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ORONO WEEKLV TriMES THUIRSDAY. SEPTEM13ER 7, 1961 ONTARIO I NFORMATI.ON about thle ONýt-TA RIO RETAIL SýALES TAXiý, The fallowîng basic information about tihe 3% Retail Sales Tax, that wen'i irito e ffect September lst, wiII b. of interest to% evgery resicdent of Ontario Wky the Sales Tox was întroduced As, a resuit, the dernatds on the pot~tlrauycniu to rwn an unprceudented rate. For example, during the, nexi five year we ust build the equivalent of' onje housand col large enoiugh for 500 pupils each. This means that provincial grants to schools must be grea tly increased in the years immJe- diately ahead, or municîpalities wîll be faced with cripplhing miii rates to provîde basic educational facilities. Hospitals, hgwy and otherpublic works miost also be greatly expanded to meet the needs of our rapidly increasing population. Your ji:Province must increase its revenues by. about $450 min-, nnalytoea for these vital projects. Afîer consiidecring eery ethod available to the Poicof ra1ising monley, your representatives at Qeený's Prkdecided that our vast financial neceds could not be met out of rsn sources of revenue. It was agreed that The Retail Sales Tax Act wýas b ars and miost practical way for residents of Ontario to contributle to the cost of their~ schools, hospitals and other Beforedrig up the Ontario Retail. Sales Tax Act, your governm-ent closely studied the retail sales taxes of seven olther Cýnadýianj provinces and many statesý of the U.S.A. The Ontario Retil Sales Tax Act bas the broadestexemptions of any of these retauil salestaes Only two other provinces [have a tax rate as lowx as Ontario, t Collection of Tax Those who regularly sel goods as a normal part of their business rnust apply to bé registered as vendors. Those whÔ have applied are now receivîng their permits. They wiIl collect 3'.0 tax on, the pricegf goods sold to the ullimate consumer. The tax will be collected only once. Thus, a registered wholesaler will purchase goods for resale tax free from the manu.facturer. He in turn will seil to the retailer on a tax free basis. Then the retailer wiIl colleet the tax when lie seils to the consumer. Major Congsumer Exempý.ions Most of the day-to,-dayý necessities of life are free of sales tax, Food, prescribed drugs and medicalsupi, and cliidr-en'*s clothing are ail tax exempt. Heating fuel, electricity and gasoline are exempt. Newspapers, magazines and books are exempt. No tax applies on restaurant meals charged separately at $1I.50 or less. Each sale of less than 17e~ is exempt. These and many other exemptions are discussed in detail on special cards that are now being mailed to retailers and other vendors. Homes Not Taxable Houses and other buildings are real property and are flot subject t to tax under this Act. The building contractor pays tax on materials incorporated into, the home or other structure but no tax is payable on the labour that'constitutes a large part of the total prive of a lhonuc. Registered vendors ore recelving special Each explahffl how the Retail Sales Tax ýbp fioncl information 4a vailable fr.m lb. DiM If furnishings such as draperies, stoves and refrigerators are sok with a home, tax is payable on the fair value of such furnishings. Services Not Ta-,cz!e Only items of merchandise that -lre- oeri.and Iirkn services, except Iong distance cai re su! Jk t 1'uî:îe ax. I 1s persons selling "services," such as barbers, !beauty, shops, Iauin- derers and dry cleaners, do flot collect tax, but mrust Pay,'tax -'on the miaterials they use in supplying their service. H]owev\er. 1;_ a repair service includes substantial quantitiesý of'partior- c c-~ the entire bill wil be taxaýble unless, themaeii are showîý, i' asIa separate char'ge froin the labour. Casual Sales When an individua-l selis goods privately, the taszini "casuail" sale. In sucli cases the purchaser and not he iltof taxable goods is responsible to report h ucae n a h sales tax on the purchase price to the Retal Sales Tax Branch, Oflice of the Comptroller of Revenue. Insta!ment Purchases Sales tax is due'on the total price when 01-e sMe is niad,Cve though paynents mnay continue over a 1I u priod of urne Finance charges are also taxable un-less quo-,edadieie stparately. The actual selling price minus the amourtnt of thc --de i lo, ance is the amount upon which sales tax is d> oe Farming Farmers will ne exempt trom tax on mosi equipment, on agri.. cultural seeds and feeds, on drugs and medicines for livestock and on many other commodities used directly in the ousiness of farming.