1998/99 Legislative Session: 3rd Session, 36th 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 14th day of July, 1999
Ian D. Izard, Law Clerk
HONOURABLE JOY K. MacPHAIL
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:
Assessment Act
1 The Assessment Act, R.S.B.C. 1996, c. 20, is amended by adding the following section:
20.1 (1) In this section:
"dam" means any structure designed and built to control or store water flowing in a water course for the purposes of, or for purposes ancillary to, generating electricity;
"power plant" means any structure designed and built to contain boilers, turbines or compressors for the purposes of, or for purposes ancillary to, generating electricity;
"substation" means a facility at which electric current is switched, transformed or converted
(a) at a dam or a power plant,
(b) between a power plant and a transmission system, or
(c) between a transmission system and a distribution network.
(2) This section applies to properties where there is a dam, power plant or substation, other than properties to which section 20 applies.
(3) Despite any other section of this Act, the actual value of a property to which this section applies is
(a) the actual value of the land as determined under section 19, and
(b) the cost of
(i) the dams, power plants and substations on the property, and
(ii) any other improvements on the property,
determined in accordance with the manuals prescribed under subsection (4) (a) of this section, less depreciation determined in accordance with the rates and applied in the manner prescribed under subsection (4) (b) of this section.
(4) For the purposes of this section, the Lieutenant Governor in Council may make regulations prescribing
(a) manuals establishing rates, formulas, rules or principles for the calculation of cost, and
(b) depreciation rates and principles for the application of depreciation.
(5) Regulations under subsection (4) may be different for individual properties or properties with different categories of dams, power plants and substations.
Corporation Capital Tax Act
2 Section 13 (3) of the Corporation Capital Tax Act, R.S.B.C. 1996, c. 73, is amended
(a) by striking out "and" at the end of paragraph (b) and by adding the following paragraphs:
(b.1) the amount, if any, by which the aggregate of the eligible expenditures of the corporation incurred after March 31, 1999 for the second preceding taxation year exceeds the aggregate of
(i) the eligible expenditures of the corporation for the second preceding taxation year with respect to property that does not qualify as eligible property or eligible tourism property of the corporation at the end of the taxation year, and
(ii) the amounts of amortization, depreciation and other charges taken into account in computing the corporation's income or loss for the taxation year and the 2 immediately preceding taxation years in accordance with generally accepted accounting principles in respect of the eligible expenditures referred to in this paragraph,
(b.2) the amount, if any, by which the aggregate of the eligible expenditures of the corporation incurred after March 31, 1999 for the third preceding taxation year exceeds the aggregate of
(i) the eligible expenditures of the corporation for the third preceding taxation year with respect to property that does not qualify as eligible property or eligible tourism property of the corporation at the end of the taxation year, and
(ii) the amounts of amortization, depreciation and other charges taken into account in computing the corporation's income or loss for the taxation year and the 3 immediately preceding taxation years in accordance with generally accepted accounting principles in respect of the eligible expenditures referred to in this paragraph, and , and
(b) in paragraph (c) by striking out "paragraphs (a) and (b)" and substituting "paragraphs (a) to (b.2)".
3 Section 40 is amended
(a) by adding the following subsection:
(2.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(b) in subsections (5) (b) and (6) by striking out "mailed or", and
(c) by adding the following subsection:
(6.1) Money demanded from a person by the administrator under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the corporation at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the corporation, in any other case.
4 Section 43 is amended
(a) by adding the following subsection:
(1.1) A demand under section 40 is sufficiently given if it is delivered as set out in subsection (1) of this section or is sent by electronic mail or fax to the electronic mail address or fax number stated in the person's last return or to the last electronic mail address or fax number known to the administrator. , and
(b) in subsection (2) by striking out "or mailed" and substituting ", mailed or sent".
Hotel Room Tax Act
5 Section 21 (2) of the Hotel Room Tax Act, R.S.B.C. 1996, c. 207, is repealed and the following substituted:
(2) If a decision of the director or the minister is set aside or the amount of an assessment or penalty is reduced on appeal, the director must refund from the consolidated revenue fund
(a) the amount or excess amount paid, and
(b) any additional interest or penalty imposed and paid.
6 Section 28 is amended
(a) in subsections (2) and (3) by striking out ", by registered letter or by a letter served personally,",
(b) by adding the following subsection:
(3.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(c) in subsection (7) by striking out "mailed or", and
(d) by adding the following subsection:
(7.1) Money demanded from a person by the director under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
Income Tax Act
7 Section 3 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by striking out "19," and substituting "19 (2) and (3),".
8 Section 6 (1) (g) is repealed and the following substituted:
(g) for the 1999 taxation year,
(i) 30% of the amount by which that tax exceeds $5 300, and
(ii) 19% of the amount by which that tax exceeds $8 660 before the tax payable under subparagraph (i) is added;
(h) for the 2000 and subsequent taxation years,
(i) 30% of the amount by which that tax exceeds $5 300, and
(ii) 15% of the amount by which that tax exceeds $8 660 before the tax payable under subparagraph (i) is added.
