Be it enacted by the Lieutenant-Governor and
House of Assembly in Legislative Session convened, as follows:
MANAGEMENT OF GREENHOUSE GAS ACT
SNL2016 cM-1.001
1. (1) Section 2 of the Management of Greenhouse Gas Act is amended by renumbering paragraph
(a) as paragraph (a.1) and adding immediately before that paragraph the
following:
(a) "board" means the
Canada-Newfoundland and Labrador Offshore Petroleum Board established under
the Canada-Newfoundland and Labrador
Atlantic Accord Implementation Act (Canada) and the Canada-Newfoundland and Labrador Atlantic
Accord Implementation Newfoundland and Labrador Act;
(2) Section 2 of the Act is amended by adding
immediately after paragraph (l) the following:
(l.1) "offshore area" means offshore area as defined in the Canada-Newfoundland and Labrador Atlantic
Accord Implementation Newfoundland and Labrador Act;
(3) Section 2 of the Act is amended by deleting
the word "and" at the end of paragraph (m) and by adding immediately
after that paragraph the following:
(m.1) "opted-in facility" means an
industrial facility designated under section 5.1; and
(4) Paragraph 2(n) of the Act is repealed and the
following substituted:
(n) "performance credit" means a credit
earned by an industrial facility where the industrial facility
(i) has a greenhouse gas reduction target referred
to in section 5, and
(ii) reduces its greenhouse gas emissions at the
industrial facility by more than its greenhouse gas emission reduction target.
2. (1) Subsection 4(2) of the Act is repealed and
the following substituted:
(2) Notwithstanding subsection (1), where an
industrial facility emits less than 15,000 tonnes of carbon dioxide equivalent
in 3 consecutive years, the operator of the industrial facility may apply to
the minister for an exemption from this Act.
(2) Subsection 4(4) of the Act is repealed.
3. (1) Subsection 5(1) of the Act is repealed and
the following substituted:
Greenhouse gas
emissions reduction target
5. (1) The
Lieutenant-Governor in Council may make regulations establishing annual
greenhouse gas emissions reduction targets for
(a) industrial facilities that emit 25,000 tonnes
of carbon dioxide equivalent or more of greenhouse gases in any year since the
coming into force of this Act; and
(b) opted-in facilities.
(2) Subsection 5(4) of the Act is repealed and the
following substituted:
(4) The Lieutenant-Governor in Council may make
regulations exempting an industrial facility referred to in paragraph (1)(a) from
achieving its annual greenhouse gas emissions reduction target where the
industrial facility
(a) emits less than 25,000 tonnes of carbon
dioxide equivalent or more of greenhouse gases in 3 consecutive years; and
(b) applies to the minister for an exemption.
4. The Act is amended by adding immediately after
section 5 the following:
Opted-in facility
5.1 (1) An
industrial facility that emits between 15,000 and 25,000 tonnes of carbon
dioxide equivalent of greenhouse gases in a year may apply to the minister to
be designated as an opted-in facility.
(2) The minister may designate an industrial
facility as an opted-in facility where the industrial facility submits, on or
before September 1 of the year preceding the year in which the designation is intended
to be effective,
(a) an application in the form and manner
determined by the minister;
(b) an emissions report for the calendar year
preceding the date of application;
(c) verification of the emissions report referred
to in paragraph (b) in accordance with the regulations; and
(d) any other documentation prescribed in the
regulations.
5. (1) Subsection 6(2) of the Act is repealed and
the following substituted:
(2) The minister shall deposit into the fund all
money received by him or her from
(a) the operators of industrial facilities for the
purchase of fund credits; and
(b) enforcement activities under this Act and the
regulations.
(2) Section 6 of the Act is amended by adding
immediately after subsection (12) the following:
(13) The minister shall make available to the
public an annual
report with respect to the fund, which shall include
(a) a list of operators who
received money from the fund and the amount that each operator received;
(b) information regarding the use of the money
that each operator received from the fund;
(c) the anticipated reduction in greenhouse gas
emissions as a result of the money each operator received from the fund;
(d) an update regarding the actual verified
reduction in greenhouse gas emissions as a result of the money each operator received
from the fund;
(e) the financial statements of the fund;
(f) the report of the auditor general in relation
to the financial statements of the fund; and
(g) any other information prescribed in the
regulations.
