British Columbia Bill 2 (Government) — 2nd Parliament, 41st Session — Previous Version 1

2-41 Gov Bill 2-1

British Columbia — Bills

2017 Legislative Session: 2nd Session, 41st Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE CAROLE JAMES

MINISTER OF FINANCE

AND DEPUTY PREMIER

BILL 2 – 2017

BUDGET MEASURES IMPLEMENTATION ACT, 2017

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

Part 1 – Non-Tax Budget Measures

North Island-Coast Development Initiative Trust Act

SECTION 1: [North Island-Coast Development Initiative Trust Act,

section 17]

increases by $10 million the total amount that may be paid by the government to the North Island-Coast Development Initiative Trust;

clarifies powers and duties of the directors in relation to the receipt, deposit, investment and use of money paid by the government to the North Island-Coast Development Initiative Trust and in relation to the investment of other money in the Regional Account.

Section 17 of the North Island-Coast Development Initiative Trust Act, S.B.C. 2005, c. 36, is amended

(

a) by renumbering the

section as

section 17 (1),

(

b) in subsection (1) by striking out " $50 million " and substituting " $60 million ", and

(

c) by adding the following subsection:

(2) Section 7 (2) (b), (

c) and (

d) applies to the directors of the North Island-Coast Development Initiative Trust.

Transportation Investment Act

SECTION 2: [Transportation Investment Act,

section 24.1] is consequential to the amendment

section 24.3 (2) of the Act by this Bill.

Section 24.1 of the Transportation Investment Act, S.B.C. 2002, c. 65, is amended in the definition of "director" by striking out " by the Lieutenant Governor in Council ".

SECTION 3: [Transportation Investment Act,

section 24.2] provides for the share in the

Transportation Investment Corporation to be registered in the name of and

held by the BC Transportation Financing Authority.

Section 24.2 (3) is repealed and the following substituted:

(3) The share in the corporation must be registered in the name of and held by the BC Transportation Financing Authority.

SECTION 4: [Transportation Investment Act,

section 24.3]

(

a) provides for directors of the Transportation Investment Corporation to be appointed by the board of directors of the BC Transportation Financing Authority, and

(

b) removes the requirement that the board elect a vice chair.

Section 24.3 is amended

(

a) in subsection (2) by striking out " the Lieutenant Governor in Council " and substituting " the board of directors of the BC Transportation Financing Authority ", and

(

b) by repealing subsection (4).

SECTION 5: [Transportation Investment Act,

section 24.33] repeals a

section respecting

meetings of the board.

Section 24.33 is repealed.

SECTION 6: [Transportation Investment Act,

section 24.34] is consequential to the repeal

section 24.33 of the Act by this Bill.

Section 24.34 (3) is amended by striking out " but subject to

section 24.33 ".

Transitional Provisions

SECTION 7: [Transition – presentation and reporting obligations for 2017-2018 fiscal

year] clarifies which main estimates and other documents are to be used for

the purposes of the Budget Transparency and Accountability Act , the Balanced

Budget and Ministerial Accountability Act and the Carbon Tax Act in

relation to the 2017-2018 fiscal year.

Transition – presentation and reporting

obligations for 2017-2018 fiscal year

(1) In this section, "new main estimates" means the main estimates for the 2017-2018 fiscal year presented under

section 6 (2) of the Budget Transparency and Accountability Act .

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

(

a) section 7 [economic and fiscal forecasts] ,

(

b) section 8 [major capital project information] ,

(

c) section 12 [government strategic plan] , or

(

d) section 13 [service plans]

of the Budget Transparency and Accountability Act , are the ones that apply for the purposes of

Part 2 [Fiscal Reports] and

Part 4 [Service Plan Reports] of that Act in relation to the 2017-2018 fiscal year.

(3) The new main estimates are the ones that apply for the purposes of the Balanced Budget and Ministerial Accountability Act in relation to the 2017-2018 fiscal year.

(4) The new main estimates are the ones that apply for the purposes of the Carbon Tax Act in relation to the 2017-2018 fiscal year.

(5) The carbon tax plan presented to the Legislative Assembly with the new main estimates is deemed to be a carbon tax plan referred to in

section 3 of the Carbon Tax Act .

(6) The documents presented under

section 4 of the Carbon Tax Act with the new main estimates are the ones that apply for the purposes of the Carbon Tax Act in relation to the 2017-2018 fiscal year.

SECTION 8: [Transportation Investment Act transition]

provides for the transfer of the share in the Transportation Investment Corporation to the BC Transportation Financing Authority;

provides that the share transfer effected by this Bill will not constitute a breach or contravention of any security agreements or other agreements or records, and will not entitle any person to damages or compensation or to terminate any security agreement or other agreement or record.

Transportation Investment Act transition

(1) The share in the Transportation Investment Corporation is transferred from the Minister of Transportation and Infrastructure to, and is vested in, the BC Transportation Financing Authority without an appropriation other than this section.

(2) Despite any provision to the contrary in a security agreement or other agreement or record, the transfer of the share referred to in subsection (1) does not constitute a breach or contravention of, or a default under, the security agreement or other agreement or record and, without limiting this, does not entitle any party to any security agreement or other agreement or record to claim any damages or compensation or to terminate the security agreement or other agreement or record.

Part 2 – Tax-Related Budget Measures

Carbon Tax Act

SECTION 9: [Carbon Tax Act,

section 1] amends the definition of "scheduled rate change" consequential to proposed modifications in a rate of tax set out in the Table in

Schedule 1 that are to come into effect as of April 1 of a year.

Section 1 (1) of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended by repealing the definition of "scheduled rate change" and substituting the following:

"scheduled rate change" means a modification in a rate of tax set out in the Table in

Schedule 1 that comes into effect

(

a) as of July 1 of a year before 2018, or

(

b) as of April 1 of a year after 2017; .

SECTION 10: [Carbon Tax Act,

Part 2] repeals provisions respecting plans and reports.

Part 2 is repealed.

SECTION 11: [Carbon Tax Act,

Schedule 1] provides for an end date for the period starting

July 1, 2012 in relation to the rate of tax payable with respect to fuel.

11 The Table in

Schedule 1 is amended by repealing the heading to Column 8 and substituting the following:

Rate of tax for the period starting July 1, 2012 and ending March 31, 2018 .

SECTION 12: [Carbon Tax Act,

Schedule 1] sets out the tax rates for fuels that apply for the

year starting April 1, 2018 and each subsequent year starting April 1.

