Bill 15 2007

An Act to amend the Retail Sales Tax Act

Note: This Act amends the Retail Sales Tax Act.  For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History on www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  (1)  Subsection 4 (1) of the Retail Sales Tax Act is amended by adding "if the vehicle was manufactured outside of North America" at the end.

   (2)  Section 4 of the Act is amended by adding the following subsections:

Place of manufacture

   (2.1)  For the purposes of this section, a passenger vehicle or a sport utility vehicle is manufactured outside of North America if the component parts of the vehicle were not assembled in Canada, the United States of America or Mexico.

Transition

   (2.2)  A purchaser of a new passenger vehicle or sport utility vehicle manufactured in North America is not liable to pay tax under this section, as it read immediately before the day on which the Retail Sales Tax Amendment Act, 2007 came into force, if the purchaser entered into an agreement to acquire the vehicle before that day and the acquisition was not completed until after that day.

   2.  (1)  Subsection 4.1 (1) of the Act is amended by adding "if the car was manufactured outside of North America" at the end.

   (2)  Section 4.1 of the Act is amended by adding the following subsections:

Place of manufacture

   (2.1)  For the purposes of this section, a car is manufactured outside of North America if the component parts of the car were not assembled in Canada, the United States of America or Mexico.

Transition

   (2.2)  A purchaser of a new passenger car manufactured in North America is not entitled to a tax credit under this section, as it read immediately before the day on which the Retail Sales Tax Amendment Act, 2007 came into force, if the purchaser entered into an agreement to acquire the car before that day and the acquisition was not completed until after that day.

Commencement

   3.  This Act comes into force on the day it receives Royal Assent.

Short title

   4.  The short title of this Act is the Retail Sales Tax Amendment Act, 2007.

EXPLANATORY NOTE

The Bill amends the Retail Sales Tax Act to repeal the tax for fuel conservation payable on the purchase of a new passenger vehicle or sport utility vehicle manufactured in North America and the corresponding tax credit.