Federal-Provincial Fiscal Arrangements Regulations, 2007

4 (1) The provincial revenues that are derived from, or that are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (e) of the definition revenue source in subsection 3.5(1) of the Act are

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

  • (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,

  • (iii) taxes imposed by a province on the payroll of employers, and

  • (iv) revenues derived from the Ontario Health Care Premium;

• (b) in the case of revenues relating to business income referred to in paragraph (b) of that definition,

  • (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 paragraph (e),

  • (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,

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

    • (D) an electricity enterprise, and

  • (iii) revenues derived by a province from taxes imposed by the province on the paid-up capital of corporations;

• (c) in the case of revenues relating to consumption referred to in paragraph (c) 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 specific tax imposed by a province on final purchasers of tobacco and tobacco products,

  • (iv) taxes, other than those referred to in subparagraph (xv), imposed by a province on final purchasers of gasoline and diesel fuel used in an internal combustion engine, including aviation fuel and railway fuel, but not including taxes on the sale of liquefied petroleum gas,

  • (v) revenues derived by a province

    • (A) from fees for drivers’ and chauffeurs’ licences,

    • (B) from fees for licences for, and registrations of, passenger motor vehicles, motorcycles and mopeds, and

    • (C) 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,

  • (vi) revenues derived by a province from fees for licences and registrations of commercial motor vehicles, including

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

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

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

  • (vii) revenues derived by a province from

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

    • (B) 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

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

  • (viii) taxes, levies or premiums imposed by a province for the purpose of financing hospitalization insurance or medical care insurance, other than those described in paragraph (a),

  • (ix) taxes imposed by a province on insurance premiums of insurance companies,

  • (x) taxes imposed by a province on amounts wagered in the province on harness and running horse races,

  • (xi) profits derived from the operation of games of chance 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,

  • (xii) 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 operation or sale of games of chance,

  • (xiii) profits, other than those referred to in subparagraph (xi), that are derived from the sale of goods or 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,

  • (xiv) the province’s share of revenue from any revenue that is shared by Canada and the province, other than the revenues referred to in subparagraphs (e)(vii) and (viii), and

  • (xv) a carbon levy or tax, including a tax that is imposed by a province on fuel and that is proportional to the greenhouse gas emissions that are generated by the burning fuel;

• (d) in the case of revenues derived from property taxes and miscellaneous revenues referred to in paragraph (d) of that definition,

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

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

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

    • (C) 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 province 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,

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

  • (iv) revenues derived by a province from any other source, other than one described elsewhere in this subsection, including

    • (A) revenues derived from natural resources, other than those described in paragraph (e),

    • (B) revenues derived from interest charges, fines and penalties imposed by the province, including those imposed in relation to taxes,

    • (C) provincial tax revenues, other than those described elsewhere in this subsection, including

      • (I) those 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, and

      • (II) those derived from taxes on the sale of liquified petroleum gas, and

    • (D) provincial non-tax revenues that are included in the “Other revenue from own sources” revenue category of the Financial Management System, other than those described elsewhere in this subsection,

    but not including

    • (E) provincial revenues included in the “Sales of goods and services” revenue category of the Financial Management System,

    • (F) contributions derived from vacation-with-pay, workers’ compensation, a universal pension plan or a public service or teachers’s pension plan that is not constituted as a trust,

    • (G) revenues included in the “Investment income” revenue category of the Financial Management System,

    • (H) any transfer payments received from other governments,

    • (I) taxes, levies or 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, and

    • (J) payments to a province by the Government of Canada pursuant to section 99 of the Softwood Lumber Products Export Charge Act, 2006, and

  • (v) revenues derived by a local government sector from any source, other than one described elsewhere in this subsection, including

    • (A) revenues derived from interest charges, fines and penalties imposed by a local government sector, including those imposed in relation to taxes,

    • (B) local government tax revenues, other than those described in paragraph (c), including those that are included in the “Other taxes” revenue category of the Financial Management System, including those received for gaming licences and permits issued to charities or other organizations, and

    • (C) local government non-tax revenues, other than those described in clause (A), included in the “Other revenue from own sources” revenue category of the Financial Management System,

    but not including local government revenues included in the “Sales of goods and services” revenue category of the Financial Management System; and

• (e) in the case of revenues derived from natural resources referred to in paragraph (e) of that definition,

  • (i) revenues attributable to oil from hydrocarbon deposits in a province, including revenues derived by the province from

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

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

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

  • (ii) revenues derived by a province from a levy imposed by the province for the privilege of

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

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

  • (iii) revenues derived by a province, from domestically sold natural gas and exported natural gas, attributable to gas produced from hydrocarbon deposits in the province, including revenues derived from

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

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

    • (C) 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 produced from hydrocarbon deposits,

  • (iv) revenues 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,

  • (v) revenues, other than those from a revenue source referred to in any of subparagraphs (i) to (iv), derived by a province from the exploration for and the development and production of oil, natural gas, gas by-products and helium or other gaseous products from hydrocarbon deposits in the province,

  • (vi) revenues, derived by a province from the exploration for and the development and production of oil, natural gas and gas by-products from hydrocarbon deposits in the province, of a kind that falls within a revenue source set out in any of subparagraphs (i) to (iii) but that cannot be attributed only to that revenue source,

  • (vii) revenues received by Newfoundland and Labrador from the Government of Canada under any Part, other than Part V, of the Canada-Newfoundland Atlantic Accord Implementation Act,

  • (viii) revenues received by Nova Scotia from the Government of Canada under any Part, other than Part V, of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act,

  • (ix) revenues attributable to mining in a province and derived by the province from

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

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

  • (x) revenues, other than payments to a province by the Government of Canada pursuant to section 99 of the Softwood Lumber Products Export Charge Act, 2006, attributable to forestry on Crown land and private land in the province and that are derived by the province from

    • (A) a tax imposed by the province specifically on income from logging on the land, and

    • (B) royalties, stumpage fees, licences, rentals and fees that are related to the exploitation of forestry resources on the land,

  • (xi) revenues derived by a province that are attributable to the right to use, or the use of, water resources, and

  • (xii) remittances to a provincial government of the profits of an electricity enterprise.

(2) For the purpose of paragraph (1)(e), if a province has changed its method of accounting for a fiscal year so that the revenue referred to in that paragraph is derived during a period that is other than 12 months, the Minister may adjust the amount of that revenue for that fiscal year to offset any effect of that change.