Schedule 1 is amended by adding the following as a continuation of the existing Table:

Column

Item

Type of Fuel

Rate of tax for the

year starting

April 1, 2018

Rate of tax for the

year starting

April 1, 2019

Rate of tax for

the year

starting

April 1, 2020

Rate of tax for

the year

starting

April 1, 2021

and each

subsequent

year starting

April 1

Aviation Fuel

8.61 ¢/L

9.84 ¢/L

11.07 ¢/L

12.30 ¢/L

Gasoline

7.78 ¢/L

8.89 ¢/L

10.01 ¢/L

11.12 ¢/L

Heavy Fuel Oil

11.03 ¢/L

12.60 ¢/L

14.18 ¢/L

15.75 ¢/L

Jet Fuel

9.14 ¢/L

10.44 ¢/L

11.75 ¢/L

13.05 ¢/L

Kerosene

9.14 ¢/L

10.44 ¢/L

11.75 ¢/L

13.05 ¢/L

Light Fuel Oil

8.95 ¢/L

10.23 ¢/L

11.51 ¢/L

12.78 ¢/L

Methanol

3.82 ¢/L

4.36 ¢/L

4.91 ¢/L

5.45 ¢/L

Naphtha

8.93 ¢/L

10.20 ¢/L

11.48 ¢/L

12.75 ¢/L

Butane

6.16 ¢/L

7.04 ¢/L

7.92 ¢/L

8.80 ¢/L

Coke Oven Gas

5.64 ¢/m 3

6.44 ¢/m 3

7.25 ¢/m 3

8.05 ¢/m 3

Ethane

3.43 ¢/L

3.92 ¢/L

4.41 ¢/L

4.90 ¢/L

Propane

5.39 ¢/L

6.16 ¢/L

6.93 ¢/L

7.70 ¢/L

Natural Gas

6.65 ¢/m 3

7.60 ¢/m 3

8.55 ¢/m 3

9.50 ¢/m 3

Refinery Gas

6.16 ¢/m 3

7.04 ¢/m 3

7.92 ¢/m 3

8.80 ¢/m 3

High Heat Value Coal

72.70 $/tonne

83.08 $/tonne

93.47 $/tonne

103.85 $/tonne

Low Heat Value Coal

62.20 $/tonne

71.08 $/tonne

79.97 $/tonne

88.85 $/tonne

Coke

87.05 $/tonne

99.48 $/tonne

111.92 $/tonne

124.35 $/tonne

Petroleum Coke

12.85 ¢/L

14.68 ¢/L

16.52 ¢/L

18.35 ¢/L

Gas Liquids

5.78 ¢/L

6.60 ¢/L

7.43 ¢/L

8.25 ¢/L

Pentanes Plus

6.16 ¢/L

7.04 ¢/L

7.92 ¢/L

8.80 ¢/L

SECTION 13: [Carbon Tax Act,

Schedule 2] provides for an end date for the period starting

July 1, 2012 in relation to the rate of tax payable with respect to combustibles.

13 The Table in

Schedule 2 is amended by repealing the heading to Column 7 and substituting the following:

Rate of tax for the period starting on July 1, 2012 and ending on March 31, 2018 .

SECTION 14: [Carbon Tax Act,

Schedule 2] sets out the tax rates for combustibles that

apply for the year starting April 1, 2018 and each subsequent year starting

April 1.

Schedule 2 is amended by adding the following as a continuation of the existing Table:

Column

Item

Type of

Combustible

Rate of tax for the

year starting on

April 1, 2018

Rate of tax for the

year starting on

April 1, 2019

Rate of tax for

the year starting

on April 1, 2020

Rate of tax for

the year

starting on

April 1, 2021

and each

subsequent

year starting on

April 1

Peat

35.77 $/tonne

40.88 $/tonne

45.99 $/tonne

51.10 $/tonne

Tires – Shredded

83.69 $/tonne

95.64 $/tonne

107.60 $/tonne

119.55 $/tonne

Tires – Whole

72.80 $/tonne

83.20 $/tonne

93.60 $/tonne

104.00 $/tonne

Home Owner Grant Act

SECTION 15: [Home Owner Grant Act,

section 13.1]

adds authority for some uses and disclosures, and excludes from those permitted uses and disclosures information that was collected as a result of disclosure under the Income Tax Act ;

adds authority for use and disclosure of information collected under the Act for the administration and enforcement of the Income Tax Act .

Section 13.1 of the Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended

(

a) in subsection (1) in paragraph (

b) of the definition of "shared information" by adding "

section 64 of the Income Tax Act , " before "

section 32 of the Property Transfer Tax Act ",

(

b) in subsection (2) (

b) by striking out " or " at the end of subparagraph (iii) and by adding the following subparagraph:

(iv) the Income Tax Act , or ,

(

c) in subsection (3) by striking out " Subject to subsection (5) " and substituting " Subject to subsections (3.1) and (5) ", and

(

d) by adding the following subsection:

(3.1) Subsection (3) does not permit a ministry person to use or disclose shared information collected as a result of a disclosure under the Income Tax Act if that use or disclosure is

(

a) for the purposes of administering or enforcing the Land Tax Deferment Act , or

(

b) in court proceedings related to that Act.

Income Tax Act

SECTION 16: [Income Tax Act,

section 4.1] establishes a personal income tax bracket for

taxable income that exceeds $150

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

(

a) in subsection (1) (

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

(

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

(

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

(

g) if the taxable income exceeds $150 000,

(

i) the highest amount that might be determined for an individual under paragraph (

e) of this subsection,

plus

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

(

d) in subsection (2) by striking out " subsection (1) (b) (i), (c) (i), (d) (

i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (

c) or (d), " and substituting " subsection (1) (b) (i), (c) (i), (d) (i), (e) (

i) and (g) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c), (

d) or (e), ".

SECTION 17: [Income Tax Act,

section 4.34] provides for the child fitness credit to be

claimed under the Act for the 2017 taxation year, despite the repeal on January

1, 2017 of

section 122.8 [child fitness tax credit] of the Income Tax Act (Canada).

Section 4.34 is repealed and the following substituted:

Child fitness credit

4.34

(1) In this section, "eligible fitness expense" and "qualifying child" have the same meaning as in

section 122.8 (1) of the federal Act, as that section, and any regulations referred to in that section, read on December 31, 2016.

(2) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year, there may be deducted the amount determined by the formula

A x B

where

is the appropriate percentage for the year, and

is the total of all amounts each of which is, in respect of a qualifying child of the individual for the year, the lesser of $500 and the amount determined by the formula

C - D

where

is the total of all amounts each of which is an amount paid in the year by the individual, or by the individual's spouse or common-law partner, that is an eligible fitness expense in respect of the qualifying child of the individual, and

is the total of all amounts that any person is or was entitled to receive, each of which relates to an amount included in computing the value determined for C in respect of the qualifying child that is the amount of a reimbursement, allowance or any other form of assistance, other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person.

(3) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year, there may be deducted in respect of a qualifying child of the individual the amount equal to $500 multiplied by the appropriate percentage for the year, if

(

a) the amount referred to in the description of "B" in subsection (2) is $100 or more, and

(

b) an amount is deductible in respect of the qualifying child under

section 118.3 of the federal Act in computing any person's tax payable under

Part I of that Act for the year.

(4) If more than one individual is entitled to a deduction under this

section for a taxation year in respect of a qualifying child,

(

a) the total of all amounts deducted by the individuals under this

section in respect of the qualifying child must not exceed the maximum amount that would be deductible for the year by any one of the individuals in respect of that qualifying child if that individual were the only individual entitled to deduct an amount under this section, and

(

b) if the individuals cannot agree as to what portion of the total amount each individual can deduct under this section, the minister may fix the portions.

SECTION 18: [Income Tax Act, sections 4.34 and 4.341] repeals the child fitness credit and

child fitness equipment credit in respect of the 2018 taxation year and subsequent

taxation years.

18 Sections 4.34 and 4.341 are repealed.

SECTION 19: [Income Tax Act,

section 4.35] provides for the child arts credit to be claimed

under the Act for the 2016 and 2017 taxation years, as if

section 118.031 (2) [children's art tax credit] of the Income Tax Act (Canada) had not been

amended in respect of the 2016 taxation year and despite the repeal on January

1, 2017 of

section 118.031 of that Act.

