1996 Legislative Session: 1st Session, 36th Parliament
FIRST READING


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


MINISTER OF FINANCE AND CORPORATE
RELATIONS AND MINISTER RESPONSIBLE FOR
INTERGOVERNMENTAL RELATIONS

BILL 2 1996

BUDGET MEASURES IMPLEMENTATION ACT, 1996

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

 
College and Institute Act

1 Section 12 of the College and Institute Act, R.S.B.C. 1979, c. 53, is amended by adding the following subsection:

(2.1) The board may pay to a municipality incorporated by or under an Act a grant in a year not exceeding the lesser of

(a) the amount that would be payable as general municipal taxes in the year on property of the institution within the municipality if the property were not exempt from these taxes, and

(b) the amount specified by the minister or calculated in the manner specified by the minister.

 
Home Owner Grant Act

2 Sections 2 (2.2), 3 (4), 3.1 (3.2) and 3.2 (3.2) of the Home Owner Grant Act, S.B.C. 1980, c. 18, are amended by striking out "$475 000" wherever it appears and substituting "$525 000".

 
Industrial Development Incentive Act

3 Section 6 (2) (c) of the Industrial Development Incentive Act, S.B.C. 1985, c. 43, is amended by striking out "300 million." wherever it appears and substituting "$400 million."

 
Institute of Technology Act

4 Section 5 (1) of the Institute of Technology Act, R.S.B.C. 1979, c. 199, is amended by adding the following paragraph:

(g.1) pay to a municipality incorporated by or under an Act a grant in a year not exceeding the lesser of

(i) the amount that would be payable as general municipal taxes in the year on property of the institute within the municipality if the property were not exempt from these taxes, and

(ii) the amount specified by the minister or calculated in the manner specified by the minister;.

 
Motor Fuel Tax Act

5 Section 4 (1) of the Motor Fuel Tax Act, S.B.C. 1985, c. 76, is amended by striking out "10 per litre." and substituting "9 per litre."

6 Section 9 (1) is amended by striking out "10.5 per litre." and substituting "9.5 per litre."

7 Section 11 is amended in paragraphs (a) and (b) by striking out "per litre on each litre" and substituting "per litre".

8 Section 11.1 is amended in subsections (1) and (2) by striking out "1/litre on each litre" and substituting "2 per litre".

 
Municipal Act

9 Section 398.1 of the Municipal Act, R.S.B.C. 1979, c. 290, is amended by renumbering the section as section 398.1 (1) and by adding the following subsections:

(2) In addition to the provisions of any other Act, the Lieutenant Governor in Council may make regulations prescribing exemptions from property tax levies under any Act in respect of prescribed improvements at prescribed community airports.

(3) Regulations under subsection (2) may be different

(a) for different classes of property as described in the regulations, and

(b) for different community airports.

(4) An exemption under subsection (2) applies to an airport only for a taxation year in which the airport is operated as a community airport.

 
Open Learning Agency Act

10 Section 7 (2) of the Open Learning Agency Act, S.B.C. 1987, c. 62, is amended by adding the following paragraph:

(i.1) pay to a municipality incorporated by or under an Act a grant in a year not exceeding the lesser of

(i) the amount that would be payable as general municipal taxes in the year on property of the agency within the municipality if the property were not exempt from these taxes, and

(ii) the amount specified by the minister or calculated in the manner specified by the minister;.

 
Property Transfer Tax Act

11 Section 3 of the Property Transfer Tax Act, S.B.C. 1987, c. 15, is amended by adding the following subsections:

(3.1) Where

(a) a transferee that is a corporation (in this subsection and subsection (3.2) called the "corporate transferee") applies for registration of a taxable transaction at a land title office, and

(b) one or more corporations associated with the corporate transferee apply, as transferees, at the same time as or within 6 months after the application referred to in paragraph (a), for registration of one or more taxable transactions respecting the same land for which the transferor is not the corporate transferee,

the tax owing on the taxable transactions referred to in paragraphs (a) and (b), in aggregate, shall be calculated based on the total fair market value of the taxable transactions referred to in paragraphs (a) and (b) as if all those taxable transactions were a single taxable transaction, and the transferees referred to in paragraphs (a) and (b) shall be jointly and severally liable to pay that aggregate tax.

