Ontario’s hidden taxes: Parker Gallant

This past weekend, Wind Concerns Ontario held its Annual General Meeting and a strategy session for members in Wellington, Ontario.

Among the presentations was this from Parker Gallant, on the Wynne government’s hidden taxes.

Premier Wynne: I have to get the money from someone! That means YOU
Premier Wynne: I have to get the money from someone! That means YOU

Ratepayers and Hidden Taxes

 The “Water” Tax:                                                                                        Annual Costs

Fuel charges for Hydroelectric Generating Stations:                                       $345 million for 2015

From OPG’s Annual Report:

“Hydroelectric generating stations in Ontario are subject to taxes and charges as prescribed by Ontario Regulation 124/02 under the Electricity Act, 1998 (Ontario Electricity Act). All OPG hydroelectric generating stations are subject to GRC Property Tax, which is determined by applying graduated tax rates, ranging from 2.5 percent to 26.5 percent through four levels of production, to the station gross revenue. GRC Property Tax payments are made to either the OEFC or to the Ontario Ministry of Finance.”

 

The “Social Assistance” Tax                                                                         $175/225 million estimated

The Ontario Electricity Support Program or OESP to support low income households commenced January 1, 2016 should rightly be a budget item of the Ontario Ministry of Community and Social Services but the Ontario Liberal Party made it a part of the Energy Ministry. The OEB estimated support for the 570,000 households (2014) living in “energy poverty” in the province would require a budget of $200 million. It is not clear if the OESP will replace the LEAP program of about $10 million annually.

 

The “Net Zero” Tax                                                                                      $2/300 million estimated 

Settlement with both the Power Workers Union and the Society of Energy Professionals was claimed to be a “Net Zero” wage settlement but disclosure in both the Hydro One and the OPG Annual Reports indicate that both will receive lump sum payments for the first two years of the respective contracts and starting in the third year those employees will receive annual awards of Hydro One shares equal to 2.7% of their wages. Those annual awards of Hydro One shares will extract the value from their sale that would have gone to the province for “infrastructure” spending. It is worth noting that the share sale committed Hydro One to dividend out 75% of Hydro One’s annual earnings.

The “Realty Tax” subsidy                                                                            $200 million (?) estimated 

Dwight Duncan when Minister of Finance decreed industrial wind turbines should be taxed at only $40,000 per megawatt of capacity or approximately 1.5% of their capital cost and only about 1/10th of their annual revenue base meaning all other industrial/commercial/residential taxpayers are forced to pay extra for the services they might cost the various townships including road repairs and possibly decommissioning.

 

The Electric Vehicle subsidy                                                             $4/5 million estimated

While the EV subsidy is not absorbed by ratepayers it is a taxpayer cost. It is ironic that if you can afford to purchase a high end Tesla automobile at a cost of $100,000 plus you are able to obtain a grant of up to $10,000 from the Province. Why are people earning minimum wage supplementing people who can afford these vehicles?

Read the full presentation here: AGM2016ParkerGallant

 

 

 

 

The opinions expressed are those of the author and do not necessarily represent Wind Concerns Ontario policy.

Comments

Andre Lauzon
Reply

Thanks again Mr. Gallant, for information we would never get through the media.

Sommer
Reply

I am so grateful for Parker’s ability to expose in detail the financial stress that this government has brought to people on fixed incomes in this province.
The world over it is being realized how these industrial wind turbines have been a horrible choice for energy production and how such bad decisions will impact the poorest people on the planet.
The lack of ethics is staggering!

Pat Cusack
Reply

Yes! Thanks Parker!

nirmal gill
Reply

hi there
instead of levying tax on these things, we should request them to reverse the HST levied on so many items,replace only with saletax on few items as was previously there.
BC can get reverse the HST why not our province ON can dothat.
thanks

Barbara
Reply

Water tax

Is this a direct tax on the water itself? Doesn’t the water that supplies the Niagara Falls generation belong to the federal government? International waters between Canada & the U.S.

Other hydro water supplies in Ontario belong to the province?

Just pondering legal tax questions. And am sure there is a some kind of twisted legal answer for these questions.

Parker Gallant
Reply

The gross revenue charge (GRC) is calculated in accordance with Ontario Regulation 124/02 of the Electricity Act. It works a bit like income tax…the more production the unit makes the higher the GRC percentage rates.

https://www.ontario.ca/laws/regulation/020124

I believe Federal control applies to the St. Lawrence Seaway to ensure ships can travel the canal system. That control could affect the amount of generation available at a particular point in time at one or more of the generation stations. I believe the province can tax the use of the fuel (water) as they see fit when it is used for the purpose of generating hydro electric generation.

Barbara
Reply

This government can tax anything they want to.

In the international waters between Canada and the U.S. The provinces and states own the land under the water. But the federal government owns the water?

This was explained to me by a lawyer quite a few years ago but I’m kind of rusty on this subject now. Don’t suppose it makes much difference anyway.

Gs
Reply

Lunatics, are taking us all with them down a black hole of debt and corruption.

Ed
Reply

What is the different between the mafia and the Ontario government?
They both make the rules to suit themselves.
They both get your money, one way or the other.
They both ignore the laws of nature.
They are both are secretive.
They both are con artist.
etc..

Barbara
Reply

UNEP FI/UNEP Finance Initiative

Signatories List @ http://www.unep.org/signatories

This is a list of the financial institutions that have pledged to invest and/or supply funds for renewable energy projects.

Compare this list of UN Signatories to funding and /or investments in Ontario renewable energy projects.

Not too difficult to figure out what’s taking place in Ontario. Check out the Canadian financial institutions on this list.

Some foreign financial institutions too are funding.

Barbara
Reply

Try: http://www.unepfi.org > Our Members & scroll down to the list.

Both UNEP & UNEPFI were established at UN Rio 1992.

“Our Members” is on the page left sidebar.

Barbara
Reply

Should be summer of 2015.

Al Taylor (CORT)
Reply

As always, Parker, you are the thorn in Charelli’s side. Good work. Have forworded to my extensive email- Al

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