6. Subsection 7(1) of the Act is repealed and the
following substituted:
Payments from
fund
7. (1) Notwithstanding
section 30 of the Financial
Administration Act, the minister may authorize payments from the fund
(a) where
(i) an operator submits an application in a form
set by the minister,
(ii) an operator provides proof satisfactory to the
minister that
(A) the money will be used to achieve a verifiable
reduction in greenhouse gas emissions at an industrial facility within a
reasonable period of time, and
(B) the reduction referred to in clause (A) will
be in addition to any greenhouse gas reductions the industrial facility is
required to make to achieve its annual greenhouse gas emission reduction
target, and
(iii) the advisory council makes a recommendation
under subsection 8(1); or
(b) where the advisory council makes a
recommendation under subsection 6(6) and the minister is satisfied that
(i) the money will be used to achieve a verifiable
reduction in greenhouse gas emissions at an industrial facility within a
reasonable period of time, and
(ii) the reduction referred to in subparagraph (i)
will be in addition to any greenhouse gas reductions the industrial facility is
required to make to achieve its annual greenhouse gas emission reduction
target.
7. Subsection 10(1) of the Act is repealed and the
following substituted:
Mandatory reporting
10. (1) An
operator of an industrial facility to which this Act applies shall submit to
the minister annually a report regarding the greenhouse gas emissions released
and containing other information prescribed in the regulations.
8. Section 11 of the Act is repealed and the
following substituted:
Calculation of
greenhouse gas emissions
11. An operator of an industrial facility shall
calculate its greenhouse gas emissions using the methodology prescribed in the
regulations.
9. The Act is amended by adding immediately after
section 12 the following:
Information
sharing agreement
12.1 The
minister may enter into an information sharing agreement with the board and may
disclose or transfer records to, and share records with, the board in
accordance with the agreement.
Delegation by
minister
12.2 The
minister may, in writing, delegate a power, duty or function conferred or
imposed on him or her under this Act or the regulations to the board in
relation to an industrial facility located in the offshore area.
10. (1) Section 29 of the Act is amended by adding
immediately after paragraph (c) the following:
(c.1) respecting the procedure and conduct of the
advisory council, including the establishment of committees;
(2) Section 29 of the Act is amended by adding
immediately after paragraph (e) the following:
(e.1) respecting applications for designation as an
opted-in facility;
(e.2) respecting the designation of an industrial
facility as an opted-in facility, including the term and revocation of that
designation;
11. Paragraph 30(1)(a) of the Act is repealed.
12. The Act is amended by adding immediately after
section 30 the following:
Transitional
30.1 Notwithstanding
subsection 5.1(2), the minister may designate an industrial facility as an
opted-in facility effective January 1, 2019 where the industrial facility
submits the documents referred to in paragraphs 5.1(2)(a) to (d) on or before
March 1, 2019.
