Alberta Budget
The Alberta budget was tabled on April 7, 2009. No significant tax measures were announced. However, the following provisions may be of interest.
Alberta Family Employment Tax Credit
The government confirmed that, as a result of indexation, the maximum payments under the Alberta Family Employment Tax Credit program will be increased as follows effective July 2009:
- $669 to $694 for the first child;
- $608 to $631 for the second child;
- $365 to $379 for the third child; and
- $122 to $126 for the fourth child.
The family net income threshold at which the credit begins to be phased out will also be increased from $32,663 to $33,873.
Dividend Tax Credit
For 2009, the dividend tax credit rate for dividends subject to the 145% gross-up will be increased from 9% to 10% as previously scheduled.
The rate for dividends subject to 125% gross-up will be reduced from 4.5% to 3.5%
British Columbia Budget
The 2009/2010 provincial budget was tabled on February 17, 2009. The global financial crisis has resulted in a dramatic reduction in provincial revenues. However, rather than increase taxes or cut back spending, the government has chosen to run a temporary deficit of $495 million in 2009/10 and $245 million in 2010/11. Taxpayers had better hope for an economic upswing in the meantime since provincial legislation requires a return to a balanced budget by fiscal 2011/12.
The budget contained only a few items of significance to personal taxes.
Personal Tax Rates
Personal tax rates for 2009 will remain the same as for 2008. However, the income thresholds will increase by 2% as the result of indexation. A summary of the tax rates over the past three years is shown below.
2007 |
2008 |
2009 |
5.7% of taxable income up to $34,397 |
5.06% of taxable income up to $35,016 |
5.06% of taxable income up to $35,716 |
8.65% of taxable income between $34,397 and $68,794 |
7.7% of taxable income between $35,016 and $70,033 |
7.7% of taxable income between $35,716 and $71,433 |
11.1% of taxable income between $68,794 and $78,984 |
10.5% of taxable income between $70,033 and $80,406 |
10.5% of taxable income between $71,433 and $82,014 |
13% of taxable income between $78,984 and $95,909 |
12.29% of taxable income between $80,406 and $97,636 |
12.29% of taxable income between $82,014 and $99,588 |
14.7% of taxable income in excess of $95,909 |
14.7% of taxable income in excess of $97,636 |
14.7% of taxable income in excess of $99,588 |
The parameters used to calculate the BC Tax Reduction and the BC personal amounts will also be increased by 2%.
Dividend Tax Credit Reduction
Effective January 1, 2010, the dividend tax credit rate for ordinary dividends will be reduced from 4.2% to 3.4%. This is the result of the reduction in the small business corporate income tax rate from 3.5% to 2.5% on December 1, 2008. No changes were announced to the tax credit rate for eligible dividends from corporations subject to the general corporate tax rate in spite of a proposed reduction in the tax rate to 10.5% effective January 1, 2010.
Treatment of Registered Disability Savings Plan (RDSP) Income
Effective January 1, 2009, income from an RDSP will be excluded from income for the purpose of calculating the BC Sales Tax Credit. It will also be excluded for the purpose of determining eligibility for Medical Services Plan premium assistance.
New BC Carbon Tax Measures
Two new measures were announced in the budget to help cushion the increase in the carbon tax to $15 per tonne effective July 1, 2009. These are:
- A 10% increase in the Low Income Climate Action Tax Credit from $105 to $115.50 per adult and from $31.50 to $34.50 per child effective July 1, 2011.
- A new Northern and Rural Homeowner benefit of up to $200 beginning in 2011. The budget provided no details as to how this benefit will be calculated or delivered. However, it will be targeted to homeowners outside the Greater Vancouver, Fraser Valley and Capital regional districts.
There will also be a 50% reduction in school property taxes for farmland effective for 2011.
The increase in the carbon tax in July 2009 should result in an increase of 1.17¢ per litre for gasoline and 1.35¢ per litre for diesel and home heating oil.
BC Budget Update
The BC government presented its second budget for fiscal 2009 − 2010 on September 1, 2009. This was necessitated by provincial legislation that requires the government to table a budget within three months of an election.
Lower tax revenues resulting from a shrinking economy produced a deficit of $2.77 billion for 2009 − 2010, $2.28 billion more than the $495 million the government had forecast in its pre-election budget. The government also projected deficits for the next three years with a return to a surplus postponed until 2013/14. The provincial balanced-budget legislation had previously required a return to a balanced budget by fiscal 2011/2012. However, the government had already announced in last week’s throne speech that the legislation would be amended to allow for four years of deficits.
