1992 Legislative Session: 1st Session, 35th Parliament
THIRD READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
Certified correct as passed Third Reading on the 2nd day of June, 1992
Ian D. Izard, Law Clerk.
MINISTER OF FINANCE AND
CORPORATE RELATIONS
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 The Property Purchase Tax Act, S.B.C. 1987, c. 15, is amended by repealing the title and substituting the following:
PROPERTY TRANSFER TAX ACT .
2 Section 1 (1) is amended by adding the following paragraph to the definition of "fair market value":
(g) in respect of a transaction referred to in paragraph (e) of the definition of taxable transaction, the fair market value of the interest to which the application under section 187 of the Land Title Act relates, as determined in accordance with the provision of this definition that corresponds to the nature of the interest involved; .
3 Section 1 (1) is amended by repealing paragraph (e) of the definition of "taxable transaction" and substituting the following:
(e) that consists of an application under section 187 of the Land Title Act in respect of an amalgamation referred to in section 187 (4) of that Act; .
4 Section 3.1 is amended
(a) in subsection (1) by repealing the definition of "eligible transferee" and substituting the following:
"eligible transferee" means a transferee who is an individual who has, or whose spouse has, lived in British Columbia for the 12 months immediately preceding the date application is made for registration of the eligible transaction; ,
(b) by adding the following subsection:
(2.1) If an eligible transaction does not qualify for a tax credit by reason only that the transaction is in respect of land that has on it more than one principal residence, in relation to each principal residence an eligible transferee who applies for registration of the eligible transaction is entitled to a tax credit in an amount determined under subsection (3) where
(a) each residential dwelling unit on the land is ordinarily occupied and inhabited by different eligible transferees,
(b) the eligible transferees referred to in paragraph (a) are not related individuals,
(c) the eligible transferees referred to in paragraph (a) each have a registered interest in the eligible transaction, and
(d) the fair market value of the land and improvements that comprise the principal residences in aggregate does not exceed the applicable limit under subsection (2) (a). ,
(c) by repealing subsection (14) and substituting the following:
(14) If any of the following events occur during the 12 months after the time the return in respect of an eligible transaction was filed under section 2 (1) (b), the eligible transferee shall repay to the Crown, at the time the event occurs, the amount of any tax credit deducted by the transferee under subsection (5) or received by the transferee under subsection (7):
(a) the eligible transferee reduces the aggregate of
(i) the eligible indebtedness on which the tax credit was calculated, and
(ii) any amount included under subsection (9),
by more than
(iii) $6 650, in the case of a principal residence referred to in subsection (2) (a) (i), or
(iv) $5 000, in the case of a principal residence referred to in subsection (2) (a) (ii);
(b) the eligible transferee has not commenced residing in or, once the transferee has commenced residing, ceases to reside in the principal residence that qualified for the tax credit;
(c) in the case of a tax credit under subsection (2.1), the requirement of subsection (2.1) (a) ceases to be met. ,
(d) by adding the following subsection:
(14.1) If the eligible transferee replaces all or part of the eligible indebtedness on which a tax credit was calculated during the 12 months following the time the transferee's return was filed under section 2 (1) (b) with a mortgage or agreement for sale that
(a) is between the eligible transferee and a person who is not a related individual to the transferee,
(b) has a term that ends no earlier than the term referred to in the definition of eligible indebtedness,
(c) is no greater in amount than the eligible indebtedness that it replaces, and
(d) is registered no later than 7 days after the eligible indebtedness that it replaces is cancelled,
the replacement indebtedness shall be deemed to be the eligible indebtedness and any amount by which the replacement indebtedness is less than the original eligible indebtedness shall be deemed to be a reduction of the eligible indebtedness for the purposes of subsection (14) (a). , and
(e) in subsection (15) by striking out "(14) (b) (i)," and substituting "(14) (a),".
5 Section 5 (2) (v.6) (i) is repealed and the following substituted:
(i) the amalgamation was effected under sections 271 to 275 of the Company Act, under sections 181 to 186 of the Canada Business Corporations Act (Canada) or under similar provisions of an enactment of Canada or of a province, and .
6 Section 1.5 (2) of the British Columbia Railway Act, R.S.B.C. 1979, c. 38, is amended by striking out "Property Purchase Tax Act." and substituting "Property Transfer Tax Act."
7 Section 52 (6) of the Hydro and Power Authority Act, R.S.B.C. 1979, c. 188, is amended by striking out "Property Purchase Tax Act," and substituting "Property Transfer Tax Act,".
8 Section 187 (4) of the Land Title Act, R.S.B.C. 1979, c. 219, is amended by striking out "subsection (1) or (2)." and substituting "subsection (1) or (3)."
9 Section 315 (8) is amended by striking out "Property Purchase Tax Act" and substituting "Property Transfer Tax Act" in both places.
10 Section 472 (1.1) of the Municipal Act, R.S.B.C. 1979, c. 290, is amended by striking out "Property Purchase Tax Act." and substituting "Property Transfer Tax Act."
11 (1) Subject to subsection (2), this Act comes into force by regulation of the Lieutenant Governor in Council.
(2) Sections 6, 7, 9 and 10 come into force when section 1 comes into force.
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