REVENUE ADMINISTRATION ACT
SNL2009 cR-15.01
as amended
13. (1) Section 2 of the Revenue Administration Act is amended by adding immediately after
paragraph (h) the following:
(h.1) "carbon product" means a product
listed in subsection 72.1(1);
(2) Section 2 of the Act is amended by adding
immediately after paragraph (o) the following:
(o.1) "cubic metre" means the unit of
measurement known as the cubic metre and set out in the Weights and Measures Act (Canada);
(3) Paragraph 2(aa) of the Act is repealed and the
following substituted:
(aa) "gasoline", except in Part III.1,
includes every liquid or combination of liquids, under whatever name it is
known or sold, that is capable of being used for the purpose of generating
power in an internal combustion engine whether or not the liquid or combination
or a part of it is produced, derived or recovered from petroleum, natural gas,
shale or coal;
(4) Section 2 of the Act is amended by adding
immediately after paragraph (kk) the following:
(kk.1) "litre" means the unit of measurement
known as the litre and set out in the Weights
and Measures Act (Canada);
(5) Paragraph 2(yy) of the Act is repealed and the
following substituted:
(yy) "outlet" means a station, shop,
establishment, vehicle or other place or thing from or in which gasoline or a
carbon product is kept for sale;
(6) Subparagraph 2(kkk)(iii) of the Act is
repealed and the following substituted:
(iii) gasoline or a carbon product not for resale
but
(A) for his or her own consumption or use or his
or her own intended consumption or use or for the consumption or use or the
intended consumption or use of other persons at his or her expense, or
(B) on behalf of or as the agent for a principal
who wishes to acquire the gasoline or carbon product for consumption or use by
that principal or by other persons at the expense of that principal;
(7) Subparagraph 2(mmm)(ii) of the Act is repealed
and the following substituted:
(ii) holds a licence authorizing that person to
sell gasoline or a carbon product or keep gasoline or a carbon product for sale
directly to retail purchasers;
(8) Paragraph 2(nnn) of the Act is repealed and
the following substituted:
(nnn) "sale" means a sale for cash or on
credit or a sale where the price is payable by instalments, and includes a
barter, an exchange and a contract by which at a price or for other consideration
a person gives gasoline, a carbon product, tobacco, a vehicle or tangible
personal property to another;
(9) Section 2 of the Act is amended by adding
immediately after paragraph (ooo) the following:
(ooo.1) "tax-exempt carbon product" means a
carbon product that is not taxed under this Act;
(10) Section 2 of the Act is amended by adding
immediately after paragraph (sss) the following:
(sss.1) "tonne" means the unit of
measurement known as the tonne or metric ton and set out in the Weights and Measures Act (Canada);
(11) Subparagraph 2(yyy)(i) of the Act is repealed
and the following substituted:
(i) for the purpose of Parts III, III.1 and III.2,
means a person who holds a licence issued under this Act authorizing that
person to sell or keep gasoline or a carbon product for sale otherwise than to
retail purchasers, and
14. Subsection 5(1) of the Act is repealed and the
following substituted:
Collection of tax
5. (1) The
minister may designate a person as an agent of the minister for the collection
of the tax imposed under Parts III, III.1, VIII and IX of this Act.
15. Subsection 9(2) of the Act is repealed and the
following substituted:
(2) In addition to the requirements imposed under
subsection (1), a licensee under Part III.2 shall keep accounts in the required
form of
(a) all purchases, sales, deliveries, rebrandings,
transfers and losses of all grades or types of gasoline or carbon products by
that licensee in the province;
(b) sales and deliveries by that licensee to
points outside the province;
(c) sales and deliveries of tax-exempt gasoline
and tax-exempt carbon products; and
(d) quantities on hand and quantities used in the
province by that licensee
and a licensee shall make returns to the
minister in the form, in the manner and at the time prescribed by regulation.
16. Section 30 of the Act is repealed and the
following substituted:
Excess losses
30. (1) A
person who has excess unverifiable losses, as determined by this section, shall
pay a penalty equal to the tax that would have been collectable by the person
if the quantity of gasoline or a carbon product that exceeds the threshold
prescribed in the regulations for an unverifiable loss had been sold to a purchaser
liable to pay tax under this Part.
(2) For the purpose of this section,
(a) the amount of a person's unverifiable losses
of gasoline or a carbon product is the
amount by which the person's available inventory exceeds the amount of gasoline
or a carbon product that the person verifies to have been sold, lost, destroyed,
stolen, contaminated, consumed or distributed; and
(b) a person has excess unverifiable losses to the
extent that the person's unverifiable losses of gasoline or a carbon product
for a period of 36 continuous months exceeds the amount prescribed in the
regulations of the person's available inventory of gasoline or a carbon product
for that period.
(3) For the purpose of this section, a person's
available inventory of gasoline or a carbon product for a period of 36 months
is calculated using the formula:
A+B-C
where
A
= the amount of the person's opening
inventory of gasoline or a carbon product at the beginning of the period;
B
= the amount of gasoline or a carbon
product produced, received or purchased by the person during the period; and
C
= the amount of the person's closing
inventory of gasoline or a carbon product at the end of the period.
