BILL 25

An Act to Amend the Harmonized Sales Tax Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 11 of the Harmonized Sales Tax Act, chapter H-1.01 of the Acts of New Brunswick, 1997, is amended by adding the following definitions in alphabetical order:

"charity" means a charity that has obtained or is entitled to obtain a rebate under section 259 of the Excise Tax Act (Canada) in respect of the tax or a portion of the tax paid or payable under subsection 165(2) of that Act on a property or service referred to in section 12.1;

"eligible person" means a person that is an owner, a landlord or tenant of a residential property and includes a charity or non-profit organization that is an owner, a landlord or a tenant of a residential property;

"energy" means electricity, furnace oil, stove oil, natural gas, propane, kerosene, wood, wood pellets or any other fuel approved by the Minister;

"non-profit organization" means a non-profit organization that has obtained or is entitled to obtain a rebate under section 259 of the Excise Tax Act (Canada) in respect of the tax or a portion of the tax paid or payable under subsection 165(2) of that Act on a property or service referred to in section 12.1;

"property" means property as defined in subsection 123(1) of the Excise Tax Act (Canada);

"registrant" means a registrant as defined in subsection 123(1) of the Excise Tax Act (Canada);

"residential property" means real property or any portion of real property that is used for residential purposes and is

(a) real property or a portion of real property eligible for a credit under section 2 of the Residential Property Tax Relief Act,

(b) a cottage,

(c) an apartment building or an apartment,

(d) a rooming or boarding house or a room in a rooming or boarding house,

(e) a mobile home,

(f) a single family residence, duplex or triplex, or

(g) real property or a portion of real property approved by the Minister;

"service" means a service as defined in subsection 123(1) of the Excise Tax Act (Canada);

2 The Act is amended by adding after section 12 the following:

Qualifying properties and services

12.1 Subject to section 12.2, a supply made in the Province of any of the following properties or services is prescribed as a supply for the purposes of subsections 12(1) and (2) of the Act:

(a) energy provided by an energy supplier that is a registrant;

(b) rental of one or more of the following properties from an energy supplier that is a registrant:

(i) water heaters;

(ii) furnaces or boilers; and

(iii) lighting standards and lighting fixtures attached to them; and

(c) any other property or service provided by an energy supplier that is a registrant if the property or service is approved by the Minister.

Eligibility for payment or credit

12.2 The conditions of eligibility for a payment or credit under subsection 12(1) of the Act or section 12.4 with respect to the supply of a property or service referred to in section 12.1 are:

(a) the supply is made for the purposes of a residential property; and

(b) the property or service is purchased by or on behalf of an eligible person.

Amount of payment or credit

12.3(1) Subject to subsections (2) and (3), the amount of a payment or credit with respect to the supply of a property or service referred to in section 12.1 is

(a) if the eligible person is a charity or a non-profit organization, 50% of the amount of the tax paid or payable under subsection 165(2) of the Excise Tax Act (Canada), or

(b) in any other case, the amount of the tax paid or payable under subsection 165(2) of the Excise Tax Act (Canada).

12.3(2) Subsection (1) does not apply to any portion of the supply that is eligible for an input tax credit under Part IX of the Excise Tax Act (Canada).

12.3(3) Only one payment or credit may be made for each supply.

Payments or credits made at the point of supply

12.4(1) Subject to subsections (2) and (3), where tax is paid or payable under subsection 165(2) of the Excise Tax Act (Canada) in respect of a supply of a property or service referred to in section 12.1, an energy supplier may, on behalf of the government of New Brunswick, pay or credit the amount referred to in section 12.3 to the recipient.

12.4(2) An energy supplier may not make a payment or credit under subsection (1) with respect to the supply of energy unless the energy is delivered to the residential property of an eligible person.

12.4(3) This section does not apply to a recipient that is a charity or non-profit organization.

Application

12.5(1) Where a payment or credit with respect to a supply of a property or service referred to in section 12.1 is not made at the point of supply, a recipient or a person acting on behalf of a recipient may apply for the payment or credit on a form provided by the Minister and the application shall be accompanied by the information required on the form.

12.5(2) The recipient or person acting on behalf of the recipient many submit only two applications in a calendar year.

12.5(3) Notwithstanding subsection (2), the recipient or person acting on behalf of the recipient may submit only one application for 2006 and one application for 2007.

3 This Act shall be deemed to have come into force on July 1, 2006.