The focus of the budget was on spending with few tax measures announced. However, “in order to ensure that everyone has a few more dollars in their pockets,” as the Finance Minister put it in his budget address, increases were announced to the basic personal amount, the spouse or common-law partner amount and the amount for an eligible dependant. These will take effect for 2010. A summary of the amounts for 2008 to 2010 is shown in the table below.
British Columbia Personal Amounts |
|||
2008 |
2009 |
2010 |
|
Basic |
$9,189 |
$9,373 |
$11,000 |
Spouse or common-law partner / amount for an eligible dependant Threshold |
7,868 787 |
8,026 803 |
9,653 965 |
According to the budget papers, this will result in a tax savings of $72 for individuals and $147 for families.
BC HST Low-income Tax Credit
The BC government will soften the impact of its new Harmonized Sales Tax in July 2010 with a refundable tax credit for lower-income taxpayers. The budget included details of how much relief will be provided by the credit.
The maximum credit will be $230 for individuals with net income up to $20,000 and $230 per family member for families with net income up to $25,000. The total amount will be phased-out by 4% of family income in excess of these thresholds.
The credit will be paid quarterly with the GST and provincial carbon tax credits so will not be included with the income tax refund.
Medical Services Plan Premiums
Effective January 1, 2010, Medical Services Plan premiums will be increased by approximately 6%. As a result, the level of assistance offered under the Medical Services Plan premium assistance program will be enhanced as shown in the table below.
BC Medical Service Plan Premium Assistance Program |
||
% of Premiums Payable |
Before Changes |
After Changes |
0% |
$20,000 or less |
$22,000 or less |
20% |
$20,001 to $22,000 |
$22,001 to $24,000 |
40% |
$22,001 to $24,000 |
$24,001 to $26,000 |
60% |
$24,001 to $26,000 |
$26,001 to $28,000 |
80% |
$26,001 to $28,000 |
$28,001 to $30,000 |
Manitoba Budget
The Manitoba budget was tabled on March 25, 2009. It confirmed that a number of modest tax reductions that had already been planned for 2009 would be implemented as scheduled. These include:
- A reduction in the first income tax bracket tax rate from 10.9% to 10.8%;
- An increase in the middle tax bracket income threshold from $30,544 to $31,000;
- An increase in the top tax bracket income threshold from $66,000 to $67,000;
- An increase of $100 to the basic personal amount, spousal amount and eligible dependent amount; and
- An increase of 2.6% to the amounts used to calculate the Personal Tax Credit.
The amounts used to calculate the Personal Tax Credit for 2009 are shown in the table below.
Personal Tax Credit Increases |
||
2007 & 2008 |
2009 |
|
Basic credit |
$190 |
$195 |
Age credit for self |
$110 |
$113 |
Basic credit for spouse |
$190 |
$196 |
Age credit for spouse |
$110 |
$113 |
Disability credit for spouse |
$110 |
$113 |
Credit for eligible dependant |
$190 |
$195 |
Disability credit for self or dependant |
$110 |
$113 |
Disability credit for dependants |
$60 |
$62 |
Credit for dependent children |
$25 |
$26 |
Education Property Tax Credit
The basic amount for the education property tax credit, which was increased from $525 to $600 for 2008, will be further increased to $650 for 2009.
Primary Caregiver Tax Credit
Last year’s budget announced that a new refundable tax credit would be introduced for 2009 to provide modest tax relief to individuals who serve as volunteer primary caregivers for more than three continuous months. The implementation of this credit was confirmed in this year’s budget, which also announced that the Department of Family Services and Housing (FSH) will determine eligibility based on participation in the Supported Living Program and the Children’s Special Services Program.
The credit will be calculated as $85 per month for each month that the taxpayer is an eligible primary caregiver. The primary caregiver may be a spouse, other relative, neighbour or friend.
Only one person will qualify as an individual’s primary caregiver at any one time. A caregiver will not be able to claim the credit for more than three individuals in a given month.
Exclusion of RDSP Income for Provincial Tax Credit Purposes
Effective for 2009, the taxable portion of withdrawals from a Registered Disability Savings Plan (RDSP) will be excluded from family net income for the purpose of calculating the Education Property Tax Credit, the School Tax Credit for Homeowners and the Personal Tax Credit.
