Federal-Provincial Fiscal Arrangements Regulations, 2007

18 (1) For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, the provincial and territorial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (i) of the definition revenue source in that subsection are

• (a) in the case of revenues relating to personal income referred to in paragraph (a) of that definition,

  • (i) taxes imposed by a province or territory on the income of individuals or unincorporated businesses, including a levy other than a universal pension plan levy, and

  • (ii) revenues derived from levies or premiums imposed by a province or territory specifically for the purpose of financing hospitalization insurance, medical care insurance or drug insurance, other than contributions to the Nova Scotia Seniors’ Pharmacare Program or the Alberta supplementary health benefits plans;

• (b) in the case of revenues relating to corporate income and government business enterprises referred to in paragraph (b) of that definition,

  • (i) taxes imposed by a province or territory on the income of corporations,

  • (ii) remittances to a provincial or territorial government of profits of business enterprises of the province or territory, other than remittances by

    • (A) a liquor board, commission or authority of the province or territory,

    • (A.1) a cannabis board, commission or authority of the province or territory,

    • (B) an enterprise engaged, entirely or primarily, in the marketing of oil or natural gas, and

    • (C) an enterprise, board, commission or authority engaged in the administration of a provincial or territorial lottery,

  • (iii) taxes imposed by a province or territory on the paid-up capital of corporations, and

  • (iv) fines and penalties imposed on businesses by a province, territory or local government;

• (c) in the case of revenues derived from tobacco referred to in paragraph (c) of that definition, revenues derived by means of a specific tax imposed by a province or territory on final purchasers of tobacco and tobacco products;

• (d) in the case of revenues derived from motive fuel taxes from the sale of gasoline referred to in paragraph (d) of that definition, revenues derived from taxes imposed by a province or territory on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, other than taxes on the sale of liquefied petroleum gas;

• (e) in the case of revenues derived from motive fuel taxes from the sale of diesel fuel referred to in paragraph (e) of that definition, revenues derived from taxes imposed by a province or territory on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, other than taxes on the sale of liquefied petroleum gas;

• (f) in the case of revenues derived from the sale of alcoholic beverages referred to in paragraph (f) of that definition, revenues derived from

  • (i) remittances to a provincial or territorial government, by a liquor board, commission or authority of the province or territory, of profits arising from sales of alcoholic beverages,

  • (ii) a specific sales tax imposed by a province or territory on the sale of alcoholic beverages by a liquor board, commission or authority of the province or territory, and

  • (iii) fees for licences and permits for the privilege of distilling, brewing, making, purchasing or dispensing alcoholic beverages;

• (g) in the case of revenues derived from payroll taxes referred to in paragraph (g) of that definition, taxes imposed by a province or territory on the payroll of employers;

• (h) in the case of revenues derived from property taxes and miscellaneous revenues referred to in paragraph (h) of that definition,

  • (i) taxes imposed by a province, territory or local government on

    • (A) the owner of real or immovable property,

    • (B) the occupant of real or immovable property, if the owner is exempt from property taxes on that property, and

    • (C) a person occupying or using real or immovable property for the purpose of carrying on a business, if the taxes are calculated in relation to that occupation or use by the person,

  • (ii) grants received by a province, territory or local government from the federal government in lieu of the taxes described in subparagraph (i),

  • (iii) taxes imposed by a provincial, territorial or local government on the sale price or value of real or immovable property when it is transferred,

  • (iv) subject to subsection (2), any other revenues derived by a province or territory that are not included as revenues elsewhere in this subsection, including

    • (A) those derived from fines and penalties imposed by the province or territory, other than those imposed on businesses, and

    • (B) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations, but excluding agricultural insurance premiums,

  • (v) subject to subsection (2), any other revenues derived by a local government that are not included as revenues elsewhere in this subsection, including

    • (A) those derived from fines and penalties imposed by a local government, other than those imposed on businesses, and

    • (B) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities,” “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences and permits issued to charities or other organizations, and

