Retail Sales Tax Act - R.R.O. 1990, Reg. 1012

Retail Sales Tax Act
Loi sur la taxe de vente au détail

R.R.O. 1990, REGULATION 1012

DEFINITIONS, EXEMPTIONS AND REBATES

Consolidation Period: From September 6, 2007 to the e-Laws currency date.

Last amendment: O. Reg. 533/07.

This Regulation is made in English only.

1. (1) The following expressions used in subsection 7 (1) of the Act are defined by the Minister:

“agricultural feeds” includes all feed for livestock, all hay and straw and any drug or medicine fed to or injected into livestock;

“agricultural products” means,

(a) tobacco plants, livestock, food for livestock, trees, shrubs, bushes, growing plants and flowers,

(b) seeds, seedlings and bulbs from which plants or flowers may be grown,

(c) insecticides, herbicides, rodenticides, fungicides and fertilizers, including agricultural lime, peat moss and similar soil conditioners;

“aircraft” means any machine capable of deriving support in the atmosphere from reactions of the air, other than a machine designed to derive support in the atmosphere from reactions against the earth’s surface of air expelled from the machine, and includes a rocket;

“audio book” means an audio recording in which all or substantially all of the content is a spoken reading of a book;

“books” means books that are printed and bound and that are published solely for educational, technical, cultural or literary purposes and that contain no advertising, including pages that are printed for insertion in such books, but not directories, price lists, time tables, rate books, catalogues, reports, fashion books, albums, books ruled for accounting or bookkeeping purposes, blank exercise, drawing or work books or any similar books and loose leaf sheets or pages that are printed for insertion in such books;

“commercial aircraft” means an aircraft,

(a) that is for the use of the general public, not primarily reserved for a particular person, and operated or available for operation for hire or reward, or

(b) that is used in the operation of a civil air navigation system;

“Commercial purposes” in paragraph 61 of subsection 7 (1) of the Act means,

(a) the use of a vessel exclusively for regularly scheduled public transportation services for profit or with a view to profit,

(b) the transportation of goods for profit or with a view to profit, and

but does not include,

(d) the operation of boats for tourists,

(e) the operation of boats for charter or tour services that may or may not make scheduled stops incidental to the service,

(f) the ferrying of pilots or workcrews, or

(g) the operation of vessels for sporting, entertaining or recreational purposes;

“eating establishment” means a restaurant, dining room, dairy bar, ice cream parlour or cafeteria including any such establishment providing take out or counter service, a convention centre, Royal Canadian Legion hall, private or social club, lodging house, summer camp, church hall, tavern, bar, cocktail lounge, coffee shop, mobile canteen, coffee wagon or vending machine, and includes a snack bar or a facility from which prepared food products are dispensed at an exhibition, fair, sporting event, theatre, cinema or store where food products are sold, an eating establishment on a water vessel, train or aircraft and any premises or location to which a caterer supplies prepared food products;

“equipment”, as used in paragraph 38 of subsection 7 (1) of the Act, means any patient care item or supply used in a patient room or any other area where the medical or surgical treatment of patients normally occurs, and laboratory research and diagnostic equipment, but does not include,

(a) accounting and bookkeeping equipment and office furniture and all similar office and administrative equipment,

(b) brooms, floor polishers, laundry carts, vacuum cleaners, and all similar housekeeping equipment,

(d) lawn mowers, maintenance staff uniforms, electrical tools, ladders, small tools, lathes, saws and all similar maintenance equipment,

(e) motion picture equipment, games, television sets and radios and all similar recreational equipment,

(f) motor vehicles,

(g) carpets, coat racks, chairs and any other furniture or furnishings that are not used in a part of the hospital where patients normally receive medical or surgical treatment, or

(h) any other piece of equipment that is not used directly in the medical or surgical treatment of patients;

“equipment”, as used in paragraph 54 of subsection 7 (1) of the Act, means fish nets, fur stretchers, snares and snare wire, skinning knives, snow shoes and steel traps of all makes;

“equipment”, as used in paragraph 53 of subsection 7 (1) of the Act, means,

altars, altar cloths and linens,

altar desks,

baptismal bowls, fonts and shells,

chairs, pews, stools and tables,

chimes and bells,

choir stalls,

collection plates,

communion ware,

confessionals and confessional counters,

draperies and carpets,

kneelers and prie-dieux lecterns and lectern cloths,

mass linen,

memorial plaques and tablets,

monuments and statues,

organs and pianos,

public address systems,

pulpits and pulpit cloths,

special lighting apparatus,

stained glass windows,

and similar equipment used exclusively in religious worship or Sabbath school, but does not include clothing or vestments;

“explosives” includes blasting agents, blasting supplies, and accessories such as blasting caps, boosters, plastic cap holders, electric starters, squibs, shunt connectors, safety fuse assemblies, igniter cord connectors, hot wire lighters, and primacord connectors and closing tubes;

“farm implements”, “farm machinery” and “farm equipment” includes all implements, machinery and equipment designed for farm use and vehicles that are manufactured or designed as, or have within 30 days of the date of purchase, been converted into an unlicensed self-propelled vehicle for a specific use in farming and does not include,

(a) all terrain vehicles with engine displacements of less than 200 cc.,

(b) all terrain vehicles sold without a carrying rack or a carrying platform,

(d) automobiles and parts for automobiles,

(e) automobile trailers,

(f) domestic refrigerators,

(g) household equipment,

(h) lawn mowers,

(i) light bulbs,

(j) pipes for home use,

(k) snowmobiles, and

(l) trucks and parts for trucks;

“farm supplies” means antifreeze, calcium chloride, lubricating oil, lubricating grease and printed forms for recording weight and other data relating to farm animals;

“fire fighting vehicles” means motor vehicles specially designed and equipped at the time of purchase for use primarily in fire fighting, rescue and emergency response and includes pumpers, initial attack fire apparatus, mobile water supply apparatus, wildland fire apparatus, aerial ladder apparatus, aerial ladder platform or other types of platform apparatus, light, medium and heavy rescue vehicles, hazardous materials apparatus, mobile command post units and other similar vehicles, but does not include fire chief’s vehicles;

“footwear” means boots, shoes and other footwear, including any device, equipment or apparatus permanently attached thereto at the time of sale, the price of which does not exceed $30 per pair, but not including stockings, socks or similar apparel;

“hire or reward” means any payment, consideration, gratuity or benefit, directly or indirectly charged, demanded, received or collected by any person for the use of an aircraft;

“magazines” means bound printed publications that are issued annually or more frequently and that contain articles or contributions by various writers and may contain advertising and pictures, but does not include newspapers as defined in Regulation 1013 of the Revised Regulations of Ontario, 1990, newsletters and bulletins or any publications specifically excluded from the definition of books;

“manufactured gas” and “natural gas” mean a gas intended to be used as a source of energy or as fuel for heating or lighting but does not include oxygen, acetylene, argon, nitrogen, carbon dioxide, compressed air, nitrous oxide, helium or other gases used for purposes other than a source of energy or as fuel for heating or lighting;

“medical research” means,

(a) basic biomedical research to explore the fundamental biological processes underlying health and disease in humans, or

(b) applied clinical research to develop new technologies for disease prevention, diagnosis, treatment and rehabilitation,

but does not include,

“newsletters and bulletins” means printed publications that are produced by or for a group, club, society or organization for the interest of its members and that contain information or literary matter of a non-promotional nature and do not contain paid advertising;

“prosthetic appliance or equipment” means artificial devices, excluding wigs, designed to take the place of missing parts of the body;

“qualifying non-profit organization” means a non-profit organization as defined in section 1 of Regulation 1013 (General) made under the Act other than,

(a) a non-profit organization organized or operated to advance the interests of any profession or occupation or the interests of any business carried on for gain or profit, and

(b) a registered party or registered constituency association within the meaning of the Election Finances Act;

“refractory materials” includes fire bricks, plastic refractories, high temperature cement, fire clay and short lived refractories such as melting pots, crucibles and retorts;

“reserve” includes an Indian settlement located on Crown land, the Indian inhabitants of which are treated by the Department of Indian Affairs and Northern Development (Canada) in the same manner as Indians residing on a reserve as defined under the Indian Act (Canada);

“settler’s effects” means,

(a) household goods and equipment that are owned by an individual for at least thirty days immediately before taking up residence in Ontario if,

(i) the individual was resident outside Ontario for at least one year before taking up residence in Ontario,

(ii) the individual has entered Ontario with the intention of establishing or re-establishing a residence for a period longer than one year,

(iii) the household goods and equipment are brought into Ontario for use and consumption in Ontario within six months of the individual taking up residence in Ontario, and

(iv) the household goods and equipment were acquired in a province or territory of Canada other than Ontario, the individual has paid all applicable taxes in respect of their consumption or use to the province or territory and none of the tax is refundable or has been refunded to the individual, and

(b) tangible personal property that was acquired for consumption or use in a province or territory of Canada other than Ontario in the operation of a business located and carried on in the province or territory if,

(i) the tangible personal property was owned for at least thirty days immediately before the date that the business was relocated to Ontario,

(ii) the tangible personal property was brought into Ontario within six months of the date that the business was relocated to Ontario, and

(iii) the purchaser has paid all applicable taxes in respect of the consumption or use of the tangible personal property to the province or territory in Canada and none of the tax is refundable or has been refunded to the purchaser before the relocation of the business to Ontario;

“state aircraft” means an aircraft used exclusively in the service of Her Majesty in right of Canada or in right of a province;

“wood” means wood shavings and wood sawdust and any wood intended to be used as fuel but does not include any other kind of wood. R.R.O. 1990, Reg. 1012, s. 1; O. Reg. 648/91, s. 1; O. Reg. 623/92, s. 1; O. Reg. 476/93, s. 1 (1); O. Reg. 162/95, s. 1; O. Reg. 1/97, s. 1; O. Reg. 383/99, s. 1; O. Reg. 236/00, s. 1; O. Reg. 266/01, s. 1 (1, 2); O. Reg. 379/01, s. 1; O. Reg. 118/02, s. 1; O. Reg. 199/06, s. 1 (1); O. Reg. 171/07, s. 1; O. Reg. 530/07, s. 1.

(2) For the purposes of subclause (a) (i) of the definition of “settler’s effects” in subsection (1), a person who continues to maintain his or her residence in Ontario during a temporary absence from Ontario is not resident outside Ontario. O. Reg. 476/93, s. 1 (2).