9 Section 16 is amended by striking out "8.5%" wherever it appears and substituting "5.5%".
10 Section 17 is amended
(a) by repealing subsection (3) (b) and substituting the following:
(b) the taxation year for which the deduction is claimed must be the taxation year in which the corporation commenced business operations or the taxation year immediately following that taxation year; , and
(b) by repealing subsection (4) (c) and substituting the following:
(c) at any time during the taxation year for which the deduction is claimed or a previous taxation year, the corporation was associated with another corporation within the meaning of section 256 of the federal Act; .
11 Section 19 is amended
(a) by repealing subsections (1) to (3) and substituting the following:
(1) In this section:
"adjusted taxable income", in relation to a taxpayer for a taxation year, means the amount that would be the taxpayer's taxable income for the year if that amount were calculated
(a) as though
(i) section 12 (1) (o) and (z.5),
(ii) section 18 (l) (m), except as that paragraph applies to an amount paid or payable under a prescribed Act,
(iii) section 20 (l) (v.1),
(iv) section 69 (6), and
(v) section 69 (7)
of the federal Act had not been enacted, and
(b) as though tax payable in respect of the taxation year under the Mineral Tax Act or any other prescribed Act was deductible in computing the taxpayer's taxable income;
"notional tax", in relation to a taxpayer for a taxation year, means the tax that would, but for section 120.1 of the federal Act, be payable under this Part by the taxpayer for the taxation year if the taxpayer's taxable income under this Part for the taxation year was the amount, if any, by which
(a) the aggregate of all amounts, each of which is the adjusted taxable income of the taxpayer for the taxation year and for all preceding taxation years ending after May 5, 1973,
exceeds
(b) the amount determined under paragraph (a) for the immediately preceding taxation year;
"tax otherwise payable" means the amount that would, but for this section and section 120.1 of the federal Act, be the tax otherwise payable under this Part.
(2) If
(a) the tax otherwise payable by a taxpayer for a taxation year
is greater than
(b) the notional tax of the taxpayer for the taxation year,
the difference must be deducted from the tax otherwise payable by the taxpayer for the taxation year.
(3) If
(a) the notional tax of a taxpayer for a taxation year
is greater than
(b) the tax otherwise payable by the taxpayer for the taxation year,
the difference must be added to the tax otherwise payable by the taxpayer for the taxation year. , and
(b) in subsection (4) by striking out "For the purpose of subsections (1) and (3), in calculating the tax that would be payable" and substituting "For the purpose of subsections (2) and (3), in calculating the tax otherwise payable".
12 Section 27 (3) is repealed.
13 Section 79 (1) is amended in the definition of "eligible production"
(a) in paragraph (d) by striking out "at least 75% of the cost of producing the production," and substituting "in the case of a production that is not a documentary, at least 75% of the cost of producing the production,", and
(b) by adding the following paragraph:
(d.1) in the case of a production that is a documentary, at least 75% of the cost of producing the production, other than costs determined by reference to the amount of income from the production, or, in the case of an interprovincial co-production or a treaty co-production, at least 75% of the cost of producing the British Columbia portion of the production, other than costs determined by reference to the amount of income from the production, is payable to BC-based individuals or BC-based corporations in respect of goods or services provided by
(i) BC-based individuals who are employees, or
(ii) BC-based individuals, or BC-based corporations, in the course of carrying on business through a permanent establishment in British Columbia; .
Income Tax Amendment Act, 1998
14 Section 4 of the Income Tax Amendment Act, 1998, S.B.C. 1998, c. 8, is repealed.
15 Section 9 (6) is repealed.
Insurance Premium Tax Act
16 Section 25 of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is amended
(a) by adding the following subsection:
(2.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(b) in subsections (5) (b) and (6) by striking out "mailed or", and
(c) by adding the following subsection:
(6.1) Money demanded from a person by the commissioner under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
17 Section 34 is amended
(a) by adding the following subsection:
(1.1) A demand under section 25 is sufficiently made if it is delivered as set out in subsection (1) of this section or is sent by electronic mail or fax to the electronic mail address or fax number stated in the person's last return or to the last electronic mail address or fax number known to the commissioner. , and
(b) in subsection (2) by striking out "or mailed" and substituting ", mailed or sent".
International Financial Business (Tax Refund) Act
18 Section 1 of the International Financial Business (Tax Refund) Act, R.S.B.C. 1996, c. 235, is amended
(a) in subsection (1) by adding the following definition:
"nonresident broker" means a nonresident who
(a) is licensed or registered under the laws of a foreign country or a political division of a foreign country to trade in securities as principal or agent,
(b) is not licensed or registered under the Securities Act or a similar law of another province to carry on any activity in a province, and
(c) is not related within the meaning of section 251 of the Income Tax Act (Canada) to a corporation that is licensed or registered under the Securities Act or a similar law of another province to carry on any activity in a province; , and
(b) in subsection (3) by adding the following paragraph:
(g) for the purposes of paragraphs (a) and (c) of the definition of "dealing in securities", if a financial institution is acting as principal or agent in making or offering to make an agreement referred to in those paragraphs with a nonresident broker acting as agent for another person, the nonresident broker is deemed to be the nonresident.
19 Section 7 (2) is amended by striking out "or" at the end of paragraph (b), by adding ", or" at the end of paragraph (c) and by adding the following paragraph:
(d) comes within paragraph (a) of the definition of "dealing in securities" and is carried on for, with or on behalf of a nonresident broker.
