====================================================================== Note: The electronic version of the following Appendix C is for informational purposes only. The printed version remains the official version. All tables have been placed at the end of the file. ====================================================================== APPENDIX C REVENUE MEASURES C1: Summary of Revenue Measures ---------------------------------------------------------------------- Revenue Effects Full Effective Date 1993/94 Year ---------------------------------------------------------------------- ($ millions) Income Tax Act þ British Columbia personal income tax surtax increased to 30 per cent of British Columbia income tax in excess of $5,300 plus 20 per cent of tax in excess of $9,000, effective January 1, 1994.. 1994 tax year 15.0 105.0 þ Refundable sales tax credit introduced. The maximum credit is $50 per person ................. 1993 tax year 0.0 (50.0) þ Renter's tax reduction eliminated.. 1993 tax year 0.0 18.0 þ General corporate income tax rate increased to 16.5 per cent from 16 per cent. No change to the small business tax rate of 10 per cent ....................... July 1, 1993 9.0 17.0 Corporation Capital Tax Act þ Exemption threshold increased from $1.0 million to $1.25 million of paid-up capital and technical changes introduced ................ April 1, 1993 (7.0) (7.0) Social Service Tax Act þ British Columbia sales tax rate increased to 7 per cent from 6 per cent ........................ March 31, 1993 305.0 305.0 þ Sales tax of 7 per cent introduced on specified labour services .......................... October 1, 1993 80.0 160.0 þ Sales tax of 7 per cent introduced on parking in prescribed areas .................. June 1, 1993 10.0 12.0 þ Sales tax of up to 10 per cent introduced on luxury passenger vehicles; sales tax trade-in allowance removed on purchase of passenger vehicles ................ March 31, 1993 56.0 56.0 Tobacco Tax Act þ Tobacco tax rate increased to $22.00 from $21.00 per carton of 200 cigarettes and to 8.4 cents from 8.0 cents per gram of loose tobacco ........................... March 31, 1993 23.0 23.0 Home Owner Grant Act þ Home owner grant increased by $20 ($25 for seniors) ............. 1993 tax year (15.0) (15.0) þ Home owner grant phased out at a rate of $10 for every $1,000 of home value over $400,000 .......... 1993 tax year 20.0 20.0 School Act þ School property tax rates for residential and some non-residential properties decreased in response to increases in assessed values. Rate reductions will result in gross school tax increases averaging 4 per cent .............. 1993 tax year 52.0 52.0 þ In addition to the general reduction, residential school property tax rates are reduced to $9 per $1,000 of assessed value for school districts where rates would otherwise exceed this amount 1993 tax year (2.0) (2.0) þ School property tax surtax introduced at 0.5 per cent on the portion of home value over $500,000, rising to 1.5 per cent on home value over $900,000 ....... 1993 tax year 37.0 37.0 Taxation (Rural Area) Act þ General purpose rural area tax rates decreased for some classes of property. Rate reductions will result in rural area tax increases averaging 4 per cent .............. 1993 tax year 2.0 2.0 Medical and Health Care Services Act Medical Services Plan Premiums þ Premium assistance enhanced by increasing net family income threshold by $2,000 and each level of assistance by 5 percentage points ............... July 1, 1993 (17.0) (24.0) þ Premium rates are increased approximately 3 per cent to offset cost of increase in premium assistance ................ October 1, 1993 12.0 24.0 Motor Fuel Tax Act þ Tax rate on natural gas used in pipeline compressors increased to 1.9 cents from 1.1 cents per 810.32 litres ..................... April 1, 1993 7.0 7.0 Assessment Act þ Farm revenue threshold to qualify for tax benefits increased from $1,600 to $2,500 per year ......... 1994 tax year 0.0 2.0 þ Mine access roads exempted from property tax ...................... 1993 tax year (0.5) (0.5) Other Revenue þ Liquor Distribution Branch prices increased by 2.5 to 3 per cent .... April 1, 1993 30.0 30.0 þ Various fees and licences increased ......................... various 20.0 32.0 ----- ----- Total: Consolidated Revenue Fund ................ 636.5 803.5 ===== ===== REVENUE MEASURES DEDICATED TO BC TRANSPORTATION FINANCING AUTHORITY Motor Fuel Tax Act þ Motor fuel tax rates on clear fuels are expected to increase by 1 cent per litre to 11 cents per litre of gasoline and 11.5 cents per litre of diesel .. September 1, 1993 27.0 46.0 Social Service Tax Act þ Flat tax of $1.50 per day introduced on short-term rental of passenger vehicles ............. April 1, 1993 6.0 6.0 ----- ----- Total: Dedicated Revenues ....................... 