(3) For the purposes of paragraph 44 of subsection 7 (1) of the Act, a publication is any form of medium, including any of the following forms of media, that contains material of an educational nature and is not purchased for commercial exhibition for profit:

1. Film.

2. Filmstrip.

3. Audio tape.

4. Audio disc.

5. Video tape.

6. Video disc.

7. Compact disc — read-only memory (CD-ROM) that contains information that is not primarily a computer program.

8. Digital video disc — read-only memory (DVD-ROM) that contains information that is not primarily a computer program. O. Reg. 199/06, s. 1 (2).

(4) The following are not publications for the purposes of paragraph 44 of subsection 7 (1) of the Act:

1. Any written material.

2. Microfilm or microfiche.

3. Equipment to play or show material described in subsection (3). O. Reg. 266/01, s. 1 (3); O. Reg. 199/06, s. 1 (2).

(5) For the purposes of paragraph 55 of subsection 7 (1) of the Act, a publication is any of the following:

1. Instructional material in printed form or on any form of medium, including a form described in any of paragraphs 1 to 8 of subsection (3), that is purchased or produced by the religious, charitable or benevolent organization for its own use and not for resale.

2. Material in printed form or on any form of medium, including a form described in any of paragraphs 1 to 8 of subsection (3), that promotes the objects of a religious, charitable or benevolent organization and is not purchased or produced for commercial exhibition or profit. O. Reg. 199/06, s. 1 (4).

(6) Despite subsection (5), directories, price lists, time tables, rate books, catalogues, stationery, forms and similar printed material are not publications for the purposes of paragraph 55 of subsection 7 (1) of the Act. O. Reg. 199/06, s. 1 (4).

1.1 (1) For the purposes of clause (c.1) of the definition of “taxable service” in subsection 1 (1) of the Act,

“to configure a computer program” means to perform work required to input customer-specific values and parameters into a computer program or hardware;

“to install a computer program” means to perform work required to load a computer program onto hardware in order to permit the user to set up or operate the computer program;

“to modify a computer program” means to change the source code of a computer program;

“to upgrade a computer program” means to remedy problems within a computer program or between computer programs, or provide an improvement to the computer program that is offered to or available to all licensees of that computer program. O. Reg. 282/04, s. 1.

(2) For the purposes of clause (d.1) of the definition of “taxable service” in subsection 1 (1) of the Act,

“service or maintenance of a computer program” means the installation, configuration, modification or upgrading of a computer program;

“warranty of a computer program” means an undertaking that the computer program will function as required by the purchaser or as guaranteed by the producer or vendor. O. Reg. 282/04, s. 1.

(3) Despite subsections (1) and (2), non-taxable services include,

(a) training with respect to the use of a computer program;

(b) advising users of a computer program;

(d) project planning, including the analysis of specifications, determination and verification of hardware and software prerequisites, scheduling, the preparation of reports, review of documentation and discussions of any kind; and

(e) testing a computer program, unless the testing is done in connection with a taxable service described in subsection (1) and the value of the taxable service exceeds 10 per cent of the value of the testing. O. Reg. 282/04, s. 1.

(4) For the purposes of clause (3) (e),

“value” means, with respect to a taxable service or testing,

(a) the cost of the taxable service or testing,

(b) the fair value of the taxable service or testing,

(d) the value as determined by any other reasonable method. O. Reg. 282/04, s. 1.

1.2 (1) If taxable and non-taxable services relating to a computer program are sold together on or after July 19, 2002 for one price, the fair value of the services sold to the purchaser is determined in accordance with this section for the purposes of subsection 2 (9) of the Act. O. Reg. 282/04, s. 1.

(2) Subject to subsections (3), (4) and (5), the fair value of the services sold to the purchaser is the price paid by the purchaser for all of the services. O. Reg. 282/04, s. 1.

(3) If all of the following circumstances exist, the fair value of the services sold to the purchaser is any separate and reasonable charge specified by the vendor for the taxable services:

1. The vendor specifies separate and reasonable charges for the taxable and the non-taxable services.

2. The separate charges are clearly communicated to the purchaser.

3. The vendor maintains a record of the separate charges for the taxable services. O. Reg. 282/04, s. 1.

(4) If any of the following circumstances exist, the fair value of the services sold to the purchaser is zero:

1. The cost, to the vendor, of the taxable services sold to the purchaser is a maximum of 10 per cent of the cost, to the vendor, of the non-taxable services sold to the purchaser.

2. The fair value of the taxable services sold to the purchaser is a maximum of 10 per cent of the fair value of the non-taxable services, if each of them were to be sold separately to the purchaser.

3. The time spent by or on behalf of the vendor to provide the taxable services sold to the purchaser is a maximum of 10 per cent of the time spent by or on behalf of the vendor to provide the non-taxable services sold to the purchaser.

4. On the basis of any other reasonable determination, the taxable services component of a contract is a maximum of 10 per cent of the non-taxable services component of the contract. O. Reg. 282/04, s. 1.

(5) Subsection (4) applies to a contract entered into before September 14, 2004 for the sale of taxable and non-taxable services even if the contract specifies separate charges for the taxable and non-taxable services. O. Reg. 282/04, s. 1.

1.3 (1) If one or more computer programs are sold together with taxable and non-taxable services relating to computer programs on or after July 19, 2002 for one price, the fair value of the combined computer programs and services sold to the purchaser is determined in accordance with this section for the purposes of subsection 2 (9) of the Act. O. Reg. 282/04, s. 1.

(2) Subject to subsections (3), (4) and (5), the fair value of the combined computer programs and services sold to the purchaser is the price paid by the purchaser for all of the components. O. Reg. 282/04, s. 1.

(3) If all of the following circumstances exist, the fair value of the combined computer programs and services sold to the purchaser is any separate and reasonable charge specified by the vendor for the taxable computer programs and taxable services related to computer programs:

1. The vendor specifies separate and reasonable charges for the exempt and taxable computer programs and for the taxable and the non-taxable services.

2. The separate charges are clearly communicated to the purchaser.

3. The vendor maintains a record of the separate charges for the taxable computer programs and taxable services. O. Reg. 282/04, s. 1.

(4) If any of the following circumstances exist, the fair value of the combined computer programs and services sold to the purchaser is zero:

1. The cost, to the vendor, of the taxable computer programs and taxable services sold to the purchaser is a maximum of 10 per cent of the cost, to the vendor, of the exempt computer programs and non-taxable services sold to the purchaser.

2. The fair value of the taxable computer programs and taxable services sold to the purchaser is a maximum of 10 per cent of the fair value of the exempt computer programs and non-taxable services, if each of them were to be sold separately to the purchaser.

3. The time spent by or on behalf of the vendor to provide the taxable computer programs and taxable services sold to the purchaser is a maximum of 10 per cent of the time spent by or on behalf of the vendor to provide the exempt computer programs and non-taxable services sold to the purchaser.

4. On the basis of any other reasonable determination, the taxable computer programs and taxable services components of a contract are a maximum of 10 per cent of the exempt computer programs and non-taxable services components of the contract. O. Reg. 282/04, s. 1.

(5) Subsection (4) applies to a contract entered into before September 14, 2004 for the sale of combined computer programs and services even if the contract specifies separate charges for the exempt and taxable computer programs and for the taxable and non-taxable services. O. Reg. 282/04, s. 1.

2. Under subsection 2 (9) of the Act, it is hereby determined that the fair value of property that is stage props, sets and costumes, manufactured by a person that is a religious, charitable, benevolent or non-profit organization for use by that person in its staging of a live theatrical or musical performance does not include the cost of labour and manufacturing overhead incurred in the manufacture of such property. R.R.O. 1990, Reg. 1012, s. 2.

2.1 It is hereby determined under subsection 2 (9) of the Act that the fair value of liquor, spirits, beer and wine sold or required to be sold by or under the authority of the Liquor Control Board of Ontario under the Liquor Control Act does not include the amount of any deposit collected or remitted under the Ontario deposit return program referred to in Ontario Regulation 13/07 (Ontario Deposit Return Program) made under that Act. O. Reg. 21/07, s. 1.

3. Under subsection 2 (9) of the Act, it is hereby determined that the fair value of tangible personal property that is produced, fabricated, processed, printed or imprinted for the person’s own consumption or use, and not for resale, by a person who,

(a) is not a manufacturer as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990; and

(b) has paid tax at the time of sale on the materials purchased by the person for the purpose of being so produced, fabricated, processed, printed or imprinted, or, being a vendor, has reported the purchase in, and remitted the tax with, the return covering the period in which the vendor purchased the materials,

is the price for which those materials were purchased by the person who produced, fabricated, processed, printed or imprinted the tangible personal property. R.R.O. 1990, Reg. 1012, s. 3.

3.1 (1) For the purposes of subsection 2 (9) of the Act, where tangible personal property consists of a package or arrangement of items of tangible personal property, the fair value of the package or arrangement, for the purposes of taxation under the Act, is the price paid by the purchaser for the package or arrangement if,

(a) some of the items of tangible personal property in the package or arrangement, if sold individually, could be acquired by a purchaser exempt from tax under the Act; and

(b) the package or arrangement, including the container and packaging, is sold for one price. O. Reg. 476/93, s. 2.

(2) Despite subsection (1), the fair value of a package or arrangement of items of tangible personal property is the separate and reasonable charge made for the items of tangible personal property that are subject to tax, if,

(a) the vendor of the package or arrangement specifies a separate and reasonable charge for the items of tangible personal property that could be acquired by a purchaser exempt from tax under the Act and for the items that could be acquired by a purchaser subject to the payment of tax;

(b) each separate and reasonable charge is clearly communicated to the purchaser; and

(c) the vendor maintains a record of the separate and reasonable charge made for the items of tangible personal property that are subject to tax. O. Reg. 476/93, s. 2.

(3) Despite subsections (1) and (2), where the package or arrangement of items of tangible personal property contains liquor, beer or wine, the fair value of the liquor, beer or wine contained in the package or arrangement is zero if,

(a) the vendor of the package or arrangement has paid the tax imposed under clause 2 (2) (b) of the Act upon acquiring the liquor, beer or wine; and

(b) the vendor has separated out the price of the liquor, beer or wine as provided under subsection (2). O. Reg. 476/93, s. 2.

(4) Despite subsections (1) and (2), the fair value of a package or arrangement of items of tangible personal property is zero if,

(a) the package or arrangement contains items of tangible personal property that can be acquired by a purchaser exempt from tax under the Act; and

(b) the total cost to the vendor of the items of tangible personal property in the package or arrangement that are subject to tax under the Act and of the container and packaging is less than 10 per cent of the cost to the vendor of the items described in clause (a). O. Reg. 383/99, s. 2.