17. Subsection 32(2) of the Act is repealed and the
following substituted:
(2) A person who
(a) not being a retailer, sells gasoline or a
carbon product to a retail purchaser;
(b) being a retailer, sells gasoline or a carbon
product to a retail purchaser elsewhere than at the outlet specified in his or
her retailer licence;
(c) being a wholesaler, sells gasoline or a carbon
product for retail sale to a person who is not a retailer; or
(d) not being a wholesaler or retailer, sells
gasoline or a carbon product to a retailer
is guilty of an offence.
18. Subsection 37(1) of the Act is repealed and the
following substituted:
Powers of inspectors
re: compliance
37. (1) An
inspector may, at all reasonable times, for a purpose related to the
administration or enforcement of this Act or the regulations, except Parts III,
III.1, III.2 and IX, inspect or examine the premises, processes, books and
records of a person that the inspector may consider relevant for the purpose of
determining compliance with this Act, and the inspector may, without a warrant,
(a) enter any premises where
(i) a business is carried on,
(ii) any property, or books and records are or may
be kept, or
(iii) anything is or is suspected by the inspector
of being done or stored in connection with a tax imposed under this Act;
(b) make copies, extracts, photographs or videos
the inspector considers necessary;
(c) require the owner or person in charge of a
premises to give the inspector all reasonable assistance, including the production
of books and records as requested by the inspector, and to answer all proper
questions relating to the administration or enforcement of this Act and, for
that purpose, require the owner or person in charge to attend at the premises
with the inspector; and
(d) require the owner or person in charge to make
available the means to generate and manipulate books and records that are in
machine readable or electronic form and any other means or information
necessary for the inspector to assess the books and records.
19. Subsections 38(1) and (2) of the Act are
repealed and the following substituted:
Contravention of
Act suspected
38. (1) Where, during the course of an inspection
or examination under section 37, or otherwise where an inspector believes on
reasonable grounds that there has been a contravention of this Act or the regulations,
except Parts III, III.1, III.2 and IX, the inspector may, with a warrant issued
under subsection (2), seize and take away any of the books or records that may
be required as evidence of a contravention and may retain those documents until
the time they are required in a court proceeding.
(2) A Provincial Court judge who is satisfied upon
oath or affirmation there are reasonable grounds for believing there is in or
on a business or private premises anything that may provide evidence with
respect to a suspected offence under this Act, except Parts III, III.1, III.2 and
IX, may issue a warrant authorizing an inspector to enter the premises and to
(a) search;
(b) examine the contents of the premises and make
those inquiries that the inspector considers necessary; and
(c) copy, extract, photograph, video, seize and
take away evidence, books and records
for the purpose of investigating the
suspected offence.
20. Subsection 39(1) of the Act is repealed and the
following substituted:
Determination of
compliance – Parts III, III.1 & III.2
39. (1) An
inspector may, at all reasonable times, for a purpose related to the
administration or enforcement of Part III, III.1 or III.2 and any regulations
made under those Parts, inspect or examine the premises, processes, books and
records of a person that the inspector may consider relevant for the purpose of
determining compliance with those Parts, and the inspector may, without a
warrant,
(a) enter any premises where
(i) a business is carried on,
(ii) any property, or books and records are or may
be kept, or
(iii) anything is or is suspected by the inspector
of being done or stored in connection with a tax imposed under this Act;
(b) make copies, extracts, photographs or videos
the inspector considers necessary;
(c) require the owner or person in charge of a
premises to give the inspector all reasonable assistance, including the production
of books and records as requested by the inspector, and to answer all proper
questions relating to the administration or enforcement of Part III, III.1 or
III.2 and any regulations made under those Parts and, for that purpose, require
the owner or person in charge to attend at the premises with the inspector; and
(d) require the owner or person in charge to make
available the means to generate and manipulate books and records that are in
machine readable or electronic form and any other means or information
necessary for the inspector to assess the books and records.
21. Subsection 40(1) of the Act is repealed and the
following substituted:
Samples
40. (1) Where it is reasonably necessary for
the purpose of ensuring compliance with Part III or III.1 and any regulations
made under those Parts, an inspector may, at reasonable times without a warrant,
(a) inspect the contents of a tank containing
gasoline or a carbon product including the supply tank of an internal
combustion engine; and
(b) for the purpose of analysis, take a sample of
gasoline or a carbon product not exceeding the quantity prescribed in the
regulations.