33.0 52.0 ===== ===== ---------------------------------------------------------------------- REVENUE MEASURES: SUPPLEMENTARY INFORMATION (CONSOLIDATED REVENUE FUND) INCOME TAX ACT PERSONAL INCOME TAX SURTAX INCREASED The British Columbia income tax surtax will be increased for 1994 and subsequent taxation years. Currently, the two tiered surtax is calculated as 20 per cent of British Columbia tax in excess of $5,300 (the first tier surtax) plus 10 per cent of British Columbia tax in excess of $9,000 (the second tier surtax). Surtax liabilities are reduced by $50 for each dependant. Effective January 1, 1994, the first tier surtax will increase to 30 per cent and the second tier surtax will increase to 20 per cent. For the 1994 taxation year, the surtax will be calculated as 30 per cent of British Columbia tax in excess of $5,300 plus 20 per cent of British Columbia tax in excess of $9,000, less $50 for each dependant. Generally, taxpayers with annual incomes under $60,000 will not pay the surtax, while those with incomes less than $86,500 will not pay the second tier surtax. In 1993, the first tier surtax will be paid by 142,000 taxpayers and 41,000 of these taxpayers will also pay the second tier surtax. Table C1 shows the impact of the surtax increases in 1994 for a single tax filer and a family of four, at different income levels. REFUNDABLE SALES TAX CREDIT A sales tax credit designed to compensate low income British Columbians for sales tax increases is introduced for 1993 and subsequent years. The credit will be available to more than 700,000 British Columbians when they file their income tax returns for 1993. Credits will be claimed for 1.1 million British Columbians, including dependants. The credit will be $50 per family member. It will be phased out at the rate of two per cent of the net family income in excess of a threshold level that varies with family size. The threshold level will be $15,000 for each tax filer claiming the credit plus $3,000 for a spouse and each dependent child. The credit will be used first to reduce income tax liabilities. Any remainder will be refunded to the tax filer on the province's behalf by Revenue Canada. The credit will more than offset the additional sales tax paid by most recipients of the credit. For example, a family of four with $30,000 annual income will receive a credit of $80. This amount is approximately equal to the additional sales tax the family will pay during the year. Table C2 shows the impact of the estimated sales tax increase and sales tax credit for a single person, a senior couple and a family of four, at various income levels. RENTER'S TAX REDUCTION ELIMINATED The renter's tax reduction, which was to be phased out over four years starting in 1993, will be eliminated as of the 1993 taxation year. The projected $18 million saving for 1993 will be directed to new housing programs to be announced by the Ministry of Municipal Affairs, Recreation and Housing. CORPORATE INCOME TAX RATE INCREASED The general corporate income tax rate is increased from the current 16 per cent of taxable income to 16.5 per cent, effective July 1, 1993. The small business rate remains unchanged at 10 per cent. The small business rate is available to Canadian-controlled private corporations on the first $200,000 of taxable income in British Columbia. CORPORATION CAPITAL TAX ACT EXEMPTION THRESHOLD INCREASED The exemption threshold is increased from $1 million in paid-up capital to $1.25 million, effective April 1, 1993. The increase in the threshold will apply to taxation years ending after March 31, 1993 and will eliminate the corporation capital tax liability for approximately 2,000 corporations. CORPORATION CAPITAL TAX - TECHNICAL CHANGES A number of technical changes to the corporation capital tax will reduce the potential for double-taxation, limit compliance and administrative costs, and ensure the tax is applied in a fair and consistent manner. Many of these changes were recommended in the report prepared by the Corporation Capital Tax Technical Committee, a business-government group established to advise the Minister of Finance and Corporate Relations on possible technical improvements to the corporation capital tax. SOCIAL SERVICE TAX ACT GENERAL SALES TAX RATE INCREASED The general provincial sales tax rate is increased from six per cent to seven per cent effective March 31, 1993. The 10 per cent rate imposed on beverage alcohol is unchanged. Refund provisions for the difference between the six and seven per cent tax rates are provided for goods received by a purchaser after March 30, 1993, under a written contract entered into prior to March 31, 1993. SALES TAX INTRODUCED ON SPECIFIED LABOUR SERVICES Effective