23 December 2002 GST/HST Ruling 42576 - Federal Book Rebate (GST/HST) Regulations

Dear XXXXX:

Thank you for your letters XXXXX (both with attachments), requesting to be prescribed under the Federal Book Rebate (GST/HST) Regulations. We apologize for the delay in responding.

Statement of Facts

Our understanding of the facts provided by you in your letters and their attachments is as follows:

XXXXX its assets and liabilities were assumed by XXXXX, a municipality ("the municipality").

•   Membership in the XXXXX ("the library") is free and available to all residents of the municipality.

•   In addition to various services, the library supplies the use of printed and audio books, printed magazines, videos, and university/college calendars.

•   All lending materials are provided free of charge, subject to fines for late return. Other items such as photocopies and computer printouts, and some services are supplied at a nominal charge.

Ruling Requested

The library is applying to be prescribed under the Federal Book Rebate (GST/HST) Regulations for the purposes of paragraph (f) of the definition "specified person" in subsection 259.1(1) of the Excise Tax Act (ETA).

Ruling Given

Based on the facts set out above, we rule that as an entity meeting the definition of municipality under subsection 123(1) of the ETA, the municipality is a "specified person" entitled to file an application for the federal book rebate in accordance with subsection 259.1(2). Thus, neither the municipality nor the library needs to be prescribed as requested by the latter.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the ETA, or to our interpretative policy; and that you have fully described all necessary facts and transactions for which you requested a ruling.

Explanation

The definition of a "specified person" in subsection 259.1(1) of the ETA includes many different organizations. Paragraph (a) of this definition states that a municipality is a "specified person" eligible for the federal book rebate. It is only those organizations whose primary purpose is the promotion of literacy that do not otherwise qualify for the rebate under any other paragraph of the definition for "specified person" who must apply to be prescribed under the Federal Book Rebate (GST/HST) Regulations.

For more details about the federal book rebate and, in particular, which acquisitions qualify for it, we have enclosed a copy of section 13.4 of Chapter 13 of the GST/HST Memoranda Series.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 946-7962.

Yours truly,

Gudrun Ahsmann, C.G.A.
Rulings Officer
Charities, Non-Profit Organizations, and Educational Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate

Enclosure