22. Subsections 41(1) and (2) of the Act are repealed
and the following substituted:
Contravention suspected
41. (1) A
Provincial Court judge who is satisfied by information upon oath or affirmation
that there are reasonable grounds for believing that there is on a premises,
vehicle or other motorized equipment or storage or bulk delivery facility
anything that there are reasonable grounds to believe will give evidence with
respect to an offence under Part III, III.1 or III.2 and any regulations made
under those Parts may issue a warrant authorizing an inspector named in the
warrant to enter and search the premises, vehicle, or other motorized equipment
or storage or bulk delivery facility, and subject to those conditions that may
be specified in the warrant
(a) make those inquiries and copies that are
considered necessary;
(b) seize a sample of gasoline or a carbon product
for evidence or for analysis; or
(c) seize the whole amount of gasoline or a carbon
product and bring it to a place of safe custody and keep it there until the
court by its judgment has disposed of it, after which, if it is confiscated,
the inspector shall dispose of it as the minister directs.
(2) Where an inspector seizes gasoline or a carbon
product under this Act, he or she may also seize and detain in
safe custody a vehicle, or other motorized equipment in which that gasoline or
carbon product was found or carried until
(a) the matter has been disposed of and a tax
required to be paid under this Act has been paid; or
(b) a charge has been laid under this Act and a
deposit or bond in an amount satisfactory to the minister has been provided by
the owner or operator of a vehicle or other motorized equipment so detained.
23. Section 51 of the Act is repealed and the following
substituted:
Tax levied on
gasoline
51. A
person who acquires gasoline at a retail sale in the province shall pay to the
Crown at the time of the sale
(a) on propane fuel grade of gasoline, a tax of
$0.07 per litre;
(b) on gasoline for the operation of sea-going
vessels or boats, other than pleasure craft, a tax of $0.035 per litre;
(c) on diesel fuel grade of gasoline, a tax of
$0.165 per litre;
(d) on gasoline for use in an aircraft, a tax of
$0.025 per litre; and
(e) on all other grades of gasoline, a tax of $0.165
per litre.
24. (1) Subsection 56(1) of the Act is repealed and
the following substituted:
Tax
56. (1) Notwithstanding
section 51, an interjurisdictional carrier shall pay to the Crown a tax which
shall be calculated by the following formula:
tp = kms
x tr
d/l
where
tp
= the tax payable by the
interjurisdictional carrier;
kms
= the number of kilometres travelled
within the province by the fleet during the reporting period;
d
= the total kilometres travelled in all jurisdictions
by the fleet during the reporting period;
l
= the total number of litres of gasoline
consumed by the fleet during the reporting period; and
tr
= the tax rate per litre of gasoline set
out at paragraph 51(c).
(2) Section 56 of the Act is amended by adding
immediately after subsection (1) the following:
(1.1) In addition to the tax payable under
subsection (1), an interjurisdictional carrier who acquires gasoline at a
retail sale in the province shall pay to the Crown at the time of the sale a tax
at a rate that is equal to the rate prescribed for light fuel oil in paragraph
72.1(1)(g).
(1.2) The tax payable under subsection (1.1) shall
be calculated by the following formula:
tp = kms
x tr
d/l
where
tp
= the tax payable by the interjurisdictional
carrier;
kms
= the number of kilometres travelled
within the province by the fleet during the reporting period;
d
= the total kilometres travelled in all
jurisdictions by the fleet during the reporting period;
l
= the total number of litres of gasoline
consumed by the fleet during the reporting period; and
tr
= the tax rate per litre of light fuel
oil set out at paragraph 72.1(1)(g).
(3) Subsections 56(2) to (4) of the Act are
repealed and the following substituted:
(2) For the purpose of collecting the tax referred
to in subsections (1) and (1.2), an interjurisdictional carrier who acquires
gasoline at a retail sale in the province shall pay tax to the Crown as
required in section 51 and subsection (1.1).
(3) Where the amount of tax paid under subsection
(2) during the reporting period exceeds the amount due under subsection (1) and
(1.2), the minister may refund the difference to the interjurisdictional
carrier or may pay over the difference to another jurisdiction which has entered
into an agreement with the minister under section 72.