Green Energy Equipment Tax Credit
Since 2007, taxpayers have been able to claim a 10% credit for the purchase of equipment used in producing energy from solar energy, wind power, hydrogen or geothermal energy. Effective for 2009, the credit is extended to solar thermal energy systems used primarily for the purpose of heating liquid or gas.
New Brunswick Budget
The New Brunswick budget was tabled on March 17, 2009. Its centrepiece was a tax reduction plan to be phased in over the next four years. The officially titled “Plan for Lower Taxes” follows in principle the recommendations of the Select Committee on Tax Review which presented its report to the New Brunswick legislature in December last year. However, there will be no carbon tax or increase to the provincial component of the HST as suggested by the committee.
Personal Tax Reductions
The plan proposes to gradually phase in lower personal tax rates over the next four years, culminating with a conversion to a two-rate tax system in 2012. As can be seen in the table below, the more substantial cuts will be to the upper tax brackets.
|
|
|
|
|
|||||
0 |
|
0 |
|
0 |
|
0 |
|
|
|
$35,707 to $71,415 |
|
$35,707 to $71,415 |
|
$36,421 |
|
$37,150 |
|
||
$71,415 to $116,105 |
|
$71,415 to $116,105 |
|
$72,843 |
|
$74,300 |
|
|
|
Over $116,105 |
17.95% |
Over $116,105 |
17% |
Over $118,427 |
14.3% |
Over $120,796 |
12.7% |
||
The rate at which the low-income tax reduction is phased out will also be reduced from 5% in 2008 to 4% in 2009 and 3% for 2010 and subsequent years.
According to the budget papers, a single taxpayer with taxable income of $25,000 will realize tax savings of approximately $202 in 2009 as the result of the new measures. By 2012 the tax savings will have increased to $473. However, middle and upper income taxpayers will benefit most from the changes. Again according to the budget papers, a taxpayer with taxable income of $125,000 will pay approximately $4,434 less tax once the two-rate structure is implemented in 2012. Currently, this taxpayer pays more provincial tax than residents of any other provinces except Quebec. By 2012, assuming the other provincial tax rates remain unchanged, only residents of Alberta and British Columbia will pay less provincial tax.
Low-income Seniors’ Benefit
The Low-Income Seniors’ Benefit will be increased from $200 in 2008 to $300 in 2009 and to $400 in 2010. This benefit is paid to residents of New Brunswick aged 60 and over who received an OAS supplement in the previous year. They must apply for the benefit by filing an application form with the provincial Department of Finance by November 30 each year.
New Brunswick Tuition Rebate
The New Brunswick tuition rebate currently provides a rebate of 50% of eligible tuition costs up to an annual maximum of $2,000 and a lifetime maximum of $10,000. Effective for 2009, the budget will double these figures to $4,000 and $20,000 respectively.
Newfoundland Budget
The Newfoundland budget was tabled on March 26, 2009. Tax measures included an enhancement of the Low-income Tax Reduction Program, a more generous Labour-Sponsored Venture Capital Tax Credit, adjustments to the dividend tax credit and an increase to the small business threshold.
Low-income Tax Reduction
Effective for the 2009 taxation year, the Low-Income Tax Reduction income threshold will be increased from $13,511 to $15,911 for individuals and from $21,825 to $26,625 for families. The 2008 thresholds were $13,143 and $21,231 respectively.
According to the budget papers, individuals with net income between $15,911 and $19,399 and families with net income between $21,231 and $31,863 will receive partial reductions.
The tables below (which are reproduced from the government papers) illustrate the tax savings resulting from the changes to the Low-income Tax Reduction.
Low-income Tax Reduction |
|||
Individuals |
|||
Net Income |
2009 Benefit |
2009 Benefit |
Incremental Savings |
$14,000 |
$307 |
$420 |
$113 |
$15,000 |
$147 |
$492 |
$345 |
$16,000 |
$0 |
$544 |
$544 |
$17,000 |
$0 |
$384 |
$384 |
$18,000 |
$0 |
$224 |
$224 |
$19,000 |
$0 |
$64 |
$64 |
Low-income Tax Reduction |
|||
Families |
|||
Net Income |
2009 Benefit |
2009 Benefit |
Incremental Savings |
$22,000 |
$465 |
$506 |
$41 |
$23,000 |
$305 |
$578 |
$273 |
$24,000 |
$145 |
$650 |
$505 |
$25,000 |
$0 |
$721 |
$721 |
$26,000 |
$0 |
$793 |
$793 |
$27,000 |
$0 |
$778 |
$778 |
$28,000 |
$0 |
$618 |
$618 |
$29,000 |
$0 |
$458 |
$458 |
$30,000 |
$0 |
$298 |
$298 |
$31,000 |
$0 |
$138 |
$138 |
The reductions will be incorporated into payroll deductions beginning in July 2009.
