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2003 Legislative Session: 4th Session, 37th Parliament

FIRST READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

HONOUABLE GARY COLLINS

MINISTER OF FINANCE

BILL 6 – 2003

BUDGET MEASURES IMPLEMENTATION ACT, 2003

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

Balanced Budget and Ministerial Accountability Act

Section 5 (3) of the Balanced Budget and Ministerial Accountability

Act, S.B.C. 2001, c. 28, is amended by adding "on the day after the

applicable information is made public under

section 6 (3)" after "that

member of the Executive Council" .

Section 6 is repealed and the following substituted:

Making public a comparison of expected and actual results

(1) The following information for a fiscal year

must be made public with the main estimates for that fiscal year:

(

a) the estimated amount referred to in

section 5 (1);

(

b) the amount specified referred to in

section 5 (2);

(

c) the expected results referred to in

section 5 (3).

(2) The following information for a fiscal year must be made public with the public accounts for that fiscal year:

(

a) the actual surplus or deficit under

section 4;

(

b) the actual amount of those operating expenses referred to in

section 5 (1);

(

c) the actual revenue referred to in

section 5 (2);

(

d) the related information required under subsection (1) of this section.

(3) The following information for a fiscal year must be made public with the public accounts for that fiscal year, or as soon as reasonably practicable after that time, and in any case before December 31 in the year in which the public accounts for the fiscal year are made public:

(

a) the actual results referred to in

section 5 (3);

(

b) the related information required under subsection (1) of this section.

(4) The actual results referred to in

section 5 (3) may

be included in the applicable annual service plan report under

section 16 of

the Budget Transparency and Accountability Act .

BC Transportation Financing Authority Motor Fuel Tax Regulation

Section 1 of the BC Transportation Financing Authority Motor

Fuel Tax Regulation, B.C. Reg. 272/93, is amended by striking out "2¢"

and substituting "3¢" .

Section 1 is amended by striking out "3¢"

and substituting "3.25¢" .

Corporation Capital Tax Act

Section 1 (1) of the Corporation Capital Tax Act, R.S.B.C. 1996,

c. 73, is amended by repealing the definition of "threshold amount"

and substituting the following:

"threshold amount" for a taxation year of a financial corporation means the applicable amount indicated opposite the taxation year as follows:

Section 1.1 is amended by adding the following subsection:

(3) Despite subsection (2), the definition of "threshold amount" as re-enacted by the Budget Measures Implementation Act, 2003 applies to financial corporations with taxation years beginning before September 1,

Section 12 is repealed and the following substituted:

B.C. paid up capital

(1) At the end of a taxation year of a corporation,

other than an authorized foreign bank, to which

section 14 (2) does not apply,

there may be deducted from the net paid up capital of the corporation that portion

of the net paid up capital that is allocated to jurisdictions outside British

Columbia in accordance with prescribed rules.

(2) If a corporation is, at the end of an applicable taxation year, a nonresident corporation to which

section 14 (2) applies, there may be deducted from the net paid up capital employed in Canada of the corporation, at the end of that taxation year, that portion of the net paid up capital employed in Canada that is allocated to Canadian jurisdictions other than British Columbia in accordance with prescribed rules.

(3) At the end of a taxation year of an authorized foreign bank, there may be deducted from the net paid up capital of the corporation that portion of the net paid up capital that is allocated to Canadian jurisdictions other than British Columbia in accordance with prescribed rules.

Section 12 is repealed and the following substituted:

B.C. paid up capital

(1) At the end of a taxation year of a financial

corporation other than an authorized foreign bank, there may be deducted from

the net paid up capital of the corporation that portion of the net paid up capital

that is allocated to jurisdictions outside British Columbia in accordance with

prescribed rules.

(2) At the end of a taxation year of an authorized foreign bank, there may be deducted from the net paid up capital of the corporation that portion of the net paid up capital that is allocated to Canadian jurisdictions other than British Columbia in accordance with prescribed rules.

Corporation Capital Tax Regulation

Section 14 of the Corporation Capital Tax Regulation, B.C. Reg.

79/96, as it read on June 6, 2000, is amended

(

a) in subsection (1) by striking out "a bank's net paid up

capital" and substituting "the net paid up capital of a bank,

other than an authorized foreign bank," ,

(

b) by adding the following subsection:

(1.1) Despite

section 6, the amount of an authorized foreign bank's net paid up capital that is, in respect of a taxation year, allocated to Canadian jurisdictions other than British Columbia in which the bank has a permanent establishment is 1/3 of the aggregate of

(

a) that proportion of its net paid up capital for the taxation year that the aggregate of the salaries and wages paid in the year by the bank in respect of its Canadian banking business to employees of its permanent establishments in those jurisdictions is of the aggregate of all salaries and wages paid in the taxation year by the bank in respect of its Canadian banking business, and

(

b) twice that proportion of its net paid up capital for the taxation year that the aggregate amount of loans and deposits in respect of its Canadian banking business of its permanent establishments in those jurisdictions for the taxation year is of the aggregate of all loans and deposits of the bank in respect of its Canadian banking business for the taxation year. , and

(

c) in subsections (2) and (3) by striking out "subsection (1),"

and substituting "subsections (1) and (1.1)," .

Financial Administration Act

10 The Financial Administration Act, R.S.B.C. 1996, c. 138, is

amended by adding the following section:

Public-private partnership projects

4.2 The Treasury Board may, by directive, authorize

a minister responsible for a public-private partnership project to make a payment

from the consolidated revenue fund for fees, commissions or expenses relating

to the project.

Section 21 (2) is amended by striking out "14 (2)"

and substituting "4.2, 14 (2)" .

