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SNL1992 CHAPTER T-0.1

TAXATION OF UTILITIES AND CABLE
TELEVISION COMPANIES ACT

Amended:

1993 c12; 1995 c14; 2001 c40; 2006 c37; 2007 c15; 2009 cR-15.01 s127

CHAPTER T-0.1

AN ACT RESPECTING THE TAXATION OF
UTILITIES AND CABLE TELEVISION
COMPANIES

(Assented to December 23, 1992)

Analysis




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

Short title

        1. This Act may be cited as the Taxation of Utilities and Cable Television Companies Act .

1992 cT-0.1 s1

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Definitions

        2. In this Act

             (a)  "city" means a city as defined in the City of Corner Brook Act , the City of Mount Pearl Act and the City of St. John's Act ;

             (b)  "collector" means a utility which, under subsection 7(4) is an agent of a city or municipality for the collection of a tax imposed under subsection 7(1);

             (c)  "consumer" means a person who consumes or uses a service of a utility;

             (d)  "council" means a council as defined in the City of Corner Brook Act , the City of Mount Pearl Act , the City of St. John's Act and the Municipalities Act ;

          (d.1)  "department" means the department presided over by the minister;

             (e)  "gross revenue" means

                      (i)  in the case of a utility defined under subparagraph 2(h)(ii), the gross revenue derived from the sale of electric power service for all purposes and not reduced by a fuel adjustment or similar direct expenses recovery charge except gross revenue derived from a sale of that service to a utility defined under subparagraph 2(h)(iii),

                     (ii)  in the case of a utility defined under subparagraph 2(h)(iii), the gross revenue derived from the sale of electric power service for all purposes and not reduced by a fuel adjustment or similar direct expense recovery charge, and

                    (iii)  in the case of a utility defined under subparagraphs 2(h)(i) and (iv), the gross revenue derived from the sale of their service;

        (e.01)  "industrial customer" means a person purchasing power from the Newfoundland and Labrador Hydro Electric Corporation, a corporation continued under the Hydro Corporation Act and its successors and assigns, other than a utility as defined in subparagraphs (h)(i), (ii.1), (iii) and (iv), supplied from the bulk transmission grid at voltages of 66 KV or greater on the primary side of transformation equipment directly supplying the person;

          (e.1)  "inspector" means an inspector appointed under section 6.1;

          (e.2)  "minister" means the minister appointed under the Executive Council Act to administer this Act;

              (f)  "municipality" means a municipality as defined in the Municipalities Act ;

             (g)  "service" means the broadcast, receiving, transmission, conveyance, communication, delivery or provision of television programming and nonprogramming signals, telephone, telegraph and facsimile messages and electric power or energy for consideration, to users or consumers of these; and

             (h)  "utility" for the purpose of this Act means

                      (i)  a person, firm or corporation that owns, operates, manages or controls in the province a cable television broadcast receiving undertaking with equipment and facilities for receiving and redistributing television programming and nonprogramming services, for consideration paid by the user or consumer of those services,

                     (ii)  the Newfoundland and Labrador Hydro Electric Corporation, a corporation continued under the Hydro Corporation Act and its successors and assigns,

                  (ii.1)  the Twin Falls Power Corporation and its successors and assigns,

                    (iii)  the Newfoundland Light & Power Co. Limited, a corporation continued under theCorporations Act and its successors and assigns, and

                    (iv)  a person, firm or corporation involved in the transmission, conveyance, communication, delivery or provision of telephone, telegraph and facsimile messages.

1992 cT-0.1 s2; 1995 c14 s1; 2001 c40 s1; 2007 c15 s1

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Application of Revenue Administration Act

      2.1 (1) Parts I and II of the Revenue Administration Act, with the necessary changes, apply to the collection of taxes under section 6 of this Act. 

             (2)  Where there is a conflict between this Act and Parts I and II of the Revenue Administration Act, the Revenue Administration Act shall apply.

2009 cR-15.01 s127

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Real property tax

        3. (1) Where a council imposes a tax on real property, a utility is liable to pay the tax in respect of its lands and buildings except that no tax is due on machinery, equipment and fixtures erected or affixed upon, in, over or under those lands or buildings, the exclusive purpose of which is the provision of a service.

             (2)  Subsection (1) shall not apply to a utility defined in subparagraph 2(h)(ii).

1992 cT-0.1 s3

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Other taxes

        4. (1) Where a council imposes a water tax, sewage tax or a water and sewage tax upon a utility connected to the water or sewage system of the city or municipality served by that council based upon the assessed real property value of that utility, that utility is liable for those taxes or assessments but the tax shall be assessed, with the necessary changes, in accordance with the method of assessing real property tax under subsection 3(1).

             (2)  Where a council imposes upon a utility a water and sewage tax at a flat rate or a metered rate, that utility is liable for that tax.

