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1998/99 Legislative Session: 3rd Session, 36th Parliament

THIRD READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

Certified correct as passed Third Reading on the 14th day of July, 1999

Ian D. Izard, Law Clerk

HONOURABLE JOY K. MacPHAIL

MINISTER OF FINANCE AND CORPORATE RELATIONS

BILL 52 – 1999

TAXATION STATUTES AMENDMENT ACT, 1999

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the

Province of British Columbia, enacts as follows:

Assessment Act

1 The Assessment Act, R.S.B.C. 1996, c. 20, is amended by adding the following

section:

Special valuation rules for dams, power plants and substations

20.1

(1) In this section:

"dam" means any structure designed and built to

control or store water flowing in a water course for the purposes of, or for purposes

ancillary to, generating electricity;

"power plant" means any structure designed and

built to contain boilers, turbines or compressors for the purposes of, or for purposes

ancillary to, generating electricity;

"substation" means a facility at which electric

current is switched, transformed or converted

(

a) at a dam or a power plant,

(

b) between a power plant and a transmission system, or

(

c) between a transmission system and a distribution network.

(2) This

section applies to properties where there is a dam, power

plant or substation, other than properties to which

section 20 applies.

(3) Despite any other

section of this Act, the actual value of a

property to which this

section applies is

(

a) the actual value of the land as determined under

section 19,

and

(

b) the cost of

(

i) the dams, power plants and substations on the property, and

(ii) any other improvements on the property,

determined in accordance with the manuals prescribed under

subsection (4) (

a) of this section, less depreciation determined in accordance with the

rates and applied in the manner prescribed under subsection (4) (

b) of this section.

(4) For the purposes of this section, the Lieutenant Governor in

Council may make regulations prescribing

(

a) manuals establishing rates, formulas, rules or principles for

the calculation of cost, and

(

b) depreciation rates and principles for the application of

depreciation.

(5) Regulations under subsection (4) may be different for

individual properties or properties with different categories of dams, power plants and

substations.

Corporation Capital Tax Act

Section 13 (3) of the Corporation Capital Tax Act, R.S.B.C. 1996, c. 73, is

amended

(

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

b) and

by adding the following paragraphs:

(b.1) the amount, if any, by which the aggregate of the eligible

expenditures of the corporation incurred after March 31, 1999 for the second preceding

taxation year exceeds the aggregate of

(

i) the eligible expenditures of the corporation for the second

preceding taxation year with respect to property that does not qualify as eligible

property or eligible tourism property of the corporation at the end of the taxation year,

and

(ii) the amounts of amortization, depreciation and other charges

taken into account in computing the corporation's income or loss for the taxation year and

the 2 immediately preceding taxation years in accordance with generally accepted

accounting principles in respect of the eligible expenditures referred to in this

paragraph,

(b.2) the amount, if any, by which the aggregate of the eligible

expenditures of the corporation incurred after March 31, 1999 for the third preceding

taxation year exceeds the aggregate of

(

i) the eligible expenditures of the corporation for the third

preceding taxation year with respect to property that does not qualify as eligible

property or eligible tourism property of the corporation at the end of the taxation year,

and

(ii) the amounts of amortization, depreciation and other charges

taken into account in computing the corporation's income or loss for the taxation year and

the 3 immediately preceding taxation years in accordance with generally accepted

accounting principles in respect of the eligible expenditures referred to in this

paragraph, and , and

(

b) in paragraph (

c) by striking out "paragraphs (

a) and (b)"

and substituting "paragraphs (

a) to (b.2)" .

Section 40 is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" ,

and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the administrator under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the corporation at the time the demand is

served, or

(

b) as soon as the person becomes indebted or liable to make a

payment to the corporation, in any other case.

Section 43 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 40 is sufficiently given if it is

delivered as set out in subsection (1) of this

section or is sent by electronic mail or

fax to the electronic mail address or fax number stated in the person's last return or to

the last electronic mail address or fax number known to the administrator. , and

(

b) in subsection (2) by striking out "or mailed" and

substituting ", mailed or sent" .

Hotel Room Tax Act

Section 21 (2) of the Hotel Room Tax Act, R.S.B.C. 1996, c. 207, is repealed

and the following substituted:

(2) If a decision of the director or the minister is set aside or

the amount of an assessment or penalty is reduced on appeal, the director must refund from

the consolidated revenue fund

(

a) the amount or excess amount paid, and

(

b) any additional interest or penalty imposed and paid.

Section 28 is amended

(

a) in subsections (2) and (3) by striking out ", by registered

letter or by a letter served personally," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsection (7) by striking out "mailed or" , and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the director under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Income Tax Act

Section 3 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by striking

out "19," and substituting "19 (2) and (3)," .

Section 6 (1) (

g) is repealed and the following substituted:

(

g) for the 1999 taxation year,

(i) 30% of the amount by which that tax exceeds $5 300, and

(ii) 19% of the amount by which that tax exceeds $8 660 before the

tax payable under subparagraph (

i) is added;

(

h) for the 2000 and subsequent taxation years,

(i) 30% of the amount by which that tax exceeds $5 300, and

(ii) 15% of the amount by which that tax exceeds $8 660 before the

tax payable under subparagraph (

i) is added.

Section 16 is amended by striking out "8.5%" wherever

it appears and substituting "5.5%" .

