Act BEFORE repealed by 2013-1-114 , effective April 1, 2013.

Social Service Tax Act

General

Definitions and

interpretation

In this Act:

12 month period

, in relation to tangible personal property, means for the purposes of

section 12 (2) and 14 (1) (

a) the period beginning on the date the property is first brought or sent into, or is delivered in, British Columbia during any year and ending on the day before the first anniversary of that date, and

if the property is in British Columbia for a continuous period that is longer than the period referred to in paragraph (a), the period beginning on the day after the immediately previous 12 month period and ending on the day before the first anniversary of that date;

apparatus

, for the purposes of the definition of fixture , means a complex machine or device designed to accomplish a specific purpose and consisting of an integrated assembly of parts each having a definite function;

assessment

includes reassessment;

catalyst

means a substance that produces or modifies a chemical reaction and that, at the end of the reaction, is unchanged;

collector

means a person who has collected taxes under this Act;

commissioner

means the person appointed by the Lieutenant Governor in Council to administer this Act;

conveyance

does not include a vehicle;

dedicated telecommunication service

means the right, whether exercised or not, to send from British Columbia or receive in British Columbia one or more telecommunications by using a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of the purchaser of the service;

dedicated telecommunication system

means a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of a person as a result of that person having purchased the right to send from British Columbia or receive in British Columbia one or more telecommunications by that circuit, communications channel, partial communications channel or other means of sending or receiving a telecommunication;

direct agent

means a substance that produces or modifies a chemical reaction and that is consumed in the chemical reaction to the point of destruction or dissipation or uselessness for any other purpose;

entry date

, in relation to any tangible personal property, means the date on which the person liable to pay the tax on the property first brings or sends the property into, or receives delivery of the property in, British Columbia;

fair market value

means

in relation to tangible personal property, other than rights or services deemed to be tangible personal property under

section 39, 45, 52, 60 or 65, the price at which the legal and beneficial interest in the tangible personal property would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market, and

in relation to a parking right or service, including a service under Division 4, 5, 6 or 7 of

Part 2, the price at which the right or service would be provided by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market,

and must be determined in a manner that includes any charges, costs or expenses referred to in paragraph (a) (

i) or (ii) of the definition of "purchase price", and for the purposes of

section 11 (4.1), must be determined in a manner that also includes any costs or expenses referred to in paragraph (a) (ii) of the definition of "purchase price" that were incurred by the person who provided the gift;

fixture

means machinery, equipment or apparatus that is

a fixture at common law, and

used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or in the provision of a service;

interjurisdictional commercial purposes

means, in relation to a vehicle, use of the vehicle in British Columbia while the vehicle is engaged in interprovincial or international trade for the commercial carriage of passengers or goods;

lease

means an agreement under which a person is given a right to use tangible personal property, but does not include

a lease of tangible personal property if, as part of the agreement between the parties, the person supplying the tangible personal property supplies a person to operate it, or

the leasing of furnishings if

the furnishings are leased under an agreement to lease a house, apartment or other residential accommodation, and

the rent payments under the lease are not divided into separate amounts for the accommodation and the furnishings;

lease price

means the total consideration paid by the lessee to the person granting a lease for each rental period under the lease for the right to use the leased property, and includes

any payment or consideration or part of a payment or consideration that is, or is expressed to be, a licence fee or royalty fee,

any payment or consideration, in addition to those made for rental periods, by a lessee to a person granting a lease for the right to use the leased property, including a down payment,

any payment or consideration, including a membership fee, that is in addition to payments or consideration for rental periods, a substantial benefit of which is a reduction in the lease price of tangible personal property,

any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made by the lessee of the leased property,

if the property is leased outside British Columbia and subsequently brought, sent into or received in British Columbia for use in British Columbia, the charges to the lessee for customs, excise, transportation, service and other similar costs incurred by the lessee before the lessee uses the leased property in British Columbia, and

in respect of a transaction that is in part a lease of tangible personal property under which a person (in this paragraph referred to as "the exhibitor") is given the right or authority to exhibit a motion picture to others, the total consideration that

is paid by the exhibitor to the person with whom the exhibitor entered into the transaction, and

is not otherwise included in this definition;

legal services

means

services that come within the meaning of the practice of law under the Legal Profession Act ,

services described in

section 18 of the Notaries Act , and

legally related services prescribed as legal services,

but does not include services provided by a person to that person's employer in the course of employment;

