PART VI SPECIAL PAYMENTS
Municipal electricity property: transfer tax
94 (1) A municipal corporation or municipal electricity utility shall not transfer to any person any interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity unless, before the transfer takes effect, it pays to the Financial Corporation the amount determined by multiplying the fair market value of the interest by the prescribed percentage or furnishes security in that amount to the Financial Corporation that meets such requirements as may be prescribed and that is satisfactory to the Financial Corporation.  2000, c. 42, s. 36 (1). Forms of property (1.1) For the purposes of subsection (1), real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity includes cash, amounts receivable, investments, customer lists, licences, goodwill and other intangible property used in connection with those activities.  2000, c. 42, s. 36 (1). Same (2) For the purpose of subsection (1), an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity shall be deemed to include any interest in a corporation, partnership or other entity that derives its value in whole or in part, directly or indirectly, from real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity.  1998, c. 15, Sched. A, s. 94 (2); 2017, c. 8, Sched. 8, s. 2 (1). Deductions from amount payable (3) Subject to subsection (5), the amount payable under subsection (1) in a taxation year by a municipal electricity utility may be reduced by the following amounts: 1. Any amount payable and paid by the municipal electricity utility under section 93 in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year. 2. Any amount payable and paid by the municipal electricity utility under Part II, II.1 or III of the Corporations Tax Act or Part III of the Taxation Act, 2007 in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year. 3. Any amount that the municipal electricity utility would be liable to pay as tax under Part I of the Income Tax Act (Canada) in respect of the taxation year if that tax were computed on the basis that the municipal electricity utility had no income during the taxation year other than the capital gain realized on the transfer of its interest in the property. 4. Any amount that the municipal electricity utility would be liable to pay as tax under Part I of the Income Tax Act (Canada) in respect of the taxation year if that tax were computed on the basis that the municipal electricity utility had no income during the taxation year other than an amount included in income under paragraph 14 (1) (b) of the Income Tax Act
(Canada) in respect of the transfer of its interest in the property.  1998, c. 15, Sched. A, s. 94 (3); 2000, c. 42, s. 36 (2); 2002, c. 22, s. 63 (1, 2); 2004, c. 16, Sched. D, Table; 2004, c. 31, Sched. 11, s. 4 (1); 2007, c. 7, Sched. 12, s. 3 (5). Deductions from amount payable, interest in municipal electricity utility (4) Subject to subsection (5), a municipal corporation or municipal electricity utility may reduce the amount payable under subsection (1) in a taxation year in accordance with the following rules with respect to each municipal electricity utility (a “subject municipal electricity utility”) in which it holds a direct or indirect interest immediately before the transfer: 1. Subject to paragraph 2, the amount of the reduction shall be calculated using the formula, A × B/C in which, “A” is the total of the amounts that are payable and paid by the subject municipal electricity utility, (a) under section 93 in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year, and (b) under Part II, II.1 or III of the Corporations Tax Act or Part III of the Taxation Act, 2007 in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year, “B” is the fair market value of the municipal corporation or municipal electricity utility’s direct or indirect interest in the shares of the subject municipal electricity utility immediately before the transfer, and “C” is the aggregate fair market value of all issued and outstanding shares of the subject municipal electricity utility immediately before the transfer. 2. A municipal corporation may calculate its reduction under paragraph 1 as if it owned all of the subject municipal electricity utility’s issued and outstanding shares if, immediately before the transfer, i. the municipal corporation and subject municipal electricity utility are related persons within the meaning of section 251 of the Income Tax Act (Canada), and ii. no other municipal corporation or municipal electricity utility holds a direct or indirect interest in the subject municipal electricity utility. 2017, c. 8, Sched. 8, s. 2 (2). Restriction on reductions (5) An amount referred to in subsection (3) or (4) may be applied under those subsections to reduce the amount payable by a municipal corporation or municipal electricity utility under subsection (1) only to the extent that it has not previously been applied to reduce an amount payable by a municipal corporation or municipal electricity utility under subsection (1). 2017, c. 8, Sched. 8, s. 2 (2). (6), (6.1) Revoked: 2017, c. 8, Sched. 8, s. 2 (2). Refund (7) Amounts paid under this section in respect of a transfer may be refunded in accordance with the regulations if the proceeds of the transfer are reinvested in the prescribed manner.  2004, c. 31, Sched. 11, s. 4 (2). Same (7.1) In such circumstances as may be prescribed, a municipal corporation or municipal electricity utility shall repay an amount refunded to it under subsection (7).  2004, c. 31, Sched. 11, s. 4 (2). Same (8) Subsection (1) does not apply to transfers prescribed by the regulations.  1998, c. 15, Sched. A, s. 94 (8). (9) Repealed:  2005, c. 31, Sched. 6, s. 2 (2). (9.1) Repealed:  2005, c. 31, Sched. 6, s. 2 (3). Payments to Minister of Finance (10) After Part V is repealed under section 84.1, payments referred to in subsection (1) must be paid to the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 94 (10); 2000, c. 42, s. 36 (5). Status of police village (10.1) A police village shall be deemed to be a municipal corporation for the purposes of this section.  2000, c. 42, s. 36 (6). (11) Spent:  1998, c. 15, Sched. A, s. 94 (11). Section Amendments with date in force (d/m/y) 1998, c. 15, Sched. A, s. 94 (11) - 07/11/2000 2000, c. 42, s. 36 (1)
- 07/11/1998; 2000, c. 42, s. 36 (2-5)
- 21/12/2000; 2000, c. 42, s. 36 (6)
- 30/11/2000 2002, c. 22, s. 63 (1-5)
- 21/12/2000 2004, c. 16, Sched. D, Table - 01/01/2004; 2004, c. 31, Sched. 11, s. 4 (1) - 07/11/1998; 2004, c. 31, Sched. 11, s. 4 (2) - 16/12/2004 2005, c. 31, Sched. 6, s. 2 (1, 2) - 07/11/1998; 2005, c. 31, Sched. 6, s. 2 (3) - 16/12/2004 2007, c. 7, Sched. 12, s. 3 (5) - 01/01/2008 CTS 17 OC 08 - 1 2017, c. 8, Sched. 8, s. 2 (1, 2) - 17/05/2017