Section 17 is amended

(

a) by repealing subsection (3) (

b) and substituting the following:

(

b) the taxation year for which the deduction is claimed must be

the taxation year in which the corporation commenced business operations or the taxation

year immediately following that taxation year; , and

(

b) by repealing subsection (4) (

c) and substituting the following:

(

c) at any time during the taxation year for which the deduction

is claimed or a previous taxation year, the corporation was associated with another

corporation within the meaning of

section 256 of the federal Act; .

Section 19 is amended

(

a) by repealing subsections (1) to (3) and substituting the following:

(1) In this section:

"adjusted taxable income" , in relation to a

taxpayer for a taxation year, means the amount that would be the taxpayer's taxable income

for the year if that amount were calculated

(

a) as though

(i)

section 12 (1) (

o) and (z.5),

(ii)

section 18 (l) (m), except as that paragraph applies to an

amount paid or payable under a prescribed Act,

(iii)

section 20 (l) (v.1),

(iv)

section 69 (6), and

(v)

section 69 (7)

of the federal Act had not been enacted, and

(

b) as though tax payable in respect of the taxation year under

the Mineral Tax Act or any other prescribed Act was deductible in computing the

taxpayer's taxable income;

"notional tax" , in relation to a taxpayer for a

taxation year, means the tax that would, but for

section 120.1 of the federal Act, be

payable under this Part by the taxpayer for the taxation year if the taxpayer's taxable

income under this Part for the taxation year was the amount, if any, by which

(

a) the aggregate of all amounts, each of which is the adjusted

taxable income of the taxpayer for the taxation year and for all preceding taxation years

ending after May 5, 1973,

exceeds

(

b) the amount determined under paragraph (

a) for the immediately

preceding taxation year;

"tax otherwise payable" means the amount that

would, but for this

section and

section 120.1 of the federal Act, be the tax otherwise

payable under this Part.

(2) If

(

a) the tax otherwise payable by a taxpayer for a taxation year

is greater than

(

b) the notional tax of the taxpayer for the taxation year,

the difference must be deducted from the tax otherwise payable by

the taxpayer for the taxation year.

(3) If

(

a) the notional tax of a taxpayer for a taxation year

is greater than

(

b) the tax otherwise payable by the taxpayer for the taxation

year,

the difference must be added to the tax otherwise payable by the

taxpayer for the taxation year. , and

(

b) in subsection (4) by striking out "For the purpose of

subsections (1) and (3), in calculating the tax that would be payable" and

substituting "For the purpose of subsections (2) and (3), in calculating the

tax otherwise payable" .

Section 27 (3) is repealed.

Section 79 (1) is amended in the definition of "eligible

production"

(

a) in paragraph (

d) by striking out "at least 75% of the cost of

producing the production," and substituting "in the case of a

production that is not a documentary, at least 75% of the cost of producing the

production," , and

(

b) by adding the following paragraph:

(d.1) in the case of a production that is a documentary, at least

75% of the cost of producing the production, other than costs determined by reference to

the amount of income from the production, or, in the case of an interprovincial

co-production or a treaty co-production, at least 75% of the cost of producing the British

Columbia portion of the production, other than costs determined by reference to the amount

of income from the production, is payable to BC-based individuals or BC-based corporations

in respect of goods or services provided by

(

i) BC-based individuals who are employees, or

(ii) BC-based individuals, or BC-based corporations, in the course

of carrying on business through a permanent establishment in British Columbia; .

Income Tax Amendment Act, 1998

Section 4 of the Income Tax Amendment Act, 1998, S.B.C. 1998, c. 8, is

repealed.

Section 9 (6) is repealed.

Insurance Premium Tax Act

Section 25 of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" ,

and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the commissioner under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Section 34 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 25 is sufficiently made if it is

delivered as set out in subsection (1) of this

section or is sent by electronic mail or

fax to the electronic mail address or fax number stated in the person's last return or to

the last electronic mail address or fax number known to the commissioner. , and

(

b) in subsection (2) by striking out "or mailed" and

substituting ", mailed or sent" .

International Financial Business (Tax Refund) Act

Section 1 of the International Financial Business (Tax Refund) Act, R.S.B.C.

1996, c. 235, is amended

(

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

"nonresident broker" means a nonresident who

(

a) is licensed or registered under the laws of a foreign country

or a political division of a foreign country to trade in securities as principal or agent,

(

b) is not licensed or registered under the Securities Act

or a similar law of another province to carry on any activity in a province, and

(

c) is not related within the meaning of

section 251 of the

Income Tax Act (Canada) to a corporation that is licensed or registered under the Securities

Act or a similar law of another province to carry on any activity in a province; ,

and

(

b) in subsection (3) by adding the following paragraph:

(

g) for the purposes of paragraphs (

a) and (

c) of the definition

of "dealing in securities", if a financial institution is acting as principal or

agent in making or offering to make an agreement referred to in those paragraphs with a

nonresident broker acting as agent for another person, the nonresident broker is deemed to

be the nonresident.

Section 7 (2) is amended by striking out "or" at the

end of paragraph (b), by adding ", or" at the end of paragraph (

c) and by adding the following paragraph:

(

d) comes within paragraph (

a) of the definition of "dealing

in securities" and is carried on for, with or on behalf of a nonresident broker.