lessee

means a person who leases tangible personal property

for the person's own use in British Columbia,

for use in British Columbia by another person at the first person's expense, or

on behalf of, or as the agent for, a principal who desires to lease the property for use in British Columbia by that principal or another person at the principal's expense;

lessor

means a person who, in the ordinary course of the person's business in British Columbia, leases tangible personal property to a lessee in British Columbia;

liquor

means liquor as defined in the Liquor Distribution Act ;

magazines

means printed and bound publications in a magazine format

that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and

where at least 10% of the content, determined in accordance with the regulations and in accordance with

section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,

but does not include a prescribed type of publication;

manufactured home

means

a mobile home manufactured to Canadian Standards Association Standard Z240,

any other mobile home that is similar in design and construction to a mobile home constructed to Canadian Standards Association Standard Z240,

a modular home manufactured to Canadian Standards Association Standard A277, or

any other modular home built to a standard required by the National Building Code of Canada and qualifying for Canada Mortgage and Housing Corporation financing,

if the unit or each module is in all essential features completely constructed prior to delivery from the factory;

mineral

means metal ore and every natural substance that can be mined and that

occurs in fragments or particles lying on, above or adjacent to the bedrock source from which it is derived, and is commonly described as talus,

is in the place or position in which it was originally formed or deposited, or

is loose, fragmentary or broken rock or float that, by decomposition or erosion of rock, is found in wash, loose earth, gravel or sand,

and includes tailings, building and construction stone, marble, shale, clay, sand and gravel, but does not include petroleum, natural gas, volcanic ash, earth, soil, marl or peat;

motor vehicle

means motor vehicle as defined in the Motor Vehicle Act ;

multi-jurisdictional vehicle

means a vehicle in respect of which tax is payable under

section 29 (1);

newspapers

means printed and unbound publications in a newspaper format

that are published at regular intervals each year, and

where at least 20% of the content, determined in accordance with the regulations and in accordance with

section 72 (2), is composed of editorials, news and articles of local or common interest, other than advertising and promotional content,

but does not include a prescribed type of publication or advertising material known as flyers, or advertising circulars, even if the flyers or advertising circulars are sold or given away as part of the newspaper;

park

, in respect of a motor vehicle, does not include storage if the motor vehicle is stored for a period of more than 28 consecutive days;

parking period

means, in respect of a parking right, the period for which the parking right is purchased;

parking right

means the right to park a motor vehicle at a parking site for any period of time;

parking site

means any location in British Columbia at which a motor vehicle may, for a price or other consideration, be parked for any period of time;

passenger vehicle

means a motor vehicle designed primarily as a means of transport for individuals and includes vehicles prescribed as passenger vehicles;

periodicals

means printed and bound publications in a periodical format

that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and

where at least 10% of the content, determined in accordance with the regulations, and in accordance with

section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,

but does not include a prescribed type of publication;

person

includes the government and a municipality;

promotional distribution

means the provision by a person to another person of tangible personal property that is provided for one or more of the following purposes:

to describe, promote or encourage the purchase, consumption or use of tangible personal property, services or real property;

to furnish or distribute to a person a catalogue, directory, listing or compilation of persons, places, prices, services, commodities or places of business in respect of the purchase, consumption or use of tangible personal property, services or real property;

a purpose, function or use prescribed by the Lieutenant Governor in Council as a promotional distribution;

promotional distributor

means a person who provides, by way of promotional distribution to another person, tangible personal property the purchase price of which

exceeds the amount of the payment specifically made for the tangible personal property by the person to whom it is provided, or

is not specifically charged to and required to be paid by the person to whom that tangible personal property is provided;

prototype

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

purchase price

means the following:

in relation to tangible personal property, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by the seller or person from whom the property passes as price or on account of the price of the tangible personal property covered by the sale, and includes

any charges for

transportation of the tangible personal property sold, or

interest, finance, service, customs and excise charges in relation to the tangible personal property sold

that are incurred at or before the time that title to the tangible personal property covered by the sale passes under that sale, whether or not those charges are shown separately on the invoice recording the sale or in the seller's books, but does not include interest charges on a conditional sale contract if the amount of those charges is segregated on the invoice or bill of sale or is billed separately to the purchaser, and is payable over the term of the contract,