Logging Tax Act
20 The Logging Tax Act, R.S.B.C. 1996, c. 277, is amended by adding the following section:
2.1 If a taxpayer has made a deduction for a taxation year in accordance with section 17 of the Income Tax Act, the taxpayer is deemed
(a) to have paid on account of tax under this Act for the taxation year the amount that would have been deducted under section 15 of the Income Tax Act if no amount had been deducted under section 17 of that Act, and
(b) to have paid that amount at the time referred to in section 15 (2) (c) of this Act.
21 Section 32 is amended
(a) by adding the following subsection:
(2.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(b) in subsections (5) (b) and (6) by striking out "mailed or", and
(c) by adding the following subsection:
(6.1) Money demanded from a person by the commissioner under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
22 Section 39 is amended
(a) by adding the following subsection:
(1.1) A demand under section 32 is sufficiently made if it is delivered as set out in subsection (1) of this section or is sent by electronic mail or fax to the electronic mail address or fax number stated in the person's last return or to the last electronic mail address or fax number known to the commissioner. , and
(b) in subsection (2) (b) by striking out "or mailed" and substituting ", mailed or sent".
Mineral Tax Act
23 Section 1 (1) of the Mineral Tax Act, R.S.B.C. 1996, c. 291, is amended
(a) by repealing the definition of "fiscal year of the mine" and substituting the following:
"fiscal year of the mine" means,
(a) in respect of a placer gold mine, the calendar year, and
(b) in respect of any other mine,
(i) the period, not exceeding 12 months, for which the accounts of the mine have been or are ordinarily made up, or
(ii) in the absence of a chosen period, the calendar year; ,
(b) in paragraph (a) of the definition of "mineral" by striking out "as defined in that Act", and
(c) by adding the following definitions:
"placer gold mine" means a mine having the following characteristics:
(a) substantially all of the mineral product produced from the mine is placer minerals;
(b) gold produced from the mine accounts for the majority of the value of the placer minerals produced from the mine;
"placer gold mine operator" means the operator of a placer gold mine;
"placer mineral" has the same meaning as in the Mineral Tenure Act; .
24 The following section is added:
1.1 Sections 2, 3 to 7, 8 (1) to (3), 9, 10, 11 and 13 to 15 do not apply in respect of a placer gold mine, or to the placer gold mine operator, for any fiscal year of the mine ending after December 31, 1998.
25 The following section is added:
2.2 A person who is a placer gold mine operator must, for each placer gold mine of which that person is an operator, pay in respect of each calendar year a tax equal to 0.5% of the amount that is the operator's proportionate share of the transaction value of the mineral product disposed of in the calendar year.
26 Section 12 is amended
(a) in subsection (1) by adding ", other than a placer gold mine operator," after "Each operator of a mine",
(b) by adding the following subsection:
(1.1) Each placer gold mine operator must, on or before March 31 of each year, deliver to the commissioner a return for the mine for the previous calendar year in the prescribed form and containing the prescribed information. ,
(c) in subsection (2) by adding ", other than a placer gold mine operator," after "an operator of a particular mine",
(d) by repealing subsection (2) (b) and substituting the following:
(b) the particular mine was not in commercial operation and
(i) the operator was not engaged in any reclamation activities with respect to the mine at any time during the fiscal year of the mine, and
(ii) all of the mineral product derived from the mine and all of the assets used in the operation of the mine have been sold or otherwise disposed of. ,
(e) by adding the following subsection:
(2.1) Despite subsection (1.1), unless the commissioner issues a demand for the return, a placer gold mine operator is not required to deliver a return if
(a) the fair market value of the placer minerals produced from the mine in the calendar year for which the return would otherwise be required is less than $50 000,
(b) the transaction value of the placer minerals disposed of from the mine in the calendar year for which the return would otherwise be required is less than $50 000, and
(c) the placer gold mine operator is an individual. , and
(f) in subsection (7) by adding ", other than a placer gold mine operator," after "Each operator".
27 The following section is added:
13.1 Each placer gold mine operator must, on or before March 31 of any year, pay to the commissioner the amount of tax payable by the operator for the mine for the previous calendar year.
28 Section 16 (1) and (2) is amended by striking out "section 12 (1)," and substituting "section 12 (1) or (1.1),".
29 Section 18 is amended by adding "or (1.1)" after "section 12 (1)".
30 Section 21 is repealed and the following substituted:
21 (1) The commissioner must, with all due dispatch, examine each return filed by an operator of a mine or by any other person who is obliged under section 12 to file the return.
(2) If a return is not filed for a fiscal year of a mine as required by section 12, the commissioner may estimate the amount of tax payable by an operator for that year in respect of the mine.
(3) If it appears from an examination of a return under subsection (1) or, if a return is not filed as required under section 12, from an estimate made under subsection (2) of this section, that an amount of tax should have been paid by an operator, the commissioner may assess the operator for the amount of that tax and any related interest or penalties.
(4) Liability for tax under this Act is not affected by an incorrect or incomplete assessment or by the fact that an assessment has not been made.
