2002 Legislative Session: 3rd Session, 37th Parliament
FIRST READING
The following electronic version is for informational
purposes only.
The printed version remains the official version.
HONOURABLE GARY COLLINS
MINISTER OF FINANCE
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
Assessment Authority Act
1 Section 19 of the Assessment Authority Act, R.S.B.C. 1996, c. 21, is amended by striking out "Sections 131 to 134" and substituting "Sections 130 to 134".
Greater Vancouver Transportation Authority Act
2 Section 6 (2) (f) of the Greater Vancouver Transportation Authority Act, S.B.C. 1998, c. 30, is amended by striking out "section 61 (1) and (1.1) (b)" and substituting "section 61 (1) and (2)".
3 The following section is added:
30.1 (1) In addition to the authority's rights under section 30, the authority may, by bylaw,
(a) set, as the rate of tax payable under section 61 (1) of the Social Service Tax Act, a rate of tax that does not exceed 21% of the purchase price of the parking right in respect of which the tax is paid, and
(b) set, as the date on which the tax rate is to take effect, a date that is
(i) at least 2 months after the date on which the bylaw is passed, and
(ii) the first day of a calendar month.
(2) If the authority passes a bylaw referred to in subsection (1), the authority must deliver a copy of that bylaw to the commissioner under the Social Service Tax Act no later than the business day following the day on which the bylaw is passed.
Home Owner Grant Act
4 Section 18 of the Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended
(a) in subsection (2) by repealing paragraph (d) and substituting the following:
(d) prescribe criteria that must be met to determine eligibility of persons with disabilities for the purposes of sections 2 (2) (b), 3 (3) (b), 4 (3) (b) and 5 (3) (b);
(d.1) prescribe a form or forms to be completed by a medical practitioner or other prescribed person certifying, without limitation, that the person is a person with disabilities, the nature and extent of the disability, and that costs were incurred because of that disability; , and
(b) by adding the following subsection:
(3) Regulations made under subsection (2) may be made retroactive to April 11, 1997, and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.
Hospital District Act
5 Section 28 of the Hospital District Act, R.S.B.C. 1996, c. 202, is amended by striking out "Sections 130, 131 (2) and (3) and 132" and substituting "Sections 130 to 132".
Income Tax Act
6 Section 4.3 (1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended
(a) in paragraph (d) by striking out "$14 047" and substituting "$15 670",
(b) in the description of "D.1" in paragraph (d) by striking out "$11 661" and substituting "$12 096",
(c) in paragraph (e) by striking out "$8 000 -- E" and substituting "$9 267 -- E", and
(d) by repealing the description of "E" in paragraph (e) and substituting the following:
E is the greater of $5 693 and the dependant's income for the year, and .
7 Section 4.51 is amended
(a) in subsection (1) by striking out "$4 293" and substituting "$6 126",
(b) in subsection (3) by striking out "$2 941" in both places and substituting "$3 574",
(c) in paragraph (b) of the description of "B" in subsection (3) by striking out "63, 64 and 118.2" and substituting "63, 64 or 118.2" and by striking out "$2 000" and substituting "$2 075", and
(d) by repealing subsection (5).
8 Section 4.52 is amended
(a) in subsection (1) by striking out "In subsection (2)" and substituting "In subsections (2) and (4.1)",
(b) in subsection (2) by striking out "For the purpose" and substituting "Subject to subsection (4.1), for the purpose", and
(c) by adding the following subsection:
(4.1) For the purpose of computing the tax payable by an individual for the 2002 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the following:
(a) the amount of $15 670 referred to in section 4.3 (1) (d);
(b) the amount of $12 096 referred to in section 4.3 (1) (d);
(c) the amount of $9 267 referred to in section 4.3 (1) (e);
(d) the amount of $5 693 referred to in section 4.3 (1) (e);
(e) the amount of $6 126 referred to in section 4.51 (1);
(f) the amount of $3 574 in both places where it is referred to in section 4.51 (3);
(g) the amount of $2 075 referred to in section 4.51 (3).
9 Section 4.68 is repealed and the following substituted:
4.68 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 120.2 of the federal Act for the year, there may be deducted the amount determined by the formula
| A x | B
C |
where
A is the amount deducted by the individual under section 120.2 of the federal Act for the year,
B is the appropriate percentage for the year, and
C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.
(2) For the purposes of subsection (1) of this section, the result obtained by dividing B, as defined by that subsection, by C, as defined by that subsection, is to be rounded to the nearest one-thousandth or, if the result obtained by that division is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth.