3.1.1 (1) This section sets out the exclusions from the definition of “promotional distribution” in subsection 1 (1) of the Act. O. Reg. 117/02, s. 1.

(2) The provision of a telecommunications device to a person (the “recipient”) at less than full fair value is excluded from the application of the definition of “promotional distribution” if all of the following criteria are met:

1. The telecommunications device is provided to the recipient on or after December 18, 1997.

2. Tax is or will be paid on any fair value paid at the time of retail sale.

3. The telecommunications device cannot be used to access services of a person other than the person (the “service provider”) who provided it or caused it to be provided to the recipient at less than full fair value.

4. The services of the service provider that can be accessed by using the telecommunications device include taxable services.

5. The service provider has the reasonable expectation that the revenue he, she or it receives from all taxable services described in paragraph 4 will equal or exceed the sum of,

i. the cost of all taxable services described in paragraph 4, and

ii. the amount by which the full fair value of all of the telecommunications devices described in paragraph 3 exceeds the amount, if any, that the recipients pay for them. O. Reg. 333/03, s. 1.

(3) In this section,

“telecommunications device” means a cellular telephone or device with cellular telephone capabilities, a one-way pager, a digital satellite television device or a digital cable television device. O. Reg. 333/03, s. 1.

3.2 For the purposes of clause 2.1 (8) (b) of the Act,

“agricultural property” means tangible personal property and real property that are used or located on a farm, including dwelling-houses, stables, barns, sheds and outbuildings and their contents, wagons, carriages and other vehicles except motor vehicles required to be insured under the Compulsory Automobile Insurance Act, saddles, harnesses, agricultural engines, implements, tools, instruments, appliances, machinery, household goods, wearing apparel, provisions, musical instruments, libraries, livestock, growing crops, crops severed from the land, fruit and ornamental trees, shrubs, plants and live and standing timber. O. Reg. 162/95, s. 2.

3.3 (1) In subsection 2.2 (1) of the Act, the definition of “specified tangible personal property” includes,

(a) clothing described in Section VII, Chapter 39, Section VIII, Chapter 42, Section XI, Chapters 61 and 62, and Section XII, Chapter 65 of the Schedule to the Customs Tariff (Canada); and

(b) beverages described in Section IV, Chapter 22 of the Schedule to the Customs Tariff (Canada). O. Reg. 384/99, s. 1.

(2) Despite clause (1) (a), the definition of “specified tangible personal property” in subsection 2.2 (1) of the Act does not include,

(a) clothing that, in the opinion of the collection agent, is labelled or is otherwise identifiable as boys’, girls’ or children’s clothing; or

(b) clothing that the returning resident declares, in the form and manner required by the collection agent, is intended to be worn by a child under 13 years of age. O. Reg. 384/99, s. 1.

(3) Despite clause (1) (b), the definition of “specified tangible personal property” in subsection 2.2 (1) of the Act does not include,

(a) soda, sparkling water, mineral water or water sold in bottles or other containers each containing in excess of one litre; or

(b) non-carbonated fruit juice beverages or fruit drinks containing 25 per cent or more by volume of a natural fruit juice or combination of natural fruit juices or a natural fruit juice or combination of natural fruit juices that have been reconstituted into their original state. O. Reg. 384/99, s. 1.

(4) For the purposes of clause (a) of the definition of “specified tangible personal property” in subsection 2.2 (1) of the Act, “vehicles” means,

(a) automobiles, motorcycles, mopeds, trucks, trailers and all other motor vehicles for which a permit is required under the Highway Traffic Act;

(b) off-road vehicles for which a permit is required under the Off-Road Vehicles Act; or

(c) motorized snow vehicles for which a permit is required under the Motorized Snow Vehicles Act. O. Reg. 384/99, s. 1.

4. (1) A vendor who has no fixed place of business in Ontario shall keep his or her vendor’s permit on his or her person at all times while transacting business in Ontario and shall produce it upon request to any purchaser or a duly authorized representative of the Minister. R.R.O. 1990, Reg. 1012, s. 4 (1).

(2) An agent who makes sales in Ontario on behalf of the agent’s principal shall keep a copy of the principal’s vendor’s permit on the agent’s person at all times while transacting business in Ontario and shall produce it upon request to a purchaser or a duly authorized representative of the Minister. R.R.O. 1990, Reg. 1012, s. 4 (2).

(3) Where the vendor changes the name of the vendor’s business, the vendor shall forthwith notify the Minister of the change and return the vendor’s permit to the Minister for amendment. R.R.O. 1990, Reg. 1012, s. 4 (3).

(4) Where a vendor ceases to carry on the business in respect of which a vendor’s permit has been issued, the permit is thereupon void and the vendor shall return it to the Minister within fifteen days of the date of cessation of the business. R.R.O. 1990, Reg. 1012, s. 4 (4).

(5) Where a vendor’s permit is lost, stolen or destroyed, application for a copy of the original shall be made forthwith to the Minister. R.R.O. 1990, Reg. 1012, s. 4 (5).

5. For the purpose of the definition of “telecommunication” in section 1 of the Act, “telecommunication” does not include any transmission, emission or reception of a class of signs, signals, writing, images or sound or intelligence of any nature to provide a telecommunication service for which a charge is made by a person who,

(a) owns or operates,

(i) a hotel or motel,

(ii) an apartment or condominium,

(iii) a school or university,

(iv) a hospital, and

(v) a taxi company in respect of the use of two-way radios;

(b) provides facsimile services;

(c) on or after the 1st day of April, 1993 provides a service that will take messages for a person who must contact the service by phone, voice-mail box, facsimile or computer in order to be advised of the messages taken, and that is not a paging service; or

(d) before the 1st day of April, 1993 provides a service that will take messages for a person who must contact the service by phone, voice-mail box, facsimile or computer in order to be advised of the messages taken, and that may be a paging service. O. Reg. 759/92, s. 1.

5.1 The provision of the following telecommunication services is prescribed for the purposes of clause (k) of the definition of “sale” in subsection 1 (1) of the Act:

1. Telecommunication services that are transmitted and received within the province.

2. Telecommunication services that are transmitted from or received within the province if the instrument or facility for the emission, transmission or reception of the service in respect of which the charge for the provision of the telecommunication service is, or is to be, billed is ordinarily situated in the province.

3. Telecommunication services that are transmitted from the province and with respect to which the purchaser is not liable to pay tax on the telecommunication service to any other jurisdiction.

4. Private line telephone service which includes a service point in Ontario and which is provided to a person who contracts in Ontario for the provision of the service.

5. Telecommunication services for which the purchaser prepays a specified amount of money through the acquisition of a card or other device by means of which the purchaser acquires access to telecommunication services up to the specified amount without further payment. O. Reg. 383/99, s. 3.

6. (1) In this section,

“blanket purchase exemption certificate” means a purchase exemption certificate provided by a person to a vendor that applies to one or more sales to the person by the vendor or to one or more premium payments to the vendor until the person revokes the certificate or the Minister cancels the certificate;

“single purchase exemption certificate” means a purchase exemption certificate provided by a person to a vendor that applies to only one sale, contract of insurance or benefits plan. O. Reg. 449/05, s. 1.

(2) In each of the following circumstances, a person may provide a valid purchase exemption certificate to a vendor instead of paying to the vendor the amount of tax that would otherwise be levied and collected by the vendor under the Act:

1. On a sale of tangible personal property to the person if,

i. the person alleges he or she is exempt from tax under the Act, or

ii. the person alleges he or she is purchasing the property for the purposes of resale and, if the person is not resident in Ontario, he or she has a vendor permit under the Act and provides the number to the vendor.

2. On a sale to the person of a taxable service described in clause (a), (c), (c.1), (d) or (d.1) of the definition of “taxable service” in subsection 1 (1) of the Act if,

i. the person alleges that he or she is purchasing the service for the purposes of resale and, if the person is not resident in Ontario, he or she has a vendor permit under the Act and provides the number to the vendor, or

ii. the taxable service is supplied in respect of taxable tangible personal property with respect to which the person alleges he or she is exempt from tax under the Act.

3. On a payment by the person of a premium under a contract of insurance if,

i. the person is not required to pay tax under the Act in respect of premiums under the contract of insurance because the conditions under clause 2.1 (8) (b), (d), (e), (f), (j) or (k) of the Act are satisfied, or

ii. the contract of insurance has been prescribed for the purposes of clause 2.1 (8) (m) of the Act.

4. On a payment by the person of a premium or part of a premium under a benefits plan if the person is the planholder of the plan and is not required to pay tax under the Act in respect of the premium or the part of the premium because the conditions in subsection 2.1 (18) of the Act are satisfied.

5. On a sale to the person of tangible personal property or a taxable service if the person is a registrant and is not liable to pay tax under the Act in respect of the sale by reason of subsection 3 (5) of the Act.

6. On a sale in respect of railway rolling stock or on the payment of a premium under a contract of insurance in respect of railway rolling stock if the value on which the tax is payable under the Act is determined under section 15 and the person pays tax directly to the Minister. O. Reg. 449/05, s. 1.

(3) Instead of providing a purchase exemption certificate to a vendor under subsection (2), a person who satisfies one of the following paragraphs may present to the vendor the identity card described in that paragraph:

1. An identity card issued by an accredited farm organization under the Farm Registration and Farm Organizations Funding Act, 1993 on the sale of tangible personal property or a taxable service or in respect of a contract of insurance on agricultural property if the person is engaged in the business of farming and is exempt from tax by reason of,

i. paragraph 13, 14 or 19 of subsection 7 (1) of the Act, in respect of the tangible personal property,

ii. subparagraph 2 ii or vi of subsection 7 (1) of the Act, in respect of the taxable service, or

iii. clause 2.1 (8) (b) of the Act, in respect of the contract of insurance.

2. An identity card issued by the Office of Protocol, Department of Foreign Affairs and International Trade (Canada), if the person is exempt from tax under subsection 7 (5) of the Act.

3. A Certificate of Indian Status identity card issued under the Indian Act (Canada) by the Government of Canada, if the person is exempt from tax in respect of the sale by reason of paragraph 59 of subsection 7 (1).

4. An identity card issued by the Canadian National Institute for the Blind on the sale of audio books, if the person is exempt from tax in respect of the sale by reason of paragraph 66 of subsection 7 (1) of the Act. O. Reg. 449/05, s. 1.

