HONOURABLE MICHAEL DE JONG
MINISTER OF FINANCE

BILL 2 – 2013

BUDGET MEASURES IMPLEMENTATION ACT, 2013

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 – Tax-Related Budget Measures

Carbon Tax Act

SECTION 1: [Carbon Tax Act, section 1] adds a definition of "farmer".

1 Section 1 (1) of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended by adding the following definition:

"farmer" has the same meaning as in section 1 of the Motor Fuel Tax Act; .

SECTION 2: [Carbon Tax Act, section 8.1] imposes tax if a purchaser purchased fuel that was exempt from tax imposed under section 8 of the Act and subsequently uses or allows the fuel to be used for another purpose for which the person would not be exempt.

2 The following section is added:

Imposition of tax on fuel used for new purpose

8.1  (1) If a purchaser

(a) purchased fuel that was exempt from tax imposed under section 8 because the fuel was to be used for a particular purpose, and

(b) subsequently uses that fuel, or allows that fuel to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that fuel would be exempt from tax imposed under section 8 if that fuel were to be used for that purpose,

the purchaser must pay to the government tax on that fuel at the rate for that type of fuel set out in the column of the Table in Schedule 1 that applies for the period of time in which that fuel is used.

(2) Tax payable under subsection (1) must be paid at the prescribed time and in the prescribed manner.

SECTION 3: [Carbon Tax Act, section 14] subject to the regulations, exempts from tax under the Act fuel that is purchased by a farmer for use for a prescribed purpose and that is a prescribed type of fuel, a prescribed subcategory of a type of fuel or in a prescribed class of a type of fuel or of a subcategory of a type of fuel.

3 Section 14 (2) is amended by adding the following paragraph:

(g) subject to the regulations, fuel that is purchased by a farmer for use for a prescribed purpose and that

(i) is a prescribed type of fuel,

(ii) is a prescribed subcategory of a type of fuel, or

(iii) is in a prescribed class of a type of fuel or of a subcategory of a type of fuel.

SECTION 4: [Carbon Tax Act, section 30] adds a cross-reference to section 14 (2) (g) of the Act, as added by this Bill.

4 Section 30 (5) (a) is repealed and the following substituted:

(a) fuel that is exempt from tax under section 14 (2) (c), (d), (e) or (g), .

SECTION 5: [Carbon Tax Act, section 39.1] subject to the regulations, provides for a refund to a farmer who has paid tax for fuel that was a prescribed type of fuel, a prescribed subcategory of a type of fuel or in a prescribed class of a type of fuel or of a subcategory of a type of fuel and who has used the fuel for a prescribed purpose.

5 The following section is added:

Refund for farmers

39.1  Subject to the regulations, if the director is satisfied that

(a) a farmer paid tax under this Act for fuel that

(i) was a prescribed type of fuel,

(ii) was a prescribed subcategory of a type of fuel, or

(iii) was in a prescribed class of a type of fuel or of a subcategory of a type of fuel, and

(b) the fuel was used for a prescribed purpose,

the director must pay to the farmer, from the consolidated revenue fund, a refund of the tax paid by the farmer.

SECTION 6: [Carbon Tax Act, section 41]

6 Section 41 is amended

(a) by repealing subsection (1) and substituting the following:

(1) To claim a refund under this Act, a person must submit to the director

(a) subject to the regulations, a written application in the form and manner satisfactory to the director and signed by the person who paid or remitted the amount claimed, and

(b) any information or document required by the director. ,

(b) in subsection (2) by striking out "who paid the amount" and substituting "who paid or remitted the amount", and

(c) by adding the following subsection:

(2.1) Despite anything in this Act or the regulations, the director is not required to pay a refund to a person who claims a refund under subsection (1) unless the requirements of subsections (1) and (2) are met.

SECTION 7: [Carbon Tax Act, section 84] authorizes the Lieutenant Governor in Council to make regulations respecting applications for a refund.

7 Section 84 (3) is amended by adding the following paragraph:

(u) respecting applications for a refund under section 41.