10 Section 4.7 is repealed and the following substituted:
4.7 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 122.3 of the federal Act for the year, there may be deducted the amount determined by the formula
| A x | B
C |
where
A is the amount deducted by the individual under section 122.3 of the federal Act for the year,
B is the amount that, but for this section 4.7 and sections 4.68 [minimum tax credit], 4.71 [foreign tax credit], 4.721 [BC mining flow-through share tax credit], 4.8 [minimum tax], 4.81 [CPP/QPP disability benefits for previous years], 4.82 [qualifying retroactive lump sum pension payments], 4.83 [lump sum pension payment], 4.84 [tax on split income], 13.1 [net employee investment tax credit], 19 (2), (3) and (7) [royalty and deemed income rebate], 19.1 [logging tax deduction], 20 [political contributions] and 21 [small business venture capital tax credit], would be the individual's tax payable under this Act for the year, and
C is the amount that, but for sections 120, 120.2, 120.3, 120.31, 120.4 (2), 122.3, 126, 127, 127.4 and 127.5 of the federal Act and section 40 of the Income Tax Application Rules (Canada), would be the individual's tax payable under Part I of the federal Act for the year.
11 Section 4.8 is repealed and the following substituted:
4.8 (1) Subject to section 4.85 [apportionment of additional taxes], if tax is payable by an individual under section 127.5 of the federal Act for a taxation year, there must be added in computing the individual's tax payable under this Act for the year the amount determined by the formula
| A x | B
C |
where
A is the amount that would be determined under section 120.2 (3) of the federal Act for the individual for the year if that section were read without reference to paragraph (c) of that section,
B is the appropriate percentage for the year, and
C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.
(2) For the purposes of subsection (1) of this section, the result obtained by dividing B, as defined by that subsection, by C, as defined by that subsection, is to be rounded to the nearest one-thousandth or, if the result obtained by that division is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth.
12 Section 8 (3) (a) and (b) is amended by striking out "$50" and substituting "$75".
13 The following section is added to Division 3 of Part 1:
13.3 In this Division:
"Canadian-controlled private corporation" has the same meaning as in section 248 of the federal Act;
"foreign investment income" means income described in section 126 (1) (b) (i) of the federal Act from sources in a country other than Canada;
"taxable income earned in the year in British Columbia" means the taxable income earned in the year in British Columbia by a corporation as determined in accordance with regulations made under section 124 (4) of the federal Act.
14 Section 14 (1) is repealed.
15 Section 14.1 is repealed and the following substituted:
14.1 (1) In this section, "tax calculation change" means,
(a) in relation to a corporation to which section 16 applies,
(i) the enactment of section 16 (5),
(ii) any amendment to this Act that effects a change to any amount expressed in dollars that is referred to in section 16 (5), or
(iii) any amendment to this Act that effects a change to any rate referred to in section 16, or
(b) in relation to any other corporation, any amendment to this Act that effects a change to any rate referred to in section 14 (2).
(2) If, during the taxation year of a corporation, there are one or more tax calculation changes, the corporation must compute its tax payable for that taxation year in accordance with the following:
(a) the corporation must divide its taxation year into notional taxation years as follows:
(i) the first of those notional taxation years begins on the first day of the corporation's taxation year and ends on the day before the day on which the first tax calculation change that occurs in its taxation year takes effect;
(ii) subject to subparagraph (iii), a notional taxation year will begin on each day in the corporation's taxation year on which a tax calculation change takes effect and will end on the day before the day in its taxation year on which the next tax calculation change takes effect;
(iii) the last notional taxation year begins on the day on which the last tax calculation change that occurs in the corporation's taxation year takes effect and ends on the last day of its taxation year;
(b) the corporation must, for each notional taxation year within the corporation's taxation year, calculate, in accordance with section 14 (2) or 16, as the case may be, as that section read on the first day of that notional taxation year, the tax the corporation would be obliged to pay under section 14 (2) or 16, as the case may be, if that tax were calculated
(i) on the corporation's taxable income for the whole of its taxation year, and
(ii) as if that wording of section 14 (2) or 16 applied throughout the whole of its taxation year;
(c) the corporation must, for each notional taxation year within the corporation's taxation year, multiply the amount determined for that notional taxation year under paragraph (b) by the fraction obtained by dividing the number of days in that notional taxation year by the number of days in the corporation's taxation year;
(d) the corporation must add to the amount determined under paragraph (c) for the first notional taxation year within the corporation's taxation year the amounts determined under paragraph (c) for each of the other notional taxation years within its taxation year;
(e) the total amount determined under paragraph (d) is the tax payable by the corporation in respect of the corporation's taxation year.
16 Section 16 is amended
(a) by repealing subsections (1) and (2) and substituting the following:
(1) Despite section 14 (2), a corporation, other than a credit union, that was, throughout a taxation year, a Canadian-controlled private corporation must pay tax under this Part equal to the aggregate of
(a) 4.5% of the amount determined by the following formula:
| A
B |
x (the least of C, D and E) |
where
A means the corporation's taxable income earned in the year in British Columbia,
B means the corporation's taxable income earned in the taxation year in all provinces, determined in accordance with section 124 (4) of the federal Act,
C means the amount that would be determined under section 125 (1) (a) of the federal Act for the corporation for the taxation year if the reference in section 125 (1) (a) (ii) of the federal Act to "specified partnership income" were read as a reference to specified partnership income as defined by subsection (5) of this section,
D means the amount determined in respect of the corporation for the taxation year under section 125 (1) (b) of the federal Act, and
E means the corporation's business limit for the taxation year as defined by subsection (5) of this section, and
(b) 13.5% of the amount, if any, calculated by deducting from the taxable income earned in the year in British Columbia the amount to which 4.5% is applied under paragraph (a) of this subsection.