(5) Without limiting subsection (3), the commissioner may assess or reassess tax, interest and penalties under this Act or notify in writing an operator or other person by whom a return has been or ought to have been filed that the commissioner requires further information
(a) at any time, if the operator or other person by whom a return has been or ought to have been filed has made a misrepresentation that is attributable to carelessness, willful default or fraud in filing of the return or in supplying information, and
(b) in any other case, within 6 years after the end of the fiscal year of the mine for which the return was required, whether or not any tax was payable under this Act.
(6) The commissioner must, after making an assessment or reassessment of an operator under this section, prepare and mail to the operator, at the last known address for that operator, a notice of assessment that contains the following information as applicable:
(a) the name and address of the operator to whom the notice is directed;
(b) information sufficient to enable the mine to which the notice relates to be identified;
(c) the fiscal year of the mine to which the notice applies;
(d) the date of issue of the notice;
(e) the total amount of the taxes payable by the operator for the mine in respect of the particular fiscal year of the mine;
(f) the amount of interest and penalties payable by the operator in respect of the fiscal year of the mine;
(g) the total amount of installments and taxes paid in respect of the fiscal year of the mine, including any interest and penalties paid;
(h) the total amount of the reclamation tax credit for the fiscal year of the mine;
(i) the total outstanding balance to be paid by the operator or refunded to the operator in respect of the fiscal year of the mine.
(7) After the commissioner mails a notice of assessment under subsection (6),
(a) if the notice of assessment reflects an outstanding balance to be paid by an operator, the part of the amount assessed that remains unpaid is payable immediately, or
(b) if the notice of assessment reflects an outstanding balance to be refunded to an operator, the minister, on the certificate of the commissioner as to the facts, must, subject to subsection (8), requisition a refund of the amount overpaid from the consolidated revenue fund.
(8) Instead of making a refund or repayment that might otherwise be made under subsection (7), the commissioner may, if the taxpayer is liable or about to become liable to make any payment under this Act, apply the amount of the refund or repayment to that other liability and notify the taxpayer of that action.
31 Section 22 (3) is amended by adding "who is not a placer gold mine operator, or of the transaction value of the minerals disposed of by a placer gold mine operator," after "net current proceeds of an operator".
32 Section 27 (2) is amended by striking out "An appeal" and substituting "Within 90 days after the date on which the board makes a decision under section 26 (3), an appeal".
33 Section 39 (4) is amended by striking out "section 12 (1) or (5)," and substituting "section 12 (1), (1.1) or (5),".
34 Section 45 is amended by striking out "section 12 (1), (5) and (7)" and substituting "section 12 (1), (1.1), (5) and (7)".
Mining Tax Act
35 Section 32 of the Mining Tax Act, R.S.B.C. 1996, c. 295, is amended
(a) by adding the following subsection:
(2.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(b) in subsections (5) (b) and (6) by striking out "mailed or", and
(c) by adding the following subsection:
(6.1) Money demanded from a person by the commissioner under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
36 Section 44 is amended
(a) by adding the following subsection:
(1.1) A demand under section 32 is sufficiently given if it is delivered as set out in subsection (1) of this section or is sent by electronic mail or fax to the electronic mail address or fax number stated in the person's last return or to the last electronic mail address or fax number known to the commissioner. , and
(b) in subsection (2) by striking out "or mailed" and substituting ", mailed or sent".
Motor Fuel Tax Act
37 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended
(a) by adding the following definition:
"ethanol blended gasoline" means fuel of which more than 1% but less than 85% is ethanol and the remainder of which is primarily gasoline; , and
(b) in the definition of "gasoline" by adding ', and "gasoline" includes ethanol blended gasoline;' at the end.
38 Section 4 (1) (a) and (b) is repealed and the following substituted:
(a) outside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the gasoline at the following rates:
(i) effective April 1, 1999, 8¢ per litre;
(ii) effective June 1, 1999, 7¢ per litre;
(iii) effective October 1, 1999, 6.75¢ per litre,
(b) inside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the gasoline at the following rates:
(i) effective April 1, 1999, 12¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c);
(ii) effective June 1, 1999, 11¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c);
(iii) effective October 1, 1999, 10.75¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c), and .
39 The following section is added:
4.1 Despite any other provision of this Act, ethanol blended gasoline is subject to a reduced rate of tax calculated as follows:
| Rate | = | gasoline tax rate x | (100 - ethanol percentage) 100 |
where
| gasoline tax rate | = | the applicable rate of tax imposed under sections 4, 12.1, 13 and 13.1, as applicable | |
| ethanol percentage | = | the percentage of ethanol in the ethanol blended gasoline. |
40 Section 10 (1) (a) and (b) are repealed and the following substituted:
(a) outside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the fuel at the following rates:
(i) effective April 1, 1999, 8.5¢ per litre;
(ii) effective June 1, 1999, 7.5¢ per litre;
(iii) effective October 1, 1999, 7.25¢ per litre,
(b) inside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the fuel at the following rates:
(i) effective April 1, 1999, 12.5¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c);
(ii) effective June 1, 1999, 11.5¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c);
(iii) effective October 1, 1999, 11.25¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c), and .