SECTION 8: [Carbon Tax Act, section 84] provides that

8 Section 84 is amended

(a) in subsection (3) by adding the following paragraphs:

(v) respecting the exemption under section 14 (2) (g), including, without limitation, the following:

(i) establishing circumstances in which the exemption applies;

(ii) setting conditions of, or limitations on, the application of the exemption;

(w) respecting refunds under section 39.1, including, without limitation, the following:

(i) establishing circumstances in which refunds must or must not be paid;

(ii) setting conditions of, or limitations on, the payment of refunds. , and

(b) by adding the following subsection:

(6.5) A regulation made before July 1, 2014 under this section in relation to section 8.1, 14 (2) (g) or 39.1 may be made retroactive to January 1, 2014 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Forest Act

SECTION 9: [Forest Act, section 130] provides that interest assessed under section 142.61 (4) of the Act runs from the date that stumpage would have been due.

9 Section 130 (1) (b) (ii) of the Forest Act, R.S.B.C. 1996, c. 157, is amended by striking out "section 142.51 (5)" and substituting "section 142.51 (5) or 142.61 (4)".

SECTION 10: [Forest Act, section 142.1] provides a date for ease of reading.

10 Section 142.1 (2) is amended by striking out "the date this section comes into force." and substituting "March 30, 2006."

SECTION 11: [Forest Act, section 142.3] is consequential to the enactment by this Bill of sections 142.42 (1) and 142.61 (4) of the Act.

11 Section 142.3 (3) is amended by striking out "is assessed under section 142.51 (4) or (5) or 142.61 (1) or (2)," and substituting "is assessed under section 142.42 (1), 142.51 (4) or (5) or 142.61 (1), (2) or (4),".

SECTION 12: [Forest Act, sections 142.42 and 142.43] provides that the commissioner may assess a penalty against a person who fails to provide information or records as demanded under section 142.31 of the Act or as requested under section 142.41 of the Act, and authorizes the Supreme Court to grant an order requiring a person to comply with a demand notice or request to provide information or records.

12 The following sections are added:

Penalty for failure to provide information

142.42  (1) If the commissioner is satisfied that a person has failed to comply with

(a) a demand notice served under section 142.31, or

(b) a request made under section 142.41 (e),

the commissioner may assess against the person, in addition to any other penalty, a penalty equal to the product obtained by multiplying $100 and the number of days during which the failure continues, to a maximum penalty of $10 000.

(2) Sections 142.7 to 142.81 apply in relation to an assessment made under subsection (1) of this section, as if an assessment made under subsection (1) of this section were an assessment made under a provision referred to in section 142.7.

(3) This section and section 142.43 apply with respect to

(a) a demand notice under section 142.31, if the demand notice is served on or after the date this section comes into force, and

(b) a request under section 142.41 (e), if the request is made on or after the date this section comes into force.

Order for compliance

142.43  (1) If the commissioner considers that a person has failed to comply with

(a) a demand notice served under section 142.31, or

(b) a request made under section 142.41 (e),

the commissioner may apply to the Supreme Court for either or both of the following:

(c) an order directing the person to comply with the demand notice or request;

(d) an order directing the directors and officers of the person to cause the person to comply with the demand notice or request.

(2) On application by the commissioner under this section, the Supreme Court may make an order it considers appropriate.

SECTION 13: [Forest Act, heading to Division 3 of Part 11.1] is consequential to the enactment by this Bill of sections 142.42 and 142.43 of the Act.

13 The heading to Division 3 of Part 11.1 is amended by striking out "Assessment" and substituting "Assessment of Stumpage".

SECTION 14: [Forest Act, section 142.61] provides that the commissioner may assess interest under section 130 (1) (b) of the Act on a penalty assessed under section 142.61 (1) or (2) of the Act.

14 Section 142.61 is amended by adding the following subsection:

(4) After assessing a penalty against a person under subsection (1) or (2), the commissioner may assess the amount of interest payable under section 130 (1) (b) on the amount assessed.

SECTION 15: [Forest Act, sections 142.7, 142.71 and 142.81] is consequential to the enactment by this Bill of section 142.61 (4) of the Act.

15 Sections 142.7, 142.71 and 142.81 are amended by striking out "142.61 (1) or (2)" wherever it appears and substituting "142.61 (1), (2) or (4)".