(3.2) For the purposes of subsection (3.1), a corporation is associated with a corporate transferee if the corporation and the corporate transferee are associated, within the meaning of section 256 of the Income Tax Act (Canada), on the date that the corporation applies to register a taxable transaction respecting the land referred to in subsection (3.1) of this section.

12 Section 3.2 is amended in the definition of "qualifying value"

(a) in paragraph (a) by striking out "$250 000" and substituting "$275 000", and

(b) in paragraph (b) by striking out "$200 000" and substituting "$225 000".

13 Section 3.24 (1) (c) is amended

(a) in subparagraph (i) by striking out "$10 000," and substituting "$11 000,", and

(b) in subparagraph (ii) by striking out "$8 000." and substituting "$9 000."

14 Section 8.1 is amended

(a) in subsection (1) (a) by adding "or (3.1)" after "section 3 (3)",

(b) in subsection (1) (b) by adding "or (3.1) (b)" after "section 3 (3) (b)",

(c) in subsection (1) by adding "or (3.1), as the case may be," after "taxable transactions referred to in section 3 (3)" , and

(d) in subsection (4) by adding "or (3.1), as the case may be," after "section 3 (3)".

 
Social Service Act

15 Section 1 (1) of the Social Service Tax Act, R.S.B.C. 1979, c. 388, is amended by adding the following definition:

"prototype" means the first full-scale functional form of a new type or a new construction of tangible personal property, but does not include prescribed tangible personal property;.

16 Section 2 is amended by adding the following subsections:

(3.5) A person who acquired tangible personal property exempt from tax under section 4 (1) (h.2) and who, for any period after the testing of the prototype referred to under section 4 (1) (h.2), becomes the user of that prototype or receives consideration for use of that prototype, shall pay tax on the purchase price of that tangible personal property at the rate established under subsection (1).

(3.6) Subsection (3.5) does not apply if the only use of the prototype is for demonstration and the only consideration received for the use of that prototype does not exceed the actual cost of that demonstration.

(3.7) Subsection (3.5) does not require a person to pay tax more than once on the purchase price referred to in that subsection.

17 Section 4 is amended

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

(h.2) tangible personal property, other than prescribed tangible personal property, that is to be attached to or processed, fabricated, manufactured or incorporated into a prototype, if the prototype is a result of research and development activities aimed at developing a new or improved product or a new or improved process; , and

(b) in subsection (1.2) by striking out "subsection (1) (h.1)." and substituting "subsection (1) (h.1) or (h.2)."

18 Section 37 (2) is amended by adding the following paragraphs:

(q) prescribing tangible personal property that is not included within the meaning of "prototype" as defined in section 1 (1);

(r) prescribing tangible personal property that is not eligible for exemption under section 4 (1) (h.2).

 
Special Accounts Appropriation and Control Act

19 Section 8 (2) of the Special Accounts Appropriation and Control Act, S.B.C. 1988, c. 26, is amended by striking out "and" at the end of paragraph (c), by adding ", and" at the end of paragraph (d) and by adding the following paragraph:

(e) interest calculated on and attributable to the balance in the account.

20 Section 8 is amended

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

(1) The Minister of Environment, Lands and Parks may make payments out of the Habitat Conservation Fund special account for one or more of the following:

(a) payment to the Habitat Conservation Trust Fund established under section 11.1 of the Wildlife Act;

(b) the conservation or enhancement of biological diversity, fish, fish habitat, wildlife or wildlife habitat;

(c) the acquisition and management of land for the conservation or enhancement of a population of a species of fish or wildlife and its habitat;

(d) the furthering, stimulation and encouragement of knowledge and awareness of fish or wildlife and their habitat, or of the Habitat Conservation Trust Fund under the Wildlife Act, by way of promotional, educational or other programs;

(e) the reasonable travelling and out of pocket expenses incurred by persons advising the Minister of Environment, Lands and Parks on conservation or enhancement matters relating to the account;

(f) administration, services and supplies provided in relation to matters referred to in paragraphs (a) to (e) or provided to otherwise manage the account. ,

(b) by repealing subsection (2), and

(c) by adding the following subsection:

(4) If the balance in the account is reduced to nil, the Lieutenant Governor in Council may, by regulation, repeal this section and section 11.1 (3) (f) of the Wildlife Act.