1992 cT-0.1 s4

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Municipal business tax

        5. (1) A council may by resolution impose on a utility an annual business tax at a rate of not more than 2.5% on the gross revenue of the utility for the preceding year derived within the city or municipality served by the council.

             (2)  For the purpose of the tax imposed under subsection (1), the utility shall submit to the council by February 1 of the current year a sworn or affirmed statement as to its gross revenue derived in the preceding year within the city or municipality served by the council.

             (3)  Where a utility did not carry on business in a city or municipality during the preceding year, the council of that city or municipality may estimate the gross revenue of business and bill for tax under subsection (1) based on its estimate.

             (4)  Where a utility does not submit a statement of its gross revenue under subsection (2), the council shall estimate the gross revenue of that utility derived in the preceding year within the city or municipality served by the council and impose the tax based upon its estimate.

             (5)  Where a utility provides records to the council, after the council makes an estimate under subsection (4), that show an amount of gross revenue derived within the city or municipality different from that estimated by the council, the council shall adjust its tax records at the end of its financial year and shall either rebate excess tax paid by crediting the rebate to the next year's business tax or add additional tax owing to the next year's business tax.

             (6)  Where the council of a city or municipality imposes a tax under this section in its 1st financial year, that tax becomes due from the date the council takes office and shall be estimated in the same manner as under subsection (1).

             (7)  Where a utility ceases to exist, that utility is taxable under this section for the period of time during the year that the utility existed and where an estimate of the tax has been made in accordance with this section and the utility provides records to the council that show an amount of gross revenue different from that estimated by the council, the council shall immediately adjust its tax records and either rebate excess tax paid to the utility or bill the utility for additional tax owing.

             (8)  Subsection (1) shall not apply with respect to the gross revenue of the utility referred to in subparagraph 2(h)(ii) where that gross revenue is derived from an industrial customer of that utility.

             (9)  A council shall not impose a business tax upon a utility except in accordance with this Act.

1992 cT-0.1 s5; 2007 c15 s2

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Provincial business tax

        6. (1) A utility shall pay to the Crown an annual business tax at a rate prescribed by regulation and not more than 2.5% on the gross revenue of the utility for the preceding year derived from the areas of the province which are not incorporated as a city or a municipality.

             (2)  [Rep. by 2009 cR-15.01 s127]

             (3)  Where a utility did not carry on business during the preceding year in an area not incorporated as a city or municipality, the Minister of Finance may estimate the gross revenue of business and bill for tax under subsection (1) based on his or her estimate.

             (4)  Where a utility does not submit a statement of its gross revenue under subsection (2), the Minister of Finance shall estimate the gross revenue of that utility derived in the preceding year within the areas of the province which are not incorporated as a city or municipality and impose the tax based upon his or her estimate.

             (5)  Where a utility provides records to the Minister of Finance after he or she makes an estimate under subsection (4) and those records show that an amount of gross revenue derived within areas of the province that have not incorporated as a city or municipality is different from the amount estimated by the Minister of Finance, the minister shall adjust his or her department's tax records and shall either rebate excess tax paid by crediting the rebate to the next year's business tax or add additional tax owing to the next year's business tax.

          (5.1)  [Rep. by 2009 cR-15.01 s127]

          (5.2)  [Rep. by 2009 cR-15.01 s127]

          (5.3)  [Rep. by 2009 cR-15.01 s127]

             (6)  Where a utility ceases to exist, that utility is taxable under this section for the period of time during the year that the utility existed and where an estimate of the tax has been made in accordance with subsection (4) and the utility provides records to the Minister of Finance that show an amount of gross revenue different from that estimated by the minister, the minister shall immediately adjust his or her department's tax records and either rebate excess tax paid to the utility or bill the utility for additional tax owing.

             (7)  [Rep. by 2009 cR-15.01 s127]

             (8)  Subsection (1) shall not apply with respect to the gross revenue of the utility referred to in subparagraph 2(h)(ii) where that gross revenue is derived from an industrial customer of that utility.

             (9)  Where a by-law approved under section 83 of the Indian Act ( Canada ) imposes a tax upon a utility that is similar to tax imposed under subsection (1), that utility is not liable to pay tax under subsection (1) in respect of its gross revenue attributable to the area to which that by-law applies.

1992 cT-0.1 s6; 2001 c40 s2; 2007 c15 s3; 2009 cR-15.01 s127

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Rep. by 2009 cR-15.01 s127

      6.1 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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Rep. by 2009 cR-15.01 s127

      6.2 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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      6.3 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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      6.4 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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Rep. by 2009 cR-15.01 s127

      6.5 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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      6.6 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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      6.7 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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      6.8 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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      6.9 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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   6.10 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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   6.11 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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Rep. by 2009 cR-15.01 s127

   6.12 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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Rep. by 2009 cR-15.01 s127

   6.13 [Rep. by 2009 cR-15.01 s127]

2009 cR-15.01 s127

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Municipal utility tax

        7. (1) A council may by resolution impose upon a consumer who resides within the city or municipality served by the council, a municipal utility tax calculated as a percentage of the cost of the service paid or payable by that consumer to a utility for the use of a service of that utility.