Section 4.35 is repealed and the following substituted:

Child arts credit

4.35

(1) In this section:

"eligible expense" has the same meaning as in

section 118.031 (1) of the federal Act, as that section, and any regulations referred to in that section, read on December 31, 2016;

"qualifying child" has the same meaning as in

SECTION 20: [Income Tax Act,

section 4.35] repeals the child arts credit in respect of the

2018 taxation year and subsequent taxation years.

Section 4.35 is repealed.

SECTION 21: [Income Tax Act,

section 4.351] establishes a new BC back-to-school tax

credit for the 2016 taxation year.

21 The following

section is added:

BC back-to-school tax credit

4.351

(1) In this section, "qualifying child" , in respect of an individual for a taxation year, means a child of the individual who is, immediately before the beginning of the calendar year in which the taxation year ends, at least 4 years of age but less than 17 years of age.

A x B x C

where

is the appropriate percentage for the year,

is the number of qualifying children of the individual in respect of whom a deduction is made under this

section for the year, and

is $250.

(3) If more than one individual is entitled to a deduction under this

section for a taxation year that ends in a calendar year in respect of a qualifying child, only one of those individuals may deduct an amount under this

section for any taxation year that ends in the calendar year in respect of the qualifying child.

(4) If the individuals referred to in subsection (3) cannot agree which of those individuals may deduct an amount under this

section in respect of the qualifying child, the minister may designate an individual who may deduct an amount under this

section in respect of that qualifying child.

SECTION 22: [Income Tax Act,

section 4.351] repeals the BC back-to-school tax credit.

Section 4.351 is repealed.

SECTION 23: [Income Tax Act,

section 4.37] establishes a new tax credit for volunteer firefighters

and search and rescue volunteers.

23 The following

section is added:

Tax credit for volunteer firefighters and

search and rescue volunteers

4.37

(1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under

section 118.06 (2) or 118.07 (2) of the federal Act for the year, there may be deducted an amount determined by multiplying $3 000 by the appropriate percentage for the year.

(2) If an amount is not included in computing the individual's income for a taxation year because of

section 81 (4) of the federal Act, no deduction may be made under this

section in computing the tax payable by the individual for the taxation year.

SECTION 24: [Income Tax Act,

section 4.51] is consequential to the addition by this Bill of

section 4.351 to the Act.

Section 4.51 is amended

(

a) in subsection (2) (

b) by adding " 4.351 [BC back-to-school tax credit] , " after " 4.35 [child arts credit] , ", and

(

b) in subsection (4) in the description of "T" by adding " 4.351 [BC back-to-school tax credit] , " after " 4.35 [child arts credit] , ".

SECTION 25: [Income Tax Act,

section 4.51] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

Section 4.51 is amended

(

a) in subsection (2) (

b) by striking out " 4.351 [BC back-to-school tax credit] , 4.36 [BC education coaching tax credit] " and substituting " 4.36 [BC education coaching tax credit] , 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] ", and

(

b) in subsection (4) in the description of "T" by striking out " 4.351 [BC back-to-school tax credit] , 4.36 [BC education coaching tax credit] " and substituting " 4.36 [BC education coaching tax credit] , 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] ".

SECTION 26: [Income Tax Act, sections 4.51, 4.65, 4.66, 4.74 and 4.76] is consequential to

the repeal by this Bill of sections 4.34, 4.341 and 4.35 of the Act.

26 The following sections are amended by striking out " 4.34 [child fitness credit] , 4.341 [child fitness equipment credit] , 4.35 [child arts credit] , ":

(

a) section 4.51 (2) (b);

(

b) section 4.51 (4) in the description of "T";

(

c) section 4.65 in paragraphs (

a) and (b) (ii) of the description of "C";

(

d) section 4.66 (

a) in the description of "B";

(

e) section 4.74 (a);

(

f) section 4.76 (1) (b) (i).

SECTION 27: [Income Tax Act,

section 4.52] is consequential to the enactment by this Bill

section 4.1 (1) (

g) of the Act.

Section 4.52 is amended by adding the following subsection:

(4.22) For the purpose of computing the tax payable by an individual for the 2018 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the amount of $150 000 referred to in

section 4.1 (1) (

e) and (g).

SECTION 28: [Income Tax Act,

section 4.62] is consequential to the addition by this Bill of

section 4.351 to the Act.

Section 4.62 is amended

(

a) in subsection (1) (

b) by adding the following subparagraph:

(iii.31)

section 4.351 [BC back-to-school tax credit] ; , and

(

b) in subsection (2) in the description of "C" by adding the following paragraph:

(c.31)

section 4.351 [BC back-to-school tax credit] ; .

SECTION 29: [Income Tax Act,

section 4.62] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

Section 4.62 is amended

(

a) by repealing subsection (1) (b) (iii.31),

(

b) in subsection (1) (

b) by adding the following subparagraph:

(iii.5)

section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] ; , and

(

c) in subsection (2) in the description of "C" by repealing paragraph (c.31) and by adding the following paragraph:

(c.5)

section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] ; .

SECTION 30: [Income Tax Act,

section 4.62] is consequential to the repeal by this Bill of

sections 4.34, 4.341 and 4.35 of the Act.

Section 4.62 is amended

(

a) in subsection (1) (

b) by repealing subparagraphs (iii.2), (iii.21) and (iii.3), and

(

b) in subsection (2) in the description of "C" by repealing paragraphs (c.2), (c.21) and (c.3).

SECTION 31: [Income Tax Act,

section 4.65] is consequential to the addition by this Bill of

section 4.351 to the Act.

Section 4.65 is amended in paragraphs (

a) and (b) (ii) of the description of "C" by adding " 4.351 [BC back-to-school tax credit] , " after " 4.35 [child arts credit] , ".

SECTION 32: [Income Tax Act,

section 4.65] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

Section 4.65 is amended in paragraphs (

a) and (b) (ii) of the description of "C" by striking out " 4.351 [BC back-to-school tax credit] , " and by adding " 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] , " after " 4.36 [BC education coaching tax credit] , ".

SECTION 33: [Income Tax Act,

section 4.66] is consequential to the addition by this Bill of

section 4.351 to the Act.

Section 4.66 (

a) is amended in the description of "B" by adding " 4.351 [BC back-to-school tax credit] , " after " 4.35 [child arts credit] , ".

SECTION 34: [Income Tax Act,

section 4.66] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

Section 4.66 (

a) is amended in the description of "B" by striking out " 4.351 [BC back-to-school tax credit] , " and by adding " 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] , " after " 4.36 [BC education coaching tax credit] , ".

SECTION 35: [Income Tax Act,

section 4.69] reduces for the 2017 and subsequent taxation

years the percentage applied in determining the dividend tax credit for dividends

other than eligible dividends.

Section 4.69 (

a) is amended by striking out " 17% " and substituting " 15% ".

SECTION 36: [Income Tax Act,

section 4.69] increases from 36 6/19% to 43 11/19% the

percentage applied in determining the dividend tax credit for eligible dividends

for the 2019 and subsequent taxation years.

Section 4.69 (

b) is amended by striking out " 36 6/19% " and substituting " 43 11/19% ".