 
University Act

21. Section 27 of the University Act, R.S.B.C. 1979, c. 419, is amended by adding the following paragraph:

(t.1) to pay to a municipality incorporated by or under an Act a grant in a year not exceeding the lesser of

(i) the amount that would be payable as general municipal taxes in the year on property of the university within the municipality if the property were not exempt from these taxes; and

(ii) the amount specified by the minister or calculated in the manner specified by the minister; .

 
Wildlife Act

22 The Wildlife Act, S.B.C. 1982, c. 57, is amended by adding the following section:

Habitat Conservation Trust Fund

11.1 (1) The Habitat Conservation Trust Fund is established as a trust fund, with the minister as trustee of the trust fund.

(2) The minister may make payments out of the trust fund for one or more of the following:

(a) the conservation or enhancement of biological diversity, fish, fish habitat, wildlife or wildlife habitat;

(b) the acquisition and management of land for the conservation or enhancement of a population of a species of fish or wildlife and its habitat;

(c) the furthering, stimulation and encouragement of knowledge and awareness of fish or wildlife and their habitat, or of the trust fund, by way of promotional, educational or other programs;

(d) the reasonable travelling and out of pocket expenses incurred by persons advising the minister on conservation or enhancement matters relating to the trust fund;

(e) administration, services and supplies provided in relation to matters referred to in paragraphs (a) to (d) or provided to otherwise manage the trust fund.

(3) The following must be paid into the trust fund:

(a) surcharges collected on licences or applications for licences issued under this Act or the regulations;

(b) revenue derived from fund raising and the sale of promotional, educational or other materials, goods or services under subsection (2) (c);

(c) money acquired by gift, donation or bequest or by disposition of any land acquired for the purposes of the trust fund;

(d) revenue derived from lands administered by the minister for the benefit of fish or wildlife;

(e) money received as contributions

(i) under an appropriation or requisition, or

(ii) from the government of Canada, municipalities or others;

(f) interest calculated on and attributable to the balance in the Habitat Conservation Fund special account established under section 8 of the Special Accounts Appropriation and Control Act;

(g) any interest and other income of the trust fund.

(4) The Habitat Conservation Trust Fund is not a special fund within the meaning of the Financial Administration Act, but money of the fund is trust funds within the meaning of that Act.

Transitional - regulation

23 A regulation under section 19 (2) of the Build BC Act that, before March 31, 1997, prescribes the tax for the purpose of section 11.1 of the Motor Fuel Tax Act, as amended by section 8 of this Act, may be made retroactive to a date on or after July 1, 1996 and, if made retroactive, is deemed to come into force on the date specified.

Transitional community airport exemptions

24 A regulation under section 398.1 (2) of the Municipal Act that is made before January 1, 1997 may be made retroactive to a date on or after January 1, 1994 and, if made retroactive, is deemed to have come into force on the date specified.

Transitional regulation

25 A regulation under section 37 (2) of the Social Service Tax Act that, before January 1, 1997, prescribes tangible personal property that is not included within the meaning of "prototype" as defined in section 1 (1) of that Act as amended by section 15 of this Act or that prescribes tangible personal property that is not eligible for exemption under section 4 (1) (h.2) of that Act as enacted by section 17 of this Act, may be made retroactive to May 1, 1996 and, if so made, is deemed to have come into force on May 1, 1996.

Commencement

26 (1) Section 2 is deemed to have come into force on January 1, 1996 and is retroactive to the extent necessary to give it effect on and after that date.

(2) Sections 5 to 8 come into force by regulation of the Lieutenant Governor in Council.

(3) A regulation bringing sections 5 to 8 into force may be made retroactive to a date on or after July 1, 1996 and, if a regulation is made retroactive under this subsection,

(a) the regulation is deemed to come into force on the date specified in the regulation, and

(b) sections 5 to 8 are deemed to come into force on the date specified in the regulation and are retroactive to the extent necessary to give them effect on and after that date.

(4) Sections 11 to 18 are deemed to have come into force on May 1, 1996 and are retroactive to the extent necessary to give them effect on and after that date.

(5) Section 19 is deemed to have come into force on March 31, 1988 and is retroactive to the extent necessary to give it effect on and after that date.

(6) Sections 20 and 22 are deemed to have come into force on April 1, 1996 and are retroactive to the extent necessary to give them effect on and after that date.

 
Explanatory Notes

 
College and Institute Act

SECTION 1: [College and Institute Act, amends section 12] allows the board of a college or institute to make a grant in lieu of taxes to a municipality.