(4) A purchase exemption certificate provided by a person under subsection (2) may be either a single purchase exemption certificate or blanket purchase exemption certificate and is valid only if it includes,

(a) the name of the person or name under which the person transacts business;

(b) the address of the person or the address at which the person carries on business;

(c) the name of the person who is authorized to acquire the tangible personal property or taxable service or enter into the contract of insurance or benefits plan;

(d) the reason for claiming the exemption from payment of tax;

(e) the person’s vendor permit number under the Act if the person is a vendor under the Act;

(f) the carrier account number issued by the Ministry of Transportation if the person is a registrant; and

(g) the date the person provided the purchase exemption certificate. O. Reg. 449/05, s. 1.

(5) A person who provides a valid blanket purchase exemption certificate to a vendor is not required to supply any additional purchase exemption certificates on individual sales or premium payments until the blanket purchase exemption certificate is revoked or cancelled. O. Reg. 449/05, s. 1.

(6) Every person who provides a blanket purchase exemption certificate shall promptly revoke the certificate if any information required to be included in the certificate was omitted or is not currently correct, but the person may provide a replacement certificate with the correct information, if the person is entitled under subsection (2) to use a valid blanket purchase exemption certificate. O. Reg. 449/05, s. 1.

(7) If a person provides a purchase order to a vendor and intends to rely on a blanket purchase exemption certificate or on an identity card described in paragraph 1, 2, 3 or 4 of subsection (3), the person shall ensure that the purchase order contains,

(a) a notation that the purchaser is using a valid blanket purchase exemption certificate already provided to the vendor or an identity card to be presented to the vendor;

(b) the person’s vendor permit number if the person is registered under the Act as a vendor;

(c) the number or identifier from the identity card, if the person is entitled to present an identity card under subsection (3) on the sale; and

(d) the carrier account number issued by the Ministry of Transportation if the person is a registrant. O. Reg. 449/05, s. 1.

(8) A person, other than a vendor who holds a “G” permit under subsection 4 (1) of Regulation 1013 of the Revised Regulations of Ontario, 1990 (General) made under the Act, shall not give a vendor a purchase exemption certificate but shall pay the tax under the Act to the vendor,

(a) on the price charged for tangible personal property purchased by the person for consumption or use in the course of carrying on a business;

(b) on the price charged for a taxable service purchased by the person in the course of carrying on a business; and

(c) on the payment of a premium charged for a contract of insurance or a benefits plan if the person entered into the contract of insurance or became a planholder of the benefits plan in the course of carrying on a business. O. Reg. 449/05, s. 1.

(9) Every vendor shall maintain a record of the name and the number or other identifier on each identity card presented to the vendor. O. Reg. 449/05, s. 1.

(10) A vendor shall not apply a valid single purchase exemption certificate to more than one sale, contract of insurance or benefits plan. O. Reg. 449/05, s. 1.

(11) The Minister may cancel a blanket purchase exemption certificate if the person who provided it is not entitled to use it. O. Reg. 449/05, s. 1.

7. Revoked: O. Reg. 8/94, s. 1.

8. Revoked: O. Reg. 8/94, s. 1.

9. Revoked: O. Reg. 414/00, s. 1.

10. (1) In this section,

“bus” means a motor vehicle, excluding a van or a motorized mobile home within the meaning of Regulation 628 of the Revised Regulations of Ontario, 1990 (Vehicle Permits), designed to carry,

(a) ten or more persons who are not confined to wheelchairs and that is used to provide transportation, or

(b) three or more persons who are confined to wheelchairs and that is used to provide transportation for persons with physical disabilities;

“foster child” means a child who is receiving foster care within the meaning of the Child and Family Services Act;

“foster parent” means a foster parent within the meaning of the Child and Family Services Act;

“long-term lease” means a lease of a vehicle for a term of twelve months or longer;

“member of the family” means the daughter, daughter-in-law, son, son-in-law, foster child, spouse, parent, foster parent, father-in-law, mother-in-law, brother, brother-in-law, sister, sister-in-law, aunt, uncle, niece, nephew, grand aunt, grand uncle, grand niece, grand nephew, cousin, spouse of the aunt, uncle, niece, nephew, grand aunt, grand uncle, grand niece, grand nephew or cousin, grandparent or grandchild of the person with respect to whom the expression is being used;

“motor vehicle” means a motor vehicle for which a permit is required under section 7 of the Highway Traffic Act but does not include a motorcycle, a motor assisted bicycle, a motorized mobile home within the meaning of Regulation 628 of the Revised Regulations of Ontario, 1990 (Vehicle Permits) or a dune buggy within the meaning of Regulation 863 of the Revised Regulations of Ontario, 1990 (General);

“person with a permanent physical disability” means a person ordinarily resident in Ontario,

(a) who is permanently deprived of the use of an arm or leg,

(b) whose mobility within the usual surroundings that he or she lives or works in is permanently restricted to the use of a wheelchair, crutches, braces or other device designed to assist mobility,

(d) whose greatest diameter of field of vision is permanently less than 20 degrees;

“principal care giver” means an individual, other than a member of the family, who lives within 40 kilometres of the person with respect to whom the expression is being used and who maintains a care giving relationship with that person;

“purchaser of a motor vehicle” means a purchaser who acquires ownership of the vehicle or a purchaser who leases the vehicle under a long-term lease;

“spouse” means a spouse within the meaning of section 29 of the Family Law Act;

“van” means a motor vehicle having a body type described as “VN” on a permit issued under section 7 of the Highway Traffic Act. R.R.O. 1990, Reg. 1012, s. 10 (1); O. Reg. 383/99, s. 4 (1, 2); O. Reg. 107/00, s. 1 (1); O. Reg. 325/05, s. 1 (1).

(2) In order to determine visual acuity for the purpose of clause (c) of the definition of “person with a permanent physical disability”, measurements shall be taken using a Snellen chart or a chart that is equivalent to a Snellen chart. R.R.O. 1990, Reg. 1012, s. 10 (2).

(3) Subject to the limits set out in subsection (4), the Minister may, upon receipt of a written application, rebate to the purchaser of a motor vehicle the tax paid under section 2 or 4.2 of the Act by the purchaser if the Minister is satisfied that the purchaser is, at the time of the application, and was, at the time of the purchase, one of the following:

1. A person with a permanent physical disability who purchased the vehicle for his or her own transportation.

2. A person purchasing the vehicle to provide transportation for a person who,

i. is a member of the family,

ii. is a person with a permanent physical disability, and

iii. does not own a motor vehicle or lease a motor vehicle under a long-term lease.

2.1 A principal care giver purchasing the vehicle to provide transportation on a regular basis to a person with a permanent physical disability who does not own a motor vehicle or lease a motor vehicle on a long-term lease and who does not have a member of the family who is willing and able to provide transportation for that person.

3. A religious, charitable or non-profit organization, other than a municipality or local board, that purchased the vehicle for use, principally, to transport persons with a permanent physical disability. R.R.O. 1990, Reg. 1012, s. 10 (3); O. Reg. 8/94, s. 2 (1); O. Reg. 383/99, s. 4 (3); O. Reg. 107/00, s. 1 (2); O. Reg. 325/05, s. 1 (2).

(4) The Minister may rebate the tax paid under,

(a) section 2 of the Act on modifications made to a motor vehicle purchased on or after June 1, 1989 if the modifications were solely to assist a person with a permanent physical disability; and

(b) section 2 or 4.2 of the Act on the purchase of a motor vehicle, before the modifications, if any, referred to in clause (a) were made, to a maximum of,

(i) $1,600, in respect of a motor vehicle that is not a van or a bus,

(ii) $2,400, in respect of a van, or

(iii) the tax paid, in respect of a bus. O. Reg. 8/94, s. 2 (2).

(5) A rebate shall not be made under this section in respect of,

(a) an application submitted to the Minister more than four years after the tax was paid;

(b) a motor vehicle that will be used for profit or as part of an undertaking carried on for gain;

(c) a motor vehicle if, thirty days after the purchase or lease of that motor vehicle, the same purchaser or a member of the family of the purchaser or the person with a permanent physical disability or a member of the family of that person or the principal care giver owned or leased, under a long-term lease, another motor vehicle with respect to which a rebate has been made under this section, section 12 of Regulation 903 of the Revised Regulations of Ontario, 1980, as it existed on the 28th day of February, 1981 or section 32 of Regulation 904 of the Revised Regulations of Ontario, 1980, as it existed on the 31st day of May, 1989; or

(d) a motor vehicle that is,

(i) ordered from a vendor or purchased after May 18, 2004, or

(ii) ordered from a vendor or purchased before May 19, 2004 but not delivered before August 1, 2004. R.R.O. 1990, Reg. 1012, s. 10 (5); O. Reg. 35/91, s. 2; O. Reg. 383/99, s. 4 (4); O. Reg. 107/00, s. 1 (3); O. Reg. 325/05, s. 1 (3); O. Reg. 364/05, s. 1.

(6) Clause (5) (c) does not apply to a religious, charitable or non-profit organization. R.R.O. 1990, Reg. 1012, s. 10 (6).

(7) Despite clause (5) (c), a rebate may be made if,

(a) the motor vehicles are used to transport two or more persons each of whom is a person with a permanent physical disability;

(b) the other motor vehicle was purchased from the applicant by a member of the family or the principal care giver of the person with a permanent physical disability and the member of the family or the principal care giver paid tax under the Act on the fair value of the vehicle on its purchase or on the fair market value of the vehicle; or

(c) the owner or lessee of the other motor vehicle has been unable, after reasonable efforts, to expeditiously dispose of the vehicle. R.R.O. 1990, Reg. 1012, s. 10 (7); O. Reg. 8/94, s. 2 (3); O. Reg. 383/99, s. 4 (5); O. Reg. 107/00, s. 1 (4); O. Reg. 325/05, s. 1 (4).

(8) A rebate may be paid in a situation described under clause (7) (c) only after the disposition of the other motor vehicle. R.R.O. 1990, Reg. 1012, s. 10 (8).

(8.1) A rebate may be paid to a purchaser described in paragraph 2.1 of subsection (3) only in respect of applications submitted after May 5, 1998. O. Reg. 383/99, s. 4 (6).

(9) An application for a rebate under this section must be accompanied by the following:

1. A copy of the purchase or long-term lease contract for the motor vehicle in respect of which a rebate is claimed setting out the purchase price or lease payments and the tax paid by the applicant.