SECTION 37: [Income Tax Act,

section 4.721] amends the definition of "BC flow-through

mining expenditure" to extend by one year the time frame in which expenses

referred to in the definition are incurred and makes consequential amendments.

Section 4.721 is amended

(

a) in subsection (1) in paragraph (

d) of the definition of "BC flow-through mining expenditure" by striking out " before 2017 " and substituting " before 2018 ", and

(

b) in subsection (1.1) by striking out " before 2017 " in both places and substituting " before 2018 ".

SECTION 38: [Income Tax Act, sections 4.74 and 4.76] is consequential to the addition by

this Bill of

section 4.37 to the Act.

38 Sections 4.74 (

a) and 4.76 (1) (b) (

i) are amended by adding " 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] , " after " 4.36 [BC education coaching tax credit] , ".

SECTION 39: [Income Tax Act, sections 4.74 and 4.76] is consequential to the addition by

this Bill of

section 4.351 to the Act.

39 Sections 4.74 (

b) and 4.76 (1) (b) (ii) are amended by adding " 4.351 [BC back-to-school tax credit] , " after " 4.31 [age credit] , ".

SECTION 40: [Income Tax Act, sections 4.74 and 4.76] is consequential to the repeal by this

Bill of

section 4.351 of the Act.

40 Sections 4.74 (

b) and 4.76 (1) (b) (ii) are amended by striking out " 4.351 [BC back-to-school tax credit] , ".

SECTION 41: [Income Tax Act,

section 4.78] is consequential to the addition by this Bill of

section 4.351 to the Act.

Section 4.78 (2) is amended by adding the following paragraph:

(c.31)

section 4.351 [BC back-to-school tax credit] ; .

SECTION 42: [Income Tax Act,

section 4.78] is consequential to the addition by this Bill of

section 4.37 to the Act.

Section 4.78 (2) is amended by adding the following paragraph:

(c.5)

section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] ; .

SECTION 43: [Income Tax Act,

section 4.78] is consequential to the repeal by this Bill of

sections 4.34, 4.341 and 4.35 of the Act.

Section 4.78 (2) (c.2), (c.21) and (c.3) is repealed.

SECTION 44: [Income Tax Act,

section 4.78] is consequential to the repeal by this Bill of

section 4.351 of the Act.

Section 4.78 (2) (c.31) is repealed.

SECTION 45: [Income Tax Act,

section 4.79] is consequential to the addition by this Bill of

section 4.351 to the Act.

Section 4.79 (1) is amended by adding the following paragraph:

(b.1)

section 4.351 [BC back-to-school tax credit] ; .

SECTION 46: [Income Tax Act,

section 4.79] is consequential to the repeal by this Bill of

section 4.351 of the Act and to the addition by this Bill of

section 4.37 to the

Act.

Section 4.79 (1) is amended

(

a) by repealing paragraph (b.1), and

(

b) by adding the following paragraph:

(d.5)

section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] ; .

SECTION 47: [Income Tax Act,

section 4.79] is consequential to the repeal by this Bill of

sections 4.34, 4.341 and 4.35 of the Act.

Section 4.79 (1) (d.2), (d.21) and (d.3) is repealed.

SECTION 48: [Income Tax Act, sections 14, 16 and 25] increases from 11% to 12% the corporate

income tax rate established by

section 14 (2) of the Act.

48 Sections 14 (2) and (3.1) (a), 16 (1) (

b) and (2) (

b) and 25 (2) are amended by striking out " 11% " and substituting " 12% ".

SECTION 49: [Income Tax Act,

section 16] reduces the small business corporate tax rate

from 2.5% to 2% effective April 1, 2017.

Section 16 (1) (

a) and (b), (2) (

a) and (

b) and (4) is amended by striking out " 2.5% " and substituting " 2% ".

SECTION 50: [Income Tax Act,

section 16] ends the phase-out of the preferential tax rate for

credit unions.

Section 16 (2) (

a) is amended

(

a) by repealing the description of "D" and substituting the following:

means the amount, if any, by which

(

i) the amount that would be determined, in respect of the corporation for the taxation year, under the description of "D" in

section 137 (3) of the federal Act if the preferred-rate amount under

section 137 (4.3) of the federal Act were calculated on the basis that, for all taxation years,

section 137 of the federal Act applied as if paragraph (

f) of the description of "C" in

section 137 (3) of the federal Act were read as "the proportion of 100% that the number of days in the year that are after 2016 is of the number of days in the year"

exceeds

(ii) the amount determined under the description of "C" in this paragraph, and

, and

(

b) by repealing subparagraphs (iii) to (vi) of the description of "E" and substituting the following:

(iii) for any taxation year, or part of a taxation year, that is after December 31, 2016, the applicable amount for that taxation year or

part is determined by dividing the number of days in the taxation year that are after December 31, 2016 by the total number of days in that taxation year, and .

SECTION 51: [Income Tax Act,

section 25.1] is consequential to the amendment made by

this Bill to

section 4.721 of the Act.

Section 25.1 (1) is amended

(

a) in paragraph (f.2) (

i) of the definition of "excluded expense" by striking out " before January 1, 2017 " and substituting " before January 1, 2018 ", and

(

b) in paragraph (f.2) (ii) of the definition of "excluded expense" by striking out " after December 31, 2016 " and substituting " after December 31, 2017 " and by striking out " before January 1, 2018 " and substituting " before January 1, 2019 ".

SECTION 52: [Income Tax Act,

section 25.1]

amends the definition of "excluded expense" to add an exception for expenses incurred after February 28, 2015 in relation to environmental studies or community consultations;

amends the definition of "qualified mining exploration expense" to include expenses incurred after February 28, 2015 in relation to environmental studies or community consultations;

is consequential to the amendment made by this Bill to the definition of "qualified mining exploration expense".

Section 25.1 is amended

(

a) in subsection (1) in paragraph (

a) of the definition of "excluded expense" by adding " other than an expense incurred after February 28, 2015 for environmental studies or community consultations undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia, " after " the federal Act, ",

(

b) in subsection (1) in paragraph (

c) of the definition of "qualified mining exploration expense" by striking out everything after " including " and substituting the following:

(

i) such an expense incurred after February 28, 2015 for environmental studies or community consultations, including environmental studies or community consultations undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia, and

(ii) any expense incurred in the course of

(

A) prospecting,

(

B) carrying out geological, geophysical or geochemical surveys,

(

C) drilling by rotary, diamond, percussion or other methods, or

(

D) trenching, digging test pits and preliminary sampling, and , and

(

c) in subsection (4.5) (

b) by striking out " reference " and substituting " references ".

SECTION 53: [Income Tax Act,

section 64] adds authorization for the provision of taxpayer

information for the administration and enforcement of the Home Owner Grant

Act .

Section 64 (5) (

c) is amended by adding the following subparagraph:

(iii.3) to an official solely for the purposes of the administration or enforcement of the Home Owner Grant Act , including for greater certainty a purpose set out in

section 13.1 (3) (b) (ii) or (iii) or (

c) of that Act, except in respect of court proceedings related to the Land Tax Deferment Act , .

SECTION 54: [Income Tax Act,

section 77.2] adds a requirement that the British Columbia

Assessment Authority provide the Minister of National Revenue and the Commissioner

of Income Tax assistance and access to its records at no charge.