 
Home Owner Grant Act

SECTION 2: [Home Owner Grant Act, amends sections 2 (2.2), 3 (4), 3.1 (3.2) and 3.2 (3.2)] increases the net taxable residential value threshold, beyond which home owner grants may be reduced.

 
Industrial Development Incentive Act

SECTION 3: [Industrial Development Incentive Act, amends section 6 (2) (c)] increases the funding cap of the Industrial Incentive Fund from $300 million to $400 million.

 
Institute of Technology Act

SECTION 4: [Institute of Technology Act, amends section 5 (1)] allows the board of the institute to make a grant in lieu of taxes to a municipality.

 
Motor Fuel Tax Act

SECTION 5: [Motor Fuel Tax Act, amends section 4] reduces by 1 per litre the tax rate on purchases of clear gasoline.

SECTION 6: [Motor Fuel Tax Act, amends section 9] reduces by 1 per litre the tax rate on purchases of clear diesel fuel.

SECTION 7: [Motor Fuel Tax Act, amends section 11] removes a redundancy.

SECTION 8: [Motor Fuel Tax Act, amends section 11.1] increases the maximum tax rate on the "additional tax for transportation infrastructure construction" from 1 to 2 on each litre of clear gasoline or clear diesel fuel.

 
Municipal Act

SECTION 9: [Municipal Act, amends section 398.1] allows the Lieutenant Governor in Council to exempt improvements at community airports from property taxes.

 
Open Learning Agency Act

SECTION 10: [Open Learning Agency Act, amends section 7 (2)] allows the board of the agency to make a grant in lieu of taxes to a municipality.

 
Property Transfer Tax Act

SECTION 11: [Property Transfer Tax Act, amends section 3] provides that taxable transactions in respect of the same land entered into by associated corporations within 6 months of each other will be valued for taxation purposes as one transaction.

SECTION 12: [Property Transfer Tax Act, amends section 3.2] increases the threshold for purchases that qualify for the first time home buyers' tax exemption from $250 000 to $275 000 for purchases in the Lower Mainland/Fraser Valley area and in the Capital Regional District and from $200 000 to $225 000 for purchases in the rest of the Province.

SECTION 13: [Property Transfer Tax Act, amends section 3.24] increases the amount by which the eligible indebtedness, as defined in the Property Transfer Tax Act, may be repaid in the first 12 months following the purchase of a home, from $10 000 to $11 000 for homes in the Lower Mainland/Fraser Valley area and in the Capital Regional District and from $8 000 to $9 000 for homes in the rest of the Province.

SECTION 14: [Property Transfer Tax Act, amends section 8.1] provides that the administrator may, in respect of a taxable transaction, make an assessment of the tax imposed by section 3 (3.1) of the Property Transfer Tax Act to reduce the tax payable if the administrator is satisfied that the taxable transaction was not made for the purposes of avoiding tax.

 
Social Service Tax Act

SECTION 15: [Social Service Tax Act, amends section 1 (1) ] adds a definition of "prototype", consequential to the exemption from tax added by the amendment to section 4 of the Social Service Tax Act.

SECTION 16: [Social Service Tax Act, amends section 2] sets out circumstances in which tangible personal property comprised in prototypes ceases to have tax-exempt status, and imposes tax in those circumstances.

SECTION 17: [Social Service Tax Act, amends section 4] provides for an exemption from tax for tangible personal property comprised in prototypes created with the intention of developing a new or improved product or process.

SECTION 18: [Social Service Tax Act, amends section 37 (2)] permits prescribed exclusions from the definition of "prototype" in section 1 (1) of the Social Service Tax Act and provides for the prescription of tangible personal property not eligible for exemption under section 4 (1) (h.2) of that Act.

 
Special Accounts Appropriation and Control Act

SECTION 19: [Special Accounts Appropriation and Control Act, amends section 8] allows interest on the Habitat Conservation Fund special account to be paid on the balance in the account.

SECTION 20: [Special Accounts Appropriation and Control Act, amends section 8]

 
University Act

SECTION 21: [University Act, amends section 27] allows the board of a university to make a grant in lieu of taxes to a municipality.

 
Wildlife Act

SECTION 22: [Wildlife Act, adds section 11.1] establishes the Habitat Conservation Trust Fund by using money currently going to the Habitat Conservation Fund special account under the Special Accounts Appropriation and Control Act, and with substantially the same expenditure authority as that special account.


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