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Canadian BILL C-32 imposes huge taxes on blank recording media

UPDATE: DEC 25, 2000

While you were not paying attention, Ottawa bureaucrats and lobbyists were busy increasing their take by 300%. Not content with $9 million a year, the levy has been increased to take in an estimated $27 million per year.

Media
Current Levy
Levy as of January 01, 2001

Audio cassettes
$0.233
$0.29
CD-R
$0.052
$0.21

See the press release from the copyright board:

English

Francais

Meanwhile we are waiting for news of when this money may actually end up in the hands of Canadian artists and publishers. Socan has a lot of news about their Galas, but nothing about their royalty distribution policy.

UPDATE: DEC 17, 99

The levy is now in effect. See the scan of the declaration:

English

French

The rates are:

There are exemptions allowed for various types of customers, so as soon as we have time to read the complete law, we'll post more details as to the effect on you.

(June 1999) Status

The levy was postponed for a year.

(Dec 98) Latest I've heard...

I spoke to the lawyer for the copyright board about a month ago (early November), and according to him they received 3000 letters or faxes about the levy. Hearings and debate will be held in the spring of '99 about the amount of the levy. The amounts in the bill are "proposed" levies and may or may not be real.

He had no clear answer when I asked him if I should start collecting the levy on January 1st, 1999. He said the law says Jan. 1, and the final real amount agreed upon may be retroactive to Jan. 1!!! Or it may have a phasing-in period.

The good news for some people is the board seems to be ready to allow exceptions to the levy for professional use and voice-only use... meaning that voice-grade analogue tape may be exempt from the levy. I didn't ask about CD-Rs.

If you know anything about the status of Bill C-32, please send me an email: george@amtechdisc.com

December 11, 1998

Bill C-32 is coming into effect and will impose HUGE taxes on blank audio cassettes and CDs. Tapes we sell now for 50 cents will have $1.50 of tax added!

The levy is $0.25 for each 15 minutes of analogue recording time, and $0.50 for each 15 minutes of digital recording time - $2.50 on each CD-R and $4.50 on a 124 minute DAT!

If you do not agree with this tax, send your objection to the Copyright board BEFORE AUGUST 12th, 1998: 

Claude Majeau
Secretary to the Board
56 Sparks Street, suite 800
Ottawa, Ontario
K1A 0C9

Phone (613) 952-8621
Fax (613) 952-8630
Include the phrase "I object to the levy on blank audio recording media" and include your reasons and why you use the media, and how it will affect you.

Impact on cassette prices
LengthPrice nowPrice with tax
C-300.360.86
C-620.471.72
C-950.682.43

Links

  • Proclamation of bill
  • Canada "Cultural Development Homepage"
  • SOCAN comment
  • The bill itself
  • The section about the levy

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