41 Section 13 (1) and (2) is amended by striking out "2¢ per litre" and substituting "3¢ per litre".
42 Part 2 is amended by adding the following section:
13.1 (1) In addition to the tax payable under sections 4, 10, 12.1 and 13, a purchaser of gasoline or motive fuel must pay to the government, at the time of purchase, for the raising of revenue for the purposes of the British Columbia Ferry Corporation tax on the gasoline or motive fuel at the following rates:
(a) effective April 1, 1999, 1¢ per litre;
(b) effective October 1, 1999, 1.25¢ per litre.
(2) In addition to the tax payable under sections 4, 10, 12.1 and 13, a person who uses gasoline or motive fuel on which tax is not otherwise payable under this section must pay to the government, at the time that any tax payable by the person under section 4 (2) or 10 (3) is payable, for the raising of revenue for the purposes of the British Columbia Ferry Corporation tax on the gasoline or motive fuel at the following rates:
(a) effective April 1, 1999, 1¢ per litre;
(b) effective October 1, 1999, 1.25¢ per litre.
43 Section 15 (1) is amended
(a) by striking out "A person" and substituting "Subject to section 15.1, a person", and
(b) by repealing paragraph (h) and substituting the following:
(h) a commercial motor vehicle, other than a pick-up truck, when used on other than a highway for the transportation of
(i) drilling rigs, drilling equipment and supplies,
(ii) fuel, water, well-servicing equipment and supplies, and
(iii) geophysical and seismic equipment and supplies,
for persons actively engaged in exploring or drilling for petroleum and natural gas; .
44 The following section is added:
15.1 (1) Subject to subsection (2), a person may use coloured fuel for a purpose not authorized by section 15, but only to operate a motor vehicle that
(a) is used in a logging or mineral mining operation,
(b) is not licensed to operate on a highway, and
(c) is not used on a highway.
(2) A person who uses coloured fuel to operate a motor vehicle referred to in subsection (1) must pay to the government, on or before the 15th day of the month following the month in which the fuel is used, tax equal to the difference between
(a) the tax that the person would have paid on the fuel if the fuel had not been taxed as coloured fuel, and
(b) the tax paid by the person on that fuel.
(3) The tax payable under subsection (2) is additional to any tax payable under section 5.
45 Section 22 (2) is amended by striking out "section 12.1" in both places and substituting "section 12.1, 13 or 13.1".
46 Section 48 is amended by renumbering the section as section 48 (1) and adding the following subsection:
(2) The director may assess at any time interest payable under subsection (1).
47 Section 57 is amended
(a) in subsections (2) and (3) by striking out ", by written notice,",
(b) by adding the following subsection:
(3.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(c) in subsections (6) (b) and (7) by striking out "mailed or", and
(d) by adding the following subsection:
(7.1) Money demanded from a person by the director under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
48 Section 64 (1) is amended by striking out "12.1 (2)," and substituting "12.1 (2), 13, 13.1,".
49 Section 71 (2) is amended by adding the following paragraph:
(k.1) prescribing types of motor vehicles for the purposes of section 15 (1) (d) and (e), based on the make, description or use of those vehicles or any combination of those things; .
Property Transfer Tax Act
50 Section 1 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended by adding the following definitions:
"parcel" means a parcel as defined in the Land Title Act that has not been subdivided into smaller parcels and that
(a) bears a parcel identifier, or
(b) under land title office practice, is to be assigned a parcel identifier on registration under the Land Title Act of a transfer of the parcel;
"parcel identifier" means a permanent parcel identifier assigned under section 58 of the Land Title Act; .
51 Section 3 is amended by adding the following:
(3.1) In subsections (3.2) to (3.5), words and expressions used have the same meaning as in section 14 (3) (j) and (4) (k) and (k.1).
(3.2) If the exemption set out in section 14 (3) (j) is not available to a transferee only because the condition set out in section 14 (3) (j) (ii) is not fulfilled, the tax payable by the transferee must be calculated as if all of the taxable transactions in relation to a transfer of all of, or a registered ownership interest in, one or more of the smaller parcels created under the subdivision were a single taxable transaction with a fair market value calculated
(a) firstly, by determining the difference between the following 2 percentages by subtracting from the percentage under subparagraph (i) the percentage under subparagraph (ii):
(i) the transferee's proportionate share, expressed as a percentage, of the fair market value of the smaller parcels, calculated using the fair market values as they were immediately after the subdivision;
(ii) the transferee's proportionate share, expressed as a percentage, of the fair market value of the original parcel referred to in section 14 (3) (j) (i), calculated using the fair market value as it was immediately before the subdivision, and
(b) secondly, by multiplying the total fair market value of all of the smaller parcels, calculated at the time of the application to register the transfer to the transferee, by the difference determined under paragraph (a), to obtain the fair market value that is subject to tax.
(3.3) If the exemption set out in section 14 (4) (k) is not available to the trustee only because the trustee
(a) transfers all of, or a registered ownership interest in, one or more of the parcels created under the subdivision to one or more transferees, in this subsection called the "third parties", none of whom was a registered owner of one or more of the original parcels immediately before their transfer to the trustee, or
(b) retains all of, or a registered ownership interest in, one or more of the parcels created under the subdivision,
the tax payable by the trustee must be calculated as if the transfer of the original parcels were a single taxable transaction with a fair market value calculated
(c) firstly, by determining the third parties' proportionate share, expressed as a percentage, of the fair market value of the parcels created under the subdivision, calculated using the fair market values as they were immediately after the subdivision,
(d) secondly, by determining the proportionate share retained by the trustee, expressed as a percentage, of the fair market value of the parcels created under the subdivision, calculated using the fair market values as they were immediately after the subdivision,
(e) thirdly, by determining the sum of the percentages determined under paragraphs (c) and (d), and
(f) fourthly, by multiplying the total fair market value of the original parcels, calculated using the fair market values as they were immediately before the subdivision, by the percentage determined under paragraph (e), to obtain the fair market value that is subject to tax.
