28 February 1997 GST/HST Interpretation HQR0000143 - Supplementary Assessment Rolls -

Dear XXXXX

Thank you for your letter of June 24, 1996 wherein you requested our opinion on the application of the Goods and services Tax (GST) to supplementary assessment rolls (SARs) supplied by XXXXX (the province) to XXXXX We understand from the facts as presented in your submission that XXXXX XXXXX provides to every municipality XXXXX an initial assessment roll to aid municipalities to determine their property taxes. The assessment roll provides information about the value of assessable properties in a jurisdiction served by each municipality. The municipalities use this value and the appropriate tax rates to calculate their property and business taxes. The Province is required to provide these services under XXXXX. Under the same Act, the province is also mandated to provide supplementary assessment roll (SARs) services to municipalities. SARs provide municipalities with the value of assessable properties that the initial yearly assessment roll did not capture in order for the cities to collect additional taxes. They also provide information about the change in value or use of assessable properties for property tax adjustments. The province does not charge municipalities for the production of yearly initial assessment rolls but charges a fee for the production of SARs. A physical examination of a property by the provincial assessor is often required to gather the data that the province requires to make SARs. The province then charges municipalities a fee per transaction/property assessed and reported in the SARs. Your request was prompted by an inquiry made by XXXXX (the City) to your Office.

Question

1. You have asked us to confirm whether, Paragraph 20(e) of Part VI of Schedule V to the Excise Tax Act ("the Act") exempts the supply of a service of providing information in respect of the title to, any right or estate in, or any encumbrance in respect of, property, when supplied by a government or municipality or body established by a government or municipality. (prior to NWMM, April 23, 1996)

Answer

We confirm that the your interpretation of paragraph 20(e) [prior to the amendments of April 23, 1996] of Part VI of Schedule V to the Act is correct.

Question

2. You have asked us for input on the tax status of the SARs and the issue of what the supply is.

Answer

It is our opinion that the supply of SARs is exempt under section 10 of Part VI of Schedule V to the Act and that the supply in question is the supply of service of providing information. However, the information being provided does not fall within paragraph 20(e) of Part VI of Schedule V to the Act (prior to NWMM, April 23, 1996).

Each property assessment listed in both the initial assessment roll and the SARs is a separate supply. Therefore, if the City can demonstrate that all or substantially all of these supplies are made for no consideration, the supply of the SARs would be exempt under section 10 of Part VI of Schedule V to the Act.

I hope that the above explains our position in this matter and that it will help you in dealing with inquiries on the issue. Should you require additional information, feel free to contact the undersigned at (613) 952[-]9215.

Sincerely,

Fernand Koutsimouka
Government Unit
Public Service bodies and governments
GST Rulings & Interpretations