if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside British Columbia and subsequently brought or sent into or received in British Columbia for use or consumption in British Columbia, the costs and expenses

of and to the user for materials, labour and other manufacturing and processing costs and expenses, and

for service, customs, excise, transportation and other costs and expenses

incurred by the user before the use of the tangible personal property in British Columbia,

iii

in relation to the purchase of ready-mixed concrete that is to be delivered by or on behalf of the vendor to the place where the purchaser intends to use it, the total consideration that is payable by the purchaser to have the ready-mixed concrete delivered to that place, and

any charge, including a royalty or licence fee, relating to the use of the tangible personal property, or to the use of knowledge required to use the tangible personal property, whether incurred before or after the time that title to the tangible personal property covered by the sale passes under that sale;

a.1

in relation to a motor vehicle, means the purchase price under paragraph (

a) less any portion of that price that the seller accepts from the manufacturer of the motor vehicle as price or on account of the price of the motor vehicle covered by the sale;

in relation to legal services, means

the fees and charges, other than those prescribed as excluded, and

the prescribed disbursements

that are billed or otherwise charged to a purchaser for or in relation to the legal services;

in relation to a parking right, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a parking right as price or on account of the price of the parking right;

in relation to a taxable service, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a taxable service as price or on account of the price of the taxable service;

in relation to a telecommunication service, means the total consideration paid by the purchaser for the provision of the service and for each period in respect of which an invoice for or in relation to the service is issued, and includes

sign-up charges,

access charges,

iii

airtime charges,

usage charges,

service charges, and

the following charges for telecommunications provided as part of the service:

in the case of a dedicated telecommunication service, all such charges;

in the case of any other telecommunication service, all such charges in respect of each telecommunication that meets at least 2 of the following criteria:

the telecommunication originates in British Columbia;

the telecommunication is received in British Columbia;

III

the charge for the telecommunication is invoiced with respect to a transmitter that is ordinarily situated in British Columbia;

in relation to prescribed tangible personal property that is sold for a single price with tangible personal property or services that, under this Act, are not subject to tax or are exempt from tax, means the total consideration that is accepted by the seller for all the tangible personal property or services sold for the single price;

f.1

in relation to tangible personal property, other than tangible personal property that is prescribed for the purposes of paragraph (f), that is subject to tax and is sold for a single price with tangible personal property or a service that, under this Act, is not subject to tax or is exempt from tax, means,

if the fair market value of the taxable tangible personal property is more than 90% of the single price and the single price is less than the prescribed amount, the total consideration that is accepted by the seller for all the tangible personal property or services sold for the single price, or

in any other case, the fair market value of the taxable tangible personal property included in the single price;

in relation to fuel oil that is blended with biodiesel fuel, means the amount calculated in accordance with the following formula:

where

the total consideration paid by the purchaser for the blend of fuel oil and biodiesel fuel,

the volume of fuel oil purchased, and

the total volume of the blend of fuel oil and biodiesel fuel purchased;

for the purposes of

section 68.2 (3) in relation to a contract for the supply and installation of improvements to real property, the greater of the following:

the amount paid by the contractor for the tangible personal property referred to in

section 68.2 (1) that would have been the purchase price under paragraph (

a) of this definition had

section 68.2 (2) not applied in relation to that contract;

that part of the total consideration accepted by the contractor under the contract that is expressly attributed to the value of the tangible personal property referred to in

section 68.2 (1);

purchaser

means

a person who acquires tangible personal property at a sale in British Columbia

for the person's own consumption or use,

for consumption or use by another person at the expense of the person acquiring the property, or

iii

on behalf of or as agent for a principal, if the property is for consumption or use by the principal or by another person at the expense of that principal,

a promotional distributor that does not come within paragraph (a), to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for it by the person to whom that property is provided,

a person who agrees to pay or is otherwise obliged to pay consideration for legal services

provided to the person for the person's own benefit or use,

provided to another recipient for that recipient's benefit or use at the person's expense, or

iii

provided to the person on behalf of or as agent for a principal, if the legal services are for the benefit or use of the principal or another person at the expense of that principal,

a person who agrees to pay or is otherwise obliged to pay consideration for a parking right

provided to the person for the person's own benefit or use,

provided to another recipient for that recipient's benefit or use at the person's expense, or

iii

provided to the person on behalf of or as agent for a principal, if the parking right is for the benefit or use of the principal or another person at the expense of that principal,