SECTION 16: [Forest Act, section 142.9] is consequential to the enactment by this Bill of sections 142.42 (1) and 142.61 (4) of the Act.

16 Section 142.9 (1) is repealed and the following substituted:

(1) If a person disputes an assessment made under section 142.42 (1), 142.51 (4) or (5) or 142.61 (1), (2) or (4), the person or the person's agent may appeal to the revenue minister in accordance with this section.

Home Owner Grant Act

SECTION 17: [Home Owner Grant Act, section 17.1] provides authority for the grant administrator to waive or cancel an amount payable under section 17 by a notice recipient to whom a notice of disentitlement is issued on or after January 1, 2011, but requires the grant administrator to obtain approval of the Lieutenant Governor in Council if the amount to be waived or cancelled exceeds $25 000.

17 The Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended by adding the following section:

Waiver or cancellation of amount payable under notice of disentitlement

17.1  (1) In this section:

"notice of disentitlement" has the same meaning as in section 17;

"notice recipient" has the same meaning as in section 17;

"principal residence requirement" means a requirement under this Act that a residence be occupied as a principal residence in order for a person to be entitled to receive a grant or supplement in respect of the residence;

"residence" means

(a) an eligible residence,

(b) an eligible apartment or eligible housing unit in an eligible building,

(c) an eligible land cooperative residence on a land cooperative, or

(d) an eligible multi dwelling leased parcel residence on a multi dwelling leased parcel.

(2) Despite the Financial Administration Act but subject to this section, the grant administrator may waive or cancel all or part of an amount payable under section 17 of this Act by a notice recipient to whom a notice of disentitlement is issued on or after January 1, 2011.

(3) The grant administrator must notify the notice recipient, in writing, of a waiver or cancellation given under subsection (2).

(4) Subject to subsection (5), the grant administrator may give a waiver or cancellation under subsection (2) only if the grant administrator is satisfied that it is fair and reasonable to do so

(a) in the circumstances set out in subsection (6), or

(b) in circumstances established by regulation.

(5) If the amount to be waived or cancelled under subsection (2) exceeds $25 000, the grant administrator may give a waiver or cancellation only with the approval of the Lieutenant Governor in Council.

(6) The circumstances for the purposes of subsection (4) (a) are that

(a) the amount payable relates to a grant or supplement received, for a tax year, in respect of a residence for which a person did not meet an applicable principal residence requirement, and

(b) the grant administrator is satisfied that there is another residence in respect of which

(i) the person referred to in paragraph (a) would have met the applicable principal residence requirement, and

(ii) a grant or supplement would have been received, for the tax year, if the person who was entitled to receive the grant or supplement had applied for the grant or supplement.

(7) If an amount is payable under section 17 in respect of a notice of disentitlement issued on or after January 1, 2011 but before this section comes into force, the amount payable may be waived or cancelled under subsection (2) of this section only if the waiver or cancellation is given within one year after the date this section comes into force.

(8) If an amount is payable under section 17 in respect of a notice of disentitlement issued on or after the date this section comes into force, the amount payable may be waived or cancelled under subsection (2) of this section only if the waiver or cancellation is given within one year after the date of issue of the notice of disentitlement.

(9) If a waiver or cancellation is given under subsection (2) in respect of an amount already paid by the notice recipient, the grant administrator must refund to the notice recipient, out of the consolidated revenue fund, the waived or cancelled amount already paid by the notice recipient.

(10) Subject to subsection (11), if a refund under subsection (9) is paid to a notice recipient who is the owner of an eligible building, a land cooperative or a multi dwelling leased parcel, section 7 (1) and (2) applies in respect of the refund, as if the refund were a grant referred to in section 7 (1).

(11) Subsection (10) does not apply to the extent that,

(a) before the notice recipient was notified that the notice recipient was not entitled to a grant in respect of a residence, the notice recipient, in accordance with section 7 (1), provided the benefit of the grant to the person entitled to that benefit, and

(b) after the notice recipient was notified that the notice recipient was not entitled to the grant, the person who received the benefit of the grant did not compensate the notice recipient for the amount of the benefit.

SECTION 18: [Home Owner Grant Act, section 18] adds regulation-making powers for the purposes of section 17.1 (4) (b) of the Act, as enacted by this Bill.