October 1, 1993, the provincial sales tax is imposed on services to install, assemble, dismantle, repair, adjust, alter, restore, recondition, refinish or maintain tangible personal property, subject to the exceptions outlined further below. Examples of taxable services include: þ on motor vehicles: - engine tune-up, oil change, lubrication; - tire installation, balancing, and repair; - installation of parts (e.g., bumpers); þ on furniture and appliances: - furniture repair, reupholstery, refinishing; - repairs to free-standing appliances (e.g., stoves, televisions); þ on business equipment: - repairs to business equipment (e.g., cash registers, photocopiers and computers); - installation, assembly, dismantling, repair, maintenance, etc. of production machinery and equipment; þ on adult clothing and shoes: - alterations and repairs; - skate sharpening, ski repairs; þ miscellaneous: - refinishing, restoration, and retouching of works of art; and - watch repair and maintenance. The following are examples of services that are not subject to the sales tax: þ services to install tangible personal property that becomes real property on installation (e.g., replacement windows, built-in appliances, lighting fixtures, water heaters and furnaces); þ services to tangible personal property that is exempt from tax under the act (e.g., alterations to children's clothing; repairs to farm equipment that is exempt when purchased by bona fide farmers); þ automobile towing and emergency battery boosting; and þ services to construct, adjust, repair, renovate, restore or maintain real property (e.g., house painting, wallpapering, roofing, plumbing and electrical work). Refund provisions are provided for labour services purchased under a contract entered into before March 31, 1993, for services provided before October 1, 1994. SALES TAX INTRODUCED ON PARKING SERVICES IN PRESCRIBED AREAS Effective June 1, 1993, the general seven per cent sales tax is imposed on purchases and leases of parking services in prescribed areas. The tax applies to all purchases and leases of parking services with the following exceptions: þ parking sold or leased to residents of residential dwelling units (parking sold to non-residents is taxable); þ on-street metered parking; and þ parking services where the consideration for the parking service is not charged separately; for example, where parking is included in the lease price of a building. At a later date, the government intends to remove the latter exception and require the charge for parking to be shown separately. Parking services purchased or leased after March 30, 1993, are subject to tax on that portion of the parking service applicable to the period after May 31, 1993. SALES TAX RATE OF UP TO 10 PER CENT INTRODUCED ON LUXURY PASSENGER VEHICLES Effective March 31, 1993, the sales tax rate applied to purchases, leases and rentals of "passenger vehicles" is as follows: þ 7 per cent on passenger vehicles valued at less than $30,000; þ 8 per cent on passenger vehicles valued at $30,000 or more but less than $31,000; þ 9 per cent on passenger vehicles valued at $31,000 or more but less than $32,000; and þ 10 per cent on passenger vehicles valued at $32,000 or more. "Passenger vehicles" are defined as motor vehicles designed primarily for the transportation of individuals and include trucks and vans up to and including three-quarter ton. Excluded from the definition of passenger vehicle are trucks and vans larger than three-quarter ton, motor homes, trailers, buses, ambulances and camperized vans designed primarily for accommodation during travel or recreation. The tax rate on leased and rented passenger vehicles is determined on the basis of the value of the vehicle on the later of March 31, 1993 and the date the lessor first leases the vehicle to a lessee. Refund provisions are provided for vehicles purchased under contracts entered into before March 31, 1993. SALES TAX TRADE-IN ALLOWANCE ON PURCHASE OF PASSENGER VEHICLES REMOVED Prior to March 31, 1993, the purchase price of a vehicle or other tangible personal property was reduced for sales tax purposes by the value of tangible personal property taken in trade as partial payment. Effective March 31, 1993, the trade-in allowance on the purchase of "passenger vehicles," as defined above, is removed. As a result, the sales tax is payable at the applicable rate (7, 8, 9 or 10 per cent) on the full purchase price of a passenger vehicle even if the seller accepts a vehicle or other tangible personal property in trade as partial payment for the vehicle. The trade-in allowance on the purchase of other tangible personal property is not affected. Refund provisions are provided for contracts entered into before March 31, 1993. TOBACCO TAX ACT Effective