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.

(3) Subject to subsection (4), the following constitute miscellaneous revenues for the purpose of paragraph (b) of the definition revenue to be equalized in subsection 3.5(1) of the Act:

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

  • (i) those derived from natural resources, other than those described in paragraph 4(1)(e),

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

  • (iii) 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

• (b) any revenues derived by a local government that are not included as revenues under subsection 4(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.

(4) The following revenues are excluded from miscellaneous revenues:

• (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.