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OntarioPassed43rd Parliament, 1st Session

Bill 85 explained in plain English

Building a Strong Ontario Act (Budget Measures), 2023

Ontario legislature bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Ontario Legislature
Legislature / Parliament
Legislative Assembly of Ontario
Session
43rd Parliament, 1st Session
Bill number
Bill 85
Full title
Building a Strong Ontario Act (Budget Measures), 2023
Current status
Passed
Latest event
Royal Assent received
Last updated
May 18, 2023

Official Legislative Assembly of Ontario snapshot for 43rd Parliament, 1st Session. Representative vote breakdowns appear when the Assembly publishes an Ayes and Nays page for the bill.

Chamber
Legislative Assembly of Ontario
Current Stage
Royal Assent received
Latest Activity
May 18, 2023
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

Bill 85 implements various budget measures including changes to fuel and gasoline taxes, public transportation funding, wine and beer taxes, the Ontario Guaranteed Annual Income program, manufacturing investment tax credits, income tax rules, and tobacco tax regulations.

What It Means

Bill 85, called the "Building a Strong Ontario Act (Budget Measures), 2023," made changes to Ontario's laws in 10 different areas. The bill adjusted how money from gasoline taxes is calculated for public transportation funding. It expanded the definition of fuel to include hydrogen for tax purposes and set a zero tax rate on hydrogen used in vehicles. The bill changed rules about who can sell wine and beer, affecting taxes on those products. It modified how the Ontario Guaranteed Annual Income program calculates benefits, reducing benefit clawback rates from $1.00 to $0.50 per dollar of income starting July 2024, and added automatic yearly increases based on inflation. The bill created a new Ontario manufacturing investment tax credit allowing businesses to claim up to 10 per cent of eligible manufacturing expenditures (up to $20 million per year). It made changes to Ontario's income tax rules, including restricting tuition tax credits for people who move out of Ontario. The bill also removed rules about tear tape from the Tobacco Tax Act and gave the Ministry of Revenue the power to collect information about vessels and aircraft from Transport Canada for tax purposes. Most changes came into effect when the bill received Royal Assent on May 18, 2023.