March 31, 1993, the tax rate on cigarettes will be increased to $22.00 from $21.00 per carton of 200 cigarettes, and the rate on loose tobacco will be increased to 8.4 cents from 8.0 cents per gram. HOME OWNER GRANT ACT HOME OWNER GRANT INCREASED The home owner grant for most homeowners is increased for 1993 and subsequent years by $20 to $470. For homeowners who are seniors, handicapped or recipients of war veterans allowances, the grant is increased for 1993 and subsequent years by $25 to $745. HOME OWNER GRANT ELIMINATED FOR HIGH VALUED HOMES The home owner grant is eliminated for high valued homes in 1993 and subsequent years. The grant will be phased out, starting at an assessed value of $400,000, at the rate of $10 of grant for each $1,000 of assessed value. The grant will therefore be eliminated for most homeowners having a home assessed at more than $447,000. For homeowners who are seniors, handicapped or recipients of war veterans allowances, the grant will be eliminated for homes assessed in excess of $474,500. IMPACT OF TAX MEASURES AFFECTING HOMEOWNERS Table C3 gives examples of the tax impact on homeowners of the home owner grant reduction and the surtax at selected 1993 assessed values. (Details on the surtax are provided in the next section.) þ Taxes for 1993, before the application of the surtax or home owner grant, are assumed to be $8 per $1,000 of a property's 1993 assessed value. Actual tax rates vary from one jurisdiction to another, but this percentage can be taken as representative. þ Taxes for 1992, before application of the home owner grant, were calculated as 1993 gross taxes reduced by roughly four per cent. þ The reduction to the home owner grant is shown for the case of a homeowner who is not entitled to a seniors home owner grant. SCHOOL ACT SCHOOL TAX RATES School property tax rates for residential and some non-residential property classes will be reduced in response to increased assessed values. Rates will be adjusted to limit gross school property tax increases for the average property to roughly four per cent over 1992 levels. Specific rates will be set in April 1993 for each property class, and in the case of residential properties, for each school district. Residential rates for 1993 will be set using the province's school tax framework. SCHOOL TAX RATE CAP In addition to a general rate reduction, 1993 residential school property tax rates will be further reduced to $9 per $1,000 of assessed value for districts where the school tax rate calculated using the school tax framework is higher than that amount. In 1992, 30 school districts had a residential school property tax rate greater than $9 per $1,000 of assessed value. These school districts generally have low average assessed values and are outside major urban areas. SCHOOL PROPERTY TAX SURTAX INTRODUCED A school tax surtax applicable to some residential properties is being introduced at the following rates: $5 per $1,000 of assessed value in excess of $500,000 up to $700,000; plus $10 per $1,000 of assessed value in excess of $700,000 up to $900,000; plus $15 per $1,000 of assessed value in excess of $900,000. The surtax will be applied to high-valued single residential dwellings, including single detached homes, strata title properties and vacant lots of less than two acres. It will apply to 25,000 to 30,000 properties or about 2.5 per cent of residential properties. The surtax will not apply to apartment blocks and large parcels of vacant land in the residential property class. In the case of a farm or a property including a business as well as a house, the surtax will be calculated only on the basis of the residential value. TAXATION (RURAL AREA) ACT The general purpose rural property tax rates will be adjusted to compensate for higher assessed values for 1993. The rate for residential properties will be reduced by almost 20 per cent from the 1992 level of $1.80 per $1,000 of assessed value. The rates for other classes of property will be adjusted appropriately. Rates will be set in April 1993. MEDICAL AND HEALTH CARE SERVICES ACT MEDICAL SERVICES PLAN PREMIUMS AND PREMIUM ASSISTANCE Premium assistance will be enhanced by providing greater benefits to current recipients and by making more individuals and families eligible for the program. Monthly medical services plan premiums are currently $35 for singles, $62 for families of two and $70 for families of three or more. Premium assistance is available to lower income individuals and families at five levels, which range from 15 per cent to 95 per cent of the premiums otherwise payable. Adjusted family income is used to determine the level of assistance. It is defined as net income from an applicant's (and spouse's) income tax return, less $3,000 for each dependant