2. If the applicant is purchasing the motor vehicle for the applicant’s own use, a physician’s certificate describing the nature of the physical disability of the applicant and stating whether the disability is permanent.

3. If the applicant is purchasing the motor vehicle to provide transportation for a member of the family who is a person with a permanent physical disability,

i. a physician’s certificate or an optometrist’s certificate of visual acuity describing the nature of the physical disability of the person and stating whether the disability is permanent, and

ii. a statement by the applicant of the applicant’s relationship to the person and the use the applicant will make of the vehicle to provide transportation for that person.

3.1 If the applicant is a principal care giver who is purchasing the motor vehicle to provide transportation for a person with a permanent physical disability,

i. a physician’s certificate or optometrist’s certificate of visual acuity describing the nature of the physical disability of the person and stating whether the disability is permanent,

ii. a statement by the applicant that he or she is a principal care giver of the person with a permanent physical disability and that no member of the family was willing and able to provide transportation for the person on a regular basis, and

iii. a statement by the applicant of the use the applicant will make of the vehicle to provide transportation for the person with a permanent physical disability.

4. If the applicant is a religious, charitable or non-profit organization, a statement certifying that the motor vehicle was purchased to be used principally to transport persons with permanent physical disabilities and that the applicant is a religious, charitable or non-profit organization other than a municipality or local board. R.R.O. 1990, Reg. 1012, s. 10 (9); O. Reg. 383/99, s. 4 (7, 8); O. Reg. 107/00, s. 1 (5); O. Reg. 325/05, s. 1 (5).

(10) No more than one rebate may be made under this section in a twelve-month period to a purchaser leasing a motor vehicle under a long-term lease and the total amount of the rebates made under this section shall not exceed the amounts specified in subsection (4). R.R.O. 1990, Reg. 1012, s. 10 (10).

(11) A rebate under this section may be made only to a purchaser of a motor vehicle who applies for it. R.R.O. 1990, Reg. 1012, s. 10 (11).

(12) No tax imposed under section 4 of the Act is refundable under this section. R.R.O. 1990, Reg. 1012, s. 10 (12); O. Reg. 8/94, s. 2 (4).

11. Where a refund claimed under subsection 2 (11) or (14) of the Act is sought with respect to an erroneous payment of tax made as the result of a sale under a contract in which a party other than the applicant for the refund is the purchaser who should have paid the tax or any part thereof a refund of which is sought, and where such tax, had it been properly paid, can reasonably be considered to have been likely to form a part of the contract price that would have been charged to the person claiming the refund, for the purposes of subsection 2 (17) of the Act it is determined that,

(a) there shall be refunded the amount by which the payment sought to be refunded exceeds the tax that would have been properly payable in the performance of the contract, if the amount of the excess can be clearly established to the satisfaction of the Minister; or

(b) where the amount of the excess referred to in clause (a) cannot be clearly established to the satisfaction of the Minister, there shall be refunded an amount equal to the product obtained by multiplying the amount of the refund for which a claim is made under subsection 2 (11) or (14) of the Act by 12 per cent. R.R.O. 1990, Reg. 1012, s. 11; O. Reg. 704/92, s. 1.

12. The following persons or classes of persons are exempt from tax with respect to their consumption of prepared food products where the prepared food products are provided by them to others without specific charge:

1. Hospitals.

2. Nursing homes and homes for the aged.

3. Penal or correctional institutions.

4. Religious, charitable or benevolent organizations.

5. Employers where the prepared food products are provided to their employees in eating establishments operated by or on behalf of the employer.

6. Schools and universities where the prepared food products are provided to a student in an eating establishment operated by or on behalf of the school or university. R.R.O. 1990, Reg. 1012, s. 12.

13. Revoked: O. Reg. 414/00, s. 1.

14. (1) For purposes of paragraph 40 of subsection 7 (1) of the Act, the following machinery, equipment and processing materials are prescribed:

1. Machinery and apparatus used primarily and directly in,

i. the manufacture or production of tangible personal property,

ii. the development of manufacturing or production processes, or

iii. the development of tangible personal property for manufacture or production.

2. Machinery and apparatus used directly in the detection, prevention, measurement, treatment, reduction or removal of pollutants to water, soil or air if the pollutants are attributable to the manufacture or production of tangible personal property.

3. Equipment used in carrying refuse or waste from machinery or apparatus that is employed directly in the manufacture or production of tangible personal property or used for exhausting dust or noxious fumes produced by manufacturing or production operations.

4. Safety devices and equipment used in the prevention of accidents in the manufacture or production of tangible personal property.

5. Self-propelled trucks mounted on rubber-tired wheels for off-highway use exclusively at mines and quarries.

6. Internal combustion tractors, other than highway truck tractors, for use exclusively in “logging operations” as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990 made under the Act.

7. Logging wagons and logging sleds.

8. With respect to “logging operations” as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990 made under the Act, machinery, logging cars, cranes, captive balloons having a volume of 4,248 cubic metres or more, blocks and tackle, wire rope and logging boom chain, used exclusively in logging operations.

9. With respect to natural gas and oil wells, pipes or tubes commonly known as “oil-country goods” being casing or tubing and fittings, couplings, thread protectors and nipples for them, and drill pipe.

10. Machinery and apparatus, including wire rope, drilling bits and seismic shot-hole casing, used in exploration for or discovery or development of petroleum, natural gas or minerals.

11. Repair and maintenance equipment used in servicing machinery and equipment described in paragraphs 1 to 10.

12. Parts for machinery and equipment described in paragraphs 1 to 11.

13. Drilling mud and additives for it.

14. Geophysical surveying precision instruments and equipment for use exclusively in prospecting for, or in the exploration and development of, petroleum, natural gas, water wells or minerals, or for geophysical studies for engineering projects, including the following:

i. magnetometers,

ii. gravity meters and other instruments designed to measure the elements, variations and distortions of the natural gravitational force,

iii. field potentiometers, meggers, non-polarizing electrodes and electrical equipment for making measurements in drill holes,

iv. instruments and equipment for seismic prospecting,

v. geiger muller counters and other instruments for radioactive methods of geophysical prospecting,

vi. electrical and electronic amplifying devices and electrical thermostats designed to be used with any of the machinery and equipment described in subparagraphs i to v, and

vii. repair parts, tripods and fitted carrying cases for any of the machinery and equipment described in subparagraphs i to vi.

15. Materials, excluding grease, lubricating oils or fuel for use in internal combustion engines, consumed or expended by manufacturers or producers directly in,

i. the process of manufacture or production of tangible personal property,

ii. the development of manufacturing or production processes,

iii. the development of tangible personal property for manufacture or production, or

iv. the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 2.

16. Plans and drawings, related specifications and substitutes for them and reproductions of any of them used directly in,

i. the manufacture or production of tangible personal property,

ii. the development of manufacturing or production processes,

iii. the development of tangible personal property for manufacture or production, or

iv. the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 2.

17. Materials for use exclusively in the manufacture of plans, drawings, specifications, substitutes or reproductions referred to in paragraph 16.

18. Typesetting and composition, metal plates, cylinders, matrices, film, artwork, designs, photographs, rubber material, plastic material and paper material, when impressed with or displaying or carrying an image for reproduction by printing and used exclusively in the manufacture or production of printed material. O. Reg. 288/91, s. 1 (1); O. Reg. 162/95, s. 4 (1).

(1.1) The following machinery and equipment are excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act:

1. Office equipment.

2. Any vehicle, and parts for it, that requires or has a permit issued under subsection 7 (7) of the Highway Traffic Act.

3. With respect to the production of electricity for use primarily in a building that normally utilizes electricity supplied by a public or private utility if that building is used primarily for activities other than the manufacture or production of tangible personal property,

i. electrical generators and electric alternators that are portable or mobile, including drive motors for them,

ii. generator and alternator sets that are portable or mobile,

iii. stand-by electric generators and stand-by electric alternators, including drive motors, and

iv. stand-by generator and stand-by alternator sets.

4. Containers designed for repeated use that are not for use exclusively and directly in the manufacture or production of tangible personal property.

5. Machinery and equipment, including transformers, used in the transmission or distribution of electricity, other than machinery and equipment used within the plant where the electricity is generated or within any other plant where tangible personal property, other than electricity, is manufactured or produced.

6. Pipes, valves, fittings, pumps, compressors, regulators and equipment ancillary to any such machinery or equipment, used in transporting or distributing tangible personal property, but not including pipes, valves, fittings, pumps, compressors, regulators or similar equipment used within a manufacturing or production facility or in gathering systems for natural gas, natural gas liquids or oil in natural gas fields or oil fields. O. Reg. 288/91, s. 1 (1); O. Reg. 162/95, s. 4 (2).

(2) Revoked: O. Reg. 379/01, s. 2 (1).

(3) For the purpose of paragraph 40 of subsection 7 (1) of the Act the following persons and corporations are prescribed as not entitled to the exemption, except for the exemption for processing materials conferred in paragraph 40:

1. Her Majesty in right of Ontario and all servants or agents of the Crown in right of Ontario with respect to machinery or equipment purchased by them as servants or agents of the Crown.

2. The corporation of a municipality including a district, metropolitan or regional municipal corporation.

3. A public utility commission, transportation commission, public library board, board of park management, board of health, police services board, planning board or any other board, commission, committee, body or local authority established or exercising any power or authority under any Act with respect to any of the affairs or purposes of a municipality or two or more municipalities or parts thereof.

4. Ontario Hydro, the Urban Transportation Development Corporation Ltd. or any corporation all of the directors of which are appointed by the Lieutenant Governor in Council.

5. Contractors and subcontractors in respect of their consumption of machinery and equipment to which paragraph 40 of subsection 7 (1) of the Act applies, consumed for the purpose of performing a contract or subcontract for the provision or installation of such machinery or equipment for any person or corporation to whom paragraph 1, 2, 3 or 4 applies. R.R.O. 1990, Reg. 1012, s. 14 (3); O. Reg. 80/93, s. 1; O. Reg. 379/01, s. 2 (2).

(4) Every manufacturer or producer of electricity, other than a utility engaged in the manufacture or production of electricity for sale or a person or corporation referred to in subsection (3), is excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act with respect to the machinery or equipment used to produce the electricity. R.R.O. 1990, Reg. 1012, s. 14 (4).

(5) Subsection (4) does not apply where the electricity is used,

(a) directly in the manufacture or production by the manufacturer or producer of tangible personal property other than electricity; or

(b) directly in and exclusively for the research or development by the manufacturer or producer of either goods for manufacture or production or manufacturing or production processes. R.R.O. 1990, Reg. 1012, s. 14 (5).

