An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004 (S.C. 2004, c. 22)

• 30. (1) The Act is amended by adding the following after section 141. 1:

  Marginal note:Sale of personal property of a municipality

  • 141.2 (1) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a municipality is deemed to have been made in the course of its commercial activities.

  • Marginal note:Sale of personal property of a designated municipality

    (2) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a person designated to be a municipality for the purposes of section 259 is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person.

• (2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.

Marginal note:1990, c. 45, s. 12(1)

• 31. (1) Section 166 of the Act is replaced by the following:

  Marginal note:Supply by small supplier not a registrant

  166. If a person makes a taxable supply and the consideration or a part of it for the supply becomes due, or is paid before it becomes due, at a time when the person is a small supplier who is not a registrant, that consideration or part, as the case may be, shall not be included in calculating the tax payable in respect of the supply except if the supply is

  • (a) a supply by way of sale of real property;

  • (b) a supply by way of sale of personal property by a municipality that is capital property of the municipality; or

  • (c) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person.

• (2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.

• 32. (1) The Act is amended by adding the following after section 198:

  Marginal note:Basic tax content of property of a municipality

  • 198.1 (1) In the case of property of a municipality that is not a listed financial institution, the basic tax content of the property at any time after January 30, 2004 shall be determined by applying the following rules:

    • (a) in determining the value of A in paragraph (a) of the definition “basic tax content” in subsection 123(1), an amount of tax described by any of subparagraphs (i) to (v) of the description of A may be included only if the tax

      • (i) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the property, or

      • (ii) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of the property;

    • (b) in determining the value of B in paragraph (a) of the definition “basic tax content” in subsection 123(1), any reference in the description of B to tax referred to in a subparagraph of the description of A shall be read to include an amount of tax only if the tax is included in the determination of the value of A in accordance with paragraph (a) of this subsection;

    • (c) in determining the value of J in paragraph (b) of the definition “basic tax content” in subsection 123(1),

      • (i) paragraphs (a) and (b) of this subsection shall be applied in determining the basic tax content referred to in subparagraph (i) of the description of J, and

      • (ii) an amount of tax described by any of subparagraphs (iii) to (vi) of the description of J may be included only if the tax

        • (A) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the improvements to the property, or

        • (B) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of improvements to the property; and

    • (d) in determining the value of K in paragraph (b) of the definition “basic tax content” in subsection 123(1), any reference in the description of K to tax referred to in a subparagraph of the description of J shall be read to include an amount of tax only if the tax is included in the determination of the value of J in accordance with paragraph (c) of this subsection.

  • Marginal note:Application to designated municipality

    (2) In subsection (1), “municipality” includes a person designated to be a municipality for the purposes of section 259 and, in the case of a person so designated, “property” means property that, on January 31, 2004, was property of the person and was consumed, used or supplied by the person otherwise than exclusively in the course of activities that are not activities specified in the designation.

• (2) Subsection (1) is deemed to have come into force on January 31, 2004.