Dividend Tax Credit
Effective for the 2009 taxation year, the Dividend Tax Credit rate on eligible dividends will be increased from 6.65% to 9.75%. The rate for dividends subject to the small business tax rate will remain at 5%.
Nova Scotia Budget
The new provincial government tabled its first budget. For the most part, its content is identical to the budget tabled by the previous government on May 4, 2009, which was not passed prior to the June election. However, the new budget does include a new Graduate Retention Rebate which will replace the existing Graduate Tax Credit.
Personal Income Tax Measures
The following measures announced in the 2008 budget will be deferred:
- The extension of the Healthy Living Tax Credit to adults, which was supposed to be effective January 1, 2009; and
- The implementation of the new Transit Tax Credit, which was also supposed to be effective for 2009.
According to the budget papers, both these credits will be “revisited” at a later date. The existing $500 credit for children’s sport and recreation registration fees will remain in effect.
The increases to the personal amounts that had already been scheduled for 2009 and 2010 will remain in effect. These are summarized in the table below:
Nova Scotia Personal Amounts |
||||
Personal Amount |
2007 |
2008 |
2009 |
2010 |
Basic |
$7,481 |
$7,731 |
$7,981 |
$8,231 |
Spouse / Common law Partner |
6,352 |
6,565 |
6,778 |
6,989 |
Eligible Dependant |
6,352 |
6,565 |
6,778 |
6,989 |
Caregiver |
4,320 |
4,465 |
4,610 |
4,917 |
Infirm Dependants |
2,468 |
2,551 |
2,633 |
2,809 |
Age Amount |
3,653 |
3,775 |
3,897 |
4,158 |
Pension Income Amount |
1,035 |
1,069 |
1,104 |
1,178 |
Disability Amount |
$4,441 |
$4,596 |
$4,738 |
$5,055 |
The previously scheduled increase to the Volunteer Firefighters and Ground Search and Rescue Tax Credits from $375 to $500 will also go ahead as planned.
Graduate Retention Rebate
The new Graduate Retention Rebate will replace the Post-secondary Graduate Tax Credit effective for 2009. It will provide post-secondary students who graduate with a degree in 2009 or subsequent years with a tax reduction of up to $15,000 over six years, to a maximum of $2,500 per year. College diploma and certificate graduates will be eligible for a tax reduction of up to $7,500 over six years, to a maximum of $1,250 per year. The program will be administered as part of the annual tax return.
According to the budget papers, students who graduated in previous years and claimed the Post-secondary Graduate Tax Credit will be able to carry forward any unused amounts for up to two years.
HST Measures
The government announced a rebate on the provincial portion of the HST on residential electricity usage which will take effect on October 1, 2009.
A 50% rebate on the provincial portion of the HST on new homes was previously announced on July 7, 2009. It will apply to new homes that began construction on or after January 1, 2009 and that are substantially complete by March 31, 2010. There is a maximum rebate of $7,000.
Ontario Budget
The Ontario budget was tabled on March 26, 2009. As expected, the Ontario Retail Sales Tax will be harmonized with the Goods and Services Tax effective July 1, 2010. It will also be accompanied by a one-time Ontario Sales Tax Transition Benefit and an enhanced Ontario Sales Tax Credit which will be paid in quarterly instalments separate from the tax refund. However, the Ontario Property Tax Credit will not be affected.
Other major measures include a reduction in the provincial tax rates and an accelerated phase-in of the Ontario Child Benefit.
Ontario Sales Tax Reform
The new sales tax will come into effect on July 1, 2010. It will have a combined tax rate of 13%, consisting of a federal component of 5% and a provincial component of 8%. The same rules as apply to the GST will apply to the new harmonized tax. For example, the same goods and services will be exempt or zero-rated and businesses will be able to claim input tax credits under the same rules as apply to GST registrants. However, point-of-sale rebates will be applied to books, children’s clothing and footwear, children’s car seats and car booster seats, diapers, and feminine hygiene products. This will have the effect of exempting these goods from the provincial portion of the tax. However, notwithstanding these exemptions, Ontario residents will still be paying provincial tax on a substantial number of goods and services that they were not paying tax on previously such as gasoline.
