- Corporate Tax Measures
- Retails Sales Tax Measures
- Property Tax Credit
The Honourable Dwight Duncan presented his first budget as the Ontario Minister of Finance on March 23, 2006. The following is a summary of some of the more relevant measures announced:
CORPORATE TAX MEASURES
Extending the Carry-Forward Period for Business Losses
The November 2005 Federal mini-budget proposes to extend the non-capital loss carry-forward period from 10 to 20 years. Subject to Federal implementation, this budget proposes to parallel the federal extension and effective date.
Ontario Capital Tax Elimination Plan
The 2004 Ontario budget introduced a plan to eliminate Ontario’s capital tax by 2012. This budget has proposed a 5% capital tax cut for 2007 and 2008 taxation years.
|Deduction ($M)||Current||Budget Proposal|
*The government intends to eliminate the capital tax in 2010, should the fiscal position of Ontario allow.
RETAIL SALES TAX MEASURES
Destination Marketing Fees
The 2004 budget introduced a one year sales tax exemption for destination marketing fees to support the hotel industry’s initiative in promoting tourism in Ontario. This temporary exemption was extended in the 2005 budget and this budget extends the relief to June 30, 2007.
Hybrid Electric Vehicles
To encourage energy conservation in Ontario, the government currently refunds the retail sales tax paid on an eligible hybrid electric vehicle, to a maximum of $1,000. The government proposes to double that rebate to $2,000 for qualifying vehicles delivered to purchasers after March 23, 2006. This measure will come to an end on March 31, 2012.
TAX MEASURES FOR INDIVIDUALS
Property Tax Credits
The maximum Property Tax Credit for seniors is $625. This credit is reduced for senior couples when their net income is greater than $22,250. The government plans to increase this income threshold so couples with minimum level income continue to receive the full $625. The amount of the increase will be announced at a later date.
Taxation of Dividends
On November 23, 2005 the federal government proposed changes to the taxation of dividends received by individuals. The Ontario government will review the federal legislation when it becomes available and then determine how to respond at that time.