BILL 51

An Act to Amend the New Brunswick Income Tax Act

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

1 Section 14 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is amended

( a)  in subsection (3) in the portion preceding paragraph (a) by striking out “for the 2011 taxation year and subsequent taxation years” and substituting “for the 2011 and 2012 taxation years”;

( b)  by adding after subsection (3) the following:

14( 3.1) For the 2013 taxation year, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

( a)  9.39% of the portion of the amount taxable that is less than or equal to $38,954;

( b)  13.46% of the amount by which the amount taxable exceeds $38,954 and does not exceed $77,908;

( c)  14.46% of the amount by which the amount taxable exceeds $77,908 and does not exceed $126,662; and

( d)  16.07% of the amount by which the amount taxable exceeds $126,662.

14( 3.2) For the 2014 taxation year and subsequent taxation years, the tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, referred to in this Division as the “amount taxable”, is the sum of the following:

( a)  9.68% of the portion of the amount taxable that is less than or equal to $38,954;

( b)  14.82% of the amount by which the amount taxable exceeds $38,954 and does not exceed $77,908;

( c)  16.52% of the amount by which the amount taxable exceeds $77,908 and does not exceed $126,662; and

( d)  17.84% of the amount by which the amount taxable exceeds $126,662.

2 Section 16.1 of the Act is amended by adding after subsection (1.3) the following:

16.1( 1.4) This section does not apply to subsection 14(3.1) for the 2013 taxation year.

3 Section 35 of the Act is amended

( a)  in paragraph (a) of the English version by striking out “and” at the end of the paragraph;

( b)  in paragraph (b)

( i) by striking out the portion preceding subparagraph (i) and substituting the following:

( b)  effective January 1, 2007, to December 31, 2009, both dates inclusive,

( ii) by striking out the period at the end of the paragraph and substituting “; and”;

( c)  by adding after paragraph (b) the following:

( c)  effective January 1, 2010,

( i) the reference to “2/3”, or to the fraction that it is amended to read, in paragraph (a) of that section of the Federal Act shall be read as a reference to 53/200 to yield a New Brunswick dividend tax credit rate of 5.3%; and

( ii) the reference to the fraction in paragraph (b) of that section of the Federal Act shall be read as a reference to the fraction that yields a New Brunswick dividend tax credit rate of 12%.

4 Section 55 of the Act is amended by adding after subsection (2.3) the following:

55( 2.31) Effective July 1, 2013, the tax payable by a corporation under this Part for a taxation year is 12% of the corporation’s taxable income earned in the year in New Brunswick.

5 Section 56 of the Act is amended by adding after subsection (4.3) the following:

56( 4.31) Effective July 1, 2013, the reference to “14.5%” in subsection (1) shall be read as a reference to “12%”.

6( 1) Section 1 of this Act shall be deemed to have come into force on January 1, 2013.

6( 2) Section 3 of this Act shall be deemed to have come into force on January 1, 2010.