Logging Tax Act

20 The Logging Tax Act, R.S.B.C. 1996, c. 277, is amended by adding the following

section:

Deemed payment in first 2 years of operation

2.1 If a taxpayer has made a deduction for a taxation year

in accordance with

section 17 of the Income Tax Act, the taxpayer is deemed

(

a) to have paid on account of tax under this Act for the taxation

year the amount that would have been deducted under

section 15 of the Income Tax Act if

no amount had been deducted under

section 17 of that Act, and

(

b) to have paid that amount at the time referred to in

section 15

(2) (

c) of this Act.

Section 32 is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" ,

and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the commissioner under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Section 39 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 32 is sufficiently made if it is

delivered as set out in subsection (1) of this

section or is sent by electronic mail or

fax to the electronic mail address or fax number stated in the person's last return or to

the last electronic mail address or fax number known to the commissioner. , and

(

b) in subsection (2) (

b) by striking out "or mailed" and

substituting ", mailed or sent" .

Mineral Tax Act

Section 1 (1) of the Mineral Tax Act, R.S.B.C. 1996, c. 291, is amended

(

a) by repealing the definition of "fiscal year of the mine" and

substituting the following:

"fiscal year of the mine" means,

(

a) in respect of a placer gold mine, the calendar year, and

(

b) in respect of any other mine,

(

i) the period, not exceeding 12 months, for which the accounts of

the mine have been or are ordinarily made up, or

(ii) in the absence of a chosen period, the calendar year; ,

(

b) in paragraph (

a) of the definition of "mineral" by striking

out "as defined in that Act" , and

(

c) by adding the following

definitions:

"placer gold mine" means a mine having the

following characteristics:

(

a) substantially all of the mineral product produced from the

mine is placer minerals;

(

b) gold produced from the mine accounts for the majority of the

value of the placer minerals produced from the mine;

"placer gold mine operator" means the operator of

a placer gold mine;

"placer mineral" has the same meaning as in the Mineral

Tenure Act; .

24 The following

section is added:

Application of this Act to placer gold mine operators

1.1 Sections 2, 3 to 7, 8 (1) to (3), 9, 10, 11 and 13 to

15 do not apply in respect of a placer gold mine, or to the placer gold mine operator, for

any fiscal year of the mine ending after December 31, 1998.

25 The following

section is added:

Imposition of tax on placer gold mine operator

2.2 A person who is a placer gold mine operator must, for

each placer gold mine of which that person is an operator, pay in respect of each calendar

year a tax equal to 0.5% of the amount that is the operator's proportionate share of the

transaction value of the mineral product disposed of in the calendar year.

Section 12 is amended

(

a) in subsection (1) by adding ", other than a placer gold mine

operator," after "Each operator of a mine" ,

(

b) by adding the following subsection:

(1.1) Each placer gold mine operator must, on or before March 31

of each year, deliver to the commissioner a return for the mine for the previous calendar

year in the prescribed form and containing the prescribed information. ,

(

c) in subsection (2) by adding ", other than a placer gold mine

operator," after "an operator of a particular mine" ,

(

d) by repealing subsection (2) (

b) and substituting the following:

(

b) the particular mine was not in commercial operation and

(

i) the operator was not engaged in any reclamation activities

with respect to the mine at any time during the fiscal year of the mine, and

(ii) all of the mineral product derived from the mine and all of

the assets used in the operation of the mine have been sold or otherwise disposed of. ,

(

e) by adding the following subsection:

(2.1) Despite subsection (1.1), unless the commissioner issues a

demand for the return, a placer gold mine operator is not required to deliver a return if

(

a) the fair market value of the placer minerals produced from the

mine in the calendar year for which the return would otherwise be required is less than

$50 000,

(

b) the transaction value of the placer minerals disposed of from

the mine in the calendar year for which the return would otherwise be required is less

than $50 000, and

(

c) the placer gold mine operator is an individual. , and

(

f) in subsection (7) by adding ", other than a placer gold mine

operator," after "Each operator" .

27 The following

section is added:

When placer gold mine operator must pay tax

13.1 Each placer gold mine operator must, on or before

March 31 of any year, pay to the commissioner the amount of tax payable by the operator

for the mine for the previous calendar year.

Section 16 (1) and (2) is amended by striking out "section 12

(1)," and substituting "section 12 (1) or (1.1)," .

Section 18 is amended by adding "or (1.1)" after "section

12 (1)" .

Section 21 is repealed and the following substituted:

Notice of assessment

(1) The commissioner must, with all due dispatch,

examine each return filed by an operator of a mine or by any other person who is obliged

under

section 12 to file the return.

(2) If a return is not filed for a fiscal year of a mine as

required by

section 12, the commissioner may estimate the amount of tax payable by an

operator for that year in respect of the mine.

(3) If it appears from an examination of a return under subsection

(1) or, if a return is not filed as required under

section 12, from an estimate made under

subsection (2) of this section, that an amount of tax should have been paid by an

operator, the commissioner may assess the operator for the amount of that tax and any

related interest or penalties.

(4) Liability for tax under this Act is not affected by an

incorrect or incomplete assessment or by the fact that an assessment has not been made.

(5) Without limiting subsection (3), the commissioner may assess

or reassess tax, interest and penalties under this Act or notify in writing an operator or

other person by whom a return has been or ought to have been filed that the commissioner

requires further information

(

a) at any time, if the operator or other person by whom a return

has been or ought to have been filed has made a misrepresentation that is attributable to

carelessness, willful default or fraud in filing of the return or in supplying

information, and

(

b) in any other case, within 6 years after the end of the fiscal

year of the mine for which the return was required, whether or not any tax was payable

under this Act.