(3.4) If the exemption set out in section 14 (4) (k.1) is not available to an original owner only because the condition set out in section 14 (4) (k.1) (ii) is not fulfilled, the tax payable by the original owner as transferee must be calculated as if all of the taxable transactions in relation to a transfer of all of, or a registered ownership interest in, one or more of the parcels were a single taxable transaction with a fair market value calculated
(a) firstly, by determining the difference between the following 2 percentages by subtracting from the percentage under subparagraph (i) the percentage under subparagraph (ii):
(i) the original owner's proportionate share, as transferee, expressed as a percentage, of the fair market value of all of the parcels created under the subdivision, calculated using the fair market values as they were immediately after the subdivision;
(ii) the original owner's proportionate share, expressed as a percentage, of the fair market value of the original parcels referred to in section 14 (4) (k.1) (ii), calculated using the fair market values as they were immediately before the subdivision, and
(b) secondly, by multiplying the total fair market value of all of the parcels created under the subdivision, calculated at the time of the application to register the transfer to the original owner, by the difference determined under paragraph (a), to obtain the fair market value that is subject to tax.
(3.5) Subsections (3.2) to (3.4) do not operate to impose a tax that is greater than the tax that would be payable under this Act without those subsections.
52 Section 7 (1) is amended by striking out "12 months" and substituting "18 months".
53 Section 14 is amended
(a) in subsection (3) (c) by repealing subparagraph (iii) and substituting the following:
(iii) immediately before the deceased's death, the land transferred
(A) was the deceased's family farm, recreational residence or principal residence, or
(B) had been the transferee's principal residence for a continuous period of at least 6 months; ,
(b) in subsection (3) by repealing paragraph (j) and substituting the following:
(j) a transfer if
(i) a parcel, in this subsection called the "original parcel", is subdivided into smaller parcels and the transferee of all of, or a registered ownership interest in, one or more of those smaller parcels was one of the registered owners of the original parcel immediately before its subdivision, and
(ii) the transferee's proportionate share of the fair market value of those smaller parcels, calculated using the fair market values as they were immediately after the subdivision, does not exceed the transferee's proportionate share of the fair market value of the original parcel, calculated using the fair market value as it was immediately before the subdivision; , and
(c) in subsection (4) by repealing paragraph (k) and substituting the following:
(k) a transfer of 2 or more adjacent parcels, in this subsection called the "original parcels", from their registered owners, in this subsection called the "original owners", to a person who is registered under the transfer as a trustee under the Land Title Act, if
(i) the transfer is to facilitate the subdivision of the original parcels, and
(ii) after the registration under the Land Title Act of the plan of subdivision, the trustee transfers all of the parcels created under the subdivision to the original owners or to any one or more of them;
(k.1) a transfer of all of, or a registered ownership interest in, one or more of the parcels created under a subdivision described in paragraph (k), if
(i) the transfer is from the trustee referred to in paragraph (k) to any of the original owners, and
(ii) that original owner's proportionate share of the fair market value of the parcels created under the subdivision, calculated using the fair market values as they were immediately after the subdivision, does not exceed that original owner's proportionate share of the fair market value of the original parcels, calculated using the fair market values as they were immediately before the subdivision; .
54 Section 18 is amended by adding the following subsections:
(6.1) If an exemption has been applied for under section 14 (3) (j), the assessment must be issued within 24 months after the date of the first transfer after the subdivision.
(6.2) If an exemption has been applied for under section 14 (4) (k) or (k.1), the assessment must be issued within 24 months after the date of the last of the transfers to the trustee to facilitate the subdivision.
55 Section 19 (4) and (5) is repealed and the following substituted:
(4) On receipt of the notice of objection and of the relevant information from the office of the administrator, the minister must decide the amount of the penalty or tax owing or the refund payable, as the case may be.
(5) The minister must deliver to the person who objected to the assessment made under section 18 a notice of the minister's decision under subsection (4) of this section and, if the minister's decision is to vary the assessment, the administrator must deliver a notice of assessment reflecting the variation to the person who objected.
56 Section 21 (3) is repealed and the following substituted:
(3) A petition must be filed in the court registry within 90 days after the date on the minister's notice under section 19 (5) of the minister's decision.
57 Section 27 is amended
(a) in subsections (1) and (2) by striking out ", by registered letter or by a letter served personally,",
(b) by adding the following subsection:
(2.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(c) in subsections (5) (b) and (6) by striking out "mailed or", and
(d) by adding the following subsection:
(6.1) Money demanded from a person by the administrator under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
Social Service Tax Act
58 Section 6 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended
(a) in subsection (3) by striking out "Despite any other provision of this Division," and substituting "Despite any other provision of this Division but subject to subsection (4),", and
(b) by adding the following subsection:
(4) If a passenger vehicle qualifies under the regulations as an alternative fuel vehicle, the applicable tax rate established under subsection (3) must be determined in accordance with the regulations.