18 Section 18 is amended

(a) in subsection (2) by adding the following paragraph:

(h) for the purposes of section 17.1 (4) (b),

(i) establish circumstances in which the grant administrator may waive or cancel all or part of an amount payable under section 17, and

(ii) establish conditions or limits in relation to giving a waiver or cancellation in the circumstances prescribed under subparagraph (i) of this paragraph. , and

(b) by adding the following subsection:

(2.1) In making regulations under subsection (2) (h), the Lieutenant Governor in Council may do one or more of the following:

(a) delegate a matter to the grant administrator;

(b) confer a discretion on the grant administrator;

(c) make different regulations for different persons, places, things or circumstances.

Hydro and Power Authority Act

SECTION 19: [Hydro and Power Authority Act, section 34.1] authorizes the British Columbia Hydro and Power Authority, with the approval of the Lieutenant Governor in Council, to make a grant for a taxation year to a taxing treaty first nation.

19 The Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is amended by adding the following section:

Grants to taxing treaty first nations

34.1  (1) In this section, "taxing treaty first nation" has the same meaning as in the Treaty First Nation Taxation Act.

(2) With the approval of the Lieutenant Governor in Council, the authority may make annual grants to a taxing treaty first nation with respect to the taxing treaty first nation's treaty lands within which the authority generates, transmits or sells electric power or otherwise carries on business.

(3) The Assessment Act and the Assessment Authority Act apply to the authority for the purposes of making annual grants under subsection (2) with respect to the treaty lands of a taxing treaty first nation.

(4) Grants under subsection (2) may be made for any taxation year for which a treaty first nation is or was a taxing treaty first nation, whether the taxation year occurs before or after, or partly before or after, the date this section comes into force.

(5) Subsection (4) is retroactive to the extent necessary to give it full force and effect with respect to any taxation year in which a treaty first nation is or was a taxing treaty first nation.

Income Tax Act

SECTION 20: [Income Tax Act, section 4.1] establishes a personal income tax bracket for taxable income that exceeds $150 000.

20 Section 4.1 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended

(a) in subsection (1) (e) by striking out "if the taxable income exceeds $85 000," and substituting "if the taxable income exceeds $85 000 and does not exceed $150 000,",

(b) in subsection (1) (e) (ii) by striking out "that exceeds $85 000." and substituting "that exceeds $85 000 and does not exceed $150 000;",

(c) in subsection (1) by adding the following paragraph:

(f) if the taxable income exceeds $150 000,

(i) the highest amount that might be determined for an individual under paragraph (e) of this subsection,

plus

(ii) 16.8% of the taxable income that exceeds $150 000. , and

(d) in subsection (2) by striking out "subsection (1) (b) (i), (c) (i), (d) (i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c) or (d)," and substituting "subsection (1) (b) (i), (c) (i), (d) (i), (e) (i) and (f) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c), (d) or (e),".

SECTION 21: [Income Tax Act, section 4.1] repeals the personal income tax bracket for taxable income that exceeds $150 000.

21 Section 4.1 is amended

(a) in subsection (1) (e) by striking out "and does not exceed $150 000" in both places,

(b) by repealing subsection (1) (f), and

(c) in subsection (2) by striking out "subsection (1) (b) (i), (c) (i), (d) (i), (e) (i) and (f) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c), (d) or (e)," and substituting "subsection (1) (b) (i), (c) (i), (d) (i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c) or  (d),".

SECTION 22: [Income Tax Act, section 4.4] maintains 14.7% as the percentage rate for determining the deduction for the portion of total charitable or other gifts that exceeds $200 in the taxation year, despite the temporary establishment of a higher percentage rate for taxable income that exceeds $150 000.

22 Section 4.4 is amended by striking out "C is the highest percentage specified in section 4.1 of this Act that applies in determining tax that might be payable under this Act for the year, and" and substituting "C is 14.7%, and".

SECTION 23: [Income Tax Act, section 4.4] provides that the highest percentage rate specified in section 4.1 of the Act is the percentage rate for determining the deduction for the portion of total charitable or other gifts that exceeds $200 in the taxation year, consequential to the repeal by this Bill of the temporary establishment of a higher percentage rate for taxable income that exceeds $150 000.

