Federal-Provincial Fiscal Arrangements Regulations, 2007
7 (1) The provincial revenues that constitute, or that are deemed to constitute, the revenues referred to in each paragraph of the definition revenue source in subsection 4(2) of the Act as it read on March 13, 2004 are the following:
(a) personal income taxes, referred to in paragraph (a) of that definition, which are
(i) taxes, including a flat rate levy on income but not including a universal pension plan levy, imposed by a province on the income of individuals who are residents of the province on the last day of the taxation year,
(ii) taxes imposed by a province on the income of individuals who are not residents of the province on the last day of the taxation year and who have business income earned in the province during the taxation year, and
(iii) revenues derived from the Ontario Health Care Premium;
(b) the taxes and revenues referred to in paragraph (b) of that definition, which are
(i) taxes imposed by a province on the income of corporations earned in the province during the taxation year, other than taxes or revenues referred to in paragraphs (l) and (v), 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,
(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) taxes on capital of corporations, referred to in paragraph (c) of that definition, which are
(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 business enterprises owned by the province and on all outstanding amounts advanced by the province to those business enterprises;
(d) general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes, referred to in paragraph (d) of that definition, which are
(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, and
(ii) amounts paid to a province in accordance with a sales tax harmonization agreement;
(e) tobacco taxes, referred to in paragraph (e) of that definition, which are specific taxes imposed by a province on final purchasers of tobacco and tobacco products;
(f) motive fuel taxes derived from the sale of gasoline, referred to in paragraph (f) of that definition, which are taxes imposed by a province on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, other than taxes on the sale of liquified petroleum gas;
(g) motive fuel taxes derived from the sale of diesel fuel, referred to in paragraph (g) of that definition, which are taxes imposed by a province on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, other than taxes on the sale of liquified petroleum gas;
(h) non-commercial motor vehicle licensing revenues, referred to in paragraph (h) of that definition, which are
(i) fees for drivers’ and chauffeurs’ licences,
(ii) fees for licences for, and registrations of, passenger motor vehicles, motorcycles and mopeds, and
(iii) fees that are considered to be motor vehicle licensing revenues by Statistics Canada for the purpose of the Financial Management System, other than commercial motor vehicle licensing revenues;
(i) commercial motor vehicle licensing revenues, referred to in paragraph (i) of that definition, which are 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) alcoholic beverage revenues, referred to in paragraph (j) of that definition, which are 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) hospital and medical care insurance premiums, referred to in paragraph (k) of that definition, which are revenues derived by a province from taxes, levies or premiums imposed by a province for the purpose of financing hospitalization insurance or medical care insurance, other than taxes described in paragraphs (a), (d) and (y);
(l) forestry revenues, referred to in paragraph (l) of that definition, which are revenues attributable to forestry on Crown land and private land in the province and that are derived by the province from
(i) a tax imposed by the province specifically on income from logging the land, and
(ii) royalties, stumpage fees, licences, rentals and fees that are related to the exploitation of forestry resources on the land;
(m) the revenues referred to in paragraph (m) of that definition are revenues derived by a province, other than revenues 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) revenues referred to in paragraph (n) of that definition are revenues derived by a province, other than revenues 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) heavy oil revenues, referred to in paragraph (o) of that definition are revenues, other than revenues 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) mined oil revenues, referred to in paragraph (p) of that definition are 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) the revenues referred to in paragraph (q) of that definition are revenues, other than revenues 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) the revenues referred to in paragraph (r) of that definition are revenues, other than revenues 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) revenues from domestically sold natural gas and exported natural gas, referred to in paragraph (s) of that definition, which are 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) sales of Crown leases and reservations on oil and natural gas lands, referred to in paragraph (t) of the definition, which are 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) the revenues referred to in paragraph (u) of that definition, which are revenues, other than revenues described in paragraphs (m) to (t), 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) mining revenues, referred to in paragraph (v) of that definition, which are 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) water power rentals, referred to in paragraph (w) of that definition, which are revenues that are derived by a province from the right to use, or the use of, water resources;
