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HomeMy WebLinkAboutThe Exeter Times-Advocate, 1975-01-09, Page 22 (2)By JACK RIDDELL M.P.P. Wb are once again on the threshold of a new year and 1 would like. to take this op- portunity to extend to you my very best wishes for a Happy and Prosperous Year. It is also that time of year' when we have to square ac- counts with the Tax Department and because of the numerous enquiries I have received I thought a few explanatory notes on the Ontario Tax Credit System would be in order. The Ontario Tax Credit System which incorporates the Property Tax Credit, the Sales Tax Credit and the Pensioner Tax Credit will provide tax credit benefits in excess of $375 million for the 1974 taxation year and will distribute these benefits among Ontario residents on a broad and equitable basis. To ensure that the benefits of these credits are distributed to those most in need of tax relief, the total tax credit entitlement is reduced by 2 percent of taxable income. Thus the amount of tax .credit available to any taxpayer depends on family cir- cumstances, age, income and the property tax or rent he or she pays, subject to an overall maximum of $500. Pensioners may be eligible for all three tax - credits. The Ontario Tax Credit System is part of the personal income tax system administered by the Federal Government. In order to obtain the various tax credits you must fill out the special purple coloured tax credit form included with the income tax schedules and file it and an income tax return, even if you have no taxable income. The tax credits will be applied to reduce any outstanding liability for income tax, Canada Pension Plan and unemployment insurance contributions. Where the value of Ontario's tax credits Ontario tax credits for federal forms • exceeds these Liabilities, the calculate his occupancy cruet Department of National Revenue based upon the rent he pays for will send out one refund cheque ,.Ws room, which is his principal residence. A Principal Taxpayer who paid property tax or rent for a farm property which includes his principal 'residence may be eligible to calculate occupancy cost and claim a, Property Tax Credit. Rent or property tax paid in respect .of, farm land that is separately assessed for municipal tax purposes from the land on which .the principal residence is located, must be excluded in the calculation of occupancy cost. The total rent or property tax paid for farm land, farm buildings, and residence assessed together for municipal tax purposes, may be included in calculating occupancy cost. If there is more than one residence on the farm, the owner or renter must exclude from the calculation of occupancy cost all property tax or rent applying to the other -residences. A farm owner or tenant is not required to reduce the calculation of occupancy cost by any amount of property tax claimed as a deduction from income for income tax purposes, or any amount paid to him under the Ontario Farm Tax Reduction Program. Sales Tax Credit — Most Ontario reesidents who file an income tax return are eligible to claim this tax credit except persons under the age of 16 at the end of 1974 and persons claimed as a dependent for in- come tax purposes by any other, December 31; 1974, except per- person in Ontario. sons under age sixteen at the end - The Sales Tax Credit Formula of 1974, and persons under age 21 for 1974 is the same as 1973, that at the end of 1974 who live at is, 1, percent of personal exemp- home and are claimed as a tions. " The Sales Tax Credit may be claimed in the income tax return filed for a deceased person with respect to the part of the year that he was alive. The surviving spouse may claim a separate Sales Tax Credit if he or she was not claimed as a dependant on the income tax return filed for the deceased in that year. Pensioner Tax Credit — The Ontario Pensioner Tax Credit may be claimed by in- dividuals resident in Ontario on December 31, 1974, who are age 65 or over at the end of 1974, except for a married couple, both of whom are age 65 or over at the end of that year living in the same principal residence; in which case, only the spouse with the higher taxable income is entitled to claim this credit. Where both spouses are 65 or over and neither spouse has a taxable income, the Pensioner Tax Credit must be claimed by the same spouse, who is claiming the Property Tax Credit, except 'when no Property Tax Credit is being claimed, in which case either spouse, but not both, may claim the Pensioner Tax Credit. The Ontario Ministry of Revenue is preparing a booklet which will explain the Ontario Credit System in greater deail than I have been able to do here. This booklet "The Ontario Tax Credit Guide" will be available January 15, 1975 from: Ontario Custom Slaughtering and Processing To lnd,r,duol Requirements Cottle and Hogs ore Government Inspected in our Modern Abotto,r fo, Your Protection. Specializing in Hickory Smoked Hams and Bacon SLAUGHTERING ON MONDAY ONLY All Processing Guaranteed LOCKERS FOR RENT By Month or Year EXETER FROZEN FOODS Phone 235-0400 which will include whatever Federal refunds are payable and the tax credits paid on behalf of Ontario. To be eligible to participate in the Ontario Tax Credit System, the claimant must be a resident of Ontario on the last day of the taxation year. If he was not an Ontario resident on that date, he is not eligible. Thus anyone who moved out of Ontario to another part of Canada during 1973 is not eligible for any tax credits unless he moved back to Ontario on or before December 31, 1973. Where, on December 31 an individual is temporarily absent from Ontario, he may be con- sidered an Ontario resident on the last day of the taxation year, unless he files an income tax return as a resident of another province at the end of the taxation year. For individuals who left Ontario and Canada during the taxation year, the last day of the taxation year is the day on which they ceased to reside in Ontario and their eligibility for tax credits must be determined as of that date. - No individual under age 16 on December 31, 1973 is eligible to claim any tax credit. Other criteria for eligibility relate specifically to the individual tax credits. Property Tax Credit — The Ontario Property Tax Credit may be claimed by all individuals resident in Ontario on dependent. The property tax credit must be claimed by the spouse having the higher taxable income. Only the property tax or rent paid in respect of your principal residence may be included in determining occupancy cost. Property tax or rent paid in respect of a second residence or cottage may not be ,included in occupancy cost. The property tax credit for- mula for 1974 is the lesser of $180 or occupancy cost, plus 10 per- cent of occupancy cost. For homeowners, occupancy cost is property tax paid in 1974. For those who rent, octupanpy cost ie 20 percent of rent paid in 1974. Far college, un,4verslty and nursing students living in "prescribed" student residences, occupancy cost is $25.00. Residents of institutions operated under the Homes for the Aged and Rest Homes Act, the Homes for Special Care Act, the Nursing Homes Act and The Charitable Institutions Act are ineligible to claim as occupancy cost any portion of payments made to these institutions if such instutions do not pay property tax. Where such institutions do pay property tax, residents may include as rent for the purpose of calculating occupancy cost, payments actually made over and above amounts subsidized under health care programs. Individuals occupying public Tax Credit System, Ministry of housing units or senior citizens' Revenue, 801 Bay Street, 10th housing units (such as the low Floor, Toronto, Ontario, M7A rental housing owned or operated 1X8. Written enquiries should by the Ontario Housing Cor- also be directed to this address. poration are eligible for the Residents in Ontario may call • Property Tax Credit using the the Ministry of Revenue's in - rent they actually pay in formation centre free of charge calculating their occupancy cost. by asking the operator to connect A roomer is eligible to you with•Zenith 8-2000. SAVE NOWduring D.ISCOUNT DAVE'S GIGANTIC chain -wide 10 beautiful panels from which C WUERTH SHOES LTD. Main St. Exeter n 1 /4 141 1 A 10th Anniversary 10, SAL Continues Flo 1+� ''t.1V MOO 4 4A Don't Miss The Savings On Footwear For , The Entire Family - NO EXCHANGE OR REFUND ON SALE ITEMS • For a limited time only, you can save S1.00 per sheet on one of our most popular panels COURTYARD MAHOGANY i0 From our -famous EVHnS collection Two beautiful species. VICTORIAN ELM RB wo SAVE $1.00 per sheet NOW on EVANS' beautiful ' AVOCADO OAK Reg $5.99 NOW And look at this! 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