Regulations under the Retail Sales Tax Act
Bill or Act:
Retail Sales Tax Act
Summary of Decision:
Regulation 263/10 was filed on July 1, 2010
June 10, 2010
Summary of Proposal:
Amendments to Ontario Regulation 1012, Definitions, Exemptions and Rebates, made under the Retail Sales Tax Act, are proposed in respect of the wind-down of the Retail Sales Tax (RST) and the transition to the Harmonized Sales Tax (HST) effective July 1, 2010.
The proposed amendments will implement several transition measures announced in the 2010 Ontario Budget and in Information Notice No. 3, General Transition Rules for Ontario HST. The amendments will provide for:
• a double tax rebate that will apply in certain circumstances where the purchaser has paid both the RST and the HST on goods and services acquired after June 2010,
• a transitional inventory rebate for qualifying residential real property renovation contracts that are subject to HST, which will be available only for contracts to repair or improve (not construct) residential real property, and
• transitional rules applicable to purchases under contracts to construct, renovate, alter or repair real property, ships or other vessels for which progress payments are made.
As indicated in Ontario’s Tax Plan for Jobs and Growth: Cutting Personal and Corporate Taxes and Harmonizing Sales Tax, the existing RST and related exemptions, special rates, credits and rebates under the Act will generally end for transactions on or after July 1, 2010. As such, technical amendments are proposed to wind-down the rebate of RST in respect of tangible personal property entering into capital investment by a religious, charitable or benevolent organization.
Technical amendments are also proposed to continue the RST on private sales of used vehicles after June 2010, as announced in the 2009 Budget.
Ministry of Finance
Corporate and Commodity Taxation Branch
2nd Floor, Frost Building North,
95 Grosvenor Street
July 1, 2010