a person who agrees to pay or is otherwise obliged to pay consideration for a taxable service

provided to the person for the person's own benefit or use,

provided to another recipient for that recipient's benefit or use at the person's expense, or

iii

provided to the person on behalf of or as agent for a principal, if the taxable service is for the benefit or use of the principal or another person at the expense of that principal, and

a person who agrees to pay or is otherwise obliged to pay consideration for a telecommunication service

provided to the person for the person's own use,

provided to another recipient for that recipient's benefit or use at the person's expense, or

iii

provided to the person on behalf of or as agent for a principal, if the telecommunication service is for the benefit or use of the principal or another person at the expense of that principal;

registered charity

has the same meaning as in

section 248 (1) of the Income Tax Act (Canada);

retail sale

means a sale to a purchaser for purposes of consumption or use and not for resale;

sale

includes

a conditional sale, a transfer of title or possession, conditional or otherwise, a sale on credit or for which the price is payable by installments, an exchange, barter or any other contract by which, at a price or other consideration, a person delivers tangible personal property to another person,

a transfer of ownership of, title to or possession of tangible personal property

given as security, by foreclosure or by repossession under lien note or conditional sale contract, whether voluntary or otherwise, or by order of a court, or by any other means by which security may be realized, or

in the process of winding up, liquidating or dissolving a corporation, and

the provision, by way of promotional distribution, of tangible personal property,

but does not include

the provision of tangible personal property that, in accordance with the regulations, is merely incidental to a contract for the provision of services that are not subject to tax under this Act, and

except in prescribed circumstances, the provision by a registered charity, or a person acting on behalf of a registered charity, of tangible personal property of nominal value as a gift in return for a donation, all of which is provided to the registered charity;

sale in bulk

means

a sale of tangible personal property by a vendor out of the usual course of the vendor's business,

a sale of substantially the entire stock of tangible personal property of a vendor, or

a sale of an interest in the business of a vendor;

short term rental vehicle

means a vehicle used, during a vehicle licence year, as prescribed by regulation;

software

means packaged or prewritten software programs, or the right to use such programs, whether the software is delivered by electronic, disk, tape or other means, but does not include

[Repealed 2006-2-21.]

software that is modified in a manner that involves changes to the source code, and that is modified solely to meet the requirements of a specific person if

the purchase price or lease price, as applicable, is for the software as modified, and

that purchase price or lease price is greater than double what it would have been for the software in its unmodified form, or

custom software, being

software programs developed solely to meet the requirements of a specific person, and

modifications to software referred to in subparagraph (

i) when performed for the person for whom the software was originally developed,

unless the software is a copy of software referred to in paragraph (

b) or (c), or the right to use such software, that is sold or leased to someone other than the specific person for whom the software was originally modified or developed;

South Coast British Columbia Transportation Authority

means the authority continued under

section 2 (1) of the South Coast British Columbia Transportation Authority Act ;

South Coast British Columbia transportation service region

has the same meaning as "transportation service region" in the South Coast British Columbia Transportation Authority Act ;

substantially

means 90% or more;

tangible personal property

means

personal property that can be seen, weighed, measured, felt or touched, or that is in any other way perceptible to the senses, and includes natural or manufactured gas,

software,

electricity,

fixtures, other than prescribed types of fixtures, and

heat;

tax

includes

all penalties and interest that are or may be added to tax under this Act, and

in the definition of "collector" and in sections 4.85, 80, 81, 82 (1), 84, 91, 93 (1), (1.1), (2) and (4), 94, 95, 96 (7), 96.1, 99, 101 to 109, 111 to 117, 120, 123, 124, 125 and 128 to 138, except 137 (2), but not in any other provision of this Act, a levy under Division 9 of

