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 (1) Paragraph 2(m) of the Revenue Administration Act is repealed and the following
substituted:
(m) "consumer"
(i) for the purpose of Part VIII, means a person
who acquires tangible personal property, and applies that property, or intends
to apply that property, in the province
(A) to his or her own consumption or use or to the
consumption and use of another person at the expense of the first mentioned
person, or
(B) on behalf of, or as the agent for, a
principal, to the consumption or use of the principal or of another person at
the expense of that principal,
(ii) for the purpose of Part IX, means a person who
(A) in the province, purchases or receives
delivery of tobacco, or
(B) brings into the province tobacco acquired
outside the province,
for that person's own use or consumption
or for the use or consumption by others at that person's expense, or on behalf
of, or as the agent for, a principal who wishes to acquire the tobacco for use
or consumption by the principal or other person at the principal's expense, and
(iii) for the purpose of Part IX.1, means a person
who
(A) in the province, purchases or receives
delivery of a vapour product, or
(B) brings into the province a vapour product acquired
outside the province,
for that person's own use or consumption
or for the use or consumption by others at that person's expense, or on behalf
of, or as the agent for, a principal who wishes to acquire the vapour product
for use or consumption by the principal or other person at the principal's
expense;
(2) Paragraph 2(ggg) of the Act is repealed and
the following substituted:
(ggg) "purchase price"
(i) for the purpose of Part VIII, includes the
value in Canadian dollars of the consideration, whether money, goods, services
rendered, rental or other consideration for which a used vehicle was acquired
at a retail sale, and includes the interest, charges, duties and taxes, and
(ii) for the purpose of Part IX.1, includes the value in
Canadian dollars of the consideration, whether money, goods, services rendered
or other consideration for which a vapour product was acquired at a retail
sale, and includes the custom duties and excise taxes;
(3) Paragraph 2(kkk) of the Act is amended by
adding immediately after subparagraph (i) the following:
(i.1) a vapour product not for resale but as a
consumer,
(4) Paragraph 2(mmm) of the Act is amended by
deleting the word "or" at the end of subparagraph (i) and adding
immediately after that subparagraph the following:
(i.1) holds a licence authorizing that person to
sell vapour products or keep vapour products for sale directly to retail
purchasers; or
(5) 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 vapour
product, a vehicle or tangible personal property to another;
(6) The Act is amended by adding immediately after
paragraph 2(vvv) the following:
(vvv.1) "vaping device" includes a device
(i) containing an electronic or battery powered
heating element capable of vapourizing a vaping substance for inhalation or
release into the air, including a component or part that can be used to build
the product or device, or
(ii) another device prescribed in the regulations,
but does not include a device exempted by the
regulatons;
(vvv.2) "vaping package" means a vaping
device and a vaping substance sold together to a consumer for a single price;
(vvv.3) "vaping substance" means
(i) a solid, liquid or gas that
(A) is designed for use in a vaping device,
(B) on being heated produces a vapour,
(C) may or may not contain nicotine, and
(D) does not contain cannabis, or
(ii) a substance prescribed in the regulations,
but does not include a substance exempted by
the regulations;
(vvv.4) "vapour product" means
(i) a vaping device,
(ii) a vaping substance, or
(iii) a vaping package;
(7) Paragraph 2(yyy) of the Act is repealed and
the following substituted:
(yyy) "wholesaler"
(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,
(ii) for the purpose of Part IX, means a person who
sells tobacco in the province for the purpose of resale, and
(iii) for the purpose of Part IX.1, means a person
who holds a licence issued under the Act authorizing that person to sell or
keep vapour products in the province for the purpose of resale.
2. 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, IX and IX.1 of this Act.
3. (1) Section 9 of the Act is amended by adding
immediately after subsection (3) the following:
(3.1) In addition to the requirements imposed under
subsection (1), a wholesaler shall, at the time of making a sale of a vapour
product, issue an invoice containing the information that the minister may require.
(3.2) In addition to the requirements imposed under
subsection (1), a retailer shall, at the time of making a sale of a vapour
product, issue a receipt that clearly states the amount of tax payable under Part
IX.1 on the vapour product.
(2) Section 9 of the Act is amended by adding
immediately after subsection (5) the following:
(6) Subsections (1), (4) and (5) apply to a
wholesaler who holds a licence issued under Part IX.1.
4. Subsection 20(1) of the Act is repealed and the
following substituted:
Effect of default
20. (1) Where a collector fails to make returns as
required by the regulations or to pay over to the minister a tax collected by
the collector at the time prescribed by the regulations, the minister may
revoke the person's collector designation and cancel the person's wholesaler licence
or where the return relates to a tax on vapour products, the person's retailer
licence.
5. (1) Section 32 of the Act is amended by adding
immediately after subsection (7) the following:
(7.1) A person is guilty of an offence who
(a) not having a valid retailer's licence, sells a
vapour product to a retail purchaser;
(b) not having a valid wholesaler's licence, sells
a vapour product for resale by a retail sale to a person who is not a retailer;
or
(c) not having a valid wholesaler's licence, sells
a vapour product to a retailer.
