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
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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
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