HomeMy WebLinkAboutThe Lucknow Sentinel, 1961-09-06, Page 7-vispn$DAY, SEPT. 6th, 196; 4
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The falloikingrbasicinfaiimatiori'aboiit .theLa70:-Retait-Sale0
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Why the Sales Tax was introduced
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Ontario is experiencing the most dynamic growth in its history.
/. As a result, the demands on the provincial treasury continue to grow
unprece r1kYrexamp1edur1nthe new ve years , e
must build the equivalent of one thousand sebobls.„,,larget-enough for
500 pupils each. This means that provincial grants to, schools must .be
• greatlyincreased in the years immediately ahead, or municipalities will
be faced with crippling mill rates to provide basic educational facilities
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Hospitals, highways and other public works must also be greatly expanded
to meet the needs of -our *rapidly increasing population.:_ •
Your Province must increase its revenues by about $150
annually to ,pay forthese vital projects:,
After considering every method available to the Province, of raising ;
money, ydnr representatives .at, Queen's Park decided that our vast
financial needs could not be met out of present sources of revenue.
It was agreed that The Retail Sales Tax, Act was the fairest and most
/practical way for residents of Ontario to contribute to the cost of their
schools, hospitals and other essential servides.' •
Before drawing up the Ontario Retail Sales Tax Act, your goverirtnent
° closely studied the retail .sales taxes of seven other Canadian provinces
and many states of the U.S.A. The Ontario Retail Sales Tax' Act has
the .broadest exemptions—of any ,of these retail sales. taxes, Only two '
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other provinces have a tax rate as low as Ontario. . • . •
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, • If furnishings such as draperies, stoves and refrigeratoriare sold wit4
a home, taxis payable on the
fair 'Value of such furnishings.
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eices' j
Not axaill
Only items of merchandise that are moveable, and 'telephone services,
except long distance calls, are subject to the tax. Those persons Selling
"services," such as barbers, beauty shops, launderers and dry cleaners,
do not collect tax, but must pay tax on the materials they use in supplying •
their service. However, if a repair service includes substantial quantities, of parts or material, the entire bill will be taxable unless the materials • ,
are shown as a separate charge from the labour.
Casual Sales , • . •
When an individual sells goods, privately, the transaction is a "casual"
- sale. In such cases the purchaser and not the selkr of taxable goods is
responsible to report the purchase and pay the sales tax on the purchase '
price to the Retail Sales Tax Branch, Office of the Comptroller of Revenue. /
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Collection of Tax
Those who regularly sell goods as a normal part of their business must
*apply to be registered as vendors. Those who have applied are now
receiving their permits.
They will Collect 3% tax On the price of goods sold to the Ultimate
consuiner. Thetax willbe collected only once. Thus,, a registered whole-
saler will purchase goods for resale tax free froni the manufactrirer.
*He in turn will sell to the retailer on a tax free basis. Then the retailer
will -collect the tax when he sells to the consumer.
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Major Consumer Exemptions , • tr....
Most of the day neeessities of life are/ free of sales tax. Food
prescribed drugs and 'medical. supplies, and children's, clothing are all
tax exempt Heating fuel, electricity and gasoline are exempt News
papers; magazines and books are exempt. No tax applies op restaurant
meals charged separately at $1.50 or less. Each .sale of less than 1 7c is
• 'exempt. These and many other exemptions are 'discused, in detail on
- special cards that are now being mailed to retailerS and other vendors. -
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'Instalment Purchases •
Sales tax is due on the total price when the sale is made, even though
payments may continue over a long period of time. Finance charges
are also taxable unless quoted and itemized separately.
..,••••Trade-ins • . • •
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Homes -Not Taxable .
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. . Houses and other buildings are real property and are . not subject
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tax under this Act. The building contractor pays tax on materials incor-
porated into the home or other structure but no tax is payable on the
labour thaieonstitutes,a large part of the total price of.a home. ' '
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The •actual selling price minus the arrionnt of the trade-in.allowances
the amount ,urion which sales tax is payable.
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Farmers; will be exempt from, tax on most:equipment, on ..agricultural:
seeds and feeds,on drugs and medicines for livestock and on many '
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other Commodities userLdireCtly in the:business of farming: ,
Exports and Imports • .
Goods exported from Ontario are not, taxable sinde 'the tax' is applicable
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only to goods used in...Ontario. No tax -4! payable under this Act by
manufacturers On goods they purchase for use in the production of
goods for sale. Thus, their competitive position in the export market is
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maintained without change after theintroduction of this, tax..
Goods imported into Ontario are taxable since they are purchased • ,
tor use in Ontario. The purchaser of the iipported goods is tuhjectto • : --- — , -- - -- -
the sainetaxhiWould have to pay to an Ontario Vendor if he purchased
the goods in Ontario.
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Rental of of Moveable Property
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The person who acquires possession of moveable property bypaying.a
rental price for its use is regarded as a purchaser of such property under
the At and tax is payable by him on the rental price paid..
• Registered vendors are receiving special! .cards that. list exempt and taxable good.'
Each explains how the•Retall Sales Tax applies to each particular type of business. Addi-
tional information is civailabie from the District Sales Tax Office serving your community.,
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• DISTRICT . OFFICE AT OVEN • SOUND
..serving Bruce GAy..cotitities, ,
:...T04.• FR; 6.:lato • ..
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.bistrkt To Aditat4stititot; E. M. 'Boyd
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PHILIP T. CLARK; Compiroller, of Revenue •
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