and $3,000 for each person in the family over age 65 or disabled. The highest level of assistance is currently available to those individuals and families with adjusted net incomes of less than $9,000. Effective July 1, 1993, the adjusted net family income thresholds will increase by $2,000 each. In addition, each level of assistance will increase by 5 percentage points. As a result, the five assistance levels will be 100, 80, 60, 40 and 20 per cent of premiums otherwise payable for respective adjusted income thresholds of $11,000, $13,000, $15,000, $17,000 and $19,000. These enhancements will mean reduced premiums for the 540,000 people currently benefiting from premium assistance including the elimination of premiums for 430,000 people. In addition, 25,000 more will be eligible for the program. Effective October 1, 1993, medical services plan premiums will increase by approximately three per cent. The monthly rates will be $36 for single individuals, $64 for families of two and $72 for families of three or more. The increased premiums will offset reduced revenues due to the premium assistance enhancements. The following table shows the impact of these changes for a single person, a senior couple and a family of four at various income levels. For example, the adjusted net income of a senior couple with annual income of $19,000 is $10,000. This couple will be eligible for the highest level of assistance, 100 per cent, and will not have to pay premiums. MOTOR FUEL TAX ACT The tax rate on natural gas used in pipeline compressors is increased from 1.1 cents to 1.9 cents per 810.32 litres. Pipeline compressors are used to pressurize gas for transmission through the network of pipelines located throughout the province. The tax also applies to natural gas used in internal combustion engines to run pumping stations of oil pipelines. ASSESSMENT ACT FARM REVENUE THRESHOLD INCREASED The farm revenue threshold in the definition of bona fide farmer, which is used to qualify farmers for advantageous property tax, social service tax and motor fuel tax treatment, is currently set at $1,600 per year. This threshold will be increased to $2,500 per year, effective for the 1994 taxation year for property tax and effective April 1, 1994, for sales and fuel taxes. MINE ACCESS ROADS EXEMPTED FROM PROPERTY TAX Mine access roads over Crown lands will be exempted from property tax to conform more closely with the treatment of forest and other resource access roads. This exemption will begin in 1993. OTHER REVENUES LIQUOR DISTRIBUTION BRANCH CONTRIBUTION TO REVENUE The Liquor Distribution Branch will increase prices by 2.5 to 3 per cent, effective April 1, 1993, in order to raise an additional $30 million. FEES AND LICENCES A number of fees and licences will be increased during the fiscal year. REVENUE MEASURES DEDICATED TO BC TRANSPORTATION FINANCING AUTHORITY MOTOR FUEL TAX ACT Tax rates on clear gasoline and diesel fuel are expected to be increased by one cent per litre on September 1, 1993 at the request of the BC Transportation Financing Authority. With the increase, the rates would be: þ 11 cents per litre for clear gasoline; and þ 11.5 cents per litre for clear diesel fuel. The rate increases are expected to raise an additional $27 million in 1993/94. The revenue will be paid to the BC Transportation Financing Authority. There is no increase in the tax rate for marked gasoline, marked diesel, marine diesel, locomotive, aviation and jet fuel, and marked propane and butane. SOCIAL SERVICE TAX ACT FLAT TAX OF $1.50 PER DAY INTRODUCED ON SHORT-TERM PASSENGER VEHICLE RENTALS Effective April 1, 1993, a flat tax of $1.50 per day is introduced on short-term rentals of passenger vehicles. Passenger vehicles are defined as motor vehicles designed primarily for the transportation of individuals and include trucks and vans up to and including three- quarter ton. The rental of a passenger vehicle for more than 28 consecutive days is not subject to the tax. Revenue from this increase will be paid to the BC Transportation Financing Authority. TOTAL IMPACT OF TAX CHANGES Table C5 summarizes the impact of the tax measures on various individuals and families. ---------------------------------------------------------------------- C2: Summary of Administrative Measures ---------------------------------------------------------------------- Effective Date ---------------------------------------------------------------------- Social Service Tax Act þ List of items that can be purchased tax exempt by bona fide farmers expanded .............. March 31, 1993 þ Exemption for leased telephone equipment removed ........................................... March 31, 1993 þ Exemption for energy conservation equipment restricted to specified materials that prevent heat loss from a building, and natural gas and propane conversion kits for automobiles ........... March 31, 1993 Motor Fuel Tax Act þ Exemption for international air freighters introduced ........................................ May 1, 1993 ---------------------------------------------------------------------- SOCIAL SERVICE TAX ACT SALES TAX EXEMPTION FOR BONA FIDE FARMERS EXPANDED Effective March 31, 1993, the following are added to the list of items that can be purchased exempt from provincial sales tax by bona fide farmers for farm purposes: þ alley gates; þ bulb crates and bulb planters; þ calf pens; þ cattle identification ear tags; þ electric soil sterilizers; þ pollinators; þ soil mixers; þ stall dividers; and þ sterilizing equipment and sterilizing chemicals. SALES TAX EXEMPTION FOR LEASED TELEPHONE EQUIPMENT REMOVED Effective March 31, 1993, the exemption for leased telephone equipment for residential use is removed. The result is that telephone equipment for residential use is taxable whether purchased or leased. SALES TAX EXEMPTION FOR ENERGY CONSERVATION EQUIPMENT RESTRICTED Effective March 31, 1993, the exemption from the sales tax for energy conservation materials and equipment is restricted to: þ specified materials that prevent heat loss from a building; and þ natural gas and propane conversion kits for automobiles. Refund provisions are provided for goods received by a purchaser after March 30, 1993, under a written contract entered into prior to that date. MOTOR FUEL TAX ACT INTERNATIONAL AIR FREIGHTERS TO BE EXEMPTED FROM JET FUEL TAX Effective May 1, 1993, eligible international air freighters are exempt from the tax on jet fuel. -------------------------------------------------------------------------------- TABLE C1 IMPACT OF PERSONAL INCOME TAX SURTAX CHANGES FOR 1994 ------------------------------------------------------------------------------------- Single Family of Four(2) -------------------------------- -------------------------------- Total Federal and B.C. 1994 Total Federal and B.C. 1994 Income Taxes Surtax Income Taxes Surtax Income Before Changes(1) Increase Before Changes(1) Increase ------------------------------------------------------------------------------------- -----------------------------------------($)-------------------------------------- 60,000.......... 16,025 11 14,582 - 70,000.......... 20,228 144 18,544 95 80,000.......... 24,840 285 23,126 236 90,000.......... 29,405 478 27,643 380 100,000.......... 34,056 755 32,294 657 150,000.......... 59,000 2,241 57,237 2,143 (1) Tax is calculated based on basic personal credits and, at each income level, typical deductions (union dues, registered retirement savings plan and registered pension plan contributions and carrying charges). (2) Dependent spouse and two dependent children. ------------------------------------------------------------------------------------- ---------------------------------------------------------------------- TABLE C2 IMPACT OF SALES TAX INCREASES AND CREDIT - 1993 ---------------------------------------------------------------------- Annual Net Increase in Net Tax Increase Family Income Sales Tax Credit (Decrease) ---------------------------------------------------------------------- --------------------------($)--------------------------- Single 10,000............... 28 50 (22) 12,000............... 34 50 (16) 15,000............... 43 50 (7) 16,000............... 45 30 15 17,500............... 50 0 50 Senior Couple 15,000............... 51 100 (49) 18,000............... 61 100 (39) 20,000............... 68 60 8 22,000............... 74 20 54 24,000............... 81 0 81 Family of Four 20,000............... 54 200 (146) 24,000............... 65 200 (135) 27,000............... 73 140 (67) 30,000............... 79 80 (1) 34,000............... 93 0 93 -------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- TABLE C3 THE HOME OWNER GRANT REDUCTION AND PROPERTY SURTAX --------------------------------------------------------------------------------------------------------- 1993 Property Taxes 1992 Property Basic 1993 1993 Home (basic taxes 1993 Home Taxes(1) Property Owner Grant minus remaining Value (net of home Taxes (reduction to 1993 home owner grant, (assessed value) owner grant) ($8 per $1,000) taxes) Surtax plus surtax) --------------------------------------------------------------------------------------------------------- -------------------------------------------($)--------------------------------------------------- 380,000........... 2,475 3,040 (470) 0 2,570 400,000........... 2,630 3,200 (470) 0 2,730 420,000........... 2,780 3,360 (270) 0 3,090 440,000........... 2,935 3,520 (70) 0 3,450 460,000........... 3,090 3,680 0 0 3,680 480,000........... 