What This Bill Does
  • Changes how the amount of gasoline tax dedicated to public transportation is calculated by using the actual tax rate in effect each fiscal year instead of a fixed reference to the Gasoline Tax Act
  • Adds hydrogen to the definition of 'fuel' under the Fuel Tax Act and sets a zero tax rate on hydrogen used in qualified motor vehicles by interjurisdictional carriers
  • Excludes hydrogen from the definition of 'gasoline' in the Gasoline Tax Act and sets a zero tax rate on hydrogen used in qualified motor vehicles
  • Updates the standard reference for propane definition from CAN/CGSB-3.14-M88 to CAN/CGSB-3.14
  • Changes assessment methods for interjurisdictional carriers that fail to keep proper records, allowing the Minister to deem vehicles travelled 1.7 kilometres per litre or reduce reported kilometres by 20 per cent (instead of 1.2 or 1.0 kilometres per litre)
  • Gives the Financial Services Regulatory Authority power to make rules about what counts as an individual variable insurance contract
  • Removes the definition of 'authorized grocery store' from the Liquor Tax Act and creates new definitions for 'onsite winery retail store' and 'offsite winery retail store'
  • Changes beer tax rules to apply to 'draft beer manufactured by a beer manufacturer or one of its affiliates or non-draft beer' (retroactive to November 29, 2021)
  • Restricts wine purchase taxes to onsite winery retail stores or offsite stores selling wine made by the store owner, and sets a single 12 per cent basic tax rate for offsite purchases
  • Gives the Ontario Ministry of Revenue power to collect information about vessels and aircraft from Transport Canada for tax administration and policy development purposes
  • Reduces the Ontario Guaranteed Annual Income benefit clawback amount from $1.00 to $0.50 per dollar of income earned, effective July 2024
  • Adds automatic yearly indexing of the maximum monthly Ontario Guaranteed Annual Income increment based on inflation measured by the Consumer Price Index
  • Adds a new subsection stating that individuals who were not resident in Ontario on the last day of the tax year cannot claim unused tuition and education tax credits (effective for 2021 and later tax years)
  • Creates a new Ontario Made Manufacturing Investment Tax Credit allowing qualifying Canadian-controlled private corporations to claim up to 10 per cent of eligible manufacturing expenditures, up to $20 million per year
  • Removes tear tape manufacturing provisions from the Tobacco Tax Act, including the permit system for tear tape manufacturers
  • Makes various technical amendments to tax laws and corrects French language versions of the Tobacco Tax Act
Who Is Affected
  • Municipalities receiving public transportation funding from dedicated gasoline tax revenues
  • Interjurisdictional carriers and trucking companies using fuel, hydrogen, or propane in Ontario
  • Insurance companies and the Financial Services Regulatory Authority of Ontario
  • Beer manufacturers and consumers buying beer
  • Wineries and people buying wine, including those shopping at onsite and offsite winery retail stores
  • Ontario taxpayers, particularly those with unused tuition and education tax credits who move out of Ontario
  • Canadian-controlled private corporations engaged in manufacturing in Ontario (for the new manufacturing tax credit)
  • Individuals receiving Ontario Guaranteed Annual Income benefits (benefit increases and easier income calculation starting July 2024)
  • People and businesses filing Ontario income tax returns
  • The Ontario Ministry of Revenue and government agencies administering tax laws
Rights, Duties, Or Obligations
  • Interjurisdictional carriers must maintain adequate books of account; if they fail to do so, the Minister can now use new assessment methods (1.7 km/litre or 20 per cent reduction) to calculate tax owing
  • Ontario taxpayers who move out of Ontario cannot claim unused tuition and education tax credits for tax years ending after December 31, 2021
  • Canadian-controlled private corporations can claim the new Ontario Made Manufacturing Investment Tax Credit up to 10 per cent of eligible manufacturing expenditures, with an annual limit of $20 million per group of associated corporations
  • Individuals receiving Ontario Guaranteed Annual Income benefits will see reduced income clawback rates starting July 2024 (from $1.00 to $0.50 per dollar) and annual increases tied to inflation
  • Winery retailers must clarify whether they operate an onsite (on production site) or offsite (not on production site) retail store, as different tax rules apply
  • Beer manufacturers and their affiliates are subject to specific tax rules for draft and non-draft beer sales
  • The Ontario Ministry of Revenue has the right to collect information about vessels and aircraft from Transport Canada for tax purposes
Important Dates
  • May 18, 2023: Bill received Royal Assent and came into effect (general commencement date)
  • July 1, 2023: Schedule 6 (Liquor Tax Act amendments) came into force
  • November 29, 2021: Retroactive effective date for beer tax amendments (Schedules 6, sections 2 and 3)
  • July 2024: Ontario Guaranteed Annual Income benefit changes take effect (reduced clawback rate of $0.50 per dollar; new increment calculation; automatic indexing begins)
  • April 7, 2022: Retroactive effective date for small business deduction changes in the Taxation Act, 2007
  • January 1, 2018: Retroactive effective date for tuition tax credit condition change
  • January 1, 2022: Retroactive effective date for non-resident tuition tax credit restriction
  • January 1, 2023: Retroactive effective date for Ontario Health Premium bankruptcy rules
  • March 23, 2023: Start date for eligible expenditures under the new Ontario Made Manufacturing Investment Tax Credit
Financial Or Tax Impacts
  • Gasoline tax dedicated to public transportation continues at 2 cents per litre, but calculation method changes to use actual rates in effect each year
  • Hydrogen fuel is subject to zero tax when used by interjurisdictional carriers in qualified vehicles
  • Ontario Guaranteed Annual Income beneficiaries will receive larger benefits starting July 2024 due to reduced income clawback (from $1.00 to $0.50 per dollar earned) and automatic inflation adjustments
  • New Ontario Made Manufacturing Investment Tax Credit provides up to 10 per cent of eligible manufacturing expenditures, up to $20 million per year per associated group
  • Wine and beer tax rates change based on new definitions of onsite versus offsite winery retail stores and beer manufacturer affiliates
  • Interjurisdictional carriers may face different tax assessment calculations if they fail to keep adequate records
  • Individuals moving out of Ontario lose eligibility for unused tuition and education tax credits for 2021 onwards
  • Small Canadian-controlled private corporations with taxable capital between $10 and $50 million have phased-out small business deductions (effective April 7, 2022 onwards)
Enforcement Or Penalties
  • The Minister can assess interjurisdictional carriers that fail to maintain adequate books of account by deeming vehicles to have travelled 1.7 kilometres per litre of fuel or reducing reported kilometres by 20 per cent
  • Unregistered importers and exporters of gasoline, aviation fuel, or propane are subject to penalties under the Gasoline Tax Act
  • Corporations that claim the Ontario Made Manufacturing Investment Tax Credit must comply with requirements regarding associated corporations and agreement filing; failure to enter into required agreements results in zero credit eligibility
Uncertainties Or Limits
  • The bill does not specify how Transport Canada information about vessels and aircraft will be used in practice or what safeguards apply to the collection and use of personal information, though section 14.1 requires the Minister to publish a notice with collection details
  • The definition of 'eligible property' for the manufacturing tax credit includes property 'prescribed by the Minister of Finance,' which means future regulations will determine additional eligible property types
  • The bill allows the Minister of Finance to prescribe property meeting certain conditions for the manufacturing tax credit, creating uncertainty about what future property types may qualify
  • The scope and application of the Financial Services Regulatory Authority's new rule-making power on variable insurance contracts is not detailed in the bill
  • The practical impact of changing the assessment method for interjurisdictional carriers from 1.2 or 1.0 km/litre to 1.7 km/litre or 20 per cent reduction is not quantified
  • The bill is silent on transition arrangements for winery retailers converting between onsite and offsite status or for the new wine tax calculation methods
  • Details about how the Consumer Price Index for Ontario will be applied to calculate annual increases for the Ontario Guaranteed Annual Income are deferred to regulations
Laws Or Regulations Affected
Dedicated Funding for Public Transportation Act, 2013
amended