(2) Despite section 14 (2), a corporation that was, throughout a taxation year, a credit union must pay tax under this Part equal to the aggregate of
(a) 4.5% of the amount determined by the following formula:
| A
B |
x (the lesser of C and D) |
where
A means the corporation's taxable income earned in the year in British Columbia,
B means the corporation's taxable income earned in the taxation year in all provinces, determined in accordance with section 124 (4) of the federal Act,
C means the amount determined in respect of the corporation for the taxation year under section 137 (3) (a) of the federal Act, and
D means the amount determined in respect of the corporation for the taxation year under section 137 (3) (b) of the federal Act, and
(b) 13.5% of the amount, if any, calculated by deducting from the taxable income earned in the year in British Columbia the amount to which 4.5% is applied under paragraph (a) of this subsection. , and
(b) by adding the following subsections:
(5) In subsection (1) of this section:
"business limit", in relation to a corporation, means, for each taxation year, the amount that would be the corporation's business limit for the taxation year within the meaning of the federal Act if
(a) the amount expressed in dollars in section 125 (2), (3) and (4) of the federal Act were read as $300 000, and
(b) in the case of a corporation that is associated in the taxation year with one or more other Canadian-controlled private corporations, the amount allocated to the corporation for the purposes of this section is the amount that is the same proportion of $300 000 that the amount allocated to the corporation under section 125 (3) or (4), as the case may be, of the federal Act is to the amount expressed in dollars in section 125 (3) and (4) of the federal Act;
"specified partnership income", in relation to a corporation, means, for each taxation year, the amount that would be the corporation's specified partnership income within the meaning of section 125 (7) of the federal Act if the amounts expressed in dollars in the description of "M" in the definition of "specified partnership income" in that section were, for the first amount, read as "$300 000" and, for the second amount, read as "$822".
(6) A corporation to which this section and section 125 (3) of the federal Act apply must file, with the return of income filed by the corporation under section 29 for the taxation year, the forms, containing the information, required by the Commissioner of Income Tax.
17 Section 17 is amended
(a) by repealing subsection (1) and substituting the following:
(1) If eligible under this section, a corporation for which taxes are payable under section 16 (1), whether calculated under that section or under section 14.1, may deduct from the tax otherwise payable under section 16 (1) for a taxation year an amount equal to the tax payable by the corporation under section 16 (1) (a) for that taxation year. ,
(b) in subsection (2) by striking out "or (2) (a)" after "section 16 (1) (a)", and
(c) in subsection (3) (d) by striking out "section 16 (1) (a) or (2) (a), as applicable;" and substituting "section 16 (1) (a);".
18 Section 42 (2) (b) (i) is amended by striking out "section 14 (1)," and substituting "section 13.3,".
19 Section 68.1 (1) is amended in paragraph (a) (vi) of the definition of "tax consequences" by striking out "section 14 (1)," and substituting "section 13.3,".
Motor Fuel Tax Act
20 Section 4 (1) of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended
(a) in paragraph (b) by striking out "10.50¢ per litre" and substituting "12.5¢ per litre",
(b) in paragraph (c) by adding the following subparagraph:
(ii.1) effective April 1, 2002, 11¢ per litre; ,
(c) in paragraph (c) (iii) by striking out "9.5¢ per litre;" and substituting "11.5¢ per litre;", and
(d) in paragraph (c) (iv) by striking out "10¢ per litre." and substituting "12¢ per litre.".
21 Section 10 (1) is amended
(a) in paragraph (b) by striking out "11¢ per litre" and substituting "13¢ per litre",
(b) in paragraph (c) by adding the following subparagraph:
(ii.1) effective April 1, 2002, 11¢ per litre; ,
(c) in paragraph (c) (iii) by striking out "9.5¢ per litre;" and substituting "11.5¢ per litre;", and
(d) in paragraph (c) (iv) by striking out "10¢ per litre." and substituting "12¢ per litre.".
School Act
22 Section 119 (4) of the School Act, R.S.B.C. 1996, c. 412, is repealed and the following substituted:
(4) The rates to be determined under subsection (3) may differ
(a) in respect of each school district, and
(b) for different parts of the school district.
Social Service Tax Act
23 Section 1 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended
(a) by adding the following definition:
"parking period" means, in respect of a parking right, the period for which the parking right is purchased; , and
(b) in the definition of "parking site" by striking out "within a prescribed geographic area in British Columbia," and substituting "in British Columbia".