(6) The commissioner must, after making an assessment or

reassessment of an operator under this section, prepare and mail to the operator, at the

last known address for that operator, a notice of assessment that contains the following

information as applicable:

(

a) the name and address of the operator to whom the notice is

directed;

(

b) information sufficient to enable the mine to which the notice

relates to be identified;

(

c) the fiscal year of the mine to which the notice applies;

(

d) the date of issue of the notice;

(

e) the total amount of the taxes payable by the operator for the

mine in respect of the particular fiscal year of the mine;

(

f) the amount of interest and penalties payable by the operator

in respect of the fiscal year of the mine;

(

g) the total amount of installments and taxes paid in respect of

the fiscal year of the mine, including any interest and penalties paid;

(

h) the total amount of the reclamation tax credit for the fiscal

year of the mine;

(

i) the total outstanding balance to be paid by the operator or

refunded to the operator in respect of the fiscal year of the mine.

(7) After the commissioner mails a notice of assessment under

subsection (6),

(

a) if the notice of assessment reflects an outstanding balance to

be paid by an operator, the part of the amount assessed that remains unpaid is payable

immediately, or

(

b) if the notice of assessment reflects an outstanding balance to

be refunded to an operator, the minister, on the certificate of the commissioner as to the

facts, must, subject to subsection (8), requisition a refund of the amount overpaid from

the consolidated revenue fund.

(8) Instead of making a refund or repayment that might otherwise

be made under subsection (7), the commissioner may, if the taxpayer is liable or about to

become liable to make any payment under this Act, apply the amount of the refund or

repayment to that other liability and notify the taxpayer of that action.

Section 22 (3) is amended by adding "who is not a placer gold

mine operator, or of the transaction value of the minerals disposed of by a placer gold

mine operator," after "net current proceeds of an operator" .

Section 27 (2) is amended by striking out "An appeal"

and substituting "Within 90 days after the date on which the board makes a

decision under

section 26 (3), an appeal" .

Section 39 (4) is amended by striking out "section 12 (1) or

(5)," and substituting "section 12 (1), (1.1) or (5)," .

Section 45 is amended by striking out "section 12 (1), (5) and

(7)" and substituting "section 12 (1), (1.1), (5) and (7)" .

Mining Tax Act

Section 32 of the Mining Tax Act, R.S.B.C. 1996, c. 295, is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" ,

and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the commissioner under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Section 44 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 32 is sufficiently given if it is

delivered as set out in subsection (1) of this

section or is sent by electronic mail or

fax to the electronic mail address or fax number stated in the person's last return or to

the last electronic mail address or fax number known to the commissioner. , and

(

b) in subsection (2) by striking out "or mailed" and

substituting ", mailed or sent" .

Motor Fuel Tax Act

Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended

(

a) by adding the following definition:

"ethanol blended gasoline" means fuel of which

more than 1% but less than 85% is ethanol and the remainder of which is primarily

gasoline; , and

(

b) in the definition of "gasoline" by adding ', and

"gasoline" includes ethanol blended gasoline;' at the end.

Section 4 (1) (

a) and (

b) is repealed and the following substituted:

(

a) outside the Greater Vancouver transportation service region

must pay to the government, at the time of purchase, tax on the gasoline at the following

rates:

(

i) effective April 1, 1999, 8¢ per litre;

(ii) effective June 1, 1999, 7¢ per litre;

(iii) effective October 1, 1999, 6.75¢ per litre,

(

b) inside the Greater Vancouver transportation service region

must pay to the government, at the time of purchase, tax on the gasoline at the following

rates:

(

i) effective April 1, 1999, 12¢ per litre less the applicable

rate of tax payable at the time of purchase under paragraph (c);

(ii) effective June 1, 1999, 11¢ per litre less the applicable

rate of tax payable at the time of purchase under paragraph (c);

(iii) effective October 1, 1999, 10.75¢ per litre less the

applicable rate of tax payable at the time of purchase under paragraph (c), and .

39 The following

section is added:

Exemption for ethanol portion of ethanol blended gasoline

4.1 Despite any other provision of this Act, ethanol

blended gasoline is subject to a reduced rate of tax calculated as follows:

Rate

gasoline tax rate x

(100 - ethanol percentage)

where

gasoline tax rate

the applicable rate of tax imposed under sections 4, 12.1, 13 and 13.1, as applicable

ethanol percentage

the percentage of ethanol in the ethanol blended gasoline.

Section 10 (1) (

a) and (

b) are repealed and the following substituted:

(

a) outside the Greater Vancouver transportation service region

must pay to the government, at the time of purchase, tax on the fuel at the following

rates:

(

i) effective April 1, 1999, 8.5¢ per litre;

(ii) effective June 1, 1999, 7.5¢ per litre;

(iii) effective October 1, 1999, 7.25¢ per litre,

(

b) inside the Greater Vancouver transportation service region

must pay to the government, at the time of purchase, tax on the fuel at the following

rates:

(

i) effective April 1, 1999, 12.5¢ per litre less the applicable

rate of tax payable at the time of purchase under paragraph (c);

(ii) effective June 1, 1999, 11.5¢ per litre less the applicable

rate of tax payable at the time of purchase under paragraph (c);

(iii) effective October 1, 1999, 11.25¢ per litre less the

applicable rate of tax payable at the time of purchase under paragraph (c), and .