59 Section 17 is amended
(a) by striking out "If the minister considers fit, the minister" and substituting "The commissioner", and
(b) by striking out "by the minister." and substituting "by the commissioner."
60 Section 20 is amended
(a) in subsection (1) by striking out "Subject to sections 20.1 and 21 (3)," and substituting "Subject to subsection (3) and sections 20.1 and 21 (3),", and
(b) by adding the following subsection:
(3) If a passenger vehicle qualifies under the regulations as an alternative fuel vehicle, the applicable tax rate established under subsection (1) (b) and the tax rate value under subsection (2) must be determined in accordance with the regulations.
61 Section 27 is amended
(a) by striking out "If the minister considers" and substituting "If the commissioner considers", and
(b) by striking out "the minister may" and substituting "the commissioner may".
62 The following sections are added:
33.1 (1) In this section, "trade-in vehicle" means a multijurisdictional vehicle on which tax has been paid under this Division and that, before the expiration of its current vehicle licence year, is accepted at the time of sale by the seller on account of the purchase price of another multijurisdictional vehicle.
(2) The commissioner may, in accordance with the regulations, provide a refund or credit of a portion of the tax paid on a trade-in vehicle, and the refund or credit must, subject to subsection (3), correspond to the tax paid for the balance of the current vehicle licence year remaining after the trade-in vehicle has been traded.
(3) A refund or credit under subsection (2) must be calculated and provided in accordance with the regulations and may be paid out of the consolidated revenue fund.
33.2 (1) In this section, "replacement vehicle" means a vehicle that is leased to be used as a replacement for a multijurisdictional vehicle that is being repaired and is therefore unavailable for use during part of its vehicle licence year.
(2) Subject to subsection (3), if a person has paid tax under this Division or under section 20 (1) on a replacement vehicle, the commissioner may provide a refund of that tax to that person if
(a) tax has been paid under this Division on the multijurisdictional vehicle being repaired, and
(b) the replacement vehicle is used only
(i) in accordance with the terms of the licence that was issued for the multijurisdictional vehicle being repaired, and
(ii) for the purposes for which that multijurisdictional vehicle would be used were it not being repaired.
(3) Any refund under this section is, if the refund is in respect of tax paid under section 20 (1), limited to the tax paid on lease payments for the replacement vehicle in respect of rental periods, or portions of rental periods, that are wholly within
(a) the period during which the multijurisdictional vehicle is being repaired, and
(b) the vehicle licence year of the multijurisdictional vehicle.
(4) Any refund under this section is, if the refund is in respect of tax paid under this Division, limited to the tax paid that is attributable to the portion of the replacement vehicle's vehicle licence year that is wholly within
(a) the period during which the multijurisdictional vehicle is being repaired, and
(b) the licence year of the multijurisdictional vehicle.
63 Section 76 (1) is amended by adding the following paragraphs:
(h) labels that are purchased to be attached to tangible personal property held for sale or lease and that are intended to remain with the tangible personal property after it is sold or leased;
(i) boomsticks for use as, and used as, part of a frame for transporting logs over water.
64 Part 4 is amended by adding the following section:
90.2 On application by a person who
(a) is a purchaser, lessee or user of a motor vehicle that qualifies under the regulations as an alternative fuel vehicle,
(b) has paid tax under section 5 or 20, or has paid tax calculated under section 11 (4), on that vehicle, and
(c) satisfies the commissioner that the person qualifies under this section and the regulations,
the commissioner must refund to that person out of the consolidated revenue fund an amount determined in accordance with the regulations.
65 Section 103 is amended
(a) in subsection (2) by striking out "under this Act or the regulations and does not collect or remit the taxes," and substituting ", or to pay taxes, under this Act or the regulations and does not collect, remit or pay the taxes, as the case may be,",
(b) by repealing subsections (3) and (4) and substituting the following:
(3) On registration of a certificate of indebtedness against the real property of a person under subsection (2) (a), a lien is created on the real property against which the lien is registered for,
(a) if the lien relates to taxes that were required to be collected or were collected before registration, the amount of those taxes remaining uncollected or unremitted, or both, and any related interest and penalty on those taxes, or
(b) if the lien relates to taxes that were required to be paid before registration, the amount of those taxes remaining unpaid, and any related interest and penalty on those taxes.
(4) On registration of a lien against the personal property of a person under subsection (2) (b), a lien is created on the personal property in which the person has a legal or equitable interest, including, in the case of a lien referred to in paragraph (a) of this subsection, any portion of the property that is subject to a prior lien or security interest, for,
(a) if the lien relates to taxes that were required to be collected or were collected before registration, the amount of those taxes remaining uncollected or unremitted, or both, and any related interest and penalty on those taxes, or
(b) if the lien relates to taxes that were required to be paid before registration, the amount of those taxes remaining unpaid, and any related interest and penalty on those taxes. ,
(c) in subsection (5) by adding ", other than a lien referred to in subsection (4) (b), that is" after "a lien", and
(d) in subsection (7) by adding ", other than liens referred to in subsection (4) (b)," after "all the liens registered under subsection (2) (b)".