Greater Vancouver Transportation Authority Act

12 Sections 25 (8) and 26 (3) of the Greater Vancouver Transportation

Authority Act, S.B.C. 1998, c. 30, are repealed.

Hospital District Act

Section 26 of the Hospital District Act, R.S.B.C. 1996, c.

202, is amended by adding the following subsection:

(2.1) The requirement under subsection (2) that rates

be uniform for each class of property is not contravened solely because the

Surveyor of Taxes has added an aggregate fee, as defined in

section 21.1 of

the Taxation (Rural Area) Act , to the amounts to be levied as taxes under

section 25 of this Act.

Insurance Premium Tax Act

Section 1 of the Insurance Premium Tax Act, R.S.B.C. 1996,

c. 232, is amended

(

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

"property insurance" means insurance against the

loss of or damage to property but does not include aircraft insurance, automobile

insurance and hail insurance; ,

(

b) in subsection (1) in paragraph (

a) of the definition of "taxable

insurer" by adding "or is required to have" after "has" ,

and

(

c) in subsection (2) by adding ' "aircraft insurance",

"automobile insurance", "hail insurance",' after ' "accident and sickness

insurance",' .

Section 3 is amended

(

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

(

b) by adding the following paragraph:

(a.1) 4.4% of the taxable insurer's net taxable premiums

for the year received or receivable under contracts of property insurance and

automobile insurance, and , and

(

c) in paragraph (

b) by adding "or (a.1)" after "paragraph

(a)" .

Islands Trust Act

Section 48 (1) of the Islands Trust Act, R.S.B.C. 1996, c.

239, is amended by striking out ", together with any additional sum

that minister may direct to cover the costs and outlays of assessment and collection," .

Local Government Act

Section 339 (1) (

p) of the Local Government Act, R.S.B.C. 1996,

c. 323, is repealed and the following substituted:

(

p) sewage treatment plants, manure storage facilities,

effluent reservoirs, effluent lagoons, deodorizing equipment, dust and particulate

matter eliminating equipment; .

Section 756 (9) (

c) is amended by repealing subparagraphs (

i) and (iii) and by adding "and" at the end of subparagraph

(ii).

Section 806.1 (3) is repealed.

Local Services Act

Section 8 (1) of the Local Services Act, R.S.B.C. 1996, c.

276, is amended by striking out everything after "in that local area" .

Motor Fuel Tax Act

Section 4 (1) of the Motor Fuel Tax Act, R.S.B.C. 1996, c.

317, is amended

(

a) in paragraph (

a) by striking out "6.50¢" and

substituting "7.75¢" , and

(

b) in paragraph (

b) by striking out "12.5¢" and

substituting "13.75¢" .

Section 4.1, as enacted by

section 39 of the Taxation Statutes

Amendment Act, 1999, S.B.C. 1999, c. 47, is amended by striking out ",

13 and 13.1," and substituting "and 13," .

Section 10 (1) is amended

(

a) in paragraph (

a) by striking out "7.0¢" and substituting

"8.25¢" , and

(

b) in paragraph (

b) by striking out "13¢" and substituting

"14.25¢" .

Section 13 (1) and (2) is amended by striking out "3.25¢"

and substituting "6.75¢" .

Section 13.1 is repealed.

Section 22 (2) is amended by striking out "section

12.1, 13 or 13.1" in both places and substituting "section 12.1

or 13" .

Section 71 (2) is amended by adding the following paragraph:

(o.4) prescribing the circumstances in which a fuel or

class of fuel is exempt from tax; .

Property Transfer Tax Act

Section 1 (1) of the Property Transfer Tax Act, R.S.B.C. 1996,

c. 378, is amended by adding the following definition:

"related person" means a person who is

(

a) a related individual, or

(

b) a related person within the meaning of

section 251

of the Income Tax Act (Canada); .

Section 1.2 (1) is amended by repealing the definition of "related

person" .

Section 4 is amended

(

a) by repealing paragraph (

b) of the definition of "eligible

security" and substituting the following:

(

b) is between the transferee and a person that is not

(

i) a corporation, other than a public company as defined

section 1 of the Business Corporations Act , S.B.C. 2002, c. 57, of

which the transferee is a shareholder or of which one or more individuals who

are related persons in relation to the transferee are shareholders,

(ii) a trustee on behalf of a trust of which the transferee is a beneficiary or of which one or more individuals who are related persons in relation to the transferee are beneficiaries, or

(iii) a related person in relation to the transferee,

and ,

(

b) by repealing the definition of "first time home buyer"

and substituting the following:

"first time home buyer" means an individual who,

(

a) on the registration date, is

(

i) a Canadian citizen, or

(ii) a permanent resident as defined in the Immigration and Refugee Protection Act (Canada),

(

b) either

(

i) continuously maintained the individual's principal residence in British Columbia throughout a period of not less than one year immediately before the registration date, or

(ii) was subject to tax under

section 2 (1) (

a) of the Income Tax Act (British Columbia) and has filed a return under

section 29 (1) of that Act in at least 2 of the 6 taxation years immediately preceding the registration date,

(

c) has not previously held a registered interest in land, whether in British Columbia or elsewhere, that constituted the individual's principal residence, and

(

d) has not previously obtained a first time home buyers'

exemption or refund; ,

(

c) in the definition of "qualifying property" by striking

out "exceed the qualifying value of that property;" and substituting

"exceed the sum of the qualifying value of that property and $25 000;" ,

and

(

d) by repealing paragraph (

a) of the definition of "qualifying

value" and substituting the following:

(a) $275 000 if the property is located in the Greater

Vancouver Regional District, the Fraser Valley Regional District or the Capital

Regional District, or .