(6) Every manufacturer or producer is excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act in respect of machinery, equipment and processing materials described in paragraph 18 of subsection (1) unless such machinery, equipment and processing materials are used exclusively in the manufacture or production of printed material by the manufacturer. O. Reg. 162/95, s. 4 (3); O. Reg. 1/97, s. 2.

(7) For the purposes of paragraph 2.2 of subsection 7 (1) of the Act, telephone services that are acquired for domestic or family purposes are excluded from the exemption. O. Reg. 404/96, s. 1.

14.1 Revoked: O. Reg. 236/97, s. 1.

14.2 (1) In this section,

“affiliate” has the same meaning as in subsection 3 (14) of the Land Transfer Tax Act;

“custom computer program” means a computer program that is designed and developed solely to meet the specific requirements of, and that is intended for the exclusive use of, a particular person, and includes a computer program that is modified as described under clause (2) (c) or (d);

“modifications” means changes other than upgrades made to the source code of a computer program;

“pre-written computer program” means a pre-packaged computer program that may be purchased in a form that is ready for use without further modifications and includes a computer program that is designed and developed for the use of more than one person;

“upgrades” means improvements to a computer program that are offered to or available to all licensees of that computer program. O. Reg. 383/99, s. 5; O. Reg. 282/04, s. 2 (1, 2).

(2) For the purpose of paragraph 62 of subsection 7 (1) of the Act, a computer program is considered to be designed and developed to meet the specific requirements of the initial purchaser if,

(a) the computer program is a custom computer program, whether designed and developed by the vendor or by an affiliate of the vendor;

(b) any modification to a custom computer program is made for the same person for whom the computer program was originally designed and developed;

(c) a modification is made before July 19, 2002 to a pre-written computer program solely to meet the specific requirements of a particular person and the price of, or payment for, the modification is separate from and is greater than the price of, or payment for, the computer program;

(c.1) one or more modifications are made to a pre-written computer program to meet the specific requirements of a particular person and the price of, or payment for, all such modifications made on or after July 19, 2002 is separate from and is greater than the price of, the payment for or the cost of the computer program;

(c.2) one or more modifications are made to a pre-written computer program by a particular person and the salary cost of making all such modifications made on or after July 19, 2002 is separate from and is greater than the price of, the payment for or the cost of the computer program;

(c.3) a combination of the modifications described in clauses (c.1) and (c.2) are made to a pre-written computer program and the price of, the payment for or the salary cost of all such modifications made on or after July 19, 2002 is separate from and is greater than the price of, the payment for or the cost of the computer program;

(d) a pre-written computer program is modified as a condition of its sale solely to meet the specific requirements of a particular person and the price of or payment for the computer program, as modified, is more than 200 per cent of the price that would have been the price of or payment for the computer program without the modifications;

(e) any further modifications to a computer program described in clause (a), (b), (c), (c.1), (c.2), (c.3) or (d) are made for the same person for whom the computer program was originally designed and developed; or

(f) a computer program described in clause (a), (b), (c), (c.1), (c.2), (c.3) or (d) that is used in a business is sold in a transaction in which the purchaser acquires all or substantially all of the business assets and will continue to carry on the business, and any modifications to the computer program provided to the purchaser. O. Reg. 383/99, s. 5; O. Reg. 282/04, s. 2 (3-5).

(3) Subsection (2) does not apply to a computer program that is a copy of the computer program described in clause (2) (a), (b), (c) or (d) or that is sold or leased to or licensed for use by any person other than the person for whom the program was designed or developed. O. Reg. 383/99, s. 5.

(4) For the purposes of clause (2) (c), (c.1), (c.2), (c.3) or (d), the price of or payment for a pre-written computer program is the price paid for the initial licence and does not include the price paid for any additional licences acquired by the purchaser. O. Reg. 282/04, s. 2 (6).

14.3 (1) A purchaser of an audio book is exempt under paragraph 66 of subsection 7 (1) of the Act from tax,

(a) if he or she is legally blind and the audio book is purchased for his or her own use; or

(b) if he or she purchases the audio book on behalf of a person who is legally blind for that person’s own use. O. Reg. 118/02, s. 2.

(2) For the purposes of subsection (1), a person is legally blind if his or her permanent visual acuity in both eyes with proper refractive lenses is 20/200 or less, when measured using a Snellen chart or a chart that is equivalent to a Snellen chart, or whose greatest diameter of field of vision is permanently less than 20 degrees. O. Reg. 118/02, s. 2.

14.4 (1) For the purposes of paragraph 68 of subsection 7 (1) of the Act,

“reinforced concrete” means ready-mix concrete and includes any embedded or attached reinforcing material. O. Reg. 291/03, s. 1.

(2) For the purposes of this section,

“exempt machinery” means machinery or equipment that is exempt from tax under paragraph 40 of subsection 7 (1) of the Act. O. Reg. 291/03, s. 1.

(3) For the purposes of paragraph 68 of subsection 7 (1) of the Act, reinforced concrete used in the construction of a structure to be used by a manufacturer directly in the manufacture or production of tangible personal property is exempt from tax if any of the following circumstances exist:

1. The structure is used directly and exclusively as an integral component of exempt machinery.

2. The structure is used directly and exclusively to detect, prevent, measure, treat, reduce or remove pollutants to water, soil or air, but only if the pollutants are attributable to the manufacture or production of tangible personal property.

3. The structure is used as a foundation or base that forms an integral part of exempt machinery, but only if the structure is required by engineering specifications for the purpose of vibration protection or elevation in order to permit gravity feeds during the manufacturing or production process.

4. The structure is used as an elevated access to exempt machinery for operational and maintenance purposes. O. Reg. 291/03, s. 1.

(4) Despite subsection (3), reinforced concrete is not exempt from tax if it is used in the construction of a floor or an environmental containment slab. O. Reg. 291/03, s. 1.

15. (1) In this section,

“period” means the period authorized by the Minister under section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for accounting for the tax payable on railway rolling stock;

“railway rolling stock” means rolling stock capable of operating exclusively on rails as distinct from pavements or other roads. R.R.O. 1990, Reg. 1012, s. 15 (1).

(2) In respect of railway rolling stock purchased, leased, manufactured or repaired by any person, the value on which the tax is payable under the Act shall be calculated, for any period, in accordance with the following formula:

where,

TV is the value on which the tax is payable,

FV is the total fair value of railway rolling stock, including repair parts therefor, purchased, leased or manufactured by the person during the period, and the total fair value of repair parts provided by the person for any other railway rolling stock used by the person during the period,

OD is the total distance travelled in Ontario by the railway rolling stock during the period,

TD is the total distance travelled anywhere by the railway rolling stock during the period.

R.R.O. 1990, Reg. 1012, s. 15 (2).

(3) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by any person in respect of railway rolling stock shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

OD and TD are the total distances specified in subsection (2).

O. Reg. 162/95, s. 5.

15.1 (1) For the purpose of this section,

“broker driver” means a person who has entered into a written agreement with a carrier to provide a tractor and driver for haulage of the carrier’s trailers or who provides a tractor, trailer and driver for use at the carrier’s direction, and who is under the direct control and vehicle registration of the carrier;

“international motor vehicle” means a motor vehicle used by a carrier or by the carrier’s broker drivers to travel exclusively between Ontario and any other jurisdiction or jurisdictions outside Canada;

“motor vehicle” means a self-propelled vehicle with a permanently attached truck body, bus body or delivery body, and includes truck tractors used for hauling purposes on public highways;

“Ontario-based international carrier” means a person who holds a vendor’s permit issued under the Act and who is a commercial or private carrier regularly operating a dedicated fleet of motor vehicles exclusively between Ontario and any other jurisdiction or jurisdictions outside Canada;

“parts” include repair parts and replacement parts, trailer tarps, tie-downs, equipment used on trailers, tires, antifreeze, oil, grease, mirrors and other accessories, but do not include maintenance tools and parts for repairs paid for by the driver during a trip;

“trailer” means a highway trailer or a trailer used in piggyback operations, including a container known as a “rail-tainer” or a “cargo-tainer”, or any container of a similar class or kind, that is either drawn on a highway by a motor vehicle or moved by rail and is considered a separate vehicle that is not part of the motor vehicle by which it is drawn. O. Reg. 52/92, s. 1.

(2) In respect of motor vehicles purchased in or brought into Ontario or repaired inside or outside Ontario during any period, an Ontario-based international carrier shall pay tax on the international motor vehicles used by the carrier and the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the motor vehicle purchased during the period covered by the return, less the tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased during the same period or, if the motor vehicle was brought into Ontario for the first time for use during the period covered by the return, TV is the value determined under subsection (9) without the tax payable under section 3 of the Act, of the motor vehicle and of related repair parts,

OD is the total distance travelled in Ontario by the carrier’s international motor vehicles, including those of the carrier’s broker drivers,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TD is the total distance travelled both in and outside of Ontario by the carrier’s international motor vehicles, including those of the carrier’s broker drivers.

O. Reg. 52/92, s. 1.

(3) In respect of trailers purchased in or brought into Ontario or repaired inside or outside Ontario during any period, an Ontario-based international carrier shall pay tax on the trailers used by the carrier and the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the trailer purchased during the period covered by the return, less the tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased during the same period or, if the trailer was brought into Ontario for the first time for use during the period covered by the return, TV is the value determined under subsection (9) of the trailer and of related repair parts,

ODA is the total distance travelled in Ontario by all of the carrier’s motor vehicles, including those of the carrier’s broker drivers,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TDA is the total distance travelled both in and outside Ontario by all of the carrier’s motor vehicles and the motor vehicles of the carrier’s broker drivers.

O. Reg. 52/92, s. 1.

(4) For the purpose of determining the tax in subsection (2) or (3), if a motor vehicle or trailer used by the carrier or by any of the carrier’s broker drivers is leased or rented for a period in excess of thirty days, the fair value of the motor vehicle or of the trailer shall be the rental payments due during the period covered by the return. O. Reg. 52/92, s. 1.

(5) The distances referred to in the formulas in subsections (2) and (3) shall be determined once a year at the beginning of the carrier’s fiscal year and shall be equal to the actual distances travelled by the motor vehicles in the preceding fiscal year. O. Reg. 52/92, s. 1.

