Statutes of Newfoundland and Labrador 2018 Chapter 27

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2009 cR-15.01
as amended

1. (1) Section 91.1 of the Revenue Administration Act is amended by adding immediately after subsection (1) the following:

(1.1) Notwithstanding subsection (1), a person who enters into, renews or amends a contract of insurance relating to an automobile in the province shall pay to the Crown a tax as follows:

(a) where the contract of insurance has an effective date between January 1, 2019 and December 31, 2019, a tax at the rate of 13% of the premium for that insurance;

(b) where the contract of insurance has an effective date between January 1, 2020 and December 31, 2020, a tax at the rate of 12% of the premium for that insurance;

(c) where the contract of insurance has an effective date between January 1, 2021 and December 31, 2021, a tax at the rate of 11% of the premium for that insurance; and

(d) where the contract of insurance has an effective date on or after January 1, 2022, a tax at the rate of 10% of the premium for that insurance.

(2) Subsection 91.1(2) of the Act is repealed and the following substituted:

(2) The tax imposed under this section shall be collected and this Act and the regulations applied for the purpose of the imposition, assessment, collection and enforcement of the payment of the tax, as if

(a) the contract of insurance were tangible personal property; and

(b) there were on each occasion when the premium is due, a retail sale in the province at which the person paying the premium was the retail purchaser and the insurer or insurer's agent was the seller.

(3) Subsections 91.1(4) to (6) of the Act are repealed and the following substituted:

(4) A seller is considered to be an agent of the Crown and as an agent shall levy and collect the tax imposed under this section from a retail purchaser.

(5) The tax imposed under this section shall be collected on each occasion when the premium is paid and shall not be collected in its entirety when a contract of insurance is entered into, amended or renewed.

(6) Notwithstanding subsection (5), where a contract of insurance is entered into, amended or renewed and the premium for that insurance is to be paid in its entirety at the time the contract is entered into, amended or renewed, the tax imposed under this section shall be collected in its entirety at that time.

(4) Subsection 91.1(10) of the Act is repealed and the following substituted:

(10) A person who enters into, amends or renews a contract of insurance referred to in subsection (1) or (1.1) is required to pay the tax imposed under this section whether or not the insurer or insurer's agent is registered under this Part, and that person shall remit the tax in the manner referred to in subsection (7).

(5) Section 91.1 of the Act is amended by adding immediately after subsection (11) the following:

(12) For the purpose of this section, "automobile" means an automobile as defined in the Insurance Companies Act.

2. Subsection 91.2(2) of the Act is repealed and the following substituted:

(2) The minister may issue to a seller a registration certificate, which is not transferable, authorizing that seller to collect the tax referred to in section 91.1.

Commencement

3. This Act comes into force on January 1, 2019.