23 Section 4.4 is amended by striking out "C is 14.7%, and" and substituting "C is the highest percentage specified in section 4.1 of this Act that applies in determining tax that might be payable under this Act for the year, and".

SECTION 24: [Income Tax Act, section 4.52] is consequential to the enactment by this Bill of section 4.1 (1) (f) of the Act.

24 Section 4.52 is amended by adding the following subsection:

(4.21) For the purpose of computing the tax payable by an individual for the 2014 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the amount of $150 000 referred to in section 4.1 (1) (e) and (f).

SECTION 25: [Income Tax Act, section 4.52] is consequential to the repeal by this Bill of section 4.1 (1) (f) of the Act.

25 Section 4.52 (4.21) is repealed.

SECTION 26: [Income Tax Act, sections 14, 16 and 25] increases from 10% to 11% the corporate income tax rate established by section 14 (2) of the Act.

26 Sections 14 (2) and (3.1) (a), 16 (1) (b) and (2) (b) and 25 (2) are amended by striking out "10%" and substituting "11%".

Land Tax Deferment Act

SECTION 27: [Land Tax Deferment Act, section 1] repeals and replaces the definition of "dependent child", consequential to the enactment by this Bill of section 1.1 of the Act.

27 Section 1 of the Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is amended by repealing the definition of "dependent child" and substituting the following:

"dependent child" means a person who is a dependent child as described in section 1.1; .

SECTION 28: [Land Tax Deferment Act, section 1.1] describes the circumstances in which a person is a dependent child for the purposes of the Act.

28 The following section is added:

Dependent child

1.1  (1) A person is a dependent child for the purposes of this Act if the person

(a) is dependent for financial support on an owner of eligible property, and

(b) is in a class of persons

(i) described in subsection (2), (3) or (4) of this section, or

(ii) included by regulation under section 18 (2) (h).

(2) A person who is, at any time in the calendar year in which an application is made for an agreement under section 2, under the age of 18 years is a dependent child if one of the following circumstances applies:

(a) the person lives full time with the owner in the eligible property;

(b) the person lives, under a shared parenting arrangement, at least part time with the owner in the eligible property;

(c) the person does not live with the owner in the eligible property, but the owner pays support for the person.

(3) A person who is a child or stepchild of an owner of eligible property is a dependent child if one of the following circumstances applies:

(a) the minister is satisfied that, at any time in the calendar year in which an application is made for an agreement under section 2, the person is or will be enrolled at an educational institution;

(b) the person is a person with disabilities as defined in the regulations.

(4) A person is a dependent child if

(a) an agreement was made previously under section 2 on the basis of the person being a dependent child,

(b) the owner of eligible property continues to owe an amount under the agreement, and

(c) either of the circumstances described in subsection (3) (a) or (b) applies to the person.

(5) Despite subsections (1) to (4), a person is not a dependent child if the person is within a class of persons excluded by regulation under section 18 (2) (h).

SECTION 29: [Land Tax Deferment Act, section 4] provides that partial disposition of eligible property does not terminate a land tax deferral agreement.

29 Section 4 is amended by adding the following subsections:

(1.2) Despite subsection (1), the agreement is not terminated under subsection (1) by reason only that a portion of the eligible property is disposed of, by the owner, to a person if

(a) the owner retains no interest in the portion disposed of,

(b) the remaining portion includes a building or a manufactured home used for residential purposes as the owner's principal residence, and

(c) the minister considers that the amount deferred under the agreement remains adequately secured.

(1.3) If subsection (1.2) applies,

(a) the agreement made under section 2 continues, subject to this section and section 5 (5),

(b) the remaining portion is deemed to be the eligible property that is the subject of the agreement, and

(c) the minister must release the charge, as it applies to the portion disposed of, registered under section 7.

SECTION 30: [Land Tax Deferment Act, section 18] is consequential to the repeal and replacement by this Bill of the definition of "dependent child" in section 1 of the Act.

30 Section 18 (2) (h) is repealed and the following substituted:

(h) including and excluding classes of persons for the purposes of section 1.1.