(6) Despite subsection (5), in respect of a carrier’s first year of operation, estimated distances may be used and, in the return for the first reporting period of the next fiscal year, the carrier shall recalculate the tax liability for the first year of operation based on the actual distance travelled by the motor vehicles during the year. O. Reg. 52/92, s. 1.

(7) The fair value of repair parts on motor vehicles and trailers owned or leased by broker drivers shall not be included when calculating the amount denoted as TV in the formulas in subsections (2) and (3). O. Reg. 52/92, s. 1.

(8) If an international motor vehicle or trailer was previously used only in Ontario or if the tax on it has been paid under this section or section 15.2 by the carrier or the carrier’s broker driver, its fair value shall not be included when calculating the amount denoted as TV in the formulas in subsections (2) and (3). O. Reg. 52/92, s. 1.

(9) For the purpose of subsection 2 (18) of the Act, the tax shall be calculated using the value at the date of purchase outside Ontario less 1.5 per cent per month or part of a month to a maximum depreciation of 60 per cent from the date of purchase to the date of first importation into Ontario. O. Reg. 52/92, s. 1.

(10) An Ontario-based international carrier shall remit the tax payable under this section at the time or times and in the manner specified in section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns by vendors. O. Reg. 52/92, s. 1.

(11) This section does not apply to international motor vehicles that are subject to tax under section 15.2 as interprovincial motor vehicles. O. Reg. 52/92, s. 1.

(12) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by an Ontario-based international carrier or the carrier’s broker drivers in respect of international motor vehicles used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

OD and TD are the total distances specified in subsection (2).

O. Reg. 162/95, s. 6.

(13) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by an Ontario-based international carrier or the carrier’s broker drivers in respect of trailers used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

ODA and TDA are the total distances specified under subsection (3).

O. Reg. 162/95, s. 6.

(14) This section does not apply to a multijurisdictional vehicle in respect of which tax is paid under subsection 3 (2) of the Act. O. Reg. 379/01, s. 3.

15.2 (1) For the purpose of this section,

“CAVR” means the Canadian Agreement on Vehicle Registration;

“international motor vehicle” means an international motor vehicle as defined in subsection 15.1 (1);

“interprovincial carrier” means a person based in Canada who regularly operates interprovincial transportation services including,

(a) carriers operating under extra-provincial licence granted under the Motor Vehicle Transport Act (Canada),

(b) furniture movers,

(d) private carriers;

“interprovincial motor vehicle” means a motor vehicle used by a carrier or by the carrier’s broker drivers to travel in Ontario and in at least one other Canadian province;

“intraprovincial motor vehicle” means a motor vehicle used by a carrier or by the carrier’s broker drivers to travel only in Ontario;

“large interprovincial carrier” means an interprovincial carrier who holds a vendor’s permit issued under section 5 of the Act and who operates more than ten interprovincial motor vehicles including those operated by the carrier’s broker drivers;

“motor vehicle” means a motor vehicle as defined in subsection 15.1 (1);

“parts” means parts as defined in subsection 15.1 (1);

“private carrier” means a person who transports the person’s own goods by means of motor vehicles and trailers on public highways;

“registration” means registration under CAVR;

“small interprovincial carrier” means an interprovincial carrier who operates ten interprovincial motor vehicles or less including those operated by the carrier’s broker drivers;

“trailer” means a trailer as defined in subsection 15.1 (1). O. Reg. 52/92, s. 1.

(2) In respect of motor vehicles purchased in or brought into Ontario or repaired inside or outside Ontario during any period, a large interprovincial carrier shall pay tax on interprovincial motor vehicles used by the carrier and all of the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the motor vehicle purchased during the period covered by the return, less the tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased by the carrier during the same period but not of related repair parts purchased by the carrier’s broker drivers or, if the motor vehicle was brought into Ontario for the first time for use during the period covered by the return, TV is the value of the motor vehicle determined under subsection (13) plus the fair value or value determined under subsection (13) of related repair parts purchased by the large interprovincial carrier, but not by any of the carrier’s broker drivers,

OD is the total distance travelled in Ontario by all of the carrier’s CAVR fleets of interprovincial motor vehicles, including those of the carrier’s broker drivers, unless the carrier chooses to prorate tax on broker drivers’ vehicles separately,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TD is the total distance travelled both in and outside of Ontario by all of the carrier’s CAVR fleets of interprovincial motor vehicles, including those of the carrier’s broker drivers, unless the carrier chooses to prorate tax on broker drivers’ vehicles separately.

O. Reg. 52/92, s. 1.

(3) In respect of motor vehicles purchased in or brought into Ontario during any period, a small interprovincial carrier shall pay tax on the interprovincial motor vehicles used by the carrier and all of the carrier’s broker drivers based on the formula set out in subsection (2), except that the carrier shall not include in the amount denoted as TV the fair value or the value determined under subsection (13) of repair parts purchased by the carrier. O. Reg. 52/92, s. 1.

(4) In respect of trailers purchased in or brought into Ontario or repaired inside or outside Ontario during any period, a large interprovincial carrier shall pay tax on the trailers used by the carrier and all of the carrier’s broker drivers calculated in accordance with the following formula:

where,

TV is the fair value of the trailer purchased during the period covered by the return, less any tax payable under section 3 of the Act and less any allowance under subsection 2 (20) of the Act, plus the fair value of related repair parts purchased by the carrier during the same period but not of related repair parts purchased by the carrier’s broker drivers or, if the trailer was brought into Ontario for the first time for use during the period covered by the return, TV is the value of the trailer determined under subsection (13) plus the fair value or value determined under subsection (13) of related repair parts purchased by the large interprovincial carriers but not by the carrier’s broker drivers,

ODA is the total distance travelled in Ontario by all of the carrier’s CAVR interprovincial, intraprovincial and international motor vehicles, including those of the carrier’s broker drivers,

TR is the tax rate under section 2 of the Act in effect during the period covered by the return,

TDA is the total distance travelled both in and outside Ontario by all of the carrier’s CAVR interprovincial, intraprovincial and international motor vehicles, including those of the carrier’s broker drivers.

O. Reg. 52/92, s. 1.

(5) In respect of trailers purchased or brought into Ontario during any period, a small interprovincial carrier shall pay tax on the trailers used by the carrier and all of the carrier’s broker drivers based on the formula set out in subsection (4), except that the carrier shall not include in the amount denoted as TV the fair value or the value determined under subsection (13) of repair parts purchased by the carrier. O. Reg. 52/92, s. 1.

(6) For the purpose of determining the tax in subsection (2) or (4), if a motor vehicle or trailer used by the carrier or any of the carrier’s broker drivers is leased or renewed for a period in excess of thirty days, the fair value of the motor vehicle or of the trailer shall be the rental payments due during the period covered by the return. O. Reg. 52/92, s. 1.

(7) The distances referred to in the formulas in subsections (2) and (4) shall be determined annually for the one-year period ending on the 30th day of June and shall equal the actual distance travelled by the motor vehicles in that period. O. Reg. 52/92, s. 1.

(8) Despite subsection (7), in respect of the carrier’s first year of operation, estimated distances may be used in the manner set out in subsection (9). O. Reg. 52/92, s. 1.

(9) If, as of the 30th day of June, the carrier has been in operation for more than three months but less than twelve months, the carrier shall file a return for that period based on estimated distances and, in the return for the first reporting period following the 30th day of June, the carrier shall recalculate the tax liability for the first period of operation based on the actual distance travelled by the motor vehicles during the period. O. Reg. 52/92, s. 1.

(10) If, as of the 30th day of June, the carrier has been in operation for three months or less, the carrier shall not file a return for that period and, in the return for the first reporting period following the 30th day of June, the carrier shall calculate the tax liability for the first period of operation of up to fifteen months based on the actual distance travelled by the motor vehicles during the period. O. Reg. 52/92, s. 1.

(11) For the purpose of determining the tax in subsections (2) and (4), the Ontario sales tax distribution rate, being the amount designated by OD/TD and ODA/TDA in the formulas in subsections (2) and (4), shall be calculated to two decimal points and shall be the greater of 0.50 per cent and the actual distribution rate. O. Reg. 52/92, s. 1.

(12) If an interprovincial motor vehicle or trailer was previously used only in Ontario or if the tax on it has been paid under this section or section 15.1 by the carrier or the carrier’s broker driver, its fair value shall not be included when calculating the amount denoted as TV in the formulas in subsections (2) and (4). O. Reg. 52/92, s. 1.

(13) For the purpose of subsection 2 (18) of the Act, the tax shall be calculated using the value at the date of purchase outside Ontario less 1.5 per cent per month or part of the month to a maximum depreciation of 60 per cent from the date of purchase to the date of registration. O. Reg. 52/92, s. 1.

(14) A large interprovincial carrier shall remit the tax payable under this section at the time or times and in the manner specified in section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns by vendors. O. Reg. 52/92, s. 1.

(15) A small interprovincial carrier who purchases a motor vehicle or trailer in Ontario shall pay the tax on its fair value at the time of sale and may apply for a refund of the amount by which the tax paid exceeds the tax payable under this section. O. Reg. 52/92, s. 1.

(16) A small interprovincial carrier who purchases an interprovincial motor vehicle or trailer outside Ontario shall remit the tax payable under this section,

(a) in the case of an interprovincial motor vehicle, at the time of registration of the motor vehicle; and

(b) in the case of a trailer, at the time and in the manner provided under subsection 2 (18) of the Act. O. Reg. 52/92, s. 1.

(17) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by a large interprovincial carrier, a small interprovincial carrier or such carrier’s broker drivers in respect of interprovincial motor vehicles used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

OD and TD are the total distances specified in subsection (2).

O. Reg. 162/95, s. 7.

(18) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion, as defined in subsection 18 (1), of the premium under a contract of insurance entered into by a large interprovincial carrier, a small interprovincial carrier or such carrier’s broker drivers in respect of trailers used by the carrier and the carrier’s broker drivers shall be determined in accordance with the following formula:

where,

OP is the Ontario portion,

P is the premium paid under the contract of insurance,

ODA and TDA are the total distances specified in subsection (4).

O. Reg. 162/95, s. 7.

(19) This section does not apply to a multijurisdictional vehicle in respect of which tax is paid under subsection 3 (2) of the Act. O. Reg. 379/01, s. 4.

15.3 (1) In this section,

“non-resident” means a person who is not ordinarily resident in Ontario;

“temporary use” means use in Ontario for a period not exceeding twelve months. O. Reg. 52/92, s. 1.

(2) In respect of tangible personal property purchased by a non-resident and brought into Ontario for temporary use, the non-resident shall pay tax each month at the rate specified under section 2 of the Act on the tax value of the tangible personal property calculated in accordance with the following formula:

where,

NBV is the net book value of the tangible personal property at the time it is brought into Ontario.

O. Reg. 52/92, s. 1.

(3) Tax payable under subsection (2) shall be paid for each full month of temporary use and for each part of a month consisting of thirteen or more consecutive days. O. Reg. 52/92, s. 1.

(4) Tax payable under subsection (2) shall be remitted at the time or times and in the manner specified in section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns by vendors. O. Reg. 52/92, s. 1.

(5) Where tangible personal property brought into Ontario by a non-resident remains in Ontario for longer than twelve months, the non-resident shall pay tax at the rate specified under section 2 of the Act on the net book value of the tangible personal property at the time it was brought into Ontario less the tax paid or payable under subsection (2). O. Reg. 52/92, s. 1.

(6) Tax payable by the non-resident under subsection (5) shall be remitted on or before the due date of the next remittance required to be made under section 5 of Regulation 1013 of the Revised Regulations of Ontario, 1990 in respect of the first remittance period following the end of the twelve-month period. O. Reg. 52/92, s. 1.

(7) This section does not apply to the tangible personal property of a non-resident who is required to pay tax on the use of the property under any other section of the Regulation. O. Reg. 52/92, s. 1.

15.4 (1) In this section,

“temporary use” means use for a period not exceeding twelve months. O. Reg. 784/92, s. 1.

(2) In respect of tangible personal property purchased, manufactured or produced by a vendor for resale but put to temporary use, the vendor shall pay tax each month at the rate specified under section 2 of the Act on the tax value of the tangible personal property calculated in accordance with the following formula:

where,

FV is the fair value of the tangible personal property at the time it was purchased, manufactured or produced by the vendor.

O. Reg. 784/92, s. 1.

(3) Tax payable under subsection (2) shall be paid for each full month of temporary use and for each part of a month consisting of thirteen or more days, calculated for the time that the tangible personal property was put to the temporary use. O. Reg. 784/92, s. 1.

(4) Where the tangible personal property is a motor vehicle as defined in the Highway Traffic Act manufactured or produced by the vendor, the vendor shall pay, in addition to the tax payable under subsection (2), the tax levied under sections 3 and 4 of the Act in full at the time that the motor vehicle is first put to a temporary use. O. Reg. 784/92, s. 1.

(5) Tax payable under this section shall be remitted at the times and in the manner specified in Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns and the remission of tax due by the vendor. O. Reg. 784/92, s. 1.

(6) Where the vendor continues to use the tangible personal property for longer than twelve months, the vendor shall pay tax at the rate specified under section 2 of the Act on the fair value of the tangible personal property at the time it was purchased, manufactured or produced by the vendor less the tax paid or payable under subsection (2). O. Reg. 784/92, s. 1.

(7) Tax payable by the vendor under subsection (6) shall be remitted on or before the due date of the next remittance required to be made under Regulation 1013 of the Revised Regulations of Ontario, 1990 in respect of the first remittance period following the end of the twelve-month period. O. Reg. 784/92, s. 1.

(8) This section does not apply to tangible personal property of a vendor who is required to pay tax on the use of the property under any other section of this Regulation. O. Reg. 784/92, s. 1.

(9) Despite this section, where the tangible personal property is taken out of inventory and capitalized as a fixed asset in the books and records of the vendor, tax is payable under section 2 of the Act on the fair value of the tangible personal property and under sections 3 and 4 of the Act at the time it was taken out of inventory. O. Reg. 784/92, s. 1.

15.5 (1) In this section.

“dealer” means a vendor who is registered under the Motor Vehicle Dealers Act as a motor vehicle dealer;

“demonstrator” means a motor vehicle maintained by a dealer solely for use by the dealer and the dealer’s staff to demonstrate the motor vehicle to potential customers;

“motor vehicle” and “gross weight” have the same meaning as that contained in the Highway Traffic Act;

“temporary use” means use for a period not exceeding twelve months. O. Reg. 784/92, s. 1.

(2) Despite section 15.4, in respect of motor vehicles having a gross weight of 4,100 kilograms or less, purchased for resale by a dealer, but taken out of inventory and put to a temporary use for business or personal use purposes by the dealer’s staff, family, customers or others without charge, the dealer shall pay tax each month at the rate specified under section 2 of the Act; the tax shall be calculated in accordance with the following formula:

where,

ASP means total sales (including any taxes payable under sections 3 and 4 of the Act) of new and used motor vehicles sold in the month (before trade-in) divided by the total number of new and used motor vehicles sold in the month,

VU means those motor vehicles, having a gross weight of 4,100 kilograms or less, that are used for business or personal purposes by the dealer’s staff, family, customers or others without charge, but does not include demonstrators,

TR is the applicable tax rate.

O. Reg. 784/92, s. 1.

(3) For the purposes of subsection (2), where a dealer makes no sales during the reporting month, ASP shall be calculated using the total sales and number of new and used vehicles sold in the last previous month that sales were made. O. Reg. 784/92, s. 1.

(4) Despite section 15.4, in respect of motor vehicles having a gross weight of more than 4,100 kilograms, purchased for resale by a dealer, but taken out of inventory and put to a temporary use for business or personal use purposes by the dealer’s staff, family, customers and others without charge, and not for use as a demonstrator, the dealer shall pay tax each month at the rate specified in section 2 of the Act; the tax shall be calculated in accordance with the following formula:

where,

FV is the fair value of the motor vehicle at the time it is purchased for resale by the dealer,

TR is the applicable tax rate.

O. Reg. 784/92, s. 1.

(5) If a dealer charges a person referred to in subsection (2) or (4) a fee for use of a motor vehicle and the tax payable on the fee is less than the amount of tax that the dealer would have been required to pay under subsection (2) or (4) if no fee had been charged, the dealer shall collect the tax payable under section 2 of the Act from the person and shall pay an amount equal to the difference between,

(a) the tax that would have been payable under,

(i) subsection (2), if VU were equal to one, or

(ii) subsection (4), if no fee had been charged; and

(b) the amount of the tax payable by the person under section 2 of the Act. O. Reg. 784/92, s. 1.

(6) The tax payable under this section shall be paid for each full month of temporary use and for each part of a month consisting of thirteen or more days of temporary use, calculated for the time that the motor vehicle is taken out of inventory. O. Reg. 784/92, s. 1.

(7) The tax payable under this section shall be remitted at the times and in the manner specified in Regulation 1013 of the Revised Regulations of Ontario, 1990 for the delivery of returns and the remission of tax due by the vendor. O. Reg. 784/92, s. 1.

(8) Despite subsection (2) or (4), where a motor vehicle purchased for resale is taken out of inventory, used by a dealer and capitalized in the dealer’s books and records as a fixed asset, the tax is payable under section 2 of the Act by the dealer on the fair value of the motor vehicle at the time the motor vehicle is taken out of inventory. O. Reg. 784/92, s. 1.

(9) In addition to the tax payable under this section, the dealer shall pay the tax levied under sections 3 and 4 of the Act, in full, at the time when the motor vehicle is first put to the temporary use. O. Reg. 784/92, s. 1.

15.6 In respect of the provision of private line telephone service, as specified in paragraph 4 of section 5.1, the purchaser shall pay tax on that proportion of the fair value of the telecommunication service provided that the total length of the private line within the province bears to the total length through which the service is provided. O. Reg. 383/99, s. 6.

16. (1) The class of transactions described in this section is prescribed for purposes of clause 2 (16) (d) of the Act. R.R.O. 1990, Reg. 1012, s. 16 (1).

(2) The price of admission is reduced and the vendor agrees to refund all or part of the price of admission. O. Reg. 623/92, s. 3.

17. For the purpose of clause 9 (2) (f) of the Act, the organizations named in the Schedule are prescribed. R.R.O. 1990, Reg. 1012, s. 17.

17.1 (1) When tangible personal property is sold in Ontario and within 30 days of the sale the tangible personal property is taken out of Ontario by the purchaser or on the purchaser’s behalf to be used permanently outside of Ontario, the Minister may rebate to the purchaser the tax paid by the purchaser at the time of the sale. O. Reg. 383/99, s. 7.

(2) No rebate under this section shall be made,

(a) if the tax is paid in respect of tobacco products, liquor, wine or beer;

(b) if the tax paid on each invoice is less than $50; or

(c) if the purchaser applies for the rebate more than four years after the payment of the tax for which the rebate is claimed. O. Reg. 8/94, s. 3 (2).

(3) Despite subsection (1), the Minister shall not rebate any tax paid in respect of the purchase of tangible personal property made on or after the 1st day of October, 1991, unless the purchaser supplies proof that satisfies the Minister that all of the tax payable to another Canadian jurisdiction by the purchaser in respect of the tangible personal property has been paid and that none of the tax is refundable to the purchaser. O. Reg. 176/91, s. 2.

17.2 A person applying for a rebate under section 17.1 shall provide such information in writing as the Minister may require to determine the person’s eligibility for the rebate. O. Reg. 8/94, s. 3 (3).

17.3 Revoked: O. Reg. 8/94, s. 3 (3).

18. (1) In this section,

“Ontario portion” means that portion of a premium under a contract of insurance that relates only to the risk, peril or events in Ontario where the contract applies to a risk, peril or events both inside and outside Ontario. O. Reg. 162/95, s. 8.

(2) For the purposes of subsection 2.1 (16) of the Act, the Ontario portion shall be determined in the following manner:

1. If the contract of insurance specifies the amount of the premium that applies to the insured value of real and tangible personal property in Ontario, that amount shall be the Ontario portion.

2. If the contract of insurance does not specify the amount of the premium that applies to the insured value of real and tangible personal property in Ontario, the Ontario portion shall be determined by multiplying the premium by the proportion that the insured value of the real and tangible personal property in Ontario is of the insured value of all the real and tangible personal property covered by the contract of insurance.

3. If the contract of insurance does not cover real or tangible personal property, the Ontario portion shall be calculated on a reasonable basis, taking into account the nature of the insurance and, based on information or estimates from the most recent fiscal period of the insured, the gross revenue earned by the insured inside and outside Ontario, salaries and wages paid by the insured inside and outside Ontario and any other information that may form a reasonable basis for apportionment. O. Reg. 162/95, s. 8.

(3) Despite subsection (2), the Ontario portion with respect to insurance on railway rolling stock, as defined in subsection