54 The following

section is added:

British Columbia Assessment Authority must provide information

77.2 The British Columbia Assessment Authority must provide, without charge, assistance and access to its records to the minister and the Commissioner of Income Tax.

SECTION 55: [Income Tax Act,

section 97] extends by 5 years the availability of the scientific

research and experimental development tax credit.

Section 97 is amended in paragraph (

b) of the definition of "BC qualified expenditure" by striking out " September 1, 2017 " and substituting " September 1, 2022 ".

SECTION 56: [Income Tax Act,

section 111] extends by one year the availability of the book

publishing tax credit.

Section 111 (1) is amended in the definition of "CBF contribution" by striking out " April 1, 2017 " and substituting " April 1, 2018 ".

SECTION 57: [Income Tax Act,

section 117] extends by one year the availability of the

training tax credit for eligible individuals.

Section 117 is amended by striking out " January 1, 2018 " and substituting " January 1, 2019 ".

SECTION 58: [Income Tax Act,

section 121] extends by one year the availability of the

training tax credit for eligible employers.

Section 121 is amended by striking out " December 31, 2017 " and substituting " December 31, 2018 ".

SECTION 59: [Income Tax Act,

section 133]

amends the eligibility criteria for the interactive digital media tax credit to provide that corporations with eligible salary and wages of greater than $2 million are eligible for the tax credit without having to meet the principal business criteria;

allows corporations registered under

Part 2 of the Small Business Venture Capital Act to be eligible for the interactive digital media tax credit under

Part 10 of the Income Tax Act .

Section 133 is amended

(

a) by repealing subsection (1) (

d) and (

e) and substituting the following:

(

d) either of the following applies:

(

i) the corporation's eligible salary and wages, as determined under

section 134 (2) for the taxation year, is equal to or greater than $2 million;

(ii) the corporation's eligible salary and wages, as determined under

section 134 (2) for the taxation year, is greater than $100 000 and less than $2 million and either of the following applies:

(

A) the corporation's principal business in the taxation year is the development of interactive digital media products;

(

B) all or substantially all of the corporation's business in the taxation year consists of one or both of the following:

(

I) the development of interactive digital media products;

(II) the provision of eligible activities to one or more recipient corporations that meet the criteria set out in subsection (1.1) of this section. ,

(

b) by adding the following subsection:

(1.1) The criteria for the purposes of subsection (1) (d) (ii) (B) (II) are as follows:

(

a) the recipient corporation has a permanent establishment in British Columbia;

(

b) in a taxation year of the recipient corporation that includes any part of the taxation year of the corporation that is providing the eligible activities,

(

i) the principal business of the recipient corporation is the development of interactive digital media products, or

(ii) the eligible salary and wages of the recipient corporation, as determined under

section 134 (2), is equal to or greater than $2 million. ,

(

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

(2) If a corporation has a taxation year of less than 365 days,

(

a) the reference in subsection (1) (d) (

i) and (ii) to $2 million is to be read in respect of the corporation as a reference to the amount equal to that proportion of $2 million that the number of days in the taxation year bears to 365, and

(

b) the reference in subsection (1) (d) (ii) to $100 000 is to be read in respect of the corporation as a reference to the amount equal to that proportion of $100 000 that the number of days in the taxation year bears to 365.

(2.1) If a recipient corporation has a taxation year of less than 365 days, the reference in subsection (1.1) (b) (ii) to $2 million is to be read in respect of the recipient corporation as a reference to the amount equal to that proportion of $2 million that the number of days in the taxation year bears to 365. ,

(

d) by repealing subsection (3) (g), and

(

e) in subsection (3) (

h) by striking out " paragraphs (

a) to (g) " and substituting " paragraphs (

a) to (f) ".

International Business Activity Act

SECTION 60: [International Business Activity Act,

section 8] provides that the Act does not

apply to taxation years beginning after September 11,

Section 8 of the International Business Activity Act, S.B.C. 2004, c. 49, is amended by adding the following subsection:

(3) This Act does not apply to a corporation or an individual for taxation years beginning after September 11, 2017.

SECTION 61: [International Business Activity Act, Division 0.1 of

Part 2] provides the following:

a corporation or individual may not be registered unless any required applications, notices, information, records and fees are submitted on or before September 11, 2017;

a registered corporation is not required to meet specified requirements after September 11, 2017 and the registration of the corporation may not be suspended or cancelled only because the corporation fails to meet those requirements after that date.

Part 2 is amended by adding the following Division:

Division 0.1 – Applications and Registration after September 11, 2017

No registrations after September 11, 2017

8.1

(1) Despite Divisions 1 [Corporations] and 2 [Individuals] , after September 11, 2017,

(

a) an application for registration of a corporation may not be made under

section 9 [application for registration] ,

(

b) a corporation may not be registered under

section 10 (1) [registration] unless the corporation submits, on or before September 11, 2017, the application for registration and any information, records or fees required under

section 9,

(

c) if 2 or more corporations to which

section 10 (2) applies have amalgamated, the new corporation may not be registered under that

section unless

(

i) the date of amalgamation is on or before September 11, 2017, and

(ii) the new corporation submits, within 90 days after the date of amalgamation, the notice and any information or records required under

section 10 (2) (a),

(

d) if 2 or more corporations to which

section 10 (3) applies have amalgamated, the new corporation may not be registered under that

section unless the date of amalgamation is on or before September 11, 2017,

(

e) an application for registration of an individual may not be made under

(

i) section 13 [application for registration of IFA specialists] ,

(ii)

section 13.1 [application for registration of administrative support specialists] ,

(iii)

section 13.2 [application for registration of executive specialists] , or

(iv)

section 13.3 [application for registration of specialists in designated international business] , and

(

f) an individual may not be registered under

section 14 [registration of IB specialist] unless the corporation applying for registration submits, on or before September 11, 2017, the application for registration and any information or records required under

section 13.4 [general rules for applications for specialist].

(2) Despite Divisions 1 and 2, a notice of refusal of registration is not required in relation to a registration that may not be made as a result of this section.

Conditions of registration after September 11, 2017

8.2

(1) Despite

section 11 (1) [conditions of registration] , after September 11, 2017, a registered corporation is not required to

(

a) continue to meet the requirements of

section 9 (1) [application for registration] ,

(

b) continue to carry on an international business, or

(

c) remain a member of the Society.

(2) Despite

section 12 [suspension or cancellation of registration and refusal to register] , the commissioner may not suspend or cancel the registration of a corporation only because the corporation, after September 11, 2017, fails to meet any of the requirements referred to in subsection (1) of this section.

SECTION 62: [International Business Activity Act,

section 17.1] provides that, for taxation

years that include September 11, 2017, an eligible refund is to be calculated

based only on the number of days before September 12, 2017 that the corporation

was a registered corporation.

Section 17.1 (2) (

b) is amended in the description of "days registered"

(

a) in subparagraph (

i) by striking out " subject to subparagraph (ii), " and substituting " subject to subparagraphs (ii) and (iii), ", and

(

b) by adding the following subparagraph:

(iii) if the taxation year includes September 11, 2017, the number of days in the taxation year before September 12, 2017 that the corporation was a registered corporation; .

SECTION 63: [International Business Activity Act, sections 19, 19.001, 19.01 and 19.02] provides that, for taxation years that include September 11, 2017, IB income

for a corporation is to be calculated based only on that part of the taxation year

that is before September 12, 2017 and during which the corporation was a registered

corporation.