(x) insurance premium taxes, referred to in paragraph (x) of that definition, which are taxes imposed by a province on insurance premiums of insurance companies;
(y) payroll taxes, referred to in paragraph (y) of that definition, which are taxes imposed by a province on the payroll of employers;
(z) provincial and local government property taxes, referred to in paragraph (z) of that definition, which are
(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) race track taxes, referred to in paragraph (z.1) of that definition, which are taxes imposed by a province on amounts wagered in the province on harness and running horse races;
(z.2) revenues from lottery ticket sales, referred to in paragraph (z.2) of that definition, which are 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) revenues referred to in paragraph (z.3) of that definition, which are
(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) 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, which are
(i) revenues derived by a province from any source other than a source described elsewhere in this subsection, including
(A) revenues included in the “Sales of Goods and Services” revenue category of the Financial Management System, other than revenues described in subparagraph (c)(ii) and revenues derived by the provincial and territorial general government sub-sector from sales of goods and services to any other government sub-sector other than one that is a component of the federal government sector,
(B) revenues derived from natural resources, other than those described in paragraphs (l) to (w) and the portion of the revenues described in paragraph (z.5) that relates to natural resources,
(C) revenues derived from interest charges, fines and penalties imposed by a province, including those imposed in relation to taxes,
(D) provincial tax revenues, other than revenues described elsewhere in this subsection, that are included in the “Other Taxes” revenue category of the Financial Management System, including revenues that a province receives for gaming licences or permits that it issues to charities or other organizations,
(E) provincial non-tax revenues, other than revenues described elsewhere in this subsection, that are included in the “Other Revenues from Own Sources” revenue category of the Financial Management System, and
(F) other provincial tax revenues and other provincial non-tax revenues not described elsewhere in this subsection, including taxes on the sale of liquified petroleum gas,
but not including
(G) contributions derived from vacation with pay, workers’ compensation, a universal pension plan or a public service or teacher’s pension plan that is not constituted as a trust,
(H) revenues included in the “Investment Income” revenue category of the Financial Management System, other than any natural resource royalties or other natural resource revenues described in clause (B) and the interest on taxes described in clause (C),
(I) any transfer payments received from other governments, or
(J) payments to a province by the Government of Canada pursuant to section 99 of the Softwood Lumber Products Export Charge Act, 2006, and
(ii) local government revenues that are
(A) included in the “Sales of Goods and Services” revenue category of the Financial Management System, other than revenues derived by the local general government sub-sector and the school boards sub-sector from sales of goods and services to any other government sub-sector,
(B) revenues derived from interest charges, fines and penalties imposed by a local government sector, including those imposed in relation to taxes,
(C) local government taxes other than those described in paragraphs (d) and (z), including those that are included in the “Other Taxes” revenue category of the Financial Management System, including revenues received by a local government for gaming licences or permits that it issues to charities or other organizations, and
(D) local government non-tax revenues included in the “Other Revenue from Own Sources” revenue category of the Financial Management System, other than revenues described in clause (B); and
(z.5) revenues referred to in paragraph (z.5) of that definition, which are
(i) revenues received from the Government of Canada under any Part, other than Part V, of the Canada-Newfoundland Atlantic Accord Implementation Act,
(ii) revenues received from the Government of Canada under any Part, other than Part V, of 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 revenue source referred to in subsection 4(2) of the Act as it read on March 13, 2004 that is shared by Canada and the province, other than the revenue referred to in subparagraph (i) or (ii).
(2) In computing the revenue from the revenue source described in paragraph (1)(c) for a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the part of that revenue source described in subparagraph (1)(c)(ii).
(3) In computing the revenue from the revenue source described in paragraph (1)(z.4) for a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the parts of that revenue source described in clauses (1)(z.4)(i)(A) and (ii)(A).
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