             (2)  A consumer upon whom a municipal utility tax has been imposed under subsection (1) shall pay that tax at the time of the sale of the utility service to him or her.

             (3)  A municipal utility tax imposed under subsection (1) shall be collected at the time of the sale on the cost of the service to the consumer and shall be remitted by the collector to the city or municipality at a time and in a manner prescribed by regulation.

             (4)  A utility which sells its services within a city or municipality is considered to be an agent of that city or municipality for the purpose of collecting a tax imposed under subsection (1) and as an agent shall levy and collect that municipal utility tax from consumers of its services who reside within the area served by the council of that city or municipality.

             (5)  Where a municipal utility tax imposed under subsection (1) is collected and not paid over as required by this Act, that tax is recoverable from the collector in a court as a debt due to the city or municipality which imposed the tax.

             (6)  The consumer of a utility service upon which a municipal utility tax is imposed under subsection (1) is and remains liable for that tax until that tax has been collected and where a utility sells a service and fails to collect the tax imposed under subsection (1) from the consumer, that utility shall immediately notify the city or municipality which imposed the tax and that tax may be recovered from that consumer in a court as a debt due to that city or municipality.

             (7)  Subsection (1) shall not apply with respect to the consumption or use by a consumer of a utility service provided by the utility referred to in subparagraph 2(h)(ii) where that consumer is a corporation or organization listed in the Schedule to this Act.

             (8)  Where a receipt, bill, invoice or other document is issued by a collector respecting the sale of a utility service, a municipal utility tax imposed under this section shall be shown as a separate item on that receipt, bill, invoice or other document.

             (9)  Where a council, by resolution imposes a tax under subsection (1), that tax shall not take effect until at least 30 days after notice of that resolution has been given to the utility which will be a collector for that tax.

1992 cT-0.1 s7

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Interest

        8. Where a utility does not pay tax in the time and manner required under this Act, interest shall be levied upon that tax at the rate and in the manner prescribed by regulation.

1992 cT-0.1 s8

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Regulations

        9. The Lieutenant-Governor in Council may make regulations

             (a)  prescribing the rate of tax to be imposed under subsection 6(1);

             (b)  prescribing the interest to be charged under section 8;

             (c)  prescribing the forms and records to be used and maintained by utilities for the Act;

             (d)  prescribing the information to be provided by utilities, collectors and persons taxed under this Act;

             (e)  prescribing the method of setting the rate of remitting and paying tax imposed under sections 5, 6, 7 and 10 and the time and manner in which remittances are to be made and other conditions or requirements affecting the setting of the rate, collection, remittance or payment of tax;

              (f)  prescribing the manner in which sums of money collected by collectors shall be accounted for and the time and manner of that accounting;

             (g)  prescribing the circumstances under which refunds and interest may be granted or denied and setting restrictions on the granting or denying of refunds and interest;

             (h)  prescribing rates and methods of calculating interest, the documents, times and manner of paying refunds, interest and the making of other payments; and

              (i)  generally to give effect to the purpose of this Act.

1992 cT-0.1 s9; 2001 c40 s4

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Rep. by 2006 c37 s1

      10. [Rep. by 2006 c37 s1]

2006 c37 s1

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Penalty

      11. (1) A consumer who fails to comply with this Act commits an offence and is liable on summary conviction

             (a)  for a 1st offence to a fine of not less than $100 and not more than $1,000 or to imprisonment for a term of not more than 3 months or to both a fine and imprisonment;

             (b)  for a 2nd offence to a fine of not less than $200 and not more than $2,000 or to imprisonment for a term of not more than 3 months or to both a fine and imprisonment; and

             (c)  for a 3rd and subsequent offence to a fine of not less than $500 and not more than $5,000 or to imprisonment for a term of not more than 3 months or to both a fine and imprisonment.

             (2)  A utility which fails to comply with this Act commits an offence and is liable on summary conviction

             (a)  for a 1st offence to a fine of not less than $200 and not more than $10,000;

             (b)  for a 2nd offence to a fine not less than $500 and not more than $10,000; and

             (c)  for a 3rd or subsequent offence to a fine not less than $1,000 and not more than $10,000.

1992 cT-0.1 s11

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Act priority

      12. Notwithstanding an Act, law, agreement, lease, charter or contract to the contrary, a utility is exempt from all taxes imposed by a council other than those provided for under this Act and taxes under this Act shall, from the commencement of this Act, take the place of taxes provided for in another Act, law, agreement, lease, charter or contract.

1992 cT-0.1 s12

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Commencement

      13. This Act shall come into force on January 1, 1993 .

1992 cT-0.1 s13

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Schedule - [Rep. by 2007 c15 s4]

2007 c15 s4