63 Sections 19, 19.001, 19.01 (2) and 19.02 are amended in the description of "IB income" by striking out " that part of the taxation year that the corporation was a registered corporation; " and substituting " that part of the taxation year that is before September 12, 2017 and during which the corporation was a registered corporation; ".

SECTION 64: [International Business Activity Act,

section 19.03] is consequential to

amendments made by this Bill to sections 19, 19.001, 19.01 and 19.02 of the

Act.

Section 19.03 is amended

(

a) in subsections (2) and (3) by striking out " for the taxation year that " and substituting " for that part of the taxation year that is before September 12, 2017 that ", and

(

b) in subsections (2) (

b) and (3) (

b) by striking out " for all or part of the year during which the individual was registered, " and substituting " for all or part of the taxation year that is before September 12, 2017 and during which the individual was registered, ".

SECTION 65: [International Business Activity Act,

section 21] provides that, for taxation

years that include September 11, 2017, the requirements in subsections

(2) to (8) of that

section must be met in respect of that part of the taxation year that

is before September 12, 2017 and during which the individual was registered.

Section 21 is amended

(

a) in subsections (2), (3), (4) and (5) by striking out " for the part of the taxation year the individual was an IB specialist, " and substituting " for the part of the taxation year that is before September 12, 2017 and during which the individual was an IB specialist, ", and

(

b) by adding the following subsection:

(9) Despite subsections (7) and (8), if the taxation year referred to in either of those subsections includes September 11, 2017, an individual must have received, before September 12, 2017, remuneration that is,

(

a) in the case of an individual to whom subsection (7) applies, $274 or more for each day in the taxation year before September 12, 2017 during which the individual was registered, and

(

b) in the case of an individual to whom subsection (8) applies, $685 or more for each day in the taxation year before September 12, 2017 during which the individual was registered.

SECTION 66: [International Business Activity Act,

section 23] provides that, for taxation

years that include September 11, 2017, IB income for an individual is to be

calculated based only on that part of the taxation year that is before September

12, 2017 and during which the corporation was a registered corporation.

Section 23 (1) is amended in the description of "IB income"

(

a) by striking out " for that part of the taxation year that the corporation was a registered corporation " and substituting " for that part of the taxation year that is before September 12, 2017 and during which the corporation was a registered corporation ", and

(

b) by striking out " the federal Act; " and substituting " the federal Act for that part of the taxation year that is before September 12, 2017; ".

SECTION 67: [International Business Activity Act, sections 24 and 28] removes the discretion

of the commissioner to extend the deadline for filing returns.

67 Sections 24 (1) and 28 (4) (a) (

i) are amended by striking out " or within a later period approved by the commissioner ".

Motor Fuel Tax Act

SECTION 68: [Motor Fuel Tax Act,

section 1] amends the definition of "locomotive fuel" to

exclude natural gas.

Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended in the definition of "locomotive fuel" by adding " and natural gas " after " propane ".

Property Transfer Tax Act

SECTION 69: [Property Transfer Tax Act,

section 4] increases by $25 000 the dollar

amount in respect of which the first time home buyer tax exemption may be

applied.

Section 4 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended in the definition of "qualifying value" by striking out " $475 000 " and substituting " $500 000 ".

Provincial Sales Tax Act

SECTION 70: [Provincial Sales Tax Act,

section 34] provides for a rate of tax on the purchase

price of electricity.

Section 34 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended by adding the following subsection:

(10) The rate of tax payable under sections 37, 49 (6) (a), 52, 81, 82, 84 and 86 on electricity is 3.5% of the purchase price of the electricity.

SECTION 71: [Provincial Sales Tax Act,

section 34] repeals the rate of tax on the purchase

price of electricity.

Section 34 (10) is repealed.

SECTION 72: [Provincial Sales Tax Act,

section 36] provides for a rate of tax on the fair

market value of electricity.

Section 36 is amended by adding the following subsection:

(10) The rate of tax payable under

section 49 (6) (

c) on electricity is 3.5% of the fair market value of the electricity on the entry date of the electricity.

SECTION 73: [Provincial Sales Tax Act,

section 36] repeals the rate of tax on the fair market

value of electricity.

Section 36 (10) is repealed.

SECTION 74: [Provincial Sales Tax Act,

section 140.1] provides for an exemption from tax

imposed under

Part 3 of the Act on electricity.

74 The following

section is added:

Exemption in relation to electricity

140.1 Electricity is exempt from tax imposed under

Part 3. SECTION 75: [Provincial Sales Tax Act,

section 141] is consequential to the addition by

this Bill of

section 140.1 to the Act.

Section 141 (3) is amended by striking out " , other than electricity used in an electrolytic process, ".

Tobacco Tax Act

SECTION 76: [Tobacco Tax Act,

section 2] increases the tax on cigarettes to 24.7¢ per cigarette

and the tax on tobacco, other than cigars or cigarettes, to 24.7¢ per gram.

Section 2 (2) and (3) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by striking out " 23.9¢ " and substituting " 24.7¢ ".

Transitional Provisions

SECTION 77: [Provincial Sales Tax Act transition – applicable rate for electricity] provides

for the implementation of the new rates of tax on electricity, added to the

Act by this Bill.

Provincial Sales Tax Act transition –

applicable rate for electricity

(1) In this section:

"Act" means the Provincial Sales Tax Act ;

"transition date" means the date

section 34 (10) of the Act comes into force.

(2) For the purposes of

section 37 of the Act, the applicable rate under

section 34 (10) of the Act does not apply in respect of any consideration for the purchase of electricity that, before the transition date, becomes due or is paid without having become due.

(3) If all or any portion of the consideration for the purchase of electricity is not ascertainable before the transition date, for the purposes of

section 37 of the Act, the applicable rate under

section 34 (10) of the Act applies in respect of that or any portion of that consideration that becomes ascertainable on or after the transition date.

(4) For the purposes of sections 49 and 52 of the Act, the applicable rate under sections 34 (10) and 36 (10) of the Act does not apply in relation to electricity if, before the transition date,

(

a) the electricity is brought or sent into British Columbia, or

(

b) delivery of the electricity is received in British Columbia.

(5) If it is not ascertainable when electricity is brought or sent into British Columbia or when delivery of electricity is received in British Columbia, for the purposes of sections 49 and 52 of the Act, the applicable rate under sections 34 (10) and 36 (10) of the Act applies in relation to electricity for which it is ascertainable that, on or after the transition date,

(

a) the electricity is brought or sent into British Columbia, or

(

b) delivery of the electricity is received in British Columbia.

(6) For the purposes of sections 81 and 84 of the Act, the applicable rate under

section 34 (10) of the Act applies in relation to electricity if the person referred to in

section 81 or 84 of the Act first becomes a user of the electricity on or after the transition date.

(7) For the purposes of sections 82 and 86 of the Act, the applicable rate under

section 34 (10) of the Act applies in relation to electricity if, on or after the transition date, a person subsequently uses that electricity, or allows that electricity to be used, for a purpose for which the person must then pay tax under

section 82 (1) or 86 (1) of the Act.

SECTION 78: [Provincial Sales Tax Act transition – exemption for electricity] provides for the implementation of the exemption from tax on electricity, added to the Act by this Bill.

Provincial Sales Tax Act transition –

exemption for electricity

(1) In this section, "Act" means the Provincial Sales Tax Act .

