PART VI SPECIAL PAYMENTS
Tax and charges on hydro-electric stations
92.1 (1) The owner of a hydro-electric generating station shall pay in each year to Her Majesty in right of Ontario a tax computed at the rates specified in subsection (4) on the gross revenue from the generation of electricity.  2000, c. 25, s. 46 (2). Payment to the Financial Corporation (2) Despite subsection (1), the owner of a hydro-electric generating station shall pay to the Financial Corporation a charge computed at the rates specified in subsection (4) on the gross revenue from annual generation from the hydro-electric generating station if the hydro-electric generating station is owned by a person referred to in subsection 92 (1) or was owned at any time after March 31, 1999 by a person referred to in subsection 92 (1).  2004, c. 31, Sched. 11, s. 3 (1). (2.1) Repealed:  2006, c. 33, Sched. Z.3, s. 9 (3). Payment to Ontario (3) After Part V is repealed under section 84.1, all payments under subsection (2) are payable to Her Majesty in right of Ontario instead of to the Financial Corporation.  2000, c. 25, s. 46 (2); 2001, c. 9, Sched. F, s. 1 (3). Rates (4) For the purpose of subsections (1) and (2), the rates shall be calculated as follows: 1. 2.5 per cent on gross revenue from the first 50 gigawatt hours of annual generation from the generating station. 2. 4.5 per cent on gross revenue from annual generation from the generating station above 50 gigawatt hours up to and including 400 gigawatt hours. 3. 6.0 per cent on gross revenue from annual generation from the generating station above 400 gigawatt hours up to and including 700 gigawatt hours. 4. 26.5 per cent on gross revenue from annual generation from the generating station above 700 gigawatt hours.  2000, c. 25, s. 46 (2). Additional charge (5) In addition to the taxes or charges under subsection (1) or (2), the holder of a water power lease shall pay a water rental charge to Her Majesty in right of Ontario calculated at 9.5 per cent on gross revenue from annual generation from the hydro-electric generating station, and the holder’s lease is hereby amended to substitute this charge for any water rental charge set out in the lease.  2000, c. 25, s. 46 (2). Exception, water power lease under Niagara Parks Act (5.1) Each prescribed holder of a water power lease under the Niagara Parks Act
shall make such payments as may be prescribed to The Niagara Parks Commission, in the time and manner prescribed by regulation, and those payments reduce the amount of the charge payable by the holder under subsection (5).  2001, c. 23, s. 68 (1). Exception (6) There may be deducted, in determining the amount of gross revenue referred to in subsections (4) and (5), the amount of gross revenue resulting from the generation of electricity from eligible capacity, as determined by regulation, for the time period that is the longer of, (a) the first 120 months after the eligible capacity is put in service, as determined by regulation; and (b) such length of time, after the eligible capacity is first put in service, as the Minister of Finance may prescribe in the regulations.  2002, c. 23, s. 3 (22). (7) Repealed:  2009, c. 33, Sched. 16, s. 4. Payment of taxes and charges (8) The taxes and charges payable under this section shall be paid at the times and in the manner prescribed by regulation.  2000, c. 25, s. 46 (2). (9) Repealed:  2004, c. 31, Sched. 11, s. 3 (3). Demand for information (10) The Minister of Finance may, for any purpose related to the administration or enforcement of this section, by registered letter or by a demand served personally or delivered by courier service, require any person to provide any information or records to the Minister within such reasonable time as is stipulated in the letter or demand.  2000, c. 25, s. 46 (2). Deemed receipt of registered letter (10.1) A registered letter sent to a person under subsection (10) is deemed to have been received on the fifth day after the day of mailing unless the person establishes that, although acting in good faith, the person did not receive it or did not receive it until a later date.  2011, c. 9, Sched. 12, s. 4. Offence (11) Any person who fails to provide the information or records as required under subsection (10) is guilty of an offence and is on conviction liable to a fine of not more than $100 for each day during which the default continues.  2000, c. 25, s. 46 (2). Confidentiality (12) Except as authorized by this section, no person employed by the Government of Ontario shall, (a) knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or (b) knowingly allow any person to inspect or to have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.  2000, c. 25, s. 46 (2). Testimony (13) No person employed by the Government of Ontario shall be required, in connection with any legal proceedings, (a) to give evidence relating to any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or (b) to produce any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.  2000, c. 25, s. 46 (2). Exception (14) Subsections (12) and (13) do not apply in respect of, (a) criminal proceedings under an Act of the Parliament of Canada; (b) proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or (c) proceedings relating to the collection of taxes or charges under this section.  