(4) Where the amount of tax paid under subsection
(2) is less than the amount due under subsection (1) and (1.2), the
interjurisdictional carrier shall pay the difference in amount to the minister
at the time prescribed by regulation for filing the return for that reporting
period.
25. Section 57 of the Act is amended by renumbering
it as subsection 57(1) and adding immediately after that subsection the following:
(2) Notwithstanding subsection (1), a tax imposed
under subsection 56(1) and (1.2) may be imposed on the same gasoline.
(3) Nothing in this section prevents a tax from
being imposed under section 51 and subsection 72.1(1) on the same gasoline or
carbon product.
26. Sections 58 to 60 of the Act are repealed.
27. Subsection 62(2) of the Act is repealed and the
following substituted:
(2) A person mentioned in subsection (1) shall not
rebrand products described in subsection (1) and sell them for consumption in
internal combustion engines, whether as taxable gasoline or otherwise, unless
that person is in possession of a wholesaler licence issued under Part III.2.
28. Sections 64 and 65 of the Act are repealed.
29. The Act is amended by adding immediately after section
72 the following:
PART III.1
CARBON TAX
Tax levied on
carbon product
72.1 (1)
In addition to the tax that may be payable under section 51, a person who acquires a
carbon product at a retail sale in the province shall pay to the Crown at the
time of the sale
(a) on butane, a tax of $0.0356 per litre;
(b) on ethane, a tax of $0.0204 per litre;
(c) on gas liquids, a tax of $0.0333 per litre;
(d) on gasoline, a tax of $0.0442 per litre;
(e) on heavy fuel oil, a tax of $0.0637 per litre;
(f) on kerosene, a tax of $0.0516 per litre;
(g) on light fuel oil, a tax of $0.0537 per litre;
(h) on methanol, a tax of $0.0220 per litre;
(i) on naphtha, a tax of $0.0451 per litre;
(j) on petroleum coke, a tax of $0.0767 per litre;
(k) on pentanes plus, a tax of $0.0356 per litre;
(l) on propane, a tax of $0.0310 per litre;
(m) on coke oven gas, a tax of $0.0140 per cubic
metre;
(n) on marketable natural gas, a tax of $0.0391
per cubic metre;
(o) on non-marketable natural gas, a tax of $0.0517
per cubic metre;
(p) on still gas, a tax of $0.0540 per cubic
metre;
(q) on coke, a tax of $63.59 a tonne;
(r) on high heat value coal, a tax of $45.03 a
tonne;
(s) on low heat value coal, a tax of $35.45 a
tonne; and
(t) on combustible waste, a tax of $39.95 a tonne.
(2) In this Part, "coke", "coke
oven gas", "combustible waste", "gas liquids",
"gasoline", "heavy fuel oil", "high heat value
coal", "kerosene", "light fuel oil", low heat value
coal", "marketable natural gas", "methanol",
"naphtha", "non-marketable natural gas", "pentanes
plus", "petroleum coke" and "still gas" have the same
meaning as in section 3 of the Greenhouse
Gas Pollution Pricing Act (Canada).
Carbon product
brought into province
72.2 (1) A
person other than an interjurisdictional carrier, who brings a carbon product into
the province, or who receives delivery of a carbon product in the province, for
that person's own consumption or use as a consumer, shall immediately report
the matter in writing to the minister.
(2) A person who is required to make a report
under subsection (1) shall supply with the report to the minister the invoice
for the carbon product and all other pertinent information that may be required
by the minister in respect of the consumption or use of the carbon product.
(3) A person who is required to make a report
under subsection (1) shall pay to the Crown, at the same time as the report, a
tax in the amount that would be payable if the carbon product had been purchased
at a retail sale in the province by that person.
(4) This section does not apply to a person
visiting the province as a tourist who brings into the province a carbon
product in accordance with and not exceeding the quantity prescribed by the
regulations.
Carbon product
held for consumption
72.3 A
person who has or keeps in that person's possession or under that person's
control a carbon product in respect of which no tax has been paid under this
Act and that he or she has, keeps or controls for himself or herself as a
consumer shall immediately pay to the Crown a tax in the amount that would be
payable if the carbon product had been purchased at a retail sale in the
province by that person.