3,240 3,840 0 0 3,840 500,000........... 3,400 4,000 0 0 4,000 550,000........... 3,780 4,400 0 250 4,650 600,000........... 4,165 4,800 0 500 5,300 700,000........... 4,935 5,600 0 1,000 6,600 800,000........... 5,705 6,400 0 2,000 8,400 900,000........... 6,475 7,200 0 3,000 10,200 1,200,000........... 6,780 9,600 0 7,500 17,100 (1) Calculated as four per cent less than basic 1993 property taxes, before deducting the home owner grant. --------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------- TABLE C4 IMPACT OF MEDICAL SERVICES PLAN PREMIUM CHANGES (For Premium and Premium Assistance Changes Effective in 1993) ---------------------------------------------------------------------------------- Annual Net Annual Premiums Before Annual Premiums After (Decrease) Family Income 1993 Budget Changes 1993 Budget Changes Increase ---------------------------------------------------------------------------------- ---------------------------------------($)----------------------------------- Single Under 9,000............ 21.00 - (21.00) 9,000 to 10,999........ 105.00 - (105.00) 11,000 to 12,999....... 189.00 86.40 (102.60) 13,000 to 14,999....... 273.00 172.80 (100.20) 15,000 to 16,999....... 357.00 259.20 (97.80) 17,000 to 18,999....... 420.00 345.60 (74.40) Over 19,000............ 420.00 432.00 12.00 Senior Couple Under 18,000........... 37.20 - (37.20) 18,000 to 19,999....... 186.00 - (186.00) 20,000 to 21,999....... 334.80 153.60 (181.20) 22,000 to 23,999....... 483.60 307.20 (176.40) 24,000 to 25,999....... 632.40 460.80 (171.60) 26,000 to 27,999....... 744.00 614.40 (129.60) Over 28,000............ 744.00 768.00 24.00 Family of Four Under 18,000........... 42.00 - (42.00) 18,000 to 19,999....... 210.00 - (210.00) 20,000 to 21,999....... 378.00 172.80 (205.20) 22,000 to 23,999....... 546.00 345.60 (200.40) 24,000 to 25,999....... 714.00 518.40 (195.60) 26,000 to 27,999....... 840.00 691.20 (148.80) Over 28,000............ 840.00 864.00 24.00 ---------------------------------------------------------------------------------- ---------------------------------------------------------------------------------- TABLE C5 FULL YEAR IMPACT OF TAX CHANGES - SELECTED CASES ---------------------------------------------------------------------------------- Senior Single Couple Family of Four(1) Individual -------- ----------------------------- ---------- Annual Income $20,000 $25,000 $45,000 $80,000 $100,000 ---------------------------------------------------------------------------------- ---------Tax Increase (Decrease) in Dollars--------- Budget Measure Personal Income Tax(2) High Income Surtax(3)..... - - - - 755 Social Service Tax Increase(4)............... 68 68 103 175 245 Sales Tax Credit.......... (60) (180) - - - Fuel Tax Increase in Rate(5)....... 10 10 15 15 15 Medical Services Plan Change in Premiums(6)..... (181) (200) 24 24 12 Property Tax(7) Home Owner Grant.......... (25) N/A (20) (20) (20) School Tax................ 32 N/A 32 37 26 ---- ---- --- ---- ---- Total Change................ (156) (302) 154 231 1,033 ===== ===== ==== ==== ===== (1) The families of four with incomes of $25,000 and $45,000 are assumed to be one-earner families while the family with $80,000 income is assumed to be a two-earner family with one spouse earning $50,000 and the other earning $30,000. (2) The family of four with $25,000 income, which rents accommodation, would have been eligible for the Renter's Tax Reduction which has been eliminated in this budget. The tax benefit under this program, dependent on rent and income, would have been approximately $350 to $600 in 1994. The objective in eliminating the program is that the benefits it offered will be returned to low income families that rent by way of new housing programs to be announced by the Ministry of Municipal Affairs, Recreation and Housing. (3) The high income surtax increase is effective for the 1994 taxation year. (4) Estimates of increased sales tax paid are based on expenditure patterns from the 1990 Survey of Family Expenditures. (5) Fuel tax increases are based on annual consumption of 1,000 litres of fuel for the family with $25,000 income and the senior couple; others are assumed to consume 1,500 litres. (6) Medical Services Plan premium changes are shown as the full year effect of the increase to premiums and premium assistance enhancements. (7) For illustrative purposes, it is assumed that the family of four with annual income of $25,000 rents accommodation; the senior couple and the family with a $45,000 income own homes valued at $200,000; the family with an $80,000 income owns a home valued at $225,000; and the single with an income of $100,000 owns a condominium valued at $160,000. ----------------------------------------------------------------------------------