66 Section 108 is amended
(a) in subsections (2) and (3) by striking out ", by registered letter or by a letter served personally,",
(b) by adding the following subsection:
(3.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(c) in subsection (7) by striking out "mailed or", and
(d) by adding the following subsection:
(7.1) Money demanded from a person by the commissioner under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
67 Section 118 (1) (a) is amended by adding "or a valuation of the commissioner under section 17 or 27" after "or 103 (11)".
68 Section 120 (2) is repealed and the following substituted:
(2) If a decision of the commissioner or the minister is set aside or the amount of an estimate, assessment or penalty is reduced on appeal, the commissioner must refund from the consolidated revenue fund
(a) the amount or excess amount paid, and
(b) any additional interest or penalty imposed and paid.
69 Section 130 is amended by adding the following paragraphs:
(b.1) prescribing, in respect of motor vehicles that have been modified to adapt them to facilitate the use by, or the transportation of, an individual using a wheelchair, the method by which the purchase price, lease price or tax rate value of those vehicles may be determined, and the criteria on which and the circumstances in which the prescribed method of calculation may be made;
(h) prescribing alternative fuel vehicles for the purposes of sections 6, 20 and 90.2;
(i) establishing for the purposes of section 6 or 20 a tax rate for alternative fuel vehicles, including different tax rates for different classes of alternative fuel vehicles;
(j) establishing the amount of a refund under section 90.2, including different amounts for different classes of alternative fuel vehicles.
70 Section 138 (1) is amended by adding the following paragraph:
(f.1) exempting from tax under section 9 (1.1) or 11 household goods or equipment initially brought into British Columbia for an individual's personal use and specifying the terms and conditions of the exemption; .
Tobacco Tax Act
71 Section 26 (2) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is repealed and the following substituted:
(2) If a decision of the director or the minister is set aside or the amount of an assessment or penalty is reduced on appeal, the director must refund from the consolidated revenue fund
(a) the amount or excess amount paid, and
(b) any additional interest or penalty imposed and paid.
72 Section 32 is amended
(a) in subsections (2) and (3) by striking out ", by registered letter or by a letter served personally,",
(b) by adding the following subsection:
(3.1) A demand under this section may be served by
(a) personal service,
(b) registered mail, or
(c) electronic mail or fax. ,
(c) in subsections (6) (b) and (7) by striking out "mailed or", and
(d) by adding the following subsection:
(7.1) Money demanded from a person by the director under this section becomes payable
(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or
(b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.
73 The following applies in respect of any placer gold mine that did not, before January 1, 1999, have a calendar year as the fiscal year of the mine:
(a) the portion of the year that
(i) begins immediately after the end of the last fiscal year of the mine that ends in 1998, and
(ii) ends on December 31, 1998
constitutes a fiscal year of the mine;
(b) after December 31, 1998, the placer gold mine has a calendar year as the fiscal year of the mine;
(c) the Mineral Tax Act, as it read before January 1, 1999, applies to all matters relating to each fiscal year of the mine that ends in 1998 and, without limiting this, all records, reports, returns, filings and payments required in relation to each fiscal year of the mine that ends in 1998 must be prepared, kept or made, as the case may be, at the time and in the manner required by the Mineral Tax Act, as it read before January 1, 1999.
74 Sections 2.2 and 13.1 of the Mineral Tax Act as enacted by this Act are enacted, apply and have effect despite the Tax and Consumer Rate Freeze Act.
75 (1) Regulations that may be made under the Social Service Tax Act as a result of the enactment of that part of section 62 enacting section 33.1 of the Social Service Tax Act, and of the enactment of sections 69 and 70 of this Act, may, if made before April 1, 2000, be made retroactive to March 31, 1999.
(2) Regulations that may be made under the Social Service Tax Act as a result of the enactment of section 70 may, if made before April 1, 2000, be made retroactive to July 1, 1998.
76 (1) Sections 2, 38, 40, 42, 45 and 48 are deemed to have come into force on April 1, 1999 and are retroactive to the extent necessary to give them effect on and after that date.
(2) Sections 3 to 8, 10 to 13, 16 to 19, 21, 22, 26 (d), 30, 32, 35, 36, 43, 44, 46, 47, 49 to 51 and 53 to 72 are deemed to have come into force on March 31, 1999 and are retroactive to the extent necessary to give them effect on and after that date.
(3) Sections 9, 14 and 15 come into force on July 1, 1999 and are retroactive to the extent necessary to give them effect on and after that date.
(4) Section 20 is deemed to have come into force on May 1, 1996 and is retroactive to the extent necessary to give it effect on and after that date.
(5) Sections 23 to 25, 26 (a) to (c), (e) and (f), 27 to 29, 31, 33, 34, 73 and 74 are deemed to have come into force on January 1, 1999 and are retroactive to the extent necessary to give them effect on and after that date.
(6) Section 41 comes into force on June 1, 1999 and is retroactive to the extent necessary to give it effect on and after that date.
(7) Sections 37 and 39 come into force by regulation of the Lieutenant Governor in Council.
(8) Section 52 is deemed to have come into force on January 1, 1998 and is retroactive to the extent necessary to give it effect on and after that date.
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