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

litre" and substituting "3¢ per litre" .

Part 2 is amended by adding the following section:

Additional tax for British Columbia Ferry Corporation

13.1

(1) In addition to the tax payable under sections 4,

10, 12.1 and 13, a purchaser of gasoline or motive fuel must pay to the government, at the

time of purchase, for the raising of revenue for the purposes of the British Columbia

Ferry Corporation tax on the gasoline or motive fuel at the following rates:

(

a) effective April 1, 1999, 1¢ per litre;

(

b) effective October 1, 1999, 1.25¢ per litre.

(2) In addition to the tax payable under sections 4, 10, 12.1 and

13, a person who uses gasoline or motive fuel on which tax is not otherwise payable under

this

section must pay to the government, at the time that any tax payable by the person

under

section 4 (2) or 10 (3) is payable, for the raising of revenue for the purposes of

the British Columbia Ferry Corporation tax on the gasoline or motive fuel at the following

rates:

(

a) effective April 1, 1999, 1¢ per litre;

(

b) effective October 1, 1999, 1.25¢ per litre.

Section 15 (1) is amended

(

a) by striking out "A person" and substituting "Subject

section 15.1, a person" , and

(

b) by repealing paragraph (

h) and substituting the following:

(

h) a commercial motor vehicle, other than a pick-up truck, when

used on other than a highway for the transportation of

(

i) drilling rigs, drilling equipment and supplies,

(ii) fuel, water, well-servicing equipment and supplies, and

(iii) geophysical and seismic equipment and supplies,

for persons actively engaged in exploring or drilling for

petroleum and natural gas; .

44 The following

section is added:

Authority to use coloured fuel in certain vehicles

provided clear fuel tax rate is paid

15.1

(1) Subject to subsection (2), a person may use

coloured fuel for a purpose not authorized by

section 15, but only to operate a motor

vehicle that

(

a) is used in a logging or mineral mining operation,

(

b) is not licensed to operate on a highway, and

(

c) is not used on a highway.

(2) A person who uses coloured fuel to operate a motor vehicle

referred to in subsection (1) must pay to the government, on or before the 15th day of the

month following the month in which the fuel is used, tax equal to the difference between

(

a) the tax that the person would have paid on the fuel if the

fuel had not been taxed as coloured fuel, and

(

b) the tax paid by the person on that fuel.

(3) The tax payable under subsection (2) is additional to any tax

payable under

section 5.

Section 22 (2) is amended by striking out "section 12.1" in

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

Section 48 is amended by renumbering the

section as

section 48 (1) and adding

the following subsection:

(2) The director may assess at any time interest payable under

subsection (1).

Section 57 is amended

(

a) in subsections (2) and (3) by striking out ", by written

notice," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsections (6) (

b) and (7) by striking out "mailed or" ,

and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the director under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Section 64 (1) is amended by striking out "12.1 (2),"

and substituting "12.1 (2), 13, 13.1," .

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

(k.1) prescribing types of motor vehicles for the purposes of

section 15 (1) (

d) and (e), based on the make, description or use of those vehicles or any

combination of those things; .

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

definitions:

"parcel" means a parcel as defined in the Land

Title Act that has not been subdivided into smaller parcels and that

(

a) bears a parcel identifier, or

(

b) under land title office practice, is to be assigned a parcel

identifier on registration under the Land Title Act of a transfer of the parcel;

"parcel identifier" means a permanent parcel

identifier assigned under

section 58 of the Land Title Act; .

Section 3 is amended by adding the following:

(3.1) In subsections (3.2) to (3.5), words and expressions used

have the same meaning as in

section 14 (3) (

j) and (4) (

k) and (k.1).

(3.2) If the exemption set out in

section 14 (3) (

j) is not

available to a transferee only because the condition set out in

section 14 (3) (j) (ii) is

not fulfilled, the tax payable by the transferee must be calculated as if all of the

taxable transactions in relation to a transfer of all of, or a registered ownership

interest in, one or more of the smaller parcels created under the subdivision were a

single taxable transaction with a fair market value calculated

(

a) firstly, by determining the difference between the following 2

percentages by subtracting from the percentage under subparagraph (

i) the percentage under

subparagraph (ii):

(

i) the transferee's proportionate share, expressed as a

percentage, of the fair market value of the smaller parcels, calculated using the fair

market values as they were immediately after the subdivision;

(ii) the transferee's proportionate share, expressed as a

percentage, of the fair market value of the original parcel referred to in

section 14 (3)

(j) (i), calculated using the fair market value as it was immediately before the

subdivision, and

(

b) secondly, by multiplying the total fair market value of

all of the smaller parcels, calculated at the time of the application to register the

transfer to the transferee, by the difference determined under paragraph (a), to obtain

the fair market value that is subject to tax.

(3.3) If the exemption set out in

section 14 (4) (

k) is not

available to the trustee only because the trustee

(

a) transfers all of, or a registered ownership interest in, one

or more of the parcels created under the subdivision to one or more transferees, in this

subsection called the "third parties", none of whom was a registered owner of

one or more of the original parcels immediately before their transfer to the trustee, or

(

b) retains all of, or a registered ownership interest in, one or

more of the parcels created under the subdivision,

the tax payable by the trustee must be calculated as if the

transfer of the original parcels were a single taxable transaction with a fair market

value calculated

(

c) firstly, by determining the third parties' proportionate

share, expressed as a percentage, of the fair market value of the parcels created under

the subdivision, calculated using the fair market values as they were immediately after

the subdivision,

(

d) secondly, by determining the proportionate share

retained by the trustee, expressed as a percentage, of the fair market value of the

parcels created under the subdivision, calculated using the fair market values as they

were immediately after the subdivision,

(

e) thirdly, by determining the sum of the percentages

determined under paragraphs (

c) and (d), and

(

f) fourthly, by multiplying the total fair market value of the

original parcels, calculated using the fair market values as they were immediately before

the subdivision, by the percentage determined under paragraph (e), to obtain the fair

market value that is subject to tax.

