Extension Of Electricity Transfer Tax Exemption For Ontario Municipalities
McGuinty Government Encourages Efficiencies and Promotes Consolidation
To further encourage efficiencies and promote consolidation in Ontario's electricity sector, Finance Minister Dwight Duncan today announced the government is extending the exemption of electricity transfer tax on publicly owned utilities when they sell electricity assets to other publicly owned utilities in Ontario.
The province commends the efforts of local distribution companies who have diligently worked within the time-frame. This extension will allow others to follow their lead in the coming year.
- The transfer tax exemption period will be extended by one year until October 16, 2009.
- Certain transfers of an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity assets that occur after October 16, 2006 and before October 17, 2009 will be exempt from transfer tax.
- Application for Ontario Energy Board approval, if needed, must be filed before October 17, 2009.
“We're responding to proposals made by the utilities. Extending the transfer tax exemption will promote consolidation and further efficiencies in the sector and improve the quality of services for consumers.”