GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, Ontario
XXXXX K1A 0L5
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Subject:
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GST/HST INTERPRETATION
Tax Status of 911 Emergency Dispatching Fees between Municipalities
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Dear XXXXX:
Thank you for your facsimile transmission of June 25, 1997 (with attachments) concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the supply of 911 emergency dispatching services made by the XXXXX to neighbouring municipalities.
Our understanding of the facts from your facsimile and your telephone conversation with XXXXX of our XXXXX office is as follows.
Statement of Facts
XXXXX is a department of the XXXXX, which is defined to be a "municipality" under paragraph 123(1)(a) of the Excise Tax Act (the "ETA")
XXXXX provides 911 emergency monitoring and dispatching services to neighbouring municipalities and charges regular monthly fees to those municipalities to provide these services.
Interpretation Requested
You are requesting an interpretation as to whether GST is applicable to the supply of 911 monitoring and dispatching services provided to neighbouring municipalities by XXXXX. In particular, you are concerned with fire dispatching services.
Interpretation Given
Paragraph 20(g) of Part VI of Schedule V to the Excise Tax Act provides for an exempt supply of a law enforcement or fire protection service made by a government, municipality or board, commission or other body established by a government or municipality is exempt when made to a government or municipality, or board, commission or other body established by a municipality or government. It is the Department's position that emergency response services are an integral component of law enforcement and fire protection services as contemplated by paragraph 20(g). It is therefore the Department's view that the supply of emergency response services ("911" dispatch services) for the provision of fire protection, police and ambulance services when made by XXXXX to neighbouring municipalities is an exempt supply of law enforcement and fire protection services.
The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST Memoranda Series, do not bind the Department with respect to a particular situation.
Should you have any questions, please contact Ms. Enikö Vermes, Manager, Municipalities at (613) 954-5127 or the undersigned at (613) 952-8531.
Yours truly,
Joseph Levstik
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Directorate
GST/HST Rulings and Interpretations
| c.c.: |
J. Venne
E. Vermes
O. Newell
N. Minken
J. Levstik
XXXXX |
Legislative References: 123(1) exempt supply; 123(1)(a) municipality; Sch. V/VI/20(g)
NCS Subject Code(s): I-11895-1, Casework Number HQR918
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