(3.4) If the exemption set out in

section 14 (4) (k.1) is not

available to an original owner only because the condition set out in

section 14 (4) (k.1)

(ii) is not fulfilled, the tax payable by the original owner as transferee must be

calculated as if all of the taxable transactions in relation to a transfer of all of, or a

registered ownership interest in, one or more of the parcels were a single taxable

transaction with a fair market value calculated

(

a) firstly, by determining the difference between the

following 2 percentages by subtracting from the percentage under subparagraph (

i) the

percentage under subparagraph (ii):

(

i) the original owner's proportionate share, as transferee,

expressed as a percentage, of the fair market value of all of the parcels created under

the subdivision, calculated using the fair market values as they were immediately after

the subdivision;

(ii) the original owner's proportionate share, expressed as a

percentage, of the fair market value of the original parcels referred to in

section 14 (4)

(k.1) (ii), calculated using the fair market values as they were immediately before the

subdivision, and

(

b) secondly, by multiplying the total fair market value of

all of the parcels created under the subdivision, calculated at the time of the

application to register the transfer to the original owner, by the difference determined

under paragraph (a), to obtain the fair market value that is subject to tax.

(3.5) Subsections (3.2) to (3.4) do not operate to impose a tax

that is greater than the tax that would be payable under this Act without those

subsections.

Section 7 (1) is amended by striking out "12 months"

and substituting "18 months" .

Section 14 is amended

(

a) in subsection (3) (

c) by repealing subparagraph (iii) and substituting the

following:

(iii) immediately before the deceased's death, the land

transferred

(

A) was the deceased's family farm, recreational residence or

principal residence, or

(

B) had been the transferee's principal residence for a continuous

period of at least 6 months; ,

(

b) in subsection (3) by repealing paragraph (

j) and substituting the following:

(

j) a transfer if

(

i) a parcel, in this subsection called the "original

parcel", is subdivided into smaller parcels and the transferee of all of, or a

registered ownership interest in, one or more of those smaller parcels was one of the

registered owners of the original parcel immediately before its subdivision, and

(ii) the transferee's proportionate share of the fair market value

of those smaller parcels, calculated using the fair market values as they were immediately

after the subdivision, does not exceed the transferee's proportionate share of the fair

market value of the original parcel, calculated using the fair market value as it was

immediately before the subdivision; , and

(

c) in subsection (4) by repealing paragraph (

k) and substituting the following:

(

k) a transfer of 2 or more adjacent parcels, in this subsection

called the "original parcels", from their registered owners, in this subsection

called the "original owners", to a person who is registered under the transfer

as a trustee under the Land Title Act , if

(

i) the transfer is to facilitate the subdivision of the original

parcels, and

(ii) after the registration under the Land Title Act of the

plan of subdivision, the trustee transfers all of the parcels created under the

subdivision to the original owners or to any one or more of them;

(k.1) a transfer of all of, or a registered ownership interest in,

one or more of the parcels created under a subdivision described in paragraph (k), if

(

i) the transfer is from the trustee referred to in paragraph (

k) to any of the original owners, and

(ii) that original owner's proportionate share of the fair market

value of the parcels created under the subdivision, calculated using the fair market

values as they were immediately after the subdivision, does not exceed that original

owner's proportionate share of the fair market value of the original parcels, calculated

using the fair market values as they were immediately before the subdivision; .

Section 18 is amended by adding the following subsections:

(6.1) If an exemption has been applied for under

section 14 (3)

(j), the assessment must be issued within 24 months after the date of the first transfer

after the subdivision.

(6.2) If an exemption has been applied for under

section 14 (4)

(

k) or (k.1), the assessment must be issued within 24 months after the date of the last of

the transfers to the trustee to facilitate the subdivision.

Section 19 (4) and (5) is repealed and the following substituted:

(4) On receipt of the notice of objection and of the relevant

information from the office of the administrator, the minister must decide the amount of

the penalty or tax owing or the refund payable, as the case may be.

(5) The minister must deliver to the person who objected to the

assessment made under

section 18 a notice of the minister's decision under subsection (4)

of this

section and, if the minister's decision is to vary the assessment, the

administrator must deliver a notice of assessment reflecting the variation to the person

who objected.

Section 21 (3) is repealed and the following substituted:

(3) A petition must be filed in the court registry within 90 days

after the date on the minister's notice under

section 19 (5) of the minister's decision.

Section 27 is amended

(

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

letter or by a letter served personally," ,

(

b) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsections (5) (

b) and (6) by striking out "mailed or" ,

and

(

d) by adding the following subsection:

(6.1) Money demanded from a person by the administrator under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Social Service Tax Act

Section 6 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended

(

a) in subsection (3) by striking out "Despite any other provision

of this Division," and substituting "Despite any other provision

of this Division but subject to subsection (4)," , and

(

b) by adding the following subsection:

(4) If a passenger vehicle qualifies under the regulations as an

alternative fuel vehicle, the applicable tax rate established under subsection (3) must be

determined in accordance with the regulations.