(2) For the purposes of exempting electricity from tax imposed under

section 37 of the Act,

section 140.1 of the Act does not apply in respect of any consideration for the purchase of electricity that, before April 1, 2019, becomes due or is paid without having become due.

(3) If all or any portion of the consideration for the purchase of electricity is not ascertainable before April 1, 2019, for the purposes of exempting electricity from tax imposed under

section 37 of the Act,

section 140.1 of the Act applies in respect of that or any portion of that consideration that becomes ascertainable on or after April 1, 2019.

(4) For the purposes of exempting electricity from tax imposed under

section 49 or 52 of the Act,

section 140.1 of the Act does not apply in relation to electricity if, before April 1, 2019,

(

a) the electricity is brought or sent into British Columbia, or

(

b) delivery of the electricity is received in British Columbia.

(5) If it is not ascertainable when electricity is brought or sent into British Columbia or when delivery of electricity is received in British Columbia, for the purposes of exempting electricity from tax imposed under

section 49 or 52 of the Act,

section 140.1 of the Act applies in relation to electricity for which it is ascertainable that, on or after April 1, 2019,

(

a) the electricity is brought or sent into British Columbia, or

(

b) delivery of the electricity is received in British Columbia.

Commencement

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

Item

Column 1

Provisions of Act

Column 2

Commencement

Anything not elsewhere covered by this table

April 1, 2019

Sections 76 and 77

By regulation of the Lieutenant Governor in Council

Section 78

April 1, 2019

Explanatory Notes

SECTION 1: [North Island-Coast Development Initiative Trust Act,

section 17]

increases by $10 million the total amount that may be paid by the government to the North Island-Coast Development Initiative Trust;

SECTION 2: [Transportation Investment Act,

section 24.1] is consequential to the amendment

section 24.3 (2) of the Act by this Bill.

SECTION 3: [Transportation Investment Act,

section 24.2] provides for the share in the

Transportation Investment Corporation to be registered in the name of and

held by the BC Transportation Financing Authority.

SECTION 4: [Transportation Investment Act,

section 24.3]

(

a) provides for directors of the Transportation Investment Corporation to be appointed by the board of directors of the BC Transportation Financing Authority, and

(

b) removes the requirement that the board elect a vice chair.

SECTION 5: [Transportation Investment Act,

section 24.33] repeals a

section respecting

meetings of the board.

SECTION 6: [Transportation Investment Act,

section 24.34] is consequential to the repeal

section 24.33 of the Act by this Bill.

SECTION 7: [Transition – presentation and reporting obligations for 2017-2018 fiscal

year] clarifies which main estimates and other documents are to be used for

the purposes of the Budget Transparency and Accountability Act , the Balanced

Budget and Ministerial Accountability Act and the Carbon Tax Act in

relation to the 2017-2018 fiscal year.

SECTION 8: [Transportation Investment Act transition]

provides for the transfer of the share in the Transportation Investment Corporation to the BC Transportation Financing Authority;

SECTION 9: [Carbon Tax Act,

section 1] amends the definition of "scheduled rate change"

consequential to proposed modifications in a rate of tax set out in the Table in

Schedule 1 that are to come into effect as of April 1 of a year.

SECTION 10: [Carbon Tax Act,

Part 2] repeals provisions respecting plans and reports.

SECTION 11: [Carbon Tax Act,

Schedule 1] provides for an end date for the period starting

July 1, 2012 in relation to the rate of tax payable with respect to fuel.

SECTION 12: [Carbon Tax Act,

Schedule 1] sets out the tax rates for fuels that apply for the

year starting April 1, 2018 and each subsequent year starting April 1.

SECTION 13: [Carbon Tax Act,

Schedule 2] provides for an end date for the period starting

July 1, 2012 in relation to the rate of tax payable with respect to combustibles.

SECTION 14: [Carbon Tax Act,

Schedule 2] sets out the tax rates for combustibles that

apply for the year starting April 1, 2018 and each subsequent year starting

April 1.

SECTION 15: [Home Owner Grant Act,

section 13.1]

adds authority for some uses and disclosures, and excludes from those permitted uses and disclosures information that was collected as a result of disclosure under the Income Tax Act ;

adds authority for use and disclosure of information collected under the Act for the administration and enforcement of the Income Tax Act .

SECTION 16: [Income Tax Act,

section 4.1] establishes a personal income tax bracket for

taxable income that exceeds $150 000.

SECTION 17: [Income Tax Act,

section 4.34] provides for the child fitness credit to be

claimed under the Act for the 2017 taxation year, despite the repeal on January

1, 2017 of

section 122.8 [child fitness tax credit] of the Income Tax Act (Canada).

SECTION 18: [Income Tax Act, sections 4.34 and 4.341] repeals the child fitness credit and

child fitness equipment credit in respect of the 2018 taxation year and subsequent

taxation years.

SECTION 19: [Income Tax Act,

section 4.35] provides for the child arts credit to be claimed

under the Act for the 2016 and 2017 taxation years, as if

section 118.031 (2) [children's art tax credit] of the Income Tax Act (Canada) had not been

amended in respect of the 2016 taxation year and despite the repeal on January

1, 2017 of

section 118.031 of that Act.

SECTION 20: [Income Tax Act,

section 4.35] repeals the child arts credit in respect of the

2018 taxation year and subsequent taxation years.

SECTION 21: [Income Tax Act,

section 4.351] establishes a new BC back-to-school tax

credit for the 2016 taxation year.

SECTION 22: [Income Tax Act,

section 4.351] repeals the BC back-to-school tax credit.

SECTION 23: [Income Tax Act,

section 4.37] establishes a new tax credit for volunteer firefighters

and search and rescue volunteers.

SECTION 24: [Income Tax Act,

section 4.51] is consequential to the addition by this Bill of

section 4.351 to the Act.

SECTION 25: [Income Tax Act,

section 4.51] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

SECTION 26: [Income Tax Act, sections 4.51, 4.65, 4.66, 4.74 and 4.76] is consequential to

the repeal by this Bill of sections 4.34, 4.341 and 4.35 of the Act.

SECTION 27: [Income Tax Act,

section 4.52] is consequential to the enactment by this Bill

section 4.1 (1) (

g) of the Act.

SECTION 28: [Income Tax Act,

section 4.62] is consequential to the addition by this Bill of

section 4.351 to the Act.

SECTION 29: [Income Tax Act,

section 4.62] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

SECTION 30: [Income Tax Act,

section 4.62] is consequential to the repeal by this Bill of

sections 4.34, 4.341 and 4.35 of the Act.

SECTION 31: [Income Tax Act,

section 4.65] is consequential to the addition by this Bill of

section 4.351 to the Act.

SECTION 32: [Income Tax Act,

section 4.65] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

SECTION 33: [Income Tax Act,

section 4.66] is consequential to the addition by this Bill of

section 4.351 to the Act.

SECTION 34: [Income Tax Act,

section 4.66] is consequential to the repeal by this Bill of

section 4.351 of the Act and the addition by this Bill of

section 4.37 to the Act.

SECTION 35: [Income Tax Act,

section 4.69] reduces for the 2017 and subsequent taxation

years the percentage applied in determining the dividend tax credit for dividends

other than eligible dividends.