Property Transfer Tax Act

SECTION 31: [Property Transfer Tax Act, section 14] amends the definition of "family farm" by

31 The definition of "family farm" in section 14 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended

(a) by striking out "or" at the end of paragraph (b), and

(b) by repealing paragraph (c) and substituting the following:

(c) for the purpose of an exemption claimed under subsection (3) (c.1) or (c.2), was, immediately before the deceased's death, owned by the deceased and used and farmed by one or more of the following:

(i) the deceased;

(ii) family members of the deceased;

(iii) a family farm corporation that, at the time of the deceased's death, was comprised of shareholders, each of whom was one of the following:

(A) a related individual of the deceased;

(B) a sibling of the deceased;

(C) a spouse of a sibling of the deceased, or

(d) for the purpose of an exemption claimed under subsection (3) (d.1) or (d.2) or subsection (4) (p.22) (ii) (B), was used, owned and farmed by the settlor or the deceased; .

Provincial Sales Tax Transitional Provisions and Amendments Act, 2013

SECTION 32: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, sections 35, 40 and 42] clarifies that sections 119, 126, 127 and 131 of the Provincial Sales Tax Act apply in relation to related services, legal services and dedicated telecommunication services provided before April 1, 2013.

32 Sections 35 (1), 40 (1) and 42 (1) of the Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, S.B.C. 2013, c. 1, are amended by striking out "purchased" and substituting "provided".

SECTION 33: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, sections 35, 40 and 42] clarifies exceptions to transitional rules in relation to a provision of related services, legal services and dedicated telecommunication services.

33 Sections 35 (2) and (3), 40 (2) and 42 (2) are amended by striking out "purchase" and substituting "provision".

SECTION 34: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, section 40] provides that sections 126 and 127 of the Provincial Sales Tax Act do not apply in respect of any consideration for legal services provided before July 1, 2010.

34 Section 40 is amended by adding the following subsection:

(4) Sections 126 and 127 of the Provincial Sales Tax Act do not apply in respect of the portion of any consideration that is attributable to legal services provided before July 1, 2010.

SECTION 35: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, sections 41 and 41.1] clarifies that section 130 of the Provincial Sales Tax Act applies in relation to telecommunication services provided before April 1, 2013 and clarifies the exception to that transitional rule.

35 Section 41 is repealed and the following substituted:

Section 130 – telecommunication service

41  (1) Subject to subsection (2), section 130 of the Provincial Sales Tax Act applies in relation to a telecommunication service provided before April 1, 2013.

(2) Section 130 of the Provincial Sales Tax Act does not apply in respect of any consideration for a provision of a telecommunication service that, before April 1, 2013, becomes due or is paid without having become due.

Section 130.1 – telecommunication service purchased substantially for resale

41.1  (1) Subject to subsection (2), section 130.1 of the Provincial Sales Tax Act applies in relation to a telecommunication service purchased before April 1, 2013.

(2) Section 130.1 of the Provincial Sales Tax Act does not apply in respect of any consideration for a purchase of a telecommunication service that, before April 1, 2013, becomes due or is paid without having become due.

Tobacco Tax Act

SECTION 36: [Tobacco Tax Act, section 2] increases the tax on cigarettes to 22.3¢ per cigarette and the tax on tobacco, other than cigars or cigarettes, to 22.3¢ per gram.

36 Section 2 (2) and (3) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by striking out "21.3¢" and substituting "22.3¢".

Part 2 – Non-Tax Budget Measures

Transitional Provision

SECTION 37: [Transition – presentation and reporting obligations for 2013-2014 fiscal year] clarifies which main estimates and other documents are to be used for the purposes of the Budget Transparency and Accountability Act, the Balanced Budget and Ministerial Accountability Act and the Carbon Tax Act in relation to the 2013-2014 fiscal year.

Transition – presentation and reporting obligations for 2013-2014 fiscal year

37  (1) In this section, "new main estimates" means the main estimates for the 2013-2014 fiscal year presented under section 6 (2) of the Budget Transparency and Accountability Act.

