Taxation Rates
Provincial Taxes and Premiums
At the provincial level, businesses remit corporate income tax, health and post-secondary education tax, and workers compensation premiums. Workplace Health, Safety and Compensation Commission premiums are paid by businesses that operate in the region. These premiums provide income support to workers who are injured on the job and allow the businesses to avoid carrying independent liability insurance. Companies must also contribute to two employee benefit programs: Employment Insurance and the Canada Pension Plan. Employers must deduct premiums for each of these programs from their employee's pay and make employer contributions (Government of Newfoundland and Labrador).
Harmonized Sales Tax
Newfoundland and Labrador's Provincial Sales Tax (PST) and Canada's national Goods and Services tax (GST) are brought together to form the 15 % Harmonized Sales Tax (HST). It is applied to the same goods and services as the GST. By allowing full input tax credits to business, goods and services that are produced within Newfoundland and Labrador will be more competitive in both local and global markets (Government of Canada).
Municipal Taxes
Local municipalities provide a wide range of services and forms tax bases. Taxes vary across municipalities and rates are well below national averages. Many towns also meter water usage and administer local waste disposal fees. In addition, the EDGE program allows municipalities to grant companies a ten-year tax holiday from property tax followed by a 5-year phase in. In the Coast of Bays region, municipal rates are as follows:
| Municipality | Water-Sewer Rate | Property Tax | Poll Rate |
|---|---|---|---|
| Belleoram | $360 per year | 11 mills | $200 |
| Conne River | Non-Applicable | Non-Applicable | Non-Applicable |
| Gaultois | $360 per year | Non-Applicable | $300 |
| Harbour Breton | $312 per year | 10.25 mills | $160 |
| Hermitage | $250 per year | 8 mills | $220 |
| McCallum | $108 (water)per year | Non-Applicable | Non-Applicable |
| Milltown | $264 per year | 11 mills | $200 |
| Morrisville | $150(water) per year | 8 mills | $175 |
| Pool's Cove | $100 (water)per year | 8 mills | $200 |
| Rencontre East | $120 (sewer)per year | Non-Applicable | $150 |
| Seal Cove | $360 per year | 9 mills | $220 |
| St. Alban's | $360 per year | 8 mills | $150 |
| St. Jacques-Coomb's Cove | Non-Applicable | 6.5 mills | $175 |
| St. Joseph's - St. Veronica's | Non-Applicable | Non-Applicable | Non-Applicable |
Source: Department of Municipal and Provincial Affairs, March 2003
Business Tax Rates
| Municipality | Utility | Property Tax | Water/Sewer | Business Tax |
|---|---|---|---|---|
| Belleoram | 2.5% of Gross Revenue | $300 | $360 water/sewer | 18 mills - all classes |
| Gaultois | 2.5% of Gross Revenue | N/A | $300 water | ¼ of 1 % of gross revenue |
| Harbour Breton | 2.5% of Gross Revenue | 16.25 mills |
$480 water/sewer $396 water |
$200 minimum 43.25 mills - dental clinic 123.25 mills - banks 75.25 mills - financial institutions ¾ of 1% - fish buyers |
| Hermitage | 2.5% of Gross Revenue | 8 mills | $250 water/sewer | |
| Milltown | 2.5% of Gross Revenue | 11 mills | $306 water/sewer | 18 mills - basic business 25 mills - beauty salons 75 mills - mail order 18.2 mills - take out $200 - minimum |
| Morrisville | 2.5% of Gross Revenue | 20 mills $200 minimum |
$125(water/sewer) | 12 mills |
| Pool's Cove | 2.5% of Gross Revenue | 25 mills | $100(water) | 6 mills -crafts 6 mills - grocery stores 6 mills -sawmills |
| Rencontre East | 2.5% of Gross Revenue | N/A | $120 (sewer) | $100 flat rate - convenience stores $120 - ferry |
| Seal Cove | 2.5% of Gross Revenue | 8 mills | $360 (water/sewer) | 8 mills - all classes |
| St. Alban's | 2.5% of Gross Revenue | 8 mills | $156(low use) $480(medium use) $720(high use) |
80 mills - banks 60 mills - air service 50 mills - boat building 60 mills - liquor store 30 mills - all other classes |
| St. Jacques- Coomb's Cove | 2.5% of Gross Revenue | 6.5 mills | N/A | 33 mills - oil companies 53 mills - sears 50 mills - video 13 mills - bed and breakfast 23 mills-retail, garage, take-outs |
Department of Municipal and Provincial Affairs, March 2003