Businesses with less than $2 million in annual revenue from taxable sales, other than financial institutions, will be eligible for a transition credit of up to $1,000 to help them with the changes they will have to make to their point-of-sale and accounting systems.
Ontario Sales Tax Transition Benefit
The Ontario Sales Tax Transition Benefit will be paid to residents of Ontario 18 or over and consist of three separate payments in June and December of 2010 and June 2011. Taxpayers will have to file a 2009 tax return to qualify for the two benefits in 2010 and a 2010 tax return to qualify for the June 2011 benefit.
For a single person with no children, each payment will consist of a maximum of $100. However, it will be reduced by 5% of net income in excess of $80,000, which means that taxpayers with net income of $80,000 will get the full amount and taxpayers with net income in excess of $82,000 will get nothing. Taxpayers who receive the maximum amount payable for each of the three payments will therefore receive a total of $300. It appears that the two payments in 2010 will be calculated by reference to 2009 net income and the 2011 payment will be calculated by reference to 2010 net income although this was not spelled out in the budget papers.
For couples or single parents, the first payment will consist of a maximum of $330 and the second and third payments will consist of a maximum of $335. Each of the three payments will be reduced by 5% of family net income in excess of $160,000, with the first two payments based on 2009 income and the last payment based on 2010 income. A family with net income of $160,000 or less in both years will therefore receive a total of $1,000.
The calculation is summarized in the following table reproduced from the government papers.
Ontario Sales Tax Transition Benefit |
||||
Payment Month |
Single Taxpayers |
Single Parents or Couples |
||
Maximum Benefit |
Phase-out Range |
Maximum Benefit |
Phase-out Range |
|
June 2010 |
$100 |
$80,000 − $82,000 |
$330 |
$160,000 − $166,600 |
Dec 2010 |
$100 |
$80,000 − $82,000 |
$335 |
$160,000 − $166,700 |
June 2011 |
$100 |
$80,000 − $82,000 |
$335 |
$160,000 − $166,700 |
Total |
$300 |
$1,000 |
||
Personal Tax Adjustments
The budget includes the following adjustments to the personal tax rates to take effect for the 2010 taxation year:
- A reduction in the lowest tax rate from 6.05% to 5.05% (which will result in a corresponding reduction in the rate for converting personal amounts into non-refundable tax credits);
- A reduction in the provincial tax thresholds used to calculate the high-income surtax from:
- $4,297 to $3,978 for the 20% surtax, and
- $5,370 to $5,091 for the 36% surtax.
The $3,978 and $5,091 figures will be increased by the 2010 indexation factor.
For higher-income taxpayers, these lower threshold amounts will largely offset the savings realized by the reduction in the lowest tax rate.
The parameters used to calculate the Ontario Tax Reduction will remain unchanged except to the extent that they are increased by indexation.
New Ontario Sales Tax Credit
The existing sales tax credit will be replaced by a new one which will no longer be included as part of the tax refund. Beginning in July 2010 it will instead be paid in quarterly instalments like the GST/HST Credit.
The maximum annual credit will consist of $260 for each adult and each child. It will be reduced by 4% of adjusted family net income over $20,000 for single taxpayers and $25,000 for families.
Ontario Property Tax Credit
The Ontario Property Tax Credit will continue to be included with the taxpayer’s refund. The calculation will remain unchanged except that beginning in 2010 the components will be indexed to inflation.
Ontario Senior Homeowners’ Property Tax Grant
Beginning in 2010, the maximum Ontario Senior Homeowners’ Property Tax Grant will be doubled from $250 to $500. As before, the grant will be phased out for single seniors with net income between $35,000 and $50,000 and senior couples with family net income between $45,000 and $60,000.
Ontario Child Benefit
The phase-in of the Ontario Child Benefit will be accelerated by two years with the maximum annual benefit of $1,100 beginning to be paid with the 2009 − 2010 benefit year instead of the 2011 − 2012 benefit year.
Corresponding adjustments will be made to the Ontario Child Care Supplement for Working Families and to social assistance benefits for children.
Dividend Tax Credit
The dividend tax credit rate for eligible dividends, which was due to increase to 7.7% in 2010, will instead be reduced to 6.4%. The rate for other dividends will be reduced to 4.5%. The table below compares the change in rates from 2008 to 2010.