Section 5 is amended

(

a) in subsection (1) by striking out "Subject to sections 6

to 12," and substituting "Subject to subsection (1.1) and sections

6 to 11," , and

(

b) by adding the following subsection:

(1.1) If the fair market value of a qualifying property exceeds the qualifying value of the property, the exemption under subsection (1) is the amount calculated as follows:

PTT x

QV + 25 000 – FMV

25 000

where

FMV is the fair market value of the qualifying property,

PTT is the amount of tax that would be payable on the taxable transaction under

section 2 (1) (

a) but for the exemption under subsection (1), and

QV is the qualifying value of the qualifying property.

Section 6 is amended

(

a) in subsections (1) and (2) by striking out "If" and

substituting "Subject to subsection (3), if" , and

(

b) by adding the following subsection:

(3) If the fair market value of a qualifying property exceeds the qualifying value of the property, the exemption under subsection (1) or (2) is the amount calculated as follows:

E x

QV + 25 000 – FMV

25 000

where

E is the amount of the applicable exemption under subsection (1) or (2),

FMV is the fair market value of the qualifying property, and

QV is the qualifying value of the qualifying property.

Section 7 is amended

(

a) in subsection (1) by striking out "A transferee entitled

to an exemption in respect of an eligible transaction under

section 5 or 6"

and substituting "A transferee who is entitled to an exemption under

section 5 or 6 in respect of an eligible transaction" ,

(

b) by adding the following subsections:

(1.1) If a transferee is not entitled on the registration date to an exemption under

section 5 or 6 in respect of an eligible transaction only because the transferee does not meet a requirement under paragraph (

a) of the definition of "first time home buyer" on that date, the transferee may apply to the administrator for a refund of the tax paid by the transferee if

(

a) the transferee meets a requirement under paragraph (

a) of that definition on or before the first anniversary of the registration date, and

(

b) the application for the refund is made within 18 months after the registration date.

(2.1) On receiving an application under subsection (1.1), the administrator

(

a) if satisfied that the transferee

(

i) would have qualified for an exemption under

section 5 or 6 on the registration date but for the transferee's failure to meet a requirement under paragraph (

a) of the definition of "first time home buyer" on that date, and

(ii) met a requirement under paragraph (

a) of that definition on or before the first anniversary of the registration date,

must pay out of the consolidated revenue fund a refund of the portion of tax paid by the transferee that would have been exempted under

section 5 or 6 had the requirement been met on the registration date, and

(

b) if not satisfied that the transferee met a requirement

under paragraph (

a) of the definition of "first time home buyer" on or before

the first anniversary of the registration date, must refuse the application

and provide the transferee with written notice under subsection (3) of the refusal.

, and

(

c) in subsection (3) by striking out "subsection (1)"

and substituting "subsection (1) or (1.1)" .

Section 8 is amended

(

a) by repealing subsection (2) and substituting the following:

(2) For the purposes of subsection (1) (a), a transferee establishes a qualifying residence on a property if, on the registration date,

(

a) the property contains a residential improvement that the transferee inhabits as the transferee's principal residence

(

i) beginning on a date that is not more than 92 days after the registration date, and

(ii) continuing to a date that is not earlier than the first anniversary of the registration date, or

(

b) the property does not contain a residential improvement but, before the first anniversary of the registration date, there is established on the property a residential improvement

(

i) that the transferee inhabits as the transferee's principal residence

(

A) beginning at the time it is completed, and

(

B) continuing to a date that is not earlier than the first anniversary of the registration date, and

(ii) if the total costs incurred to establish the improvement,

when added to the fair market value of the property at the registration date,

do not exceed the sum of the qualifying value of the property and $25 000.

, and

(

b) in subsection (3) by repealing paragraph (

a) and substituting the following:

(

a) is between the transferee and a person that is not

(

i) a corporation, other than a public company as defined

section 1 of the Business Corporations Act , S.B.C. 2002, c. 57, of

which the transferee is a shareholder or of which one or more individuals who

are related persons in relations to the transferee are shareholders,

(ii) a trustee on behalf of a trust of which the transferee is a beneficiary or of which one or more individuals who are related persons in relation to the transferee are beneficiaries, or

(iii) a related person in relation to the transferee,

Section 9 is amended

(

a) by repealing subsection (1) (

c) and substituting the following:

(

c) subject to subsection (1.1), fails, refuses or ceases

to comply with the obligations under

section 8. ,

(

b) in subsection (2) by striking out "as a tax liability the

amount of tax" and substituting "tax in the same amount" ,

and

(

c) by adding the following subsections:

(1.1) If a transferee does not meet the obligations under

section 8 only because the transferee, before the first anniversary of the registration date,

(

a) fails to establish a qualifying residence as required under

section 8 (2) (a) (ii) or (2) (b) (i) (

B) as applicable, or

(

b) reduces by more than is permitted under

section 8 (1) (

c) the indebtedness secured by eligible securities registered against the property,

the transferee is liable under subsection (2.1) from the date that the earlier of the events referred to in paragraph (

a) or (

b) occurs.

(2.1) A transferee referred to in subsection (1.1) must pay to the administrator tax in the amount calculated in accordance with whichever of the following applies:

(

a) if the period between the registration date and the date from which the transferee is liable under subsection (1.1) is greater than or equal to 360 days, the transferee is liable for the amount that would apply under subsection (2) reduced by 100%;

(

b) if the period between the registration date and the

date from which the transferee is liable under subsection (1.1) is less than

360 days, the transferee is liable for the amount that would apply under subsection

(2) multiplied by

1 – (n/365)

where

n is the number of days between the registration date and the date from which the transferee is liable under subsection (1.1).

Section 10 is amended by striking out "Section 9

(1) and (2) does not apply" and substituting "Section 9 (1) to

(2.1) does not apply" .

