Thank you, Mr. Speaker. I have questions for the Minister of Finance today in relation to my statement on payroll tax.
How much of the $42.7 million collected in payroll tax is paid by NWT residents and what percent of those residents can get their payroll tax back? Thank you.
Thank you, Mr. Bouchard. The Minister of Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. The payroll tax is administered under the Payroll Tax Act and is levied at the rate of 2 percent of employment earnings. The low-income earners get back the tax when they file. The question is in earners; as well, the answer is that the payroll tax is non-refundable. Although the refundable cost of living tax credit was introduced at the same time as a payroll tax, it is viewed as an offset to the payroll tax. The cost of living tax credit is calculated on the basis of net income and can be claimed by tax filers regardless of whether payroll tax is paid. Thank you.
Do we actually know how many people in the Northwest Territories, what percentage of people that file taxes get their payroll tax back in any form? Thank you, Mr. Speaker.
With regard to the previous question, over the past five-year period from 2009-2010 to 2013-14, the average payroll tax generated was $38.7 million per year. In 2013-14 the GNWT collected $41.245 million in payroll tax revenue. Thank you.
We’ve been talking in this House about generating more people in the Northwest Territories. Would it not be an incentive for people to stay in the Northwest Territories if that payroll tax was 5 percent? Can we increase the payroll tax to 5 percent, Mr. Speaker? Thank you.
We raised it from 1 to 2 percent. To go to 5 percent would be problematic just because of the cost to administer it and the value to us in the long run and the fact that Canada Revenue Agency looks very carefully at payroll taxes and has a fairly jaundiced view of their appropriateness. Thank you.
Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Bouchard.
My understanding of this tax is it was created to tax those people who work in the Northwest Territories, but we give those taxes back to the residents of the Northwest Territories. When did the Government of the Northwest Territories change the payroll tax? Thank you, Mr. Speaker.
The payroll tax is the same. The cost of living tax credit is in place that benefits Northerners and allows for some of the money to be recovered through the tax refund process. Thank you.
Thank you, Mr. Miltenberger. Member for Range Lake, Mr. Dolynny.