Carbon product
not purchased at retail sale
72.4 (1) A
person who consumes or uses a carbon product originally acquired by that person
at a sale other than a retail sale and in respect of which no tax has been paid
under this Act shall, as soon as that person consumes or uses that carbon
product, pay to the Crown a tax in the amount that would be payable if the carbon
product had been purchased at a retail sale in the province by that person.
(2) Where a person who is not a collector acquires
a tax-exempt carbon product for resale, that person shall report that fact to
the minister.
(3) Where a person makes a report to the minister
under subsection (2) and
(a) sells a quantity of that carbon product in
circumstances in which it would stop being a tax-exempt carbon product; or
(b) consumes or uses a quantity of that carbon
product in circumstances in which it would stop being a tax-exempt carbon
product,
that person shall collect and pay over, or
pay, as the case may require, to the Crown, a tax in the amount that would be
payable if the carbon product had been purchased in the first instance by that
person at a retail sale in the province.
No double tax
72.5. (1) Sections 72.1 to 72.4 do not authorize
the imposition of a tax under this Act more than once upon the same carbon
product.
(2) Nothing in this section prevents a tax from
being imposed under section 51 and subsection 72.1(1) on the same gasoline or
carbon product.
Prohibited sales
of carbon product
72.6 (1) A
person shall not offer for sale, keep for sale or sell a carbon product in the
province, except under the authority conferred by a licence issued to that person.
(2) A wholesaler shall not sell a carbon product
at a retail sale, unless the wholesaler also holds a valid retailer licence.
(3) A wholesaler shall not sell a carbon product
to a person for resale at a retail sale, unless that person holds a valid
retailer licence issued to that person.
(4) A retailer shall not sell or keep a carbon
product for retail sale unless the carbon product has been purchased by that
retailer from a wholesaler or another retailer.
Levying the tax
72.7 (1) At
the time of a sale of a carbon product to a retail purchaser the person making
the sale shall levy and collect the tax imposed by this Act and shall, in
accordance with the regulations, pay over the tax so collected to the collector
from whom the carbon product was acquired or, where the minister so requires,
directly to the minister.
(2) Where money by way of tax is collected on a
carbon product that was sold to a retail purchaser but acquired by the seller
otherwise than from a collector, that money shall be paid over to the minister
at the time and in the manner prescribed by the regulations.
(3) A person selling a carbon product to a retail
purchaser shall, on the request of the retail purchaser, deliver to the retail
purchaser an invoice showing the quantity of the carbon product sold to the
retail purchaser and the amount of the tax paid.
Carbon product delivery
72.8 The
driver of a vehicle engaged in transporting or delivering a carbon product
(a) shall have in his or her possession in that
vehicle at all times an invoice or bill of lading respecting the carbon
products being carried on or by the vehicle and correctly identifying each
carbon product and the quantity of each carbon product loaded;
(b) shall, when requested to do so by an
inspector, produce the invoice or bill of lading mentioned in paragraph (a);
and
(c) shall not deliver a tax-exempt carbon product unless
the person to whom the carbon product is being delivered produces a tax-exemption
permit issued under the regulations.
Meters required
72.9 (1) The
minister may require a collector or another person dealing with a carbon
product to install at that person's expense automatic meters or other equipment
approved by the minister, and that person may use the information supplied by the
approved meters or equipment to establish the quantities of a carbon product
refined, acquired, delivered or sold.
(2) The minister shall be notified immediately by
the person who operates equipment approved under subsection (1) when meter
heads are changed on the equipment and that person shall at the time report the
old and new meter readings to the minister.
Sealed equipment
72.10 (1) The
minister may place a seal in the approved form or a lock on a meter or
mechanical injection system, drum or receptacle containing a carbon product,
notwithstanding where that meter, system, drum or receptacle is located.
(2) It is an offence to remove an approved seal or
lock placed on a meter, mechanical injection system, drum or receptacle without
first obtaining authority from the minister to do so.
PART III.2
LICENCES RE: GASOLINE AND CARBON PRODUCTS
Issuance of licence
72.11 (1) The
minister may issue to a person
(a) a retailer licence authorizing that person to
sell or keep gasoline or a carbon product for sale directly to retail
purchasers at that outlet only as may be specified in that licence; or
(b) a wholesaler licence authorizing that person
to sell or keep gasoline or a carbon product for sale otherwise than directly
to retail purchasers.
(2) Where, in the minister's sole discretion, the
minister considers it desirable to do so, the minister may issue both a
retailer licence and a wholesaler licence to a person.
(3) The minister may, for cause, refuse to issue a
licence to a person.
Application for
licence
72.12 An
application for a licence shall be
(a) submitted to the minister in the form and
manner set by the minister; and
(b) accompanied by the fee as may be set by the minister.
Suspension, cancellation
& limitation of licence
72.13 The
minister may, for cause,
(a) suspend or cancel a licence;
(b) limit the operation of a licence as to the grade
or type of gasoline or carbon product to be sold by the licensee or as to the
location where gasoline or a carbon product may be sold or apply both of those
limitations in respect of the operation of a licence; or
(c) limit the operation of a licence in another
manner.
Retailer to post
licence
72.14 A
retailer shall post the retailer's licence and keep it posted in a conspicuous
place at the retail outlet or in other places that may be prescribed by the
regulations.
Automatic revocation
of licence
72.15 Where
a licensee stops carrying on a business of selling gasoline or a carbon product
in respect of which a licence was issued to the licensee under this Act, that
licence is automatically revoked and shall be returned, by the person to whom
it was issued or that person's personal representative, to the minister within
15 days of the date that business stops being carried on.
30. (1) Paragraph 108(a) of the Act is repealed.
(2) Paragraph
108(i) of the Act is repealed.
(3) Section 108 of the Act is amended by adding
immediately after paragraph (j) the following:
(j.1) prescribing thresholds for unverifiable losses
and amounts for excess unverifiable losses relating to gasoline for the purposes
of section 30;
(j.2) prescribing a quantity of gasoline for the
purposes of paragraph 40(1)(b);
(4) Paragraphs 108(p) and (q) of the Act are
repealed.
31. The Act is amended by adding immediately after
section 108 following:
Regulations re: carbon
tax
108.1 The
Lieutenant-Governor in Council may make regulations
(a) prescribing reporting periods, the manner in
which returns and reports shall be filed and the tax shall be paid or remitted;
(b) prescribing thresholds for unverifiable losses
and amounts for excess unverifiable losses relating to carbon products for the
purposes of section 30;
(c) prescribing a quantity of a carbon product for
the purposes of paragraph 40(1)(b);
(d) exempting from this Act a carbon product used
for a purpose specified in the regulations;
(e) providing that a carbon product of a
prescribed quantity brought into the province by a tourist is to be exempted
from this Act and prescribing the quantity to and the condition under which the
exemption is to apply;
(f) exempting a class of persons from the payment
of the tax and defining the extent and conditions under which the exemption
will be provided;
(g) authorizing and regulating tax exemption
permits to be issued to persons or classes of persons exempted, by this or
another Act or otherwise, from the payment of tax under this Act and
prescribing the contents of the permits, the periods for which they may be
issued, and authorizing the issue of the permits by the minister or other
persons; and
(h) authorizing the issue of tax-exemption permits,
subject to those rules that the minister may prescribe, to refuse to issue the
permits and to suspend or cancel the permits in the circumstances that the
minister may prescribe.
Regulations re:
licences under Part III.2
108.2 The
Lieutenant-Governor in Council may make regulations
(a) prescribing the returns and statements to be
made by licensees and other persons, the information to be given in the returns
and statements, and by whom and in what manner they are to be made;
(b) prescribing the date before which all
applications for licences may be made and the expiry date of licences;
(c) designating the places at which retailers are
to post and keep licences posted; and
(d) requiring licensees to indicate the grade or
type and price of gasoline or a carbon product offered for sale.
Transitional
32. A licence relating to the sale of gasoline
issued before the coming into force of this Act shall, until that licence
expires or is reissued,
(a) be
considered to include carbon products; and
(b) continue
in force as if it were issued under Part III.2.
Commencement
33. (1) This Act, except subsection 2(2) and section
11, comes into force January 1, 2019.
(2) Subsection
2(2) and section 11 are considered to have come into force on March 7, 2017.
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