BILL 32

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 (3.3) by striking out “and subsequent taxation years”;

(b)  by adding after subsection (3.3) the following:

14( 3.4) For the 2016 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 $40,492;

(b)  14.82% of the amount by which the amount taxable exceeds $40,492 and does not exceed $80,985;

(c)  16.52% of the amount by which the amount taxable exceeds $80,985 and does not exceed $131,664;

(d)  17.84% of the amount by which the amount taxable exceeds $131,664 and does not exceed $150,000; and

(e)  20.3% of the amount by which the amount taxable exceeds $150,000.

2 Section 16.1 of the Act is amended

(a)  in subsection (1.5) by striking out the portion preceding paragraph (a) and substituting the following:

16.1( 1.5) For the 2015 taxation year, this section does not apply to

(b)  by adding after subsection (1.5) the following:

16.1( 1.6) This section does not apply to subsection 14(3.4) for the 2016 taxation year.

3 Section 35 of the Act is amended

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

(b)  in paragraph (e)

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

(e)  for the 2015 taxation year,

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

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

(f)  for the 2016 taxation year,

( i) the reference to the fraction in paragraph (a) 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 3.625%; 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 13.5%; and

(g)  for the 2017 taxation year and subsequent taxation years,

( i) the reference to the fraction in paragraph (a) 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 3.5%; 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 14%.

4 The Act is amended by adding after section 52.01 the following:

Subdivision k.01

Harmonized Sales Tax Credit

Harmonized sales tax credit

52.02( 1) The following definitions apply in this section.

“adjusted income”, in respect of an individual for a taxation year, means the individual’s adjusted income as defined in subsection 122.5(1) of the Federal Act. (revenu rajusté)

“cohabiting spouse or common-law partner” means a cohabiting spouse or common-law partner as defined in subsection 122.5(1) of the Federal Act. (époux ou conjoint de fait)

“eligible individual”, in relation to a month specified for a taxation year, means an individual who is resident in New Brunswick before the specified month, is an eligible individual as defined in subsection 122.5(1) of the Federal Act and is not excluded from that definition by subsection 122.5(2) of the Federal Act. (particulier admissible)

“Minister” means the Minister of National Revenue for Canada. (ministre)

“qualified dependant” means a qualified dependant as defined in subsection 122.5(1) of the Federal Act who is not excluded from that definition by subsection 122.5(2) of the Federal Act. (personne à charge admissible)

“qualified relation”, of an individual, means a qualified relation as defined in subsection 122.5(1) of the Federal Act who is not excluded from that definition by subsection 122.5(2) of the Federal Act. (proche admissible)

“return of income”, in respect of a person for a taxation year, means (déclaration de revenu)

(a)  for a person who is resident in New Brunswick at the end of the taxation year, the person’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4) of the Federal Act) that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under the Federal Act for the taxation year; and

(b)  in any other case, a prescribed form containing prescribed information that is filed for the taxation year with the Minister.

“shared-custody parent” means a shared-custody parent as defined in section 122.6 of the Federal Act, but with “qualified dependant” in that section having the meaning assigned by subsection 122.5(1) of the Federal Act. (parent ayant la garde partagée)

“specified month” means a month specified in subsection (5). (mois déterminé)

52.02( 2) If an eligible individual in relation to a month specified for a taxation year has filed a return of income for the taxation year, the eligible individual for the taxation year is deemed to have paid during the specified month on account of his or her tax payable under this Act for the taxation year an amount equal to ¼ of the amount, if any, determined by the formula

A - B

where

A                is the total of

(a) $300,

(b) $300 for the qualified relation, if any, of the individual in relation to the specified month,

(c) $300 if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) of the Federal Act because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, and

(d) $100 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month;

B                is 2% of the amount, if any, by which the eligible individual’s adjusted income for the taxation year in relation to the specified month exceeds $35,000.

52.02( 3) If an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month specified for a taxation year, the amount deemed by subsection (2) to have been paid during the specified month is equal to the amount determined by the formula

½ × (A + B)

where

A                is the amount determined by the formula in subsection (2), calculated without reference to this subsection; and

B                is the amount determined by the formula in subsection (2), calculated without reference to this subsection and subparagraph (b)(ii) of the definition of “eligible individual” in section 122.6 of the Federal Act.

52.02( 4) Subsections 122.5(3.1) and (3.2) of the Federal Act apply for the purposes of this section.

52.02( 5) For the purpose of this section, the months specified for a taxation year are July and October of the immediately following taxation year and January and April of the second immediately following taxation year.

52.02( 6) If an individual is a qualified relation of another individual in relation to a month specified for a taxation year and both those individuals would be, but for this subsection, eligible individuals in relation to the specified month, only the individual that the Minister designates is the eligible individual in relation to the specified month.

52.02( 7) An individual shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:

(a)  the individual ceases to be an eligible individual;

(b)  a person becomes or ceases to be the individual’s qualified relation; and

(c)  a person ceases to be a qualified dependant of the individual, otherwise than because of attaining the age of 19 years.

52.02( 8) For the purpose of this section, if in a taxation year an individual becomes bankrupt, the individual’s income for the taxation year shall include the individual’s income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

5 Section 57 of the Act is amended

(a)  in subsection (1.022) by striking out “For the period commencing on January 1, 2015” and substituting “For the period commencing on January 1, 2015, and ending on March 31, 2016”;

(b)  by adding after subsection (1.022) the following:

57( 1.023) For the period commencing on April 1, 2016, the references to “2%” in subsection (1) shall be read as references to “3.5%”.

6 Section 82 of the Act is amended by adding “, (2.1)” after “(2)”.

Commencement

7( 1) Sections 1, 2 and 3 of this Act shall be deemed to have come into force on January 1, 2016.

7( 2) Sections 4 and 6 of this Act come into force on July 1, 2016.

7( 3) Section 5 of this Act comes into force on April 1, 2016.