24 Section 5 (3) is repealed and the following substituted:
(3) A purchaser who, after March 30, 1998, pays or is liable to pay a charge described in paragraph (a) (iv) of the definition of "purchase price" in respect of tangible personal property purchased by that purchaser must, unless the charge was included or reflected in the purchase price of the tangible personal property at the time of its purchase, pay to the government a tax in respect of the charge at the applicable rate under section 6, whether or not
(a) the purchase of the tangible personal property occurred before March 31, 1998, or
(b) more than 6 years have elapsed since the date of the purchase of the tangible personal property.
(4) The tax under subsection (3) must be calculated separately for each charge and must be paid at the earlier of
(a) the time each charge is paid, and
(b) the time each charge becomes payable.
25 Sections 6 (1) and (3) (a), 10 (1) (a) and (b) (i), 20 (1) (a) and (b) (i), 25 (1) and (3) (a), 31 (1), 36 (1), 37 (2) (a) and (b) (i), 40 (1), 41 (2) (c), 46 (1) and (2), 47 (1) and 53 are amended by striking out "7%" and substituting "7.5%".
26 Section 16 is repealed and the following substituted:
16 (1) In this section, "non-resident" means a person who does not reside, ordinarily reside or carry on business in British Columbia and who
(a) owns real property in British Columbia, or
(b) leases, as lessee, real property in British Columbia if the term of that lease, including the cumulative total of all options and rights to extend or renew the lease, is at least 5 years.
(2) A non-resident who brings or sends tangible personal property into British Columbia, or who receives delivery of tangible personal property in British Columbia, must comply with subsection (3) if the tangible personal property is, for the 12 month period following its entry into British Columbia, to be used or consumed
(a) primarily in British Columbia, and
(b) primarily by one or more of the following:
(i) the non-resident;
(ii) a person for whom the non-resident acts as agent;
(iii) a person whose use or consumption of the tangible personal property is at the expense of the non-resident;
(iv) a person whose use or consumption of the tangible personal property is at the expense of a principal for whom the non-resident acts as agent.
(3) A non-resident to whom subsection (2) applies must
(a) immediately report the matter in writing to the commissioner,
(b) supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property, and
(c) pay to the government tax on the purchase price or lease price of the tangible personal property at the rate in section 6 or 20, as the case may be.
27 Section 28 is amended
(a) by repealing the definition of "service vehicle", and
(b) by repealing the definition of "vehicle" and substituting the following:
"vehicle" does not include a trailer; .
28 Section 29 (1) is repealed and the following substituted:
(1) The following persons must pay tax to the government in accordance with this Division for a vehicle licence year:
(a) a person who, in the vehicle licence year, licenses a vehicle in British Columbia, whether as part of a fleet or not,
(i) for interjurisdictional commercial purposes, or
(ii) under a licence to which a prorating agreement under section 10 of the Commercial Transport Act applies;
(b) a person who
(i) licenses a vehicle outside British Columbia, whether as part of a fleet or not, and, in the vehicle licence year, brings or sends that vehicle into British Columbia for interjurisdictional commercial purposes, or
(ii) licenses a vehicle outside British Columbia, whether as part of a fleet or not, under a licence to which a prorating agreement under section 10 of the Commercial Transport Act applies, and, in the vehicle licence year, brings or sends that vehicle into British Columbia.
29 Section 61 is repealed and the following substituted:
61 (1) A purchaser of a parking right in relation to a parking site that is within the Greater Vancouver transportation service region must, unless subsection (5) applies, pay to the Greater Vancouver Transportation Authority a tax
(a) subject to paragraph (b), at the rate of 7% of the purchase price of the parking right, or
(b) if another rate, not exceeding 21% of the purchase price of the parking right, has been set under section 30.1 of the Greater Vancouver Transportation Authority Act and has taken effect in accordance with that section, at that other rate.
(2) If, within a parking period that commences after February 19, 2002 in respect of a parking right referred to in subsection (1), a rate is set or changed under section 30.1 of the Greater Vancouver Transportation Authority Act, the purchaser must, on each date within the parking period on which a new rate takes effect under section 30.1 of that Act, pay to the Greater Vancouver Transportation Authority, in addition to the amount paid or payable under subsection (1) of this section, a tax equal to the difference between
(a) the amount of tax, paid or payable by the purchaser under this section in relation to the parking right, that is attributable to the remainder of the parking period, and
(b) the amount calculated by multiplying the new rate by that portion of the purchase price of the parking right that is attributable to the remainder of the parking period.
(3) If the amount calculated under subsection (2) (b) is less than the amount of tax referred to in subsection (2) (a) that has been paid, the purchaser may apply to the commissioner for a refund of the difference between the 2 amounts, and the commissioner, on receipt of evidence satisfactory to the commissioner, must pay a refund to the purchaser out of the consolidated revenue fund.
(4) Section 80 (1) of this Act applies to subsection (3) of this section.
(5) Subject to the terms and conditions the Lieutenant Governor in Council specifies in the regulations, no tax is payable under subsection (1) or (2) in respect of a parking right purchased
(a) for residential parking as that term is defined in the regulations,
(b) for parking at a prescribed parking site, or
(c) by a person who is a member of a prescribed class of persons.
30 Section 65.1 is amended
(a) in subsection (1) by striking out "61 (1.1) (b)" and substituting "61 (1) and (2)", and
(b) by repealing subsection (2) (a) and substituting the following:
(a) charge the Greater Vancouver Transportation Authority a fee to recover the additional costs to the government of
(i) collecting and remitting the tax payable to the Greater Vancouver Transportation Authority under section 61 (1) and (2), and
(ii) providing refunds under section 61 (3).
31 Section 76 (1) (b.1) is amended by striking out "chlorine dioxide or sodium hydrosulfite" and substituting "chlorine dioxide, sodium hydrosulfite or ammonium bisulfite" wherever it appears.
32 Section 77 (c) is repealed and the following substituted:
(c) parts designed and used for the repair or reconditioning of tangible personal property exempted under this Part, other than parts for machinery or equipment exempted under section 76 (1) (k) or for boats or travel trailers exempted under section 79 (3); .
33 Section 79 is amended by adding the following subsections:
(3) A person to whom section 16 would otherwise apply is exempt from tax imposed by that section if
(a) the person is an individual,
(b) the tangible personal property in respect of which tax would otherwise be payable is a boat or travel trailer, and
(c) the boat or travel trailer is at no time used in British Columbia for a business purpose.
(4) For the purposes of subsection (3), "travel trailer" means a vehicle designed to be
(a) pulled on a highway, and
(b) used as temporary or seasonal accommodation.
34 The following section is added:
88.1 (1) In this section:
"francophone education authority", "francophone school", "school district" and "school year" have the same meaning as in the School Act;
"PAC" means, in respect of a school, the parents' advisory council established for the school under section 8 or 166.26 of the School Act;
"PAC-raised funds" means, in relation to a PAC,
(a) funds raised directly by the PAC through its fundraising activities,
(b) cash donations made directly to the PAC, and
(c) government funding provided directly to the PAC,
but does not include funds provided to the PAC directly or indirectly by a school board;
"school" has the same meaning as in the School Act, and includes a francophone school;
"school board" means a board of school trustees for a school district, and includes a francophone education authority.
(2) Subject to subsections (4) and (6), a PAC may, in respect of tax paid by it under section 5 (1) or 11 on the purchase of tangible personal property, apply for a refund of the portion of the tax that is specified under subsection (5) of this section if that tangible personal property
(a) was purchased, in whole or in part, with PAC-raised funds, and
(b) is given to a school for school use.
(3) Subject to subsections (4) and (6), a school board may, in respect of tax paid by it under section 5 (1) or 11 on the purchase of tangible personal property, apply for a refund of the portion of the tax that is specified under subsection (5) of this section if that tangible personal property
(a) was purchased, in whole or in part, with PAC-raised funds, and
(b) is given to a school for school use.
(4) An application under subsection (2) or (3)
(a) must include the prescribed information, certifications and documentation to substantiate, to the satisfaction of the commissioner, the applicant's eligibility for the refund and the amount of refund payable under subsection (5), and
(b) must be made only in respect of tangible personal property purchased after June 30, 2002 and in respect of which no other application has been made under this section.
(5) After receiving an application by a PAC or a school board in relation to tax paid on the purchase of tangible personal property, the commissioner must, if satisfied that the application complies with subsections (2) to (4) and (6), refund to the applicant, out of the consolidated revenue fund, the proportion of the tax paid on that purchase that equates to the proportion of the purchase price that was paid for with PAC-raised funds.
(6) A PAC must not make more than one application under this section in a school year and a school board must not make more than 2 applications under this section in a school year.
(7) Section 80 (1) of this Act applies to subsection (5).
35 Section 134 is amended
(a) in paragraph (a) by striking out "section 61 (2) (b)," and substituting "section 61 (5) (b),",
(b) in paragraph (b) by striking out "section 61 (2) (c)," and substituting "section 61 (5) (c),",
(c) by repealing paragraph (c), and
(d) in paragraph (d) by striking out "61 (1.1) (b)." and substituting "61 (1) and (2).".
36 Section 138 (1) is amended
(a) in paragraph (q) by striking out "and" at the end of subparagraph (iv) and by adding the following subparagraphs:
(vi) exempting from taxes imposed by sections 5 to 25 and 112.3 parts or classes of parts related to machinery or equipment, with power to prescribe by whom parts or classes of parts must be purchased, and for what purpose parts or classes of parts must be used, in order to qualify for the exemption, and
(vii) exempting from taxes imposed by sections 5 to 25 and 112.3 taxable services related to machinery or equipment. , and
(b) by adding the following paragraph:
(r) prescribing information, certifications and documentation for the purposes of section 88.1 (4) (a).
Tobacco Tax Act
37 Section 2 (2) and (3) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by striking out "11¢" and substituting "15¢".
38 (1) In this section and section 39, "additional grant" means the amount of the grant set out in Schedule 2 of the Home Owner Grant Act that is available to an owner in respect of a person with disabilities under sections 2 (2), 3 (3), 4 (3) and 5 (3) of that Act.
(2) Whether or not a court, tribunal or other authority has, before the date this section receives First Reading in the Legislative Assembly, made an order to the contrary, any additional grant paid to an owner under the Home Owner Grant Act and regulations on and after April 11, 1997 and before the date this section receives First Reading in the Legislative Assembly, is conclusively deemed to have been validly made and paid by the government using
(a) the eligibility criteria under B.C. Reg. 134/81, the Home Owner Grant Act Regulation, and
(b) information provided in the Certificate of Person with Disabilities and Property Owner under that regulation and in the form entitled "Supplementary Information for Persons with Disabilities".
(3) Information to determine eligibility for the additional grant as provided by a medical practitioner to a collector, using the form entitled "Supplementary Information for Persons with Disabilities", is conclusively deemed to have been validly collected and used between April 11, 1997 and the date this section receives First Reading in the Legislative Assembly, as if that form was incorporated into and formed a part of B.C. Reg. 134/81, the Home Owner Grant Act Regulation, and the Regulations Act does not apply to that form.
39 (1) No action lies, and an action or other proceeding must not be brought or continued, against the government or any other person, for compensation, damages or any other remedy, because of anything done or omitted, between April 11, 1997 and the date this section receives First Reading in the Legislative Assembly, in the exercise or performance or intended exercise or performance of a discretion, duty or function of the government, or any other person acting on behalf of the government, under the Home Owner Grant Act in relation to the additional grant.
(2) Any statutory power, as defined in the Judicial Review Procedure Act, that was exercised under an enactment in relation to a matter described in subsection (1) and any decision, determination or order of an official of the government in relation to that matter so described is not open to question or review in a court under the Judicial Review Procedure Act or otherwise.
40 If any of the sections of this Act, including this section, or any provision of those sections or of the Home Owner Grant Act as amended by this Act is held to be invalid, the section or provision must be severed from the remaining sections and provisions, and the remainder have the same effect as if they had been originally enacted separately from the section or provision held to be invalid.
41 (1) The Lieutenant Governor in Council may make regulations to extend, from January 1, 2002 to January 1, 2004, the date before which Crown reserves are to be disposed of for the purposes of Item 1.1 of section 6 (1) of the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, B.C. Reg. 495/92.
(2) A regulation that may be made under subsection (1) of this section may, if made before December 31, 2002, be made retroactive to January 1, 2002, and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.
42 (1) In this section, "commissioner", "purchase price", "purchaser" and "tangible personal property" have the same meaning as in the Social Service Tax Act.
(2) Subject to subsection (3), if, after February 19, 2002, a purchaser takes delivery of tangible personal property and pays to the government tax on that tangible personal property under the Social Service Tax Act as it reads after the enactment of section 25 of the Taxation Statutes Amendment Act, 2002, the commissioner, on application and on receipt of evidence satisfactory to the commissioner, must pay to the purchaser, out of the consolidated revenue fund, a refund equal to 0.5% of the purchase price of the tangible personal property if the tangible personal property of which delivery is taken is to be incorporated by the purchaser into real property in order to carry out a fixed price or lump sum contract entered into before February 20, 2002 for the construction, repair or improvement of real property.
(3) No refund is to be paid under subsection (2) if the purchaser is entitled, under the fixed price or lump sum contract, to recover the increase in tax resulting from the enactment of section 25 of the Taxation Statutes Amendment Act, 2002.
(4) Section 80 (1) of the Social Service Tax Act applies to a refund under this section.
43 Regulations that may be made under the Social Service Tax Act as a result of the enactment of sections 34 and 36 (b) of the Taxation Statutes Amendment Act, 2002 may, if made before December 31, 2002, be made retroactive to July 1, 2002, and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.
44 (1) Sections 1 and 5 are deemed to have come into force on December 31, 2001 and are retroactive to the extent necessary to give them effect on and after that date.
(2) Sections 2, 3, 23, 29, 30 and 35 are deemed to have come into force on June 1, 2002 and are retroactive to the extent necessary to give them effect on and after that date.
(3) Sections 4, 38, 39 and 40 are deemed to have come into force on the date on which this Act received First Reading in the Legislative Assembly and are retroactive to the extent necessary to give them effect on and after that date.
(4) Sections 6 to 12 are deemed to have come into force on January 1, 2002 and are retroactive to the extent necessary to give them effect on and after that date.
(5) Sections 13 to 21 are deemed to have come into force on April 1, 2002 and are retroactive to the extent necessary to give them effect on and after that date.
(6) Sections 24 and 31 are deemed to have come into force on March 31, 1998 and are retroactive to the extent necessary to give them effect on and after that date.
(7) Sections 25, 26, 32, 33, 36 (a), 37 and 42 are deemed to have come into force on February 20, 2002 and are retroactive to the extent necessary to give them effect on and after that date.