SECTION 36: [Income Tax Act,

section 4.69] increases from 36 6/19% to 43 11/19% the

percentage applied in determining the dividend tax credit for eligible dividends

for the 2019 and subsequent taxation years.

SECTION 37: [Income Tax Act,

section 4.721] amends the definition of "BC flow-through

mining expenditure" to extend by one year the time frame in which expenses

referred to in the definition are incurred and makes consequential amendments.

SECTION 38: [Income Tax Act, sections 4.74 and 4.76] is consequential to the addition by

this Bill of

section 4.37 to the Act.

SECTION 39: [Income Tax Act, sections 4.74 and 4.76] is consequential to the addition by

this Bill of

section 4.351 to the Act.

SECTION 40: [Income Tax Act, sections 4.74 and 4.76] is consequential to the repeal by this

Bill of

section 4.351 of the Act.

SECTION 41: [Income Tax Act,

section 4.78] is consequential to the addition by this Bill of

section 4.351 to the Act.

SECTION 42: [Income Tax Act,

section 4.78] is consequential to the addition by this Bill of

section 4.37 to the Act.

SECTION 43: [Income Tax Act,

section 4.78] is consequential to the repeal by this Bill of

sections 4.34, 4.341 and 4.35 of the Act.

SECTION 44: [Income Tax Act,

section 4.78] is consequential to the repeal by this Bill of

section 4.351 of the Act.

SECTION 45: [Income Tax Act,

section 4.79] is consequential to the addition by this Bill of

section 4.351 to the Act.

SECTION 46: [Income Tax Act,

section 4.79] is consequential to the repeal by this Bill of

section 4.351 of the Act and to the addition by this Bill of

section 4.37 to the

Act.

SECTION 47: [Income Tax Act,

section 4.79] is consequential to the repeal by this Bill of

sections 4.34, 4.341 and 4.35 of the Act.

SECTION 48: [Income Tax Act, sections 14, 16 and 25] increases from 11% to 12% the corporate

income tax rate established by

section 14 (2) of the Act.

SECTION 49: [Income Tax Act,

section 16] reduces the small business corporate tax rate

from 2.5% to 2% effective April 1, 2017.

SECTION 50: [Income Tax Act,

section 16] ends the phase-out of the preferential tax rate for

credit unions.

SECTION 51: [Income Tax Act,

section 25.1] is consequential to the amendment made by

this Bill to

section 4.721 of the Act.

SECTION 52: [Income Tax Act,

section 25.1]

amends the definition of "excluded expense" to add an exception for expenses incurred after February 28, 2015 in relation to environmental studies or community consultations;

amends the definition of "qualified mining exploration expense" to include expenses incurred after February 28, 2015 in relation to environmental studies or community consultations;

is consequential to the amendment made by this Bill to the definition of "qualified mining exploration expense".

SECTION 53: [Income Tax Act,

section 64] adds authorization for the provision of taxpayer

information for the administration and enforcement of the Home Owner Grant

Act .

SECTION 54: [Income Tax Act,

section 77.2] adds a requirement that the British Columbia

Assessment Authority provide the Minister of National Revenue and the Commissioner

of Income Tax assistance and access to its records at no charge.

SECTION 55: [Income Tax Act,

section 97] extends by 5 years the availability of the scientific

research and experimental development tax credit.

SECTION 56: [Income Tax Act,

section 111] extends by one year the availability of the book

publishing tax credit.

SECTION 57: [Income Tax Act,

section 117] extends by one year the availability of the

training tax credit for eligible individuals.

SECTION 58: [Income Tax Act,

section 121] extends by one year the availability of the

training tax credit for eligible employers.

SECTION 59: [Income Tax Act,

section 133]

allows corporations registered under

Part 2 of the Small Business Venture Capital Act to be eligible for the interactive digital media tax credit under

Part 10 of the Income Tax Act .

SECTION 60: [International Business Activity Act,

section 8] provides that the Act does not

apply to taxation years beginning after September 11, 2017.

SECTION 61: [International Business Activity Act, Division 0.1 of

Part 2] provides the following:

a corporation or individual may not be registered unless any required applications, notices, information, records and fees are submitted on or before September 11, 2017;

SECTION 62: [International Business Activity Act,

section 17.1] provides that, for taxation

years that include September 11, 2017, an eligible refund is to be calculated

based only on the number of days before September 12, 2017 that the corporation

was a registered corporation.

SECTION 63: [International Business Activity Act, sections 19, 19.001, 19.01 and 19.02] provides that, for taxation years that include September 11, 2017, IB income

for a corporation is to be calculated based only on that part of the taxation year

that is before September 12, 2017 and during which the corporation was a registered

corporation.

SECTION 64: [International Business Activity Act,

section 19.03] is consequential to

amendments made by this Bill to sections 19, 19.001, 19.01 and 19.02 of the

Act.

SECTION 65: [International Business Activity Act,

section 21] provides that, for taxation

years that include September 11, 2017, the requirements in subsections

(2) to (8) of that

section must be met in respect of that part of the taxation year that

is before September 12, 2017 and during which the individual was registered.

SECTION 66: [International Business Activity Act,

section 23] provides that, for taxation

years that include September 11, 2017, IB income for an individual is to be

calculated based only on that part of the taxation year that is before September

12, 2017 and during which the corporation was a registered corporation.

SECTION 67: [International Business Activity Act, sections 24 and 28] removes the discretion

of the commissioner to extend the deadline for filing returns.

SECTION 68: [Motor Fuel Tax Act,

section 1] amends the definition of "locomotive fuel" to

exclude natural gas.

SECTION 69: [Property Transfer Tax Act,

section 4] increases by $25 000 the dollar

amount in respect of which the first time home buyer tax exemption may be

applied.

SECTION 70: [Provincial Sales Tax Act,

section 34] provides for a rate of tax on the purchase

price of electricity.

SECTION 71: [Provincial Sales Tax Act,

section 34] repeals the rate of tax on the purchase

price of electricity.

SECTION 72: [Provincial Sales Tax Act,

section 36] provides for a rate of tax on the fair

market value of electricity.

SECTION 73: [Provincial Sales Tax Act,

section 36] repeals the rate of tax on the fair market

value of electricity.

SECTION 74: [Provincial Sales Tax Act,

section 140.1] provides for an exemption from tax

imposed under

Part 3 of the Act on electricity.

SECTION 75: [Provincial Sales Tax Act,

section 141] is consequential to the addition by

this Bill of

section 140.1 to the Act.

SECTION 76: [Tobacco Tax Act,

section 2] increases the tax on cigarettes to 24.7¢ per cigarette

and the tax on tobacco, other than cigars or cigarettes, to 24.7¢ per gram.

SECTION 77: [Provincial Sales Tax Act transition – applicable rate for electricity] provides

for the implementation of the new rates of tax on electricity, added to the

Act by this Bill.

SECTION 78: [Provincial Sales Tax Act transition – exemption for electricity] provides for the implementation of the exemption from tax on electricity, added to the Act by this Bill.

c) Queen’s Printer, Victoria, British Columbia, Canada

Document details

Collection	British Columbia — Bills
Citation	2-41 Gov Bill 2-1
Type	bill
Volume / chapter	billsprevious 2nd41st gov02 1
Language	en
Format	xml
Source	PROVINCIAL
Identifier	3a8b5eae55a0c81308166bc61dada4c23635d15a

Source file is stored in the law ingest library (xml).