Changes how the amount of gasoline tax dedicated to public transportation funding is calculated to use the actual tax rate in effect each fiscal year, with special rules when multiple rates are in effect during a year

Source: Schedule 1

Fuel Tax Act
amended

Adds hydrogen to the definition of 'fuel' and changes assessment methods for carriers that fail to keep proper records

Source: Schedule 3

Gasoline Tax Act
amended

Excludes hydrogen from the gasoline definition, sets zero tax on hydrogen for qualified vehicles, updates propane standards reference, and changes assessment methods for carriers

Source: Schedule 4

Insurance Act
amended

Gives the Financial Services Regulatory Authority power to make rules about what constitutes an individual variable insurance contract

Source: Schedule 5, section 121.0.1

Liquor Tax Act, 1996
amended

Replaces 'authorized grocery store' and 'wine boutique' definitions with 'onsite winery retail store' and 'offsite winery retail store' definitions; changes beer tax rules to reference beer made by manufacturers or affiliates; restricts wine taxes to onsite stores or offsite stores selling wine made by the store owner; sets 12 per cent basic tax on offsite wine purchases

Source: Schedule 6

Ministry of Revenue Act
amended

Allows the Minister and public servants administering tax laws to collect information about vessels and aircraft from Transport Canada for tax administration and policy purposes

Source: Schedule 7, new section 14.1

Ontario Guaranteed Annual Income Act
amended

Reduces the benefit clawback amount from $1.00 to $0.50 per dollar of income starting July 2024; adds automatic yearly increases based on inflation; clarifies how the monthly guaranteed annual income increment is calculated

Source: Schedule 8

Taxation Act, 2007
amended

Restricts unused tuition tax credits for non-Ontario residents; changes Ontario business limit rules for small corporations; creates new Ontario Made Manufacturing Investment Tax Credit; makes various technical amendments

Source: Schedule 9

Tobacco Tax Act
amended

Removes all provisions related to tear tape manufacturing, including repealing the tear tape manufacturer permit system and related definitions and requirements

Source: Schedule 10

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Process Snapshot

Step 1
First reading
Mar 23, 2023
Step 2
Second reading
May 10, 2023
Step 3
Committee review
May 10, 2023
Step 4
Third reading
May 18, 2023
Step 5
Royal assent
May 18, 2023

Vote Summary

Yes
68
No
29
Abstain
0
Absent / Other
0
Final recorded vote
May 18, 2023
97 representative positions are recorded in this official snapshot for this vote.
Sponsor
Peter Bethlenfalvy
Progressive Conservative Party of Ontario | Pickering—Uxbridge
Jurisdiction
Ontario Legislature

Representative Voting Breakdown

Vote badges include text labels so the table stays readable for everyone, even without color cues alone.