(2) The new main estimates, and the documents presented or made public in relation to the new main estimates under

(a) section 7 [economic and fiscal forecasts],

(b) section 8 [major capital project information],

(c) section 12 [government strategic plan], or

(d) section 13 [service plans]

of the Budget Transparency and Accountability Act, are the ones that apply for the purposes of Part 2 [Fiscal Reports] and Part 4 [Service Plan Reports] of that Act in relation to the 2013-2014 fiscal year.

(3) The new main estimates are the ones that apply for the purposes of the Balanced Budget and Ministerial Accountability Act in relation to the 2013-2014 fiscal year.

(4) The new main estimates are the ones that apply for the purposes of the Carbon Tax Act in relation to the 2013-2014 fiscal year.

(5) The carbon tax plan presented to the Legislative Assembly with the new main estimates is deemed to be a carbon tax plan referred to in section 3 of the Carbon Tax Act.

(6) The documents presented under section 4 of the Carbon Tax Act with the new main estimates are the ones that apply for the purposes of the Carbon Tax Act in relation to the 2013-2014 fiscal year.

Commencement

38  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

Item Column 1
Provisions of Act
Column 2
Commencement
1 Anything not elsewhere covered by this table The date of Royal Assent
2 Sections 1 to 5 January 1, 2014
3 Section 8 January 1, 2014
4 Section 20 January 1, 2014
5 Section 21 January 1, 2016
6 Section 22 January 1, 2014
7 Section 23 January 1, 2016
8 Section 24 January 1, 2014
9 Section 25 January 1, 2016
10 Section 26 April 1, 2013
11 Sections 32 to 35 April 1, 2013
12 Section 36 October 1, 2013
13 Section 37 June 27, 2013

 
Explanatory Notes

SECTION 1: [Carbon Tax Act, section 1] adds a definition of "farmer".

SECTION 2: [Carbon Tax Act, section 8.1] imposes tax if a purchaser purchased fuel that was exempt from tax imposed under section 8 of the Act and subsequently uses or allows the fuel to be used for another purpose for which the person would not be exempt.

SECTION 3: [Carbon Tax Act, section 14] subject to the regulations, exempts from tax under the Act fuel that is purchased by a farmer for use for a prescribed purpose and that is a prescribed type of fuel, a prescribed subcategory of a type of fuel or in a prescribed class of a type of fuel or of a subcategory of a type of fuel.

SECTION 4: [Carbon Tax Act, section 30] adds a cross-reference to section 14 (2) (g) of the Act, as added by this Bill.

SECTION 5: [Carbon Tax Act, section 39.1] subject to the regulations, provides for a refund to a farmer who has paid tax for fuel that was a prescribed type of fuel, a prescribed subcategory of a type of fuel or in a prescribed class of a type of fuel or of a subcategory of a type of fuel and who has used the fuel for a prescribed purpose.

SECTION 6: [Carbon Tax Act, section 41]

SECTION 7: [Carbon Tax Act, section 84] authorizes the Lieutenant Governor in Council to make regulations respecting applications for a refund.

SECTION 8: [Carbon Tax Act, section 84] provides that

SECTION 9: [Forest Act, section 130] provides that interest assessed under section 142.61 (4) of the Act runs from the date that stumpage would have been due.

SECTION 10: [Forest Act, section 142.1] provides a date for ease of reading.

SECTION 11: [Forest Act, section 142.3] is consequential to the enactment by this Bill of sections 142.42 (1) and 142.61 (4) of the Act.

SECTION 12: [Forest Act, sections 142.42 and 142.43] provides that the commissioner may assess a penalty against a person who fails to provide information or records as demanded under section 142.31 of the Act or as requested under section 142.41 of the Act, and authorizes the Supreme Court to grant an order requiring a person to comply with a demand notice or request to provide information or records.

SECTION 13: [Forest Act, heading to Division 3 of Part 11.1] is consequential to the enactment by this Bill of sections 142.42 and 142.43 of the Act.

SECTION 14: [Forest Act, section 142.61] provides that the commissioner may assess interest under section 130 (1) (b) of the Act on a penalty assessed under section 142.61 (1) or (2) of the Act.

SECTION 15: [Forest Act, sections 142.7, 142.71 and 142.81] is consequential to the enactment by this Bill of section 142.61 (4) of the Act.