Section 17 is amended

(

a) by striking out "If the minister considers fit, the

minister" and substituting "The commissioner" , and

(

b) by striking out "by the minister." and substituting "by

the commissioner."

Section 20 is amended

(

a) in subsection (1) by striking out "Subject to sections 20.1 and

21 (3)," and substituting "Subject to subsection (3) and sections

20.1 and 21 (3)," , and

(

b) by adding the following subsection:

(3) If a passenger vehicle qualifies under the regulations as an

alternative fuel vehicle, the applicable tax rate established under subsection (1) (

b) and

the tax rate value under subsection (2) must be determined in accordance with the

regulations.

Section 27 is amended

(

a) by striking out "If the minister considers" and

substituting "If the commissioner considers" , and

(

b) by striking out "the minister may" and substituting

"the commissioner may" .

62 The following sections are added:

Refund or credit for trade-in vehicles

33.1

(1) In this section, "trade-in vehicle"

means a multijurisdictional vehicle on which tax has been paid under this Division and

that, before the expiration of its current vehicle licence year, is accepted at the time

of sale by the seller on account of the purchase price of another multijurisdictional

vehicle.

(2) The commissioner may, in accordance with the regulations,

provide a refund or credit of a portion of the tax paid on a trade-in vehicle, and the

refund or credit must, subject to subsection (3), correspond to the tax paid for the

balance of the current vehicle licence year remaining after the trade-in vehicle has been

traded.

(3) A refund or credit under subsection (2) must be calculated and

provided in accordance with the regulations and may be paid out of the consolidated

revenue fund.

Refund for replacement vehicles

33.2

(1) In this section, "replacement

vehicle" means a vehicle that is leased to be used as a replacement for a

multijurisdictional vehicle that is being repaired and is therefore unavailable for use

during part of its vehicle licence year.

(2) Subject to subsection (3), if a person has paid tax under this

Division or under

section 20 (1) on a replacement vehicle, the commissioner may provide a

refund of that tax to that person if

(

a) tax has been paid under this Division on the

multijurisdictional vehicle being repaired, and

(

b) the replacement vehicle is used only

(

i) in accordance with the terms of the licence that was issued

for the multijurisdictional vehicle being repaired, and

(ii) for the purposes for which that multijurisdictional vehicle

would be used were it not being repaired.

(3) Any refund under this

section is, if the refund is in respect

of tax paid under

section 20 (1), limited to the tax paid on lease payments for the

replacement vehicle in respect of rental periods, or portions of rental periods, that are

wholly within

(

a) the period during which the multijurisdictional vehicle is

being repaired, and

(

b) the vehicle licence year of the multijurisdictional vehicle.

(4) Any refund under this

section is, if the refund is in respect

of tax paid under this Division, limited to the tax paid that is attributable to the

portion of the replacement vehicle's vehicle licence year that is wholly within

(

a) the period during which the multijurisdictional vehicle is

being repaired, and

(

b) the licence year of the multijurisdictional vehicle.

Section 76 (1) is amended by adding the following paragraphs:

(

h) labels that are purchased to be attached to tangible personal

property held for sale or lease and that are intended to remain with the tangible personal

property after it is sold or leased;

(

i) boomsticks for use as, and used as, part of a frame for

transporting logs over water.

Part 4 is amended by adding the following section:

Purchases or leases of alternative fuel vehicles

90.2 On application by a person who

(

a) is a purchaser, lessee or user of a motor vehicle that

qualifies under the regulations as an alternative fuel vehicle,

(

b) has paid tax under

section 5 or 20, or has paid tax calculated

under

section 11 (4), on that vehicle, and

(

c) satisfies the commissioner that the person qualifies under

this

section and the regulations,

the commissioner must refund to that person out of the

consolidated revenue fund an amount determined in accordance with the regulations.

Section 103 is amended

(

a) in subsection (2) by striking out "under this Act or the

regulations and does not collect or remit the taxes," and substituting ",

or to pay taxes, under this Act or the regulations and does not collect, remit or pay the

taxes, as the case may be," ,

(

b) by repealing subsections (3) and (4) and substituting the following:

(3) On registration of a certificate of indebtedness against the

real property of a person under subsection (2) (a), a lien is created on the real property

against which the lien is registered for,

(

a) if the lien relates to taxes that were required to be

collected or were collected before registration, the amount of those taxes remaining

uncollected or unremitted, or both, and any related interest and penalty on those taxes,

(

b) if the lien relates to taxes that were required to be paid

before registration, the amount of those taxes remaining unpaid, and any related interest

and penalty on those taxes.

(4) On registration of a lien against the personal property of a

person under subsection (2) (b), a lien is created on the personal property in which the

person has a legal or equitable interest, including, in the case of a lien referred to in

paragraph (

a) of this subsection, any portion of the property that is subject to a prior

lien or security interest, for,

(

a) if the lien relates to taxes that were required to be

collected or were collected before registration, the amount of those taxes remaining

uncollected or unremitted, or both, and any related interest and penalty on those taxes,

(

b) if the lien relates to taxes that were required to be paid

before registration, the amount of those taxes remaining unpaid, and any related interest

and penalty on those taxes. ,

(

c) in subsection (5) by adding ", other than a lien referred to in

subsection (4) (b), that is" after "a lien" , and

(

d) in subsection (7) by adding ", other than liens referred to in

subsection (4) (b)," after "all the liens registered under

subsection (2) (b)" .

