Federal-Provincial Fiscal Arrangements Regulations, 2007

9 (1) The definition revenue to be equalized in subsections 3.5(1) and 3.9(1) of the Act is, in respect of a revenue source for a province 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 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 4(1) or 7(1) that is paid to a province 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 a local government paid to itself, and

  • (iii) any revenue that the province receives from a local government or that a local government receives from the province.

(2) In respect of the revenues described in subparagraph 4(1)(a)(ii) and paragraph 7(1)(y), 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 in the fiscal year and the sum of the wages and salaries paid in the province 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’s government departments that the Chief Statistician of Canada has excluded from the payroll tax revenue for the fiscal year for the province, as set out in the certificate.