  • (vi) territorial quarry revenues that are not included as resource revenues under the Yukon Northern Affairs Program Devolution Transfer Agreement and territorial forestry revenues that are not included as resource revenues under the Northwest Territories Lands and Resources Devolution Agreement; and

• (i) in the case of revenues relating to consumption taxes, excluding revenues derived from excise taxes, referred to in paragraph (i) of that definition,

  • (i) sales taxes — including those on meals, hotel services, telecommunications and cable television, and amusement taxes — that are not described elsewhere in this subsection and that are imposed by a province, territory or local government on final purchasers or on users of goods and services,

  • (ii) amounts paid to a province or territory in accordance with a sales tax harmonization agreement,

  • (iii) revenues derived from taxes on the sale of liquefied petroleum gas,

  • (iv) revenues derived by a province or territory from fees for

    • (A) driver’s and chauffeur’s licences, and

    • (B) licences for, and registrations of, personal motor vehicles,

  • (v) revenues derived by a province or territory from fees for licences for, and registrations of, commercial motor vehicles, including

    • (A) fees for licences for, and registrations of, trucks, buses, trailers, tractors and passenger vehicles used for commercial purposes,

    • (B) public service and common carrier fees, and

    • (C) revenues derived under reciprocity agreements with other provinces or territories in respect of the licensing and registration of commercial motor vehicles,

  • (vi) taxes imposed by a province or territory on insurance premiums,

  • (vii) taxes imposed by a province or territory on amounts wagered in the province or territory on harness and running horse races,

  • (viii) profits derived from the operation of games of chance that are remitted to a provincial or territorial government by

    • (A) a business enterprise, commission, authority or board of the province or territory that manages games of chance in the province or territory,

    • (B) a business enterprise, commission, authority or board that is jointly owned by the province or territory and one or more other provinces or territories and that manages games of chance in the province or territory, or

    • (C) a business enterprise, commission, authority or board of another province or territory that manages games of chance in the province or territory,

  • (ix) revenues derived by a province or territory from a tax imposed on casino winnings or from any other similar direct or indirect tax that is imposed in relation to the operation or sale of games of chance,

  • (x) profits, other than those referred to in clause 18(1)(b)(ii)(C), that are derived from the sale of goods or services — including the sale of food, drink, lodging and parking space — and that are remitted to a provincial or territorial government by a casino that is owned or controlled by a province or territory or by a business enterprise, commission, authority or board of the province or territory,

  • (xi) the province or territory’s share of revenue from any revenue that is shared by Canada and the province or territory, other than the revenues referred to in subparagraph (i)(xiii),

  • (xii) a carbon levy or tax imposed by a province or territory, including a tax on fuel that is proportional to the greenhouse gas emissions that are generated by the burning of fuel, and revenues raised from auctioning carbon allowances, credits or permits under an emissions trading system, and

  • (xiii) revenues derived by a province or territory from

    • (A) remittances, to the provincial or territorial government, by a cannabis board, commission or authority of the province or territory, of profits arising from the sale of cannabis products,

    • (B) a specific sales tax imposed by the province or territory on cannabis products by a cannabis board, commission or authority of the province or territory,

    • (C) a specific sales tax imposed by the federal government on cannabis products that is shared with the province or territory, and

    • (D) fees for licences and permits for the privilege of making, purchasing, distributing or selling cannabis products.

(2) The following revenues are excluded from subparagraphs (1)(h)(iv) and (v), as applicable:

• (a) revenues included in the “Sales of goods and services” revenue category of the Government Finance Statistics;

• (b) revenues included in the “Social contributions” category of the Government Finance Statistics;

• (c) revenues included in the “Property income revenue” category of the Government Finance Statistics;

• (d) any transfer payments received from other governments;

• (e) payments to a province by the Government of Canada under section 99 of the Softwood Lumber Products Export Charge Act, 2006;

• (f) personal and commercial auto insurance premiums; and

• (g) agricultural insurance premiums.