Section 12 is repealed and the following substituted:

False declaration

12 If the administrator determines that a transferee

who applies for an exemption under

section 5 or 6 or for a refund under

section

(

a) is not qualified under

section 5 to receive exemption from tax under

section 2 (1) (

a) or under

section 7 for a refund, and

(

b) provided a declaration under

section 5 (2) or an application under

section 7 that is false or misleading in respect of the matters referred to in paragraph (

c) or (

d) of the definition of "first time home buyer",

the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator under

section 2 (1) (

a) or 9, as applicable, a penalty in an amount equal to the amount of the exemption or refund claimed.

Section 14 is amended in the definition of "related

individual" by striking out "a citizen or a permanent resident

of Canada;" and substituting "a Canadian citizen or a permanent

resident as defined in the Immigration and Refugee Protection Act (Canada);" .

Purchasing Commission Act

Section 21 of the Purchasing Commission Act, R.S.B.C. 1996,

c. 392, is repealed.

Social Service Tax Act

40 The definition of "mineral" in

section 1 of the

Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended by striking out "but

does not include petroleum, natural gas, building and construction stone, marble,

shale, clay, sand, gravel," and substituting "building and construction

stone, marble, shale, clay, sand and gravel, but does not include petroleum,

natural gas," .

Section 73 (1) (

a) is repealed and the following substituted:

(

a) grain, mill and other agricultural feeds and seeds, except if used to feed

(

i) a bird, a product of which does not ordinarily constitute food for human consumption, or

(ii) a household pet; .

Section 115 is amended

(

a) in subsection (5) (

a) by striking out "the amount of tax"

and substituting "an amount equal to the amount of tax" ,

(

b) by adding the following subsections:

(5.1) In prescribed circumstances, the commissioner must impose a penalty against a person who has certified incorrect information in a certification required under the regulations in relation to an exemption claimed by another person under

section 76 (1) (k), consisting of both

(

a) an amount equal to the amount of tax that was not paid in reliance on the certification, and

(

b) interest calculated at the rate and in the manner prescribed.

(5.2) If the commissioner has imposed a penalty under

subsection (5.1), the commissioner may not make an assessment under subsection

(1) against the person who claimed the exemption in reliance on the certification

provided by the person against whom the penalty under subsection (5.1) was imposed.

, and

(

c) by repealing subsection (6) and substituting the following:

(6) The commissioner,

(

a) if imposing a penalty under subsection (5), must not consider a period greater than 3 years, and

(

b) if imposing a penalty under subsection (5.1), must not consider a period greater than 6 years.

Section 138 (1) (

q) is amended

(

a) by striking out "and" at the end of subparagraph

(vi),

(

b) in subparagraph (vii) by striking out "equipment;"

and substituting "equipment, and" , and

(

c) by adding the following subparagraph:

(viii) prescribing the circumstances in which the commissioner

must impose a penalty under

section 115 (5.1); .

Taxation (Rural Area) Act

Section 1 of the Taxation (Rural Area) Act, R.S.B.C. 1996,

c. 448, is amended by repealing the definition of "minister" .

Section 15 (1) (

r) is repealed and the following substituted:

(

r) sewage treatment plants, manure storage facilities,

effluent reservoirs, effluent lagoons, deodorizing equipment, dust and particulate

matter eliminating equipment; .

46 The following

section is added:

Property tax collection fee

21.1

(1) In this section, "aggregate fee"

means an amount the minister considers sufficient to cover

(

a) the costs and outlays of the assessment and collection of the taxes to be collected in accordance with this Act under the authority of the Acts specified under subsection (2),

(

b) interest on any money paid in advance of collection of those taxes, and

(

c) losses through failure of collection of those taxes.

(2) The Surveyor of Taxes may add an aggregate fee to the amount to be collected under this Act, levied under any of the following:

(

a) section 15 of the British Columbia Transit Act ;

(

b) section 25 of the Greater Vancouver Transportation

Authority Act ;

(

c) section 25 of the Hospital District Act ;

(

d) section 48 of the Islands Trust Act ;

(

e) section 756 or 806.1 of the Local Government Act ;

(

f) section 8 of the Local Services Act ;

(

g) section 15 or 17 of the Municipal Finance Authority

Act ;

(

h) section 4 of the University Endowment Land Act ;

(

i) a prescribed enactment.

(3) The Surveyor of Taxes may impose the amounts to be collected in accordance with this Act under an enactment specified in subsection (2) at rates that combine the rate or amount authorized under the enactment and the aggregate fee.

(4) Subject to subsection (5), the amount of an aggregate fee added under subsection (2) is deemed to be taxes for the purposes of this Act and the provisions of this Act respecting assessment, levy, collection and recovery of taxes and the addition of penalty and interest on unpaid taxes apply in respect of the aggregate fee.

(5) Despite any provision of an enactment referred to in subsection (2), aggregate fees under this

section must be deducted from the amounts collected as taxes and retained to cover

(

a) the costs and outlays of assessment and collection of taxes in rural areas,

(

b) interest on any money paid in advance of collection of those taxes, and

(

c) losses through failure of collection of those taxes.

Tobacco Tax Act

Section 2 (2) and (3) of the Tobacco Tax Act, R.S.B.C. 1996,

c. 452, is amended by striking out "15¢" and substituting

"16¢" .

University Act

Section 54 (1) of the University Act , R.S.B.C. 1996,

c. 468, is amended by adding "and held or used for university purposes"

after "property vested in a university" .

Section 71 is repealed and the following substituted:

Power to make regulations

(1) The Lieutenant Governor in Council may

make regulations referred to in

section 41 of the

Interpretation Act .

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations

(

a) defining any expression used but not defined in this Act,

(

b) for the purposes of

section 27.1 (1) (b), and

(

c) prescribing conditions or limitations for the purpose of

section 54.