(2) Subsection 32(8) of the Act is repealed and
the following substituted:
(8) Every contravention, failure or false
statement described in subsection (7) or (7.1) that relates to a separate sale
or transaction constitutes a separate offence.
6. The Act is amended by adding immediately after
Part IX the following:
PART IX.1
VAPOUR PRODUCT TAX
Tax on vapour
products
106.1 (1) A
person who acquires a vapour product at a retail sale in the province shall, in
respect of the consumption or use of the vapour product, pay to the Crown at
the time of the sale a tax at the rate of 20% of the purchase price of the
vapour product.
(2) A person who, as a consumer, brings a vapour
product into the province or receives delivery of a vapour product in the
province shall, except where exempted under the regulations, immediately report
and pay to the Crown the tax that would have been payable had the vapour
product been acquired at a retail sale in the province.
(3) Notwithstanding subsections (1) and (2), a
vapour product may, by regulation, be exempted from tax under this Part where
the vapour product is sold by a person or class of persons prescribed in the
regulations.
When tax payable
106.2 (1) Where
a retail purchaser acquires a vapour product from a retailer, the purchaser
shall pay the tax to the retailer at the time of the sale of the vapour
product.
(2) Where a vapour product is sold on credit at a
retail sale, the retail purchaser is assessable for the full amount of the tax
as imposed by this Act and the tax shall be imposed when the retail sale is
made.
Refund of tax
106.3 (1)
Where tax has been paid in respect of the consumption or use of a vapour
product purchased at a retail sale and the vapour product is returned to the retailer,
a refund of the tax shall be paid to the retail purchaser proportionate to the
amount of the purchase price that the retail purchaser is entitled to have
refunded to him or her by the retailer when the vapour product is returned.
(2) The retailer, when reporting the total amount
of the tax collected by him or her, may deduct from the tax to be remitted to
the minister the amount of tax he or she has refunded in respect of returned
vapour products.
Issuance of
licence
106.4 (1) The
minister may issue to a person
(a) a retailer licence authorizing that person to
sell or keep vapour products for sale directly to retail purchasers; or
(b) a wholesaler licence authorizing that person
to sell or keep vapour products for sale otherwise than directly to retail
purchasers.
(2) Different classes of retailer licences and
different classes of wholesaler licences may be prescribed by regulation.
(3) The minister may issue both a retailer licence
and a wholesaler licence to a person.
(4) A licence issued under this Part shall be
subject to the terms and conditions prescribed in the regulations.
Application for
licence
106.5 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.
Retailer to post
licence
106.6 A
retailer shall post the retailer's licence and keep it posted in a conspicuous place
at the retailer's premises or in other places that may be prescribed by the
regulations.
Suspension or
cancellation of licence
106.7 The
minister may suspend or cancel a licence issued under this Part where
(a) the licensee contravenes a term or condition
of the licence; or
(b) the minister has reason to believe that the licensee
has failed to comply with this Act or the regulations.
Automatic
revocation of licence
106.8 Where
a wholesaler or retailer stops carrying on a business of selling vapour
products in respect of which a licence was issued to the licensee under this
Part, the licence is automatically revoked and shall be returned, by the licensee
or the licensee's personal representative, to the minister within 15 days of
the date that business stops being carried on.
Prohibition
106.9 (1) A
person shall not sell or offer to sell vapour products at a retail sale or keep
vapour products for sale at a retail sale in the province unless that person is
a retailer.
(2) A person shall not sell vapour products at a
sale that is not a retail sale unless that person is a wholesaler.
(3) This section applies to a person who offers vapour products
for retail sale in the province regardless of whether the person has an
establishment in the province.
Prohibited sales
106.10 (1) A
wholesaler shall not sell vapour products to a person for resale at a retail
sale unless that person is a retailer.
(2) A retailer who is not a licensed wholesaler,
shall not sell vapour products for resale to another retailer.
(3) A retailer shall not purchase vapour products
for resale from a person who is not a licensed wholesaler.
Prohibition
against rebate
106.11 A
retailer shall not advertise or hold out or state to the public or to a retail
purchaser, directly or indirectly, that the tax or a part of the tax shall be
assumed or absorbed by the retailer.
7. The Act is amended by adding immediately after
section 112 the following:
Regulations re:
vapour product tax
112.1 The
Lieutenant-Governor in Council may make regulations
(a) prescribing a device for the purposes of
subparagraph 2(vvv.1)(ii);
(b) exempting a device from the definition of vaping
device;
(c) prescribing a substance for the purposes of
subparagraph 2(vvv.3)(ii);
(d) exempting a substance from the definition of
vaping substance;
(e) exempting the persons, class of persons or quantity
of vapour product for the purposes of subsection 106.1(2) and the conditions
under which the exemption shall apply;
(f) prescribing persons or classes of persons for
the purposes of subsection 106.1(3);
(g) exempting a vapour product from tax under Part
IX.1 for the purposes of subsection 106.1(3);
(h) prescribing different classes of retailer
licences and different classes of wholesaler licences;
(i) prescribing the terms and conditions of a
licence issued under Part IX.1; and
(j) prescribing the places at which retailers are
to post and keep licences posted.
Commencement
8. This Act comes into force on January 1, 2021.
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