Definition of "Gross Revenue" and Changes to Instalment Payment Requirements, for the Purposes of the Gross Revenue Charge

• This bulletin provides details on the definition of "gross revenue" for the period beginning January 1, 2001 and subsequent years for owners of hydro-electric generating stations and water power lease holders who are liable to pay the taxes and charges on the gross revenues of hydro-electric generating stations under section 92.1 of the Electricity Act, 1998 (Act).
• This bulletin also provides details on changes to the instalment payment requirements for 2010 and subsequent years.
• This bulletin replaces Tax Bulletins EA 1-2006, EA 1-2005, EA 1-2004 and EA 1-2003.
• The information in this bulletin does not replace the law found in the Act and related regulations.

Background

Gross Revenue Charge (GRC)

Effective January 1, 2001, the existing property taxes and water rental charges paid by hydro-electric generating station owners and water power lease holders were replaced with the taxes and charges on the gross revenues of hydro-electric generating stations. These taxes and charges under section 92.1 of the Electricity Act, 1998 represent separate components of what is known as the Gross Revenue Charge (GRC). For information about the Gross Revenue Charge, refer to Ontario Tax Bulletin EA 1-2002 - Taxes and Charges on the Gross Revenues of Hydro-Electric Generating Stations.

Regulation Amended

Gross Revenue

The GRC regulation (O. Reg. 124/02) defined gross revenue for the period January 1, 2001, to December 31, 2008, to be the amount determined by multiplying the station's annual generation for the year by a price of $40,000 per gigawatt hour.

The GRC regulation has been amended by O. Reg. 09/10 to set the price at $40,000 per gigawatt hour in order that the same calculation of gross revenue continues to apply through 2009 and subsequent years.

Instalment Payments

The GRC regulation requires owners of hydro-electric generating stations and water power lease holders to pay monthly instalments on or before the 16th day of each month if the total amounts payable for all their stations under section 92.1 of the Act for the immediately preceding year is $10,000 or more. If the total amounts payable for the immediately preceding year is less than $10,000, persons may pay quarterly instalments on the 16th day of March, June, September and December.

The GRC regulation has been amended to no longer require persons to pay instalments for 2010 or a subsequent year, if their total amounts payable for all their stations under section 92.1 of the Act for the immediately preceding year is less than $1,000.

Hydro-electric generating station owners and water power lease holders that are not required to pay instalments in a year are required to pay their total amounts payable under section 92.1 of the Act, upon delivery of their Annual GRC Return, which is due on or before March 16 of the following year.

Additional Information

If this bulletin does not completely address your particular situation, refer to the Electricity Act, 1998 and related regulations, or contact the:

Ministry of Finance
Client Accounts and Services Branch
33 King Street West
PO Box 625
Oshawa ON  L1H 8H9

Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
Fax: 905 433-4511
Teletypewriter (TTY): 1 800 263-7776

This bulletin and various other English and French tax materials published by the Ministry of Finance may be obtained online at ontario.ca/finance.

The Electricity Act, 1998 and Ontario's other public statutes and regulations may be obtained online at ontario.ca/e-laws.