University Endowment Land Act

Section 4 (3) of the University Endowment Land Act, R.S.B.C.

1996, c. 469, is repealed.

Vancouver Charter

Section 396 (1) (

e) of the Vancouver Charter, S.B.C. 1953,

c. 55, is repealed and the following substituted:

(

e) Sewage treatment plants, manure storage facilities,

effluent reservoirs, effluent lagoons, deodorizing equipment, dust and particulate

matter eliminating equipment: .

Transitional Provisions

Transitional – revised ministerial accountability rules

in relation to anticipated federal healthcare funding

(1) The Minister of Health Services and the

Minister of Health Planning

(

a) may, at the time that the main estimates for the

fiscal year 2003-2004 are presented, make public the service plans for their

ministries under

section 13 [service plans] of the Budget Transparency

and Accountability Act for that fiscal year that are interim plans until

the preparation of final plans reflecting anticipated new federal funding for

healthcare arising from the First Ministers' Accord on Health Care Renewal reached

on February 5, 2003,

(

b) must include in the service plans under paragraph (

a) ministerial accountability statements under

section 13 (4) (

e) of the Budget Transparency and Accountability Act that reflect the interim nature of the service plans, and

(

c) must, at the same time as the Minister of Finance presents supplementary estimates to the Legislative Assembly reflecting the new federal funding for healthcare, make public final service plans for the fiscal year, including final ministerial accountability statements.

(2) For the purposes of sections 5 (1) and 6 (1) of the Balanced Budget and Ministerial Accountability Act as they apply to the ministers referred to in subsection (1) of this

section for the 2003-2004 fiscal year, the estimated amount under

section 6 (1) of that Act for each minister is the sum of the amounts appropriated for the operating expenses for which the minister is responsible

(

a) in the main estimates for that fiscal year,

(

b) in the supplementary estimates referred to in subsection (1) (

c) of this section, and

(

c) any other supplementary estimates reflecting the new federal funding for healthcare arising from the First Ministers' Accord on Health Care Renewal.

(3) In relation to the Minister of State for Mental Health and the Minister of State for Intermediate, Long Term and Home Care,

(

a) the interim service plans under subsection (1) (

a) must include ministerial accountability statements under

section 13 (4) (

f) of the Budget Transparency and Accountability Act that reflect the interim nature of the service plans, and

(

b) the final service plans under subsection (1) (

c) must include final ministerial accountability statements for the purposes of

section 5 (3) of the Balanced Budget and Ministerial Accountability Act .

(4) For the purposes of sections 5 (3) and 6 (1) of the

Balanced Budget and Ministerial Accountability Act as they apply

to the ministers referred to in subsection (3) of this section, the Treasury

Board regulation under

section 5 (3) [expected results] of that Act is

not required until the final service plans under subsection (1) (

c) of this

section are made public.

Transitional – application of Regulations Act

53 The Regulations Act does not apply to

(

a) the amendments to the BC Transportation Financing Authority Motor Fuel Tax Regulation, B.C. Reg. 272/93, enacted by sections 3 and 4, or

(

b) the amendments to the Corporation Capital Tax Regulation, B.C. Reg. 79/96, enacted by

section 9.

Transitional – Build BC Act

54 Regulations made under

section 19 of the Build

BC Act may be made retroactive to March 1, 2003 if made before August

1, 2003 and if made retroactively are deemed to have come into force on the

date specified in the regulation.

Transitional – Motor Fuel Tax Act

55 Regulations made under the Motor Fuel Tax

Act may be made retroactive to February 19, 2003, if

(

a) authorized by

section 71 (1) or (2) (i), (o.3) or

(o.4) of the Motor Fuel Tax Act , and

(

b) made before August 1, 2003,

and if made retroactive are deemed to have come into force on the date specified in the regulations.

Transitional – Motor Fuel Tax Act

56 Regulations made under the Motor Fuel Tax

Act may be made retroactive to a date on or after February 19, 1997, if

(

a) authorized by

section 71 (1) or (2) (

g) or (

r) of

the Motor Fuel Tax Act , and

(

b) made before August 1, 2003,

and if made retroactive are deemed to have come into force on the dates specified in the regulations.

Transitional – Property Transfer Tax Act

(1) The following provisions of the Property

Transfer Tax Act , as amended or enacted by this Act, apply only in relation

to registrations of taxable transactions that occur on or after February 19,

2003:

(

a) paragraph (

b) of the definition of "eligible security"

and the

definitions of "first time home buyer", "qualifying value" and "qualifying

property" in

section 4;

(b)

section 5 (1) and (1.1);

(c)

section 6 (1), (2) and (3);

(d)

section 7 (1.1), (2.1) and (3).

(2) The amendments by this Act to

section 9 of the Property

Transfer Tax Act , except the amendment to

section 9 (2) of that Act, apply

only in relation to transferees for whom the earlier of an event referred to

section 9 (1.1) of that Act occurs on or after February 19, 2003.

(3) The

definitions referred to in subsection (1) (

a) of this

section and sections 5, 6 and 7 of the Property Transfer Tax Act ,

except

section 7 (1) of that Act, continue to apply as they read immediately

before their amendment by this Act in relation to the registrations of taxable

transactions that occur before February 19, 2003.

(4) The re-enactment by this Act of

section 8 (3) (

a) of the Property Transfer Tax Act applies only in relation to replacement securities registered on or after February 19, 2003.

(5) Section 9, of the Property Transfer Tax Act ,

except the amendment by this Act to

section 9 (2) of that Act, continues to

apply as it read immediately before its amendment by this Act in relation to

transferees for whom an event referred to in

section 9 (1.1) of that Act occurs

before February 19, 2003.

