BILL 40

An Act to Amend the Metallic Minerals Tax Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Subsection 1(1) of the Metallic Minerals Tax Act, chapter M-11.01 of the Revised Statutes, 1973, is amended in the definition "gross income"

(a) in paragraph (a) by striking out "and" at the end of the paragraph;

(b) in paragraph (b) by adding "and" at the end of the paragraph;

(c) by adding after paragraph (b) the following:

(b.1) for the purpose of calculating net profit, the amount received in the taxation year under paragraph 111.2(5)(b) of the Mining Act,

2 Section 2.1 of the Act is amended

(a) by adding after subsection (1) the following:

2.1(1.01) There shall be deducted from the total tax payable under subsection (1) any tax credit granted under subsection (4.1).

(b) by adding after subsection (4) the following:

2.1(4.1) Subject to subsections (4.2) and (4.3), in addition to any deduction allowed under paragraph (6)(k.1), the operator of a mine shall, after the date of commencement of production, be granted a tax credit against the total tax payable under subsection (1) equal to eighteen per cent of expenditures incurred by the operator on a 3D seismic survey, on deep drilling or on any other advanced exploration technology within the Province.

2.1(4.2) A tax credit shall not be granted under subsection (4.1) unless the 3D seismic survey, deep drilling or other advanced exploration technology referred to in that subsection was pre-approved by the mine assessor.

2.1(4.3) A tax credit granted under subsection (4.1) shall not exceed one million dollars in any given year and any portion of that credit that has not been applied against the total tax payable under subsection (1) in any given year may be claimed in any succeeding year.

(c) in subsection (6)

(i) by repealing paragraph (j) and substituting the following:

(j) the amount of tax payable under paragraph (1)(a), before any tax credit granted under subsection (4.1) is deducted from the total tax payable under subsection (1);

(ii) by adding after paragraph (k.1) the following:

(k.2) money submitted by the holder of a mining lease or the operator of a mine, or anyone acting on behalf of such person, and credited to the Mine Reclamation Fund established under section 111.2 of the Mining Act, and any money that is eligible for deduction under this paragraph may, if not claimed in one year, be claimed in any succeeding year;

(d) in subsection (7) by striking out "except the deduction referred to in paragraph (6)(k.1)" and substituting "except the deductions referred to in paragraphs (6)(k.1) and (k.2)".

3 Paragraph 9(3)(a) of the Act is amended by striking out "2.1(2), (5)" and substituting "2.1(2), (4.1), (5)".