Part 2 and all penalties and interest that are or may be added to a levy under this Act;

taxable service

means any service provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain tangible personal property, but does not include a service

provided to install tangible personal property that will become real property on installation,

provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain prescribed tangible personal property, or

provided by a person to that person's employer in the course of employment;

telecommunication

includes any transmission, emission or reception of signs, signals, writing, images, sound or intelligence of any nature by wire, fibre optic cable, radio, satellite or other electromagnetic or laser based system, but does not include any prescribed transmission, emission or reception or any prescribed class of transmission, emission or reception;

telecommunication service

means the right, whether exercised or not, to send or receive one or more telecommunications by means of a transmitter that is ordinarily situated in British Columbia, and includes

the sending or receiving of a telecommunication by means of a transmitter that is ordinarily situated in British Columbia, and

a dedicated telecommunication service;

trailer

means trailer as defined in the Motor Vehicle Act ;

transfer of possession

includes transactions held by the commissioner to be in place of a transfer of title, exchange or barter;

transmitter

means a facility or instrument by which a purchaser of a telecommunication service may send or receive the telecommunications that may be sent or received under that service, and includes a telephone, facsimile machine, modem and television;

use

includes

the exercise of any right or power over tangible personal property incidental to the ownership of it other than the sale of the property,

the leasing by a person of tangible personal property to another person,

the storing, keeping or retaining of tangible personal property for any purpose,

the provision of tangible personal property by way of promotional distribution, as well as the use of it by the person to whom the tangible personal property is provided,

in the definition of "user" for the purposes of

section 11 (1) (b), the employment or utilization of tangible personal property by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person,

e.1

the consumption, employment or utilization of tangible personal property by a business in the course of delivering a service, and

e.2

the provision by a registered charity of tangible personal property of nominal value as a gift in return for a donation,

except that use does not include

the exercising of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of subsequently transporting it out of British Columbia for use outside British Columbia,

the exercising of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside British Columbia for use solely outside British Columbia,

the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of being repaired and, after repair, being transported outside British Columbia for use outside British Columbia, and

the storing, keeping or retaining of tangible personal property for the sole purpose of resale;

user

means a person who utilizes in British Columbia tangible personal property

for the person's own consumption or use,

for the consumption or use of another person at the first person's expense, or

on behalf of, or as the agent for, a principal who desires to acquire such property for the consumption or use by the principal or another person at the principal's expense,

and includes a promotional distributor to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for the tangible personal property by the person to whom the tangible personal property is provided;

vehicle

means vehicle as defined in the Motor Vehicle Act ;

vehicle licence year

means the period beginning on a date on which a licence is issued for a vehicle and ending on the expiry date for the licence established on that licensing date;

vendor

means a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells tangible personal property to a purchaser at a retail sale in British Columbia, but does not include a person described in

section 92.2 (3).

For the purposes of this Act, a person who, for the use or consumption of another person, acquires at a sale, leases as lessee, utilizes, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property

is deemed to have done so at the first person's expense, or

if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person acquires the tangible personal property at a sale or is given the right to use the tangible personal property under a lease.

For the purposes of this Act, a person who, for the benefit or use of another person, agrees to pay or is otherwise obliged to pay consideration for a service or right referred to in subsection

(4) is deemed to have done so at the first person's expense, or

if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person agrees to pay or is otherwise obliged to pay consideration for the service or right.

Subsection (3) applies with respect to the following services and rights:

legal services;

parking rights;

taxable services;

telecommunication services.

For the purposes of this Act, if there is a reference in this Act to a repealed provision of this Act, the repealed provision must be construed as not being repealed so far as is necessary to give effect to the reference in this Act to that repealed provision.

Proof of residence in British Columbia

For the purposes of this Act, any of the following is proof, in the absence of evidence to the contrary, that an individual resides in British Columbia:

the receipt by the individual of a grant under

section 2 of the Home Owner Grant Act ;

the receipt by a person of a grant in respect of the individual's residence and for the individual's benefit under

section 3, 4 or 5 of the Home Owner Grant Act ;

the enrollment of the individual as a beneficiary under the medical services plan continued under the Medicare Protection Act .

Deputy commissioners

The commissioner may appoint an employee of the government as a deputy commissioner and may delegate to a deputy commissioner any of the duties and powers exercisable by the commissioner under this Act.

Demand for information

3.1

For any purpose related to the administration or enforcement of this Act or the regulations, the commissioner or a person authorized by the commissioner may, by demand notice, require from any person

a return,

any information or additional information,

the production of any records, or

a written statement.

A demand notice under subsection

(1) must be delivered to the person by personal service, registered mail, electronic mail or fax,

must specify a reasonable time by which the person must comply with the demand notice, and

in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.

A person to whom a demand notice is delivered under this

section must comply with the notice within the time specified in the notice.

Under this Act, an affidavit by the commissioner, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish

compliance by the commissioner or authorized person with this section, or

default by a person on whom a demand was made under this

section

must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.