SECTION 16: [Forest Act, section 142.9] is consequential to the enactment by this Bill of sections 142.42 (1) and 142.61 (4) of the Act.

SECTION 17: [Home Owner Grant Act, section 17.1] provides authority for the grant administrator to waive or cancel an amount payable under section 17 by a notice recipient to whom a notice of disentitlement is issued on or after January 1, 2011, but requires the grant administrator to obtain approval of the Lieutenant Governor in Council if the amount to be waived or cancelled exceeds $25 000.

SECTION 18: [Home Owner Grant Act, section 18] adds regulation-making powers for the purposes of section 17.1 (4) (b) of the Act, as enacted by this Bill.

SECTION 19: [Hydro and Power Authority Act, section 34.1] authorizes the British Columbia Hydro and Power Authority, with the approval of the Lieutenant Governor in Council, to make a grant for a taxation year to a taxing treaty first nation.

SECTION 20: [Income Tax Act, section 4.1] establishes a personal income tax bracket for taxable income that exceeds $150 000.

SECTION 21: [Income Tax Act, section 4.1] repeals the personal income tax bracket for taxable income that exceeds $150 000.

SECTION 22: [Income Tax Act, section 4.4] maintains 14.7% as the percentage rate for determining the deduction for the portion of total charitable or other gifts that exceeds $200 in the taxation year, despite the temporary establishment of a higher percentage rate for taxable income that exceeds $150 000.

SECTION 23: [Income Tax Act, section 4.4] provides that the highest percentage rate specified in section 4.1 of the Act is the percentage rate for determining the deduction for the portion of total charitable or other gifts that exceeds $200 in the taxation year, consequential to the repeal by this Bill of the temporary establishment of a higher percentage rate for taxable income that exceeds $150 000.

SECTION 24: [Income Tax Act, section 4.52] is consequential to the enactment by this Bill of section 4.1 (1) (f) of the Act.

SECTION 25: [Income Tax Act, section 4.52] is consequential to the repeal by this Bill of section 4.1 (1) (f) of the Act.

SECTION 26: [Income Tax Act, sections 14, 16 and 25] increases from 10% to 11% the corporate income tax rate established by section 14 (2) of the Act.

SECTION 27: [Land Tax Deferment Act, section 1] repeals and replaces the definition of "dependent child", consequential to the enactment by this Bill of section 1.1 of the Act.

SECTION 28: [Land Tax Deferment Act, section 1.1] describes the circumstances in which a person is a dependent child for the purposes of the Act.

SECTION 29: [Land Tax Deferment Act, section 4] provides that partial disposition of eligible property does not terminate a land tax deferral agreement.

SECTION 30: [Land Tax Deferment Act, section 18] is consequential to the repeal and replacement by this Bill of the definition of "dependent child" in section 1 of the Act.

SECTION 31: [Property Transfer Tax Act, section 14] amends the definition of "family farm" by

SECTION 32: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, sections 35, 40 and 42] clarifies that sections 119, 126, 127 and 131 of the Provincial Sales Tax Act apply in relation to related services, legal services and dedicated telecommunication services provided before April 1, 2013.

SECTION 33: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, sections 35, 40 and 42] clarifies exceptions to transitional rules in relation to a provision of related services, legal services and dedicated telecommunication services.

SECTION 34: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, section 40] provides that sections 126 and 127 of the Provincial Sales Tax Act do not apply in respect of any consideration for legal services provided before July 1, 2010.

SECTION 35: [Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, sections 41 and 41.1] clarifies that section 130 of the Provincial Sales Tax Act applies in relation to telecommunication services provided before April 1, 2013 and clarifies the exception to that transitional rule.

SECTION 36: [Tobacco Tax Act, section 2] increases the tax on cigarettes to 22.3¢ per cigarette and the tax on tobacco, other than cigars or cigarettes, to 22.3¢ per gram.

SECTION 37: [Transition – presentation and reporting obligations for 2013-2014 fiscal year] clarifies which main estimates and other documents are to be used for the purposes of the Budget Transparency and Accountability Act, the Balanced Budget and Ministerial Accountability Act and the Carbon Tax Act in relation to the 2013-2014 fiscal year.