Transitional – University Act

58 Regulations that may be made under the University

Act as a result of the enactment of

section 49 of this Act may, if made

before December 31, 2003, be made retroactive to December 31, 2002, and a regulation

made retroactive is deemed to have come into force on December 31, 2002.

Validation of interest calculation and authority for retroactive regulations

(1) In this section, "tax Acts" means

the

(

a) Corporation Capital Tax Act ,

(

b) Hotel Room Tax Act ,

(

c) Insurance Premium Tax Act ,

(

d) Logging Tax Act ,

(

e) Motor Fuel Tax Act ,

(

f) Social Service Tax Act ,

(

g) Taxation (Rural Area) Act , and

(

h) Tobacco Tax Act .

(2) Whether or not the manner in which interest was calculated was otherwise authorized, interest calculated and charged before February 19, 2003 on amounts due to the government under the tax Acts is conclusively deemed

(

a) to be owing to the government, and

(

b) if paid to and accepted by the government, to have been validly collected by the government.

(3) Regulations under the tax Acts that prescribe the manner in which interest is calculated are retroactive to the extent necessary to permit the calculation and charging of interest after February 18, 2003 in circumstances where the interest is in relation to a liability under a tax Act that arose prior to that date.

(4) This

section is retroactive to the extent necessary to give full force and effect to its provisions and must not be construed as lacking retroactive effect in relation to any matter because it makes no specific reference to that matter.

Commencement

(1) Section 3 is deemed to have come into force

on June 1, 1999 and is retroactive to the extent necessary to give it effect

on and after that date as though made effective on that date by regulation under

the Build BC Act , and must not be construed as lacking retroactive

effect in relation to any matter because it makes no specific reference to that

matter.

(2) Section 4 is deemed to have come into force on April

1, 2000 and is retroactive to the extent necessary to give it effect on and

after that date as though made effective on that date by regulation under the

Build BC Act , and must not be construed as lacking retroactive

effect in relation to any matter because it makes no specific reference to that

matter.

(3) Section 7 is deemed to have come into force on June 6, 2000 and is retroactive to the extent necessary to give it effect on and after that date.

(4) Section 8 is deemed to have come into force on September 1, 2002 and is retroactive to the extent necessary to give it effect on and after that date.

(5) Section 9 is deemed to have come into force on June

6, 2000 and is retroactive to the extent necessary to give it effect on and

after that date as though made effective on that date by regulation under the

Corporation Capital Tax Act .

(6) Sections 12, 13, 16, 18 to 20, 44 and 50, and

section

46 except as it enacts

section 21.1 (2) (a), (

c) and (

g) of the Taxation

(Rural Area) Act , are deemed to have come into force on January 1, 2003

and are retroactive to the extent necessary to give them effect on and after

that date.

(7) Sections 14 (

a) and (

c) and 15 come into force on January 1, 2004.

(8) Sections 14 (b), 27 to 38, 40 to 43, 47, 53, 57 and 59 (3) are deemed to have come into force on February 19, 2003 and are retroactive to the extent necessary to give them effect on and after that date.

(9) Sections 17, 45 and 51 come into force on December 31, 2003 for the purposes of the 2004 and subsequent taxation years.

(10) Sections 21 to 23, 25 and 26 come into force on April 1, 2003.

(11) Section 24 is deemed to have come into force on March 1, 2003 and is retroactive to the extent necessary to give it effect on and after that date, and must not be construed as lacking retroactive effect in relation to any matter because it makes no specific reference to that matter.

(12) Section 46 as it enacts

section 21.1 (2) (a), (

c) and (

g) of the Taxation (Rural Area) Act comes into force by regulation of the Lieutenant Governor in Council.

(13) Section 48 is deemed to have come into force on December 31, 2002, and is retroactive to the extent necessary to give it effect for the 2003 and following taxation years.

(14) Section 52 is deemed to have come into force on February 18, 2003.

Explanatory Notes

Balanced Budget and Ministerial Accountability Act

SECTION 1: [Balanced Budget and Ministerial Accountability Act, amends

section 5 (3)] clarifies the relationship between the reporting

obligations of Ministers of State and when they are entitled to the amount held

back under this section.

SECTION 2: [Balanced Budget and Ministerial Accountability Act, re-enacts

section 6] provides flexibility respecting when Ministers of State must

make their annual reports.

BC Transportation Financing Authority Motor Fuel Tax Regulation

SECTION 3: [BC Transportation Financing Authority Motor Fuel Tax Regulation,

amends

section 1] increases by 1¢ per litre the amount of tax to

be collected within the area prescribed under the Build BC Act .

SECTION 4: [BC Transportation Financing Authority Motor Fuel Tax Regulation,

amends

section 1] increases by .25¢ per litre the amount of tax

to be collected within the area prescribed under the Build BC Act .

Corporation Capital Tax Act

SECTION 5: [Corporation Capital Tax Act, amends

section 1 (1)]

increases the threshold amount for financial corporations to $10 million for

taxation years ending after March 31, 2003.

SECTION 6: [Corporation Capital Tax Act, adds

section 1.1 (3)]

clarifies that the definition of "threshold amount", as re-enacted by this Bill,

applies to financial corporations with taxation years that begin prior to September

1, 2002.

SECTION 7: [Corporation Capital Tax Act, re-enacts

section 12]

provides for the calculation of B.C. paid up capital for an authorized foreign

bank.

SECTION 8: [Corporation Capital Tax Act, re-enacts

section 12]

changes the provision so that it refers only to financial corporations that

are taxed under the Act and provides for the calculation of B.C. paid up capital

for an authorized foreign bank.