(8) Sections 27 and 28 are deemed to have come into force on January 1, 1996 and are retroactive to the extent necessary to give them effect on and after that date.
(9) Sections 34, 36 (b) and 43 are deemed to have come into force on July 1, 2002 and are retroactive to the extent necessary to give them effect on and after that date.
Explanatory Notes
Assessment Authority Act
SECTION 1: [Assessment Authority Act, amends section 19] includes a reference to the School Act to ensure consistency of exemptions throughout all taxing authorities which use the hospital base.
Greater Vancouver Trasportation Authority Act
SECTION 2: [Greater Vancouver Transportation Authority Act, amends section 6 (2) (f)] harmonizes the language of section 6 (2) (f) of the Greater Vancouver Transportation Authority Act with the repeal and replacement of section 61 of the Social Service Tax Act under section 29 of this Bill.
SECTION 3: [Greater Vancouver Transportation Authority Act, enacts section 30.1] authorizes the Greater Vancouver Transportation Authority to set, by bylaw, the rate of tax to be paid on the purchase of a parking right within the Greater Vancouver transportation service region and provides that the authority must deliver a copy of that bylaw to the commissioner under the Social Service Tax Act.
Home Owner Grant Act
SECTION 4: [Home Owner Grant Act, amends section 18]
(a) allows the Lieutenant Governor in Council to make regulations which establish criteria that must be met, and forms that may be prescribed, in order to determine the eligibility of persons with disabilities for the additional grant under the Home Owner Grant Act;
(b) provides that regulations made under the Home Owner Grant Act may be made retroactive to April 11, 1997.
Hospital District Act
SECTION 5: [Hospital District Act, amends section 28] ensures consistency of exemptions throughout all taxing authorities which use the hospital base.
Income Tax Act
SECTION 6: [Income Tax Act, amends section 4.3 (1)] increases the infirm dependant and in-home care of relative tax credits.
SECTION 7: [Income Tax Act, amends section 4.51] increases the credits for mental or physical impairment and removes a spent provision.
SECTION 8: [Income Tax Act, amends section 4.52] suspends indexing of the credit amounts increased by this Bill for 2002.
SECTION 9: [Income Tax Act, re-enacts section 4.68] changes the rate used to calculate the B.C. minimum tax credit from 49.5% to the fraction that is determined by dividing the B.C. first tax bracket rate by the federal first tax bracket rate.
SECTION 10: [Income Tax Act, re-enacts section 4.7] changes the rate used to calculate the B.C. overseas employment tax credit from 49.5% to the fraction that is determined by dividing the B.C. tax before various tax adjustments by the federal tax before various tax adjustments.
SECTION 11: [Income Tax Act, re-enacts section 4.8] changes the rate used to calculate the B.C. minimum tax from 49.5% to the fraction that is determined by dividing the B.C. first tax bracket rate by the federal first tax bracket rate.
SECTION 12: [Income Tax Act, amends section 8 (3) (a) and (b)] increases the maximum personal income tax sales tax credit from $50 to $75.
SECTION 13: [Income Tax Act, enacts section 13.3] creates a separate section for the definitions previously contained within section 14 (1) of the Income Tax Act and adds a definition of "Canadian-controlled private corporation".
SECTION 14: [Income Tax Act, repeals section 14 (1)] repeals subsection (1) of section 14 of the Income Tax Act in consequence of the enactment of section 13.3 of that Act by this Bill.
SECTION 15: [Income Tax Act, re-enacts section 14.1] clarifies how the straddle provision is to work in relation to taxation years that comprise 2 or more notional taxation years.
SECTION 16: [Income Tax Act, amends section 16] increases the income threshold below which small businesses can pay a lower rate of tax from $200 000 to $300 000.
SECTION 17: [Income Tax Act, amends section 17] harmonizes the language of section 17 of the Income Tax Act with the new structure of section 16 of that Act as enacted by this Bill.
SECTION 18: [Income Tax Act, amends section 42 (2) (b) (i)] harmonizes the language of section 42 (2) (b) of the Income Tax Act with the movement to section 13.3 of that Act of the definition of "taxable income earned in the year in British Columbia" by this Bill.
SECTION 19: [Income Tax Act, amends section 68.1 (1)] harmonizes the language of section 68.1 (1) of the Income Tax Act with the movement to section 13.3 of that Act of the definition of "taxable income earned in the year in British Columbia" by this Bill.
Motor Fuel Tax Act
SECTION 20: [Motor Fuel Tax Act, amends section 4 (1)] increases by 2¢ per litre the tax payable on gasoline purchased inside the Greater Vancouver transportation service region.
SECTION 21: [Motor Fuel Tax Act, amends section 10 (1)] increases by 2¢ per litre the tax payable on motive fuel purchased inside the Greater Vancouver transportation service region.
School Act
SECTION 22: [School Act, repeals and replaces section 119 (4)] allows the government to set more than one residential school tax rate within a school district.
Social Service Tax Act
SECTION 23: [Social Service Tax Act, amends section 1] defines parking period and redefines parking site to accord with the repeal and replacement of section 61 of the Social Service Tax Act under section 29 of this Bill.
SECTION 24: [Social Service Tax Act, repeals and replaces section 5 (3) and adds section 5 (4)] clarifies that tax remains payable in relation to a royalty, licence fee or other charge related to the purchase of tangible personal property whether or not the original purchase pre-dated March 31, 1998 or was more than 6 years before the date on which the tax became payable.
SECTION 25: [Social Service Tax Act, amends various sections] raises the Provincial sales tax rate from 7% to 7.5%.
SECTION 26: [Social Service Tax Act, re-enacts section 16] applies section 16 of the Social Service Tax Act to non-residents who own, or lease for a term of 5 years or more, real property in British Columbia.
SECTION 27: [Social Service Tax Act, amends section 28] is self explanatory.
SECTION 28: [Social Service Tax Act, repeals and replaces section 29 (1)] includes, among the persons who must pay tax under Division 3 of Part 2 of the Social Service Tax Act, persons who license vehicles under a prorating agreement under section 10 of the Commercial Transport Act.
SECTION 29: [Social Service Tax Act, re-enacts section 61] removes reference to taxation of parking rights in relation to parking sites outside the Greater Vancouver transportation service region, recognizes the right of the Greater Vancouver Transportation Authority to set, by bylaw, the rate of tax that is to be paid on the purchase of a parking right within the Greater Vancouver transportation service region and provides for the payment of tax in relation to a parking period within which one or more changes to the tax rate occurs.
SECTION 30: [Social Service Tax Act, amends section 65.1]
SECTION 31: [Social Service Tax Act, amends section 76 (1) (b.1)] provides an exemption from tax for chemicals used to produce ammonium bisulfite used in the production of pulp.
SECTION 32: [Social Service Tax Act, repeals and replaces section 77 (c)] removes parts for exempt boats, travel trailers and machinery or equipment from the exemption provided under section 77 (c) of the Social Service Tax Act and clarifies that parts exempted from tax under that section must be those designed and used for repair or reconditioning of exempt tangible personal property.
SECTION 33: [Social Service Tax Act, adds section 79 (3) and (4)] exempts boats and travel trailers brought into the Province for long term use by non-residents from the tax that would otherwise be imposed under section 16 of the Social Service Tax Act.
SECTION 34: [Social Service Tax Act, enacts section 88.1] permits refunds to be provided for tax paid on purchases for goods given to schools if and to the extent that those purchases are made with funds raised by parents' advisory councils.
SECTION 35: [Social Service Tax Act, amends section 134] harmonizes the language of section 134 of the Social Service Tax Act with the repeal and replacement of section 61 of that Act under section 29 of this Bill.
SECTION 36: [Social Service Tax Act, amends section 138 (1) (q) and adds section 138 (1) (r)]
(a) authorizes the Lieutenant Governor in Council to make regulations to exempt from tax parts and taxable services related to exempt machinery and equipment.
(b) authorizes the Lieutenant Governor in Council to make regulations respecting the material to be included with applications submitted for refunds of tax paid on purchases made with funds raised by parents' advisory councils.
Tobacco Tax Act
SECTION 37: [Tobacco Tax Act, amends section 2 (2) and (3)] increases from 11¢ to 15¢ the tax on cigarettes and on grams of loose tobacco.
SECTION 38: [Home Owner Grant Act -- validation of supplementary form] validates the eligibility criteria and the process used to determine the eligibility of persons with disabilities for the additional grant under the Home Owner Grant Act between April 11, 1997 and the date on which this Bill receives First Reading in the Legislative Assembly.
SECTION 39: [Home Owner Grant Act -- immunity from legal action] bars any person from bringing or continuing an action or proceeding against the government or any other person respecting the additional grant under the Home Owner Grant Act between April 11, 1997 and the date on which this Bill receives First Reading in the Legislative Assembly.
SECTION 40: [Home Owner Grant Act -- Acts to be given legal effect] clarifies that any provision of this Act, or any provision of the Home Owner Grant Act as amended by this Act, if held to be invalid, may be severed from the other provisions and the remaining provisions are unaffected.
SECTION 41: [Transitional -- Petroleum and Natural Gas Act] authorizes the Lieutenant Governor in Council to make regulations extending the date before which a disposition under section 71 of the Petroleum and Natural Gas Act must be made for the purposes of Item 1.1 of section 6 (1) of the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation.
SECTION 42: [Transitional -- Social Service Tax Act] provides for refunds to be made in respect of tangible personal property purchased after February 19, 2002 to fulfill a fixed price or lump sum contract to improve real property entered into before February 20, 2002.
SECTION 43: [Transitional -- Social Service Tax Act] authorizes the Lieutenant Governor in Council to make the regulations contemplated by section 138 (1) (r) of the Social Service Tax Act, as enacted by this Bill, to be made retroactive to July 1, 2002 so long as those regulations are made before December 31, 2002.
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