2008 |
2009 |
2010 |
2010 |
|
Eligible Dividends |
7% |
7.4% |
7.7% |
6.4% |
Other Dividends |
5.13% |
5.13% |
5.23 |
4.5% |
The adjustments are required as the result of changes to the corporate income tax rates as discussed below.
Prince Edward Island Budget
The PEI budget was tabled on April 16, 2009. No personal income tax measures were announced.
Since the provincial tax system is not indexed to inflation, the provincial tax rates and personal amounts for 2009 will remain unchanged from 2008.
Québec budget 2009-2010
On March 19, 2009, the Minister of Finance Monique Jérôme-Forget tabled the 2009-2010 Budget. Because of the current economic situation, the government priorities are to prevent the increase of the rate of unemployment in Québec, to support businesses and develop training plans for individuals affected by this situation.
Here are some measures which will affect our clients for 2009:
Improvements to the refundable tax credit for child care expenses
Families obtain some educational childcare services at a low cost ($7 a day) for their child age 5 or under. Those who pay childcare expenses for a child who is not in a reduced contribution space can claim a refundable tax credit. The present budget makes three changes in the application of this credit:
Changes to the rate table
The new rate table will contain 32 family income brackets instead of 33. The first 15 brackets will keep the structure announced in the 13 March 2008 Budget. The last 18 brackets will see some changes. Effective for the 2009 taxation year, the Rate table used to calculate the refundable tax credit for child care expenses will be replaced by the table shown on the next page. The rate table used to determine advanced payments will also be changed as follow:
Increase to $9,000 in the limit of child care expenses for a child under 7 years of age
Effective for the 2009 taxation year, the maximum claim for a child who is not disabled has been increased from $7,000 to $9,000.
Improvement of the tax treatment of child care expenses paid during a parental leave
Beginning in 2009, an individual or an individual’s spouse who receives benefits under the Québec Parental Insurance Plan or birth or adoption-related benefits under the federal Employment Insurance plan will be able to claim the refundable credit for child care expenses paid during the period of the parental leave.
Refundable tax credit for the acquisition or lease of a new green vehicle
This credit will be granted for a new green vehicle acquired or leased after December 31 2008 and before January 1st 2016. The value of the tax credit will be determined by the vehicle’s environmental performance. The table below illustrate the calculation’s criteria:
To claim this credit, the taxpayer will have to file a prescribed form with his or her tax return.
Streamlining of the Québec Education Saving Incentive (QESI)
RESP beneficiaries 16 or 17 years of age
To simplify the work of RESP trustees, children age 16 or 17 years at the end of a given year will now be eligible for the QESI if the federal government paid a Canada Education Savings Grant to the child’s RESP. This will replace the current minimum contribution requirements.
Alienation of the Québec incentive further to the transfer of all property from an RESP to another RESP
Currently, it is not possible to transfer property from one RESP to another RESP if the first RESP has not yet received the QESI, which can take months. This is because an amount owing by the State in respect of a fiscal law as a refund is inalienable. An exception will be made to this rule so as to allow the transfer of all property from a RESP to another RESP after March 19, 2009.
Consequences of late participation by certain RESP providers
To be authorized to apply for the QESI for a given year, RESP providers must first enter into a QESI agreement with the Minister of Revenue.
For those who have not yet entered an agreement, the government will implement measures to facilitate the transfer of property from a non participant RESP to a participant RESP so the QESI will be granted for contributions made after February 20 2007 but before January 1st 2011.
Increase of the refundable tax credit for the QST (2011)
With the increase in the rate of the Québec sales tax from 7.5% to 8.5%in 2011, the government announced that the refundable tax credit for the QST will increase accordingly.
Refundable tax credit for the QST
Beginning in 2011, after the usual indexation, the maximum refundable tax credit for a couple will increase by $150, the credit for a person living alone will increase by $125 and the credit for others will increase by $75.
Saskatchewan Budget
The Saskatchewan budget was tabled on March 18, 2009. It contained significant reductions to the Education Property Tax but nothing much in the way of income tax measures. Taxpayers will have to be content with the substantial personal tax reductions they received last October.
The only revenue measures that may be of interest are as follows.
Dividend Tax Credit
Technical changes will be made to the calculation of the dividend tax credit for eligible dividends for the 2010, 2011 and 2012 taxation years so as to preserve an effective credit rate of 11%. This in response to federal changes to the gross-up provisions for those years.