Corporation Capital Tax Regulation

SECTION 9: [Corporation Capital Tax Regulation, amends

section 14]

provides for the allocation of the net paid up capital of authorized foreign

banks to Canadian jurisdictions other than British Columbia.

Financial Administration Act

SECTION 10: [Financial Administration Act, enacts

section 4.2]

provides Treasury Board with the power to authorize payments from the consolidated

revenue fund for public-private partnership projects.

SECTION 11: [Financial Administration Act, amends

section 21 (2)]

is consequential to the enactment of

section 4.2 of the Act by this Bill.

Greater Vancouver Transportation Authority Act

SECTION 12: [Greater Vancouver Transportation Authority Act, repeals

sections 25 (8) and 26 (3)] removes provisions made redundant by the

addition of

section 21.1 to the Taxation (Rural Area) Act by this Bill.

Hospital District Act

SECTION 13: [Hospital District Act, adds

section 26 (2.1)] is

consequential to authorizing the addition of an aggregate fee under the Taxation

(Rural Area) Act .

Insurance Premium Tax Act

SECTION 14: [Insurance Premium Tax Act, amends

section 1]

adds a definition;

includes in the definition of "taxable insurer" an insurer that is required

to have a business authorization under the Financial Institutions Act ;

incorporates terms defined in the Insurance Classes Regulation under the

Insurance Act .

SECTION 15: [Insurance Premium Tax Act, amends

section 3] increases

the tax payable in respect of property insurance and automobile insurance by

.4%.

Islands Trust Act

SECTION 16: [Islands Trust Act, amends

section 48 (1)] removes

a reference made redundant by the addition of

section 21.1 to the Taxation

(Rural Area) Act by this Bill.

Local Government Act

SECTION 17: [Local Government Act, repeals and replaces

section 339 (1)

(p)] clarifies that the exemption in relation to dust and particulate

matter is for equipment that eliminates these things.

SECTIONS 18 AND 19: [Local Government Act, amends

section 756 and 806.1]

remove references made redundant by the addition of

section 21.1 to the Taxation

(Rural Area) Act by this Bill.

Local Services Act

SECTION 20: [Local Services Act, amends

section 8 (1)] removes

a reference made redundant by the addition of

section 21.1 to the Taxation

(Rural Area) Act by this Bill.

Motor Fuel Tax Act

SECTION 21: [Motor Fuel Tax Act, amends

section 4 (1)] increases

by 1.25¢ per litre the tax payable on purchased gasoline.

SECTION 22: [Motor Fuel Tax Act, amends

section 4.1] amends

a not in force provision as a consequence of the repeal of

section 13.1 of the

Act by this Bill.

SECTION 23: [Motor Fuel Tax Act, amends

section 10 (1)] increases

by 1.25¢ per litre the tax payable on purchased motive fuel.

SECTION 24: [Motor Fuel Tax Act, amends

section 13 (1) and (2)]

increases by 3.5¢ per litre the maximum tax that may be prescribed to raise

revenue for the purposes of the BC Transportation Financing Authority.

SECTION 25: [Motor Fuel Tax Act, repeals

section 13.1] removes

the tax, for the raising of revenue for the purposes of the British Columbia

Ferry Corporation, on purchased gasoline or motive fuel.

SECTION 26: [Motor Fuel Tax Act, amends

section 22 (2)] is consequential

to the repeal of

section 13.1 of the Act by this Bill.

SECTION 27: [Motor Fuel Tax Act, adds

section 71 (2) (o.4)] provides

for tax exemptions for fuel in prescribed circumstances.

Property Transfer Tax Act

SECTION 28: [Property Transfer Tax Act, amends

section 1 (1)]

moves the definition of "related person" from

section 1.2 to

section 1 so that

it applies throughout the Act rather than just for the purposes of

section 1.2.

SECTION 29: [Property Transfer Tax Act, amends

section 1.2 (1)]

repeals the definition of "related person".

SECTION 30: [Property Transfer Tax Act, amends

section 4]

amends the definition of "eligible security" to exclude mortgages and agreements

for sale from corporations and trusts that are not arms-length in relation

to the transferee;

repeals and replaces the definition of "first time home buyer" to clarify

the status an individual must have in Canada to be eligible, to make eligible

individuals who have filed income tax returns as residents of British Columbia

for 2 out of the 6 taxation years previous to registration of a transfer,

and to clarify that an individual must not have previously received a first

time home buyers' exemption to qualify as a first time home buyer;

amends the definition of "qualifying property" to include properties that

exceed the qualifying value by up to $25 000 for the purpose of allowing a

prorated first time home buyers' exemption on transfers of qualifying property

with a value within the additional $25 000 range;

amends the definition of "qualifying value" to correct the names of regional

districts that have been amalgamated.

SECTION 31: [Property Transfer Tax Act, amends

section 5]

amends subsection (1) to include reference to the prorated calculation

of a first time home buyers' exemption added by subsection (1.1) and to delete

an unnecessary reference to

section 12;

adds subsection (1.1) to provide for calculating the first time home buyers'

exemption for transfers that exceed the qualifying value by up to $25 000.

SECTION 32: [Property Transfer Tax Act, amends

section 6)]

amends subsections (1) and (2) to include reference to the prorated calculation

of a first time home buyers' exemption added by subsection (3);

adds subsection (3) to provide for calculating the first time home buyers'

exemption for transfers that exceed the qualifying value by up to $25 000.

SECTION 33: [Property Transfer Tax Act, amends

section 7]

makes a housekeeping amendment to subsection (1);

adds subsections (1.1) and (2.1) to allow refunds of property transfer

tax to individuals who did not have the required status in Canada when a qualifying

property was transferred but did meet the requirement within 12 months of

the transfer;

consequentially amends subsection (3).

