Financial Measures Act Introduced

The Financial Measures Act, supporting a number of measures in the 2008-09 provincial budget, was introduced today, May 5.

"We are moving forward with a number of tax measures to make Nova Scotia a more competitive place to live, work, and do business," said Finance Minister Michael Baker. "At the same time, we are easing the financial burden of municipalities across the province."

The Financial Measures Act includes amendments to 11 pieces of legislation.

The Income Tax Act will be amended to extend the Healthy Living Tax Credit to include all Nova Scotians. Amendments will also increase the tax benefits for film and digital media industries and implement tax breaks for ground search and rescue workers and clients of naturopaths.

Several amendments relate to the memorandum of understanding between the province and the Union of Nova Scotia Municipalities. Amendments to the Corrections Act, Education Act, and Housing Act, respectively, will:

• freeze municipal contributions for corrections at the 2007-08 level of funding for two years;
• index annual increases in municipal education costs to the Nova Scotia Consumer Price Index as opposed to the higher rate of assessment growth; and
• phase out municipal funding to public housing over a two-year period, beginning in 2010-11.

Municipalities are expected to save $32 million as a result of these changes.

Amendments to the Insurance Premiums Tax Act will continue to ensure that Nova Scotia's four incorporated mutual insurance companies are exempt from premium taxes on farm and fishing property insurance contracts.

Changes to the Corporations Registration Act will exempt the Unlimited Liability Company registration fee from the Consumer Price Index increase in provincial fees and will reduce the annual registration tax to $1,000.

A number of laws will be amended to implement changes to legislated fees and government charges as announced in the this year's budget, such as those for reinstatement of driver licences, personal property, and trust and loan companies.

The act also contains housekeeping changes to the Income Tax Act.