Section 108 is amended

(

a) in subsections (2) and (3) by striking out ", by registered

letter or by a letter served personally," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsection (7) by striking out "mailed or" , and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the commissioner under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Section 118 (1) (

a) is amended by adding "or a valuation of the

commissioner under

section 17 or 27" after "or 103 (11)" .

Section 120 (2) is repealed and the following substituted:

(2) If a decision of the commissioner or the minister is set aside

or the amount of an estimate, assessment or penalty is reduced on appeal, the commissioner

must refund from the consolidated revenue fund

(

a) the amount or excess amount paid, and

(

b) any additional interest or penalty imposed and paid.

Section 130 is amended by adding the following paragraphs:

(b.1) prescribing, in respect of motor vehicles that have been

modified to adapt them to facilitate the use by, or the transportation of, an individual

using a wheelchair, the method by which the purchase price, lease price or tax rate value

of those vehicles may be determined, and the criteria on which and the circumstances in

which the prescribed method of calculation may be made;

(

h) prescribing alternative fuel vehicles for the purposes of

sections 6, 20 and 90.2;

(

i) establishing for the purposes of

section 6 or 20 a tax rate

for alternative fuel vehicles, including different tax rates for different classes of

alternative fuel vehicles;

(

j) establishing the amount of a refund under

section 90.2,

including different amounts for different classes of alternative fuel vehicles.

Section 138 (1) is amended by adding the following paragraph:

(f.1) exempting from tax under

section 9 (1.1) or 11 household

goods or equipment initially brought into British Columbia for an individual's personal

Tobacco Tax Act

Section 26 (2) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is repealed and

the following substituted:

(2) If a decision of the director or the minister is set aside or

the amount of an assessment or penalty is reduced on appeal, the director must refund from

the consolidated revenue fund

(

a) the amount or excess amount paid, and

(

b) any additional interest or penalty imposed and paid.

Section 32 is amended

(

a) in subsections (2) and (3) by striking out ", by registered

letter or by a letter served personally," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsections (6) (

b) and (7) by striking out "mailed or" ,

and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the director under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person

is indebted or liable to make a payment to the taxpayer at the time the demand is served,

(

b) as soon as the person becomes indebted or liable to make a

payment to the taxpayer, in any other case.

Transitional – Mineral Tax Act

73 The following applies in respect of any placer gold mine

that did not, before January 1, 1999, have a calendar year as the fiscal year of the mine:

(

a) the portion of the year that

(

i) begins immediately after the end of the last fiscal year of

the mine that ends in 1998, and

(ii) ends on December 31, 1998

constitutes a fiscal year of the mine;

(

b) after December 31, 1998, the placer gold mine has a calendar

year as the fiscal year of the mine;

(

c) the Mineral Tax Act , as it read before January 1, 1999,

applies to all matters relating to each fiscal year of the mine that ends in 1998 and,

without limiting this, all records, reports, returns, filings and payments required in

relation to each fiscal year of the mine that ends in 1998 must be prepared, kept or made,

as the case may be, at the time and in the manner required by the Mineral Tax Act,

as it read before January 1, 1999.

Transitional – Mineral Tax Act

74 Sections 2.2 and 13.1 of the Mineral Tax Act as

enacted by this Act are enacted, apply and have effect despite the Tax and Consumer

Rate Freeze Act.

Transitional – Social Service Tax Act

(1) Regulations that may be made under the Social

Service Tax Act as a result of the enactment of that part of

section 62 enacting

section 33.1 of the Social Service Tax Act, and of the enactment of sections 69 and

70 of this Act, may, if made before April 1, 2000, be made retroactive to March 31,

(2) Regulations that may be made under the Social Service Tax

Act as a result of the enactment of

section 70 may, if made before April 1, 2000, be

made retroactive to July 1, 1998.

Commencement

(1) Sections 2, 38, 40, 42, 45 and 48 are deemed to have

come into force on April 1, 1999 and are retroactive to the extent necessary to give them

effect on and after that date.

(2) Sections 3 to 8, 10 to 13, 16 to 19, 21, 22, 26 (d), 30, 32,

35, 36, 43, 44, 46, 47, 49 to 51 and 53 to 72 are deemed to have come into force on March

31, 1999 and are retroactive to the extent necessary to give them effect on and after that

date.

(3) Sections 9, 14 and 15 come into force on July 1, 1999 and are

retroactive to the extent necessary to give them effect on and after that date.

(4) Section 20 is deemed to have come into force on May 1, 1996

and is retroactive to the extent necessary to give it effect on and after that date.

(5) Sections 23 to 25, 26 (

a) to (c), (

e) and (f), 27 to 29, 31,

33, 34, 73 and 74 are deemed to have come into force on January 1, 1999 and are

retroactive to the extent necessary to give them effect on and after that date.

(6) Section 41 comes into force on June 1, 1999 and is retroactive

to the extent necessary to give it effect on and after that date.

(7) Sections 37 and 39 come into force by regulation of the

Lieutenant Governor in Council.

(8) Section 52 is deemed to have come into force on January 1,

1998 and is retroactive to the extent necessary to give it effect on and after that date.

Copyright © 1999: Queen's Printer, Victoria, British Columbia, Canada