SECTION 34: [Property Transfer Tax Act, amends

section 8]

repeals and replaces subsection (2) to clarify the obligations that must

be met to establish a qualifying residence, including a requirement to inhabit,

a requirement to continue to inhabit until the first anniversary of the registration

date and, if there is no residential improvement on the property on the registration

date, that one be established within the qualifying value plus $25 000 before

the first anniversary of the registration date;

amends subsection (3) as a consequence of the amendment to the definition

of "eligible security" in

section 4 of the Act by this Bill.

SECTION 35: [Property Transfer Tax Act, amends

section 9] establishes

formulas to calculate a prorated reduction in tax liability for persons who

fail to inhabit for the period required under

section 8 of the Act or who reduce

eligible financing below a certain amount before the first anniversary of the

registration date.

SECTION 36: [Property Transfer Tax Act, amends

section 10] excludes

the application of the new subsections of

section 9 of the Act in the circumstances

to which

section 10 applies.

SECTION 37: [Property Transfer Tax Act, re-enacts

section 12]

clarifies that the provision applies whether or not the person obtained an exemption

on the basis of the false or misleading declaration or application.

SECTION 38: [Property Transfer Tax Act, amends

section 14] amends

the definition of "related individual" as a consequence of the amendment to

the definition of "first time home buyer" in

section 4 of the Act by this Bill.

Purchasing Commission Act

SECTION 39: [Purchasing Commission Act, repeals

section 21]

repeals the special account known as the working capital account.

Social Service Tax Act

SECTION 40: [Social Service Tax Act, amends

section 1] amends

the definition of "mineral" to include substances previously excluded from the

definition.

SECTION 41: [Social Service Tax Act, repeals and replaces

section 73

(1) (a)] excludes from the tax exemption provided by the

section agricultural

feeds and seeds used to feed household pets or to feed birds, if the products

of the birds are not ordinarily used as food for human consumption.

SECTION 42: [Social Service Tax Act, amends

section 115]

clarifies that imposing the penalty does not impose the tax but requires

payment of an amount equal to the amount of that tax;

adds a requirement that the commissioner impose a penalty, in prescribed

circumstances, against a person who certifies false information in a certification

required for an exemption from tax, and limits the penalty period to 6 years;

prohibits the commissioner from assessing tax against a person who relied

on a certificate that contained false information to obtain a tax exemption

if the commissioner has imposed a penalty on the person who made the false

certification.

SECTION 43: [Social Service Tax Act, amends

section 138 (1) (q)]

adds a power to make regulations prescribing the circumstances in which the

commissioner must impose a penalty under

section 115 (5.1).

Taxation (Rural Area) Act

SECTION 44: [Taxation (Rural Area) Act, amends

section 1] repeals

the definition of "minister" so that the definition in the

Interpretation

Act applies.

SECTION 45: [Taxation (Rural Area) Act, repeals and replaces

section

15 (1) (r)] clarifies that the exemption in relation to dust and particulate

matter is for equipment that eliminates these things.

SECTION 46: [Taxation (Rural Area) Act, enacts

section 21.1]

authorizes the Surveyor of Taxes to add an amount to the amount of taxes

that are to be collected in accordance with the Act under the authority of another

enactment to cover the costs and outlays of assessment and collection of the

taxes.

Tobacco Tax Act

SECTION 47: [Tobacco Tax Act, amends

section 2 (2) and (3)] increases

from 15¢ to 16¢ the tax on cigarettes and on grams of loose tobacco.

University Act

SECTION 48: [University Act, amends

section 54 (1)] confirms

that the exemption from taxation for property vested in a university applies

only to property held or used for university purposes.

SECTION 49: [University Act, re-enacts

section 71] adds regulation-making

powers relating to the amendment to

section 54 of the Act by this Bill.

University Endowment Land Act

SECTION 50: [University Endowment Land Act, repeals

section 4 (3)]

removes a reference made redundant by the addition of

section 21.1 to the Taxation

(Rural Area) Act by this Bill.

Vancouver Charter

SECTION 51: [Vancouver Charter, repeals and replaces

section 396 (1)

(e)] clarifies that the exemption in relation to dust and particulate

matter is for equipment that eliminates these things.

SECTION 52: [Transitional – revised ministerial accountability rules

in relation to anticipated federal healthcare funding] provides mechanisms

for incorporating information respecting anticipated federal healthcare funding

into the accountability framework of the Balanced Budget and Ministerial

Accountability Act .

SECTION 53: [Transitional – application of Regulations Act] provides

that the Regulations Act does not apply to the amendments made to the

BC Transportation Financing Authority Motor Fuel Tax Regulation and the Corporation

Capital Tax Regulation by this Bill.

SECTION 54: [Transitional – Build BC Act] enables regulations

increasing the amount of tax to be collected within the area prescribed under

the Build BC Act to be made retroactive to March 1, 2003.

SECTION 55: [Transitional – Motor Fuel Tax Act] enables certain

types of regulations made under the Motor Fuel Tax Act to be made retroactive

to February 19, 2003.

SECTION 56: [Transitional – Motor Fuel Tax Act] enables certain

types of regulations made under the Motor Fuel Tax Act to be made retroactively

to February 19, 1997 or any later date, if made before August 1, 2003.

SECTION 57: [Transitional – Property Transfer Tax Act] establishes

rules for the transition to the amendments made by this Bill.

SECTION 58: [Transitional – University Act] enables certain

types of regulations made under the University Act to be made retroactive

to December 31, 2002, if made before December 31, 2003.

SECTION 59: [Validation of interest calculation and authority for retroactive

regulations] validates interest calculations and provides for retroactive

regulations respecting the manner in which interest is calculated under 8 tax

statutes.

Copyright (c) 2003: Queen's Printer, Victoria, British Columbia, Canada