RepresentativeRoleRidingPartyVoteNotes
MPPBrampton WestProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPWindsor—TecumsehProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPEssexProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPScarborough—AgincourtProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMarkham—UnionvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHaldimand—NorfolkIndependentYesRecorded without an additional note.
MPPCambridgeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPSimcoe—GreyProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPEtobicoke—LakeshoreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPRichmond HillProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPPeterborough—KawarthaProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPScarborough CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPNewmarket—AuroraProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga—MaltonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPOakville North—BurlingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrampton EastProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBarrie—InnisfilProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPYork—SimcoeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrampton CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPFlamborough—GlanbrookProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBarrie—Springwater—Oro-MedonteProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPOxfordProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPTimminsProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrampton NorthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPParry Sound—MuskokaProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPSimcoe NorthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPEtobicoke CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHaliburton—Kawartha Lakes—BrockProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHuron—BruceProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPAurora—Oak Ridges—Richmond HillProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPKitchener—ConestogaProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMarkham—StouffvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPPickering—UxbridgeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrampton SouthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPScarborough NorthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPElgin—Middlesex—LondonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPNiagara WestProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPWillowdaleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPOakvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPKing—VaughanProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPLeeds—Grenville—Thousand Islands and Rideau LakesProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPDurhamProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPChatham-Kent—LeamingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPNipissingProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPScarborough—Rouge ParkProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPKitchener South—HespelerProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPLanark—Frontenac—KingstonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPRenfrew—Nipissing—PembrokeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga East—CooksvilleIndependentYesRecorded without an additional note.
MPPThornhillProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMarkham—ThornhillProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPWhitbyProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPPerth—WellingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPYork South—WestonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPLambton—Kent—MiddlesexProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBurlingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMiltonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPAjaxProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHastings—Lennox and AddingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBruce—Grey—Owen SoundProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPSarnia—LambtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPEglinton—LawrenceProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPSault Ste. MarieProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga—LakeshoreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga—Erin MillsProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBay of QuinteProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrantford—BrantProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPParkdale—High ParkNew Democratic Party of OntarioNoRecorded without an additional note.
MPPWaterlooNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOttawa West—NepeanNew Democratic Party of OntarioNoRecorded without an additional note.
MPPSpadina—Fort YorkNew Democratic Party of OntarioNoRecorded without an additional note.
MPPScarborough SouthwestNew Democratic Party of OntarioNoRecorded without an additional note.
MPPNickel BeltNew Democratic Party of OntarioNoRecorded without an additional note.
MPPMushkegowuk—James BayNew Democratic Party of OntarioNoRecorded without an additional note.
MPPSudburyNew Democratic Party of OntarioNoRecorded without an additional note.
MPPNiagara CentreNew Democratic Party of OntarioNoRecorded without an additional note.
MPPSt. CatharinesNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOshawaNew Democratic Party of OntarioNoRecorded without an additional note.
MPPUniversity—RosedaleNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOttawa CentreNew Democratic Party of OntarioNoRecorded without an additional note.
MPPTimiskaming—CochraneNew Democratic Party of OntarioNoRecorded without an additional note.
MPPToronto CentreNew Democratic Party of OntarioNoRecorded without an additional note.
MPPWindsor WestNew Democratic Party of OntarioNoRecorded without an additional note.
MPPThunder Bay—Superior NorthNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOttawa—VanierOntario Liberal PartyNoRecorded without an additional note.
MPPDavenportNew Democratic Party of OntarioNoRecorded without an additional note.
MPPBeaches—East YorkOntario Liberal PartyNoRecorded without an additional note.
MPPAlgoma—ManitoulinIndependentNoRecorded without an additional note.
MPPGuelphGreen Party of OntarioNoRecorded without an additional note.
MPPLondon WestNew Democratic Party of OntarioNoRecorded without an additional note.
MPPHamilton West—Ancaster—DundasNew Democratic Party of OntarioNoRecorded without an additional note.
MPPHamilton CentreIndependentNoRecorded without an additional note.
MPPOrléansOntario Liberal PartyNoRecorded without an additional note.
MPPLondon North CentreNew Democratic Party of OntarioNoRecorded without an additional note.
MPPLondon—FanshaweNew Democratic Party of OntarioNoRecorded without an additional note.
MPPNiagara FallsNew Democratic Party of OntarioNoRecorded without an additional note.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced