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.
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.