1993 Legislative Session: 2nd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE GLEN CLARK
MINISTER OF FINANCE AND
CORPORATE RELATIONS

BILL 18 -- 1993

MOTOR FUEL TAX AMENDMENT ACT, 1993

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

1 Section 1 of the Motor Fuel Tax Act, S.B.C. 1985, c. 76, is amended by adding the following definitions:

"authorization" means the authorization provided under section 12 (1);

"authorized person" means a person who holds an authorization; .

2 Section 11 is repealed and the following substituted:

Additional tax for municipal transit

11 In addition to the tax payable under sections 4 and 9, a person who is a purchaser of gasoline or motive fuel from a retail dealer delivering either of those fuels to that purchaser within an area prescribed under the British Columbia Transit Act shall pay to the government, at the time of purchase, for the raising of revenue for municipal purposes under that Act

(a) where the prescribed area is the whole or any part of the Vancouver Regional Transit Service Area established under section 18 of the British Columbia Transit Act, a tax at the rate of 3 per litre on each litre of gasoline or motive fuel purchased by the purchaser and to which a regulation under section 14 of that Act applies, or

(b) where the prescribed area is the whole or any part of the Victoria Regional Transit Service Area established under section 18 of the British Columbia Transit Act, a tax at the rate of 1.5 per litre on each litre of gasoline or motive fuel purchased by the purchaser and to which a regulation under section 14 of that Act applies.

3 Section 12 is repealed and the following substituted:

Authority to colour fuel

12 (1) The director may, in writing, authorize a person to colour fuel subject to the terms and conditions the director considers appropriate.

(2) An authorized person shall not delegate or transfer the authorized person's authority to colour fuel.

(3) No person shall colour fuel unless authorized to do so by an authorization.

(4) The director may suspend, for the period prescribed by the regulations, or cancel an authorization if the director is satisfied that the authorized person has neglected or refused to comply with

(a) a provision of this Act or the regulations, or

(b) a term or condition imposed under subsection (1) or (9).

(5) A suspension or cancellation under subsection (4) does not relieve an authorized person from any other liability.

(6) Before cancelling an authorization, the director shall give the authorized person notice of the grounds for the proposed cancellation and an opportunity to show why the authorization should not be cancelled, but the director may suspend an authorization under subsection (4) without advance notice to the authorized person.

(7) Suspension or cancellation of an authorization takes effect on the delivery of notice of the suspension or cancellation to the authorized person.

(8) For the purposes of subsection (7), delivery of a notice of a suspension or cancellation to an authorized person occurs when the notice

(a) is served on the authorized person in a manner provided in Rule 11 (2) of the Rules of Court, or

(b) is left at the authorized person's place of business with an adult person who appears to be employed by the authorized person.

(9) The director may lift the suspension of an authorization after imposing on the authorized person the additional terms and conditions, if any, that the director considers appropriate.

4 Section 32 is amended by adding the following subsection:

(1.1) Where it appears from an inspection, audit or examination or from information available to the director that fuel on which a person has paid tax under section 5 has been used for a purpose not authorized by section 13, the director shall

(a) determine the difference between the tax paid by the person on that fuel and the tax that the person would have paid on that fuel if the fuel had not been taxed as coloured fuel, and

(b) assess the person for the difference determined under paragraph (a) of this subsection.

5 Section 38 (1) is amended by striking out "12" and substituting "12 (3)".

6 Section 39 (1) is repealed and the following substituted:

(1) An appeal to the minister lies from a decision of the director respecting

(a) a suspension or cancellation of an authorization under section 12 (4),

(b) a refund under section 15, 16, 17, 18, 19 or 21.1 (3),

(c) a cancellation of an appointment of a collector under section 22.1, or

(d) an estimate, assessment or imposition under sections 31 to 34 and 37.

7 Section 53 (1) is amended by striking out "12," and substituting "12 (3),".

8 Section 60 (1) is amended by striking out "and" at the end of paragraph (m), by adding ", and" at the end of paragraph (n) and by adding the following:

(o) prescribing the periods for which an authorization may be suspended by the director under section 12 (4).

Transitional

9 A reference to an authorization in a provision of the Motor Fuel Tax Act as enacted by this Act includes an authorization or delegation

(a) that was given or made before the coming into force of this Act, and

(b) under which the person to whom it was given or made was entitled, immediately before the coming into force of this Act, to colour fuel under the Motor Fuel Tax Act.

 
Consequential Amendment

 
British Columbia Transit Act

10 Section 14 of the British Columbia Transit Act, R.S.B.C. 1979, c. 421, is amended

(a) in subsection (1) by striking out "section 11 of the Motor Fuel Tax Act, in a prescribed area in the municipality or in the regional transit service area." and substituting "section 11 (a) or (b), as appropriate, of the Motor Fuel Tax Act in an area, prescribed in the regulation, consisting of the whole or any part of the municipality or regional transit service area.",

(b) in subsection (1.1) (a) by striking out "and leaded gasoline", and

(c) in subsections (1.1) and (3), by striking out "section 11" wherever it appears and by substituting "section 11 (a) or (b)".

Commencement

11 (1) Sections 2 and 10 shall be deemed to have come into force on May 1, 1993 and are retroactive to the extent necessary to give them effect on and after that date.

(2) A regulation under section 14 of the British Columbia Transit Act to bring section 11 (a) or (b) of the Motor Fuel Tax Act as enacted by this Act into force in an area prescribed in the regulation may be made retroactive to May 1, 1993 and, if made retroactive,

(a) the regulation shall be deemed to have come into force on May 1, 1993, and

(b) the provision of the Motor Fuel Tax Act referred to in the regulation shall be deemed to have come into force in the prescribed area on May 1, 1993.

(3) Subsection (2) and this subsection are repealed on October 1, 1993.

 
Explanatory Notes

SECTION 1: adds definitions of "authorization" and "authorized person".

SECTION 2: provides for a tax of 1.5 per litre on gasoline or motive fuel purchased in the Greater Victoria Regional Transit Service Area in addition to the 3 per litre tax provided for in respect of the Vancouver Regional Transit Service Area.

SECTION 3:

SECTION 4: permits the director to assess a person who uses coloured fuel for an improper purpose for the tax that the person would have paid had the fuel not been taxed as coloured fuel.

SECTION 5: harmonizes the section reference in section 38 (1) of the Motor Fuel Tax Act with the proposed amendments to section 12 of that Act.

SECTION 6: adds a provision for appeals to the minister for a suspension or cancellation of an authorization to colour fuel.

SECTION 7: harmonizes the section reference in section 53 (1) of the Motor Fuel Tax Act with the proposed amendments to section 12 of that Act.

SECTION 8: provides the Lieutenant Governor in Council with the power to make regulations respecting the periods for which suspensions may be issued by the director under the proposed amendments to section 12 of the Motor Fuel Tax Act.

SECTION 9: includes a valid authorization or delegation given or made before the coming into force of this Bill within the meaning of "authorization" under this Bill.

SECTION 10: harmonizes the section number references in section 14 of the British Columbia Transit Act with the amendments to the Motor Fuel Tax Act made by this Bill and removes reference to "leaded gasoline" to harmonize the wording with amendments made to the Motor Fuel Tax Act in the Budget Measures Implementation Act, 1993.


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