Confidentiality

A person who has custody of or control over information or records under this Act must not disclose the information or records to any other person except as follows:

in the course of administering or enforcing this or another taxation Act;

in court proceedings relating to this or another taxation Act;

as provided in, or ordered under,

section 239 or 242 of the Family Law Act or

section 8.2 or 9 of the Family Maintenance Enforcement Act ;

under an agreement that

is between the government and another government,

relates to the administration or enforcement of taxation enactments, and

iii

provides for the disclosure of information and records to and the exchange of similar information and records with that other government;

under an agreement that

is between the government and the South Coast British Columbia Transportation Authority,

relates to the tax on the purchase of parking rights under Division 8 of

Part 2, and

iii

provides for the disclosure of information and records to and the exchange of similar information and records with the South Coast British Columbia Transportation Authority.

Valuation by commissioner

4.1

For the purpose of taxation under this Act,

the commissioner may determine the fair market value of tangible personal property

that passes at a sale,

that is brought or sent into British Columbia,

iii

that is delivered in British Columbia, or

for which there has been a change of use as described in

section 9, and

if the commissioner makes a determination under paragraph (a), the purchase price of the tangible personal property is as determined by the commissioner under that paragraph.

For the purpose of taxation under this Act,

the commissioner may determine the fair market value of a lease of tangible personal property, and

if the commissioner makes a determination under paragraph (a), the lease price of the tangible personal property is as determined by the commissioner under that paragraph.

For the purposes of paragraph (

e) of the definition of "sale" and paragraph (e.2) of the definition of "use", the commissioner may determine whether tangible personal property or a type of tangible personal property has a nominal value.

Calculation of tax if price reduced

4.2

a vendor or lessor offers to a purchaser or lessee a reduction in a purchase price or lease price, and

the conditions of the reduction, if any, have been met by the purchaser or lessee,

the vendor or lessor must calculate tax by first deducting the full amount of the reduction from the purchase price or lease price and then applying the tax rate to the reduced purchase price or lease price.

1.2

Transitional Rules

Definitions

4.8

In this Part, application sections means sections 5.1, 10.1, 15.1, 20.01, 21.01, 22.01, 37.1, 40.1, 47.1, 54.1 and 68.22.

In this Part and in the application sections, consideration has the same meaning as in

Part IX [Goods and Services Tax] of the Excise Tax Act (Canada).

When consideration becomes due

4.81

For the purposes of the application sections, all or a portion of the consideration for the purchase or lease of tangible personal property, a taxable service, legal services or a telecommunication service becomes due on the earliest of the following:

the earlier of

the day the vendor or lessor first issues an invoice in respect of the sale or lease for that consideration or portion of that consideration, and

the date of the invoice;

the day the vendor or lessor would have issued an invoice in respect of the sale or lease for that consideration or portion of that consideration but for an undue delay;

the day the purchaser or lessee is required to pay that consideration or portion of that consideration to the vendor or lessor under a written agreement.

Despite subsection (1), if tangible personal property, a taxable service, legal services or a telecommunication service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of the application sections, all or a portion of the consideration for the property or service becomes due on the day the purchaser or lessee is required to pay the consideration or portion of the consideration to the vendor or lessor under the agreement.

For the purposes of the application sections and this section, if consideration that is not money is given or required to be given,

the consideration that is given is deemed to be paid, and

the consideration that is required to be given is deemed to be required to be paid.

When purchase price or lease price becomes due

4.82

For the purposes of

section 61.1 and the application sections except sections 20.01, 21.01 and 22.01, all or a portion of the purchase price of tangible personal property, a taxable service, legal services, a telecommunication service or a parking right becomes due on the earliest of the following:

the earlier of

the day the vendor first issues an invoice in respect of the sale for that purchase price or portion of that purchase price, and

the date of the invoice;

the day the vendor would have issued an invoice in respect of the sale for that purchase price or portion of that purchase price but for an undue delay;

the day the purchaser is required to pay that purchase price or portion of that purchase price to the vendor under a written agreement.

For the purposes of sections 20.01, 21.01 and 22.01, all or a portion of the lease price of leased property becomes due on the earliest of the following:

the earlier of

the day the lessor first issues an invoice in respect of the lease for that lease price or portion of that lease price, and

the date of the invoice;

the