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
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.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
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.
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.
- 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
- 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
- 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
- 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
- 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)
- 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
- 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
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
Adds hydrogen to the definition of 'fuel' and changes assessment methods for carriers that fail to keep proper records
Source: Schedule 3
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
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
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
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
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
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
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 textProcess Snapshot
Vote Summary
Representative Voting Breakdown
Vote badges include text labels so the table stays readable for everyone, even without color cues alone.
| Representative | Role | Riding | Party | Vote | Notes |
|---|---|---|---|---|---|
| MPP | Brampton West | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Windsor—Tecumseh | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Essex | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Scarborough—Agincourt | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Markham—Unionville | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Haldimand—Norfolk | Independent | Yes | Recorded without an additional note. | |
| MPP | Cambridge | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Simcoe—Grey | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Etobicoke—Lakeshore | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Richmond Hill | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
MPP | MPP | Peterborough—Kawartha | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
MPP | MPP | Scarborough Centre | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Newmarket—Aurora | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Mississauga—Malton | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Oakville North—Burlington | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Brampton East | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Barrie—Innisfil | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | York—Simcoe | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Brampton Centre | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Flamborough—Glanbrook | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Barrie—Springwater—Oro-Medonte | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Oxford | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Timmins | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Brampton North | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Parry Sound—Muskoka | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Simcoe North | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Etobicoke Centre | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Haliburton—Kawartha Lakes—Brock | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Huron—Bruce | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Aurora—Oak Ridges—Richmond Hill | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Kitchener—Conestoga | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Mississauga Centre | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Markham—Stouffville | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Pickering—Uxbridge | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Brampton South | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Scarborough North | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Elgin—Middlesex—London | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Niagara West | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Willowdale | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Oakville | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | King—Vaughan | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Leeds—Grenville—Thousand Islands and Rideau Lakes | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Durham | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Chatham-Kent—Leamington | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Nipissing | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Scarborough—Rouge Park | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Kitchener South—Hespeler | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
MPP | MPP | Lanark—Frontenac—Kingston | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Renfrew—Nipissing—Pembroke | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Mississauga East—Cooksville | Independent | Yes | Recorded without an additional note. | |
MPP | MPP | Thornhill | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Markham—Thornhill | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Whitby | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
MPP | MPP | Perth—Wellington | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | York South—Weston | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Lambton—Kent—Middlesex | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Burlington | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Milton | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Ajax | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Hastings—Lennox and Addington | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
MPP | MPP | Bruce—Grey—Owen Sound | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Sarnia—Lambton | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Eglinton—Lawrence | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
MPP | MPP | Sault Ste. Marie | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Mississauga—Lakeshore | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
| MPP | Mississauga—Erin Mills | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. | |
MPP | MPP | Bay of Quinte | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
MPP | MPP | Brantford—Brant | Progressive Conservative Party of Ontario | Yes | Recorded without an additional note. |
| MPP | Parkdale—High Park | New Democratic Party of Ontario | No | Recorded without an additional note. | |
| MPP | Waterloo | New Democratic Party of Ontario | No | Recorded without an additional note. | |
| MPP | Ottawa West—Nepean | New Democratic Party of Ontario | No | Recorded without an additional note. | |
MPP | MPP | Spadina—Fort York | New Democratic Party of Ontario | No | Recorded without an additional note. |
MPP | MPP | Scarborough Southwest | New Democratic Party of Ontario | No | Recorded without an additional note. |
| MPP | Nickel Belt | New Democratic Party of Ontario | No | Recorded without an additional note. | |
| MPP | Mushkegowuk—James Bay | New Democratic Party of Ontario | No | Recorded without an additional note. | |
MPP | MPP | Sudbury | New Democratic Party of Ontario | No | Recorded without an additional note. |
MPP | MPP | Niagara Centre | New Democratic Party of Ontario | No | Recorded without an additional note. |
| MPP | St. Catharines | New Democratic Party of Ontario | No | Recorded without an additional note. | |
| MPP | Oshawa | New Democratic Party of Ontario | No | Recorded without an additional note. | |
MPP | MPP | University—Rosedale | New Democratic Party of Ontario | No | Recorded without an additional note. |
MPP | MPP | Ottawa Centre | New Democratic Party of Ontario | No | Recorded without an additional note. |
MPP | MPP | Timiskaming—Cochrane | New Democratic Party of Ontario | No | Recorded without an additional note. |
| MPP | Toronto Centre | New Democratic Party of Ontario | No | Recorded without an additional note. | |
MPP | MPP | Windsor West | New Democratic Party of Ontario | No | Recorded without an additional note. |
| MPP | Thunder Bay—Superior North | New Democratic Party of Ontario | No | Recorded without an additional note. | |
| MPP | Ottawa—Vanier | Ontario Liberal Party | No | Recorded without an additional note. | |
MPP | MPP | Davenport | New Democratic Party of Ontario | No | Recorded without an additional note. |
| MPP | Beaches—East York | Ontario Liberal Party | No | Recorded without an additional note. | |
| MPP | Algoma—Manitoulin | Independent | No | Recorded without an additional note. | |
| MPP | Guelph | Green Party of Ontario | No | Recorded without an additional note. | |
| MPP | London West | New Democratic Party of Ontario | No | Recorded without an additional note. | |
MPP | MPP | Hamilton West—Ancaster—Dundas | New Democratic Party of Ontario | No | Recorded without an additional note. |
MPP | MPP | Hamilton Centre | Independent | No | Recorded without an additional note. |
| MPP | Orléans | Ontario Liberal Party | No | Recorded without an additional note. | |
| MPP | London North Centre | New Democratic Party of Ontario | No | Recorded without an additional note. | |
| MPP | London—Fanshawe | New Democratic Party of Ontario | No | Recorded without an additional note. | |
MPP | MPP | Niagara Falls | New Democratic Party of Ontario | No | Recorded 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