- Exports and Imports Goods exported from Ontario are flot taxable since thie tax is applicable only to goods used in Ontario. No tax is payaible under this Act by manufacturers on goods they purchase for use in the production of goods for sale. Thus, their competitive posi- tion in the export market is maintained without change affter thle introduction of this tax. Goods imported into Ontario are taxable since they aire pur- chased for use in Ontario. The purchaser of the )imiported gooýds is subject to the same tax lie would have to, pay to an Onitario Vendor if lie purchased the goods in Ontario, Rentai of Moveuble Property The person who acquires possession of mnoveable property by paying a rentai price for its use is regarded as a purchaser of sucli property under the Act and tax is payable by him on the rental price paid Counds Work 0f 4-1 Clubs "Our 4-H Clubs are the mhost ef- fective ageney in the im.provèetient oi farmilng Ive seen," This is the observation of Harold Inman, preP- rietor of a grain and feeds business in Peterborough, Ontario. in conversation with Harry Theo- bald, Editor of the Farm Page of the Peterborough Examiner,, Mrý IInman eited the, namerof a dozen or more former 4-H merobers Who are now leaders and4 progressive farmers in the district. He is im- pressed particularly with the way 4-H clubs are organized and the ii fluence of the program among Sen- ior farmers. "lIt is fifteen years or more since 4-H training. 1 can see the differ- 1 began Io notice the influence of ence in the boys wvho carried on ini 4-H and who are now farming on their on, Wecertain'ly wish themn ýsuc!cess in overcomîn.g todays farmrrg problemns - and I'm not overoolingthe girls." The opinion of men in business, suc' s M. nnian are rnost grat- 14ying to the local club leaders and~ directoras of the mov-ý%ement - prov- Inatrci 'ra support in the provinces anjd through the Cana- dian Councifl on - 4-H ýClubs, the 4-H m-rovemeit, stands out today âs one of' our finest examples o! co-opera- tive effort': Through working i Close co-operation with the exten- ton departi-fents, businessmen, ser- vice clubs, farm organizations and ail branches of t' t press ean be justly proud o! their contribution to the prog-ress and welfare of this growing youtlb tra'ining program iin Canada- Grape Acreage Expands. A recent soil survey of the Nia- gara fruit belit shows that grape production is expanding rapidly in- te the'area of dlay souls above the escarpment. While these souls are poor or iniperfectly drained, they centaîni more organic matter th'an the lakeshore clays and are mnore easily cufltivated, states Dr. R. E. Wiclundl of, the Soil Research In- .s-ttte, Canada Department of Ag- ricu1lture at Ottawa. Slsbelow the escarpmnent Vary greatfly and alterniate between sand and(, day wiýthin short distances. The-., day bieds extend f rom Hamil- ton. to Niaria-on-thie-Laýke and un- a lail the sand deposJts. Sandy souls predoxinate riear GrmbVineland and Jordlan Sta- tnsometimes exltending diown to adthof five feet. CIay pockets m1,ay be present whiere the land is n(_-,en or cut by rvines ýrunning eu-it f rom the escarpiment. The dlay souls a-re poer and they ,,Tipedle drainage froni over1ying sand surfaces which' then becr>mre saturated. Information f rom this survey wili be publishied as the "Soi1 Survey of Lincoln County" and can becob- tained froni the Ontario Soil Sur- vey, Ontario Agricultural College, GuelpUh. WIlNTERIZE YOLJR HOME J FOR WINTER ISterm Windows, Fram-es, Sashes. Cal Newcastle F. H. Grahlam, 2ý581 or t -i I cords that lisi exempt and taxable goods. ýplies to ecch particuIar type of business. Addî- strict Sales Tox Office serving yeur commnfity. --m-m- ý "Imm