2000, c. 25, s. 46 (2). Communication (15) A person employed by the Government of Ontario may, in the course of duties in connection with the administration or enforcement of this section, (a) communicate or allow to be communicated to another person employed by the Government of Ontario in the administration or enforcement of any law, information obtained by or on behalf of the Minister of Finance for the purposes of this section; and (b) allow another person employed by the Government of Ontario in the administration or enforcement of any law, to inspect or have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.  2000, c. 25, s. 46 (2). Reciprocal communication (16) A person who receives information or obtains access to any record or thing under subsection (15) has a duty to communicate or furnish to the Minister of Finance on a reciprocal basis any information, record or thing obtained by the person that affects the administration or enforcement of this section.  2000, c. 25, s. 46 (2). Use of information (17) Any information, record or thing communicated or furnished under this section may be used only for the administration or enforcement of this section or an Act that is administered or enforced by the person receiving the information, record or thing.  2000, c. 25, s. 46 (2). Offence (18) Every person who contravenes subsection (12), (13), (14), (15), (16) or (17) is guilty of an offence and on conviction is liable to a fine of not more than $2,000.  2000, c. 25, s. 46 (2). Gross lease recovery (19) If the owner of the hydro-electric generating station is not the person who generates electricity from that facility and is unable to recover the liability imposed under this section under the terms of its contract or sublease with the person who generates electricity, the amount of such liability may be recovered from the person generating the electricity.  2000, c. 25, s. 46 (2). Section 444.1 to apply (20) The amount specified under subsection (19) may be recovered in the same manner as amounts are recovered under subsection 444.1 (2) of the Municipal Act, as that Act read immediately before its repeal by the Municipal Act, 2001, and subsections 444.1 (5), (6) and (8) of that Act apply in respect of the amount.  2000, c. 25, s. 46 (2); 2002, c. 17, Sched. F, Table. Regulations (21) The Minister of Finance may make regulations, (a) determining eligibility for a deduction under subsection (6); (b) prescribing one or more methods for determining gross revenue for the purposes of this section; (c)  Repealed:  2004, c. 31, Sched. 11, s. 3 (4). (d) providing for lower rates to be applied to specified hydro-electric generating stations for the purposes of subsections (4) and (5); (e) determining the annual generation for the purposes of subsections (4) and (5) pursuant to energy transfers or water transfers between a hydro-electric generating station in Ontario and a hydro-electric generating station in Ontario or in another jurisdiction; (e.1)  prescribing a length of time longer than 120 months that applies to one or more hydro-electric generating stations for the purposes of subsection (6); (f) exempting any hydro-electric generating station from the tax or charge or a portion of the tax or charge under subsection (1), (2) or (5); (f.1) prescribing water power lease holders for the purposes of subsection (5.1), specifying the amount of the payments to be made under that subsection and the time and manner in which the payments are to be made; (g) defining any word or expression used in this section that is not already defined; (h) providing for compensation to be paid to municipalities in which a hydro-electric generating station is located in respect of revenues foregone as a result of the enactment of paragraph 28 of subsection 3 (1) of the
Assessment Act.  2000, c. 25, s. 46 (2); 2001, c. 23, s. 68 (2); 2002, c. 23, s. 3 (23); 2004, c. 31, Sched. 11, s. 3 (4). General or specific (22) A regulation under subsection (21) may be general or specific and may apply to different hydro-electric generating stations and different owners differently.  2000, c. 25, s. 46 (2). Retroactive (23) A regulation made under this section is, if it so provides, effective with reference to a period before it is filed.  2000, c. 25, s. 46 (2). Definitions (24) In this section, “holder of a water power lease” means a person who has entered into an agreement, lease or other writing respecting the use of water under subsection 42 (2) of the Public Lands Act or under the Niagara Parks Act or the The St. Lawrence Development Act, 1952 (No. 2) or who is required to enter into such agreement, lease or other writing in order to be entitled to occupy public lands; (“titulaire d’un bail pour l’exploitation de ressources hydro-électriques”) “hydro-electric generating station” includes any building or structure in which electricity is generated through the use of water power or from the movement of water; (“centrale hydro-électrique”) “owner” includes a tenant of land owned by the Crown or a municipality on which a hydro-electric generating station is located or a tenant of land owned by any other person if the tenant is the generator of electricity from the hydro-electric generating station. (“propriétaire”)  2000, c. 25, s. 46 (2). Section Amendments with date in force (d/m/y) 2000, c. 25, s. 46 (2)
- 01/01/2001 2001, c. 9, Sched. F, s. 1 (3) - 29/06/2001; 2001, c. 23, s. 68 (1, 2) - 01/01/2001 2002, c. 17, Sched. F, Table - 01/01/2003; 2002, c. 23, s. 3 (22, 23) - 09/12/2002 2004, c. 16, Sched. D, Table - 01/01/2004; 2004, c. 31, Sched. 11, s. 3 (1, 2) - 01/01/2001; 2004, c. 31, Sched. 11, s. 3 (3, 4) - 16/12/2004 2005, c. 31, Sched. 6, s. 1 - 01/01/2001 2006, c. 33, Sched. Z.3, s. 9 (3) - 01/01/2009 2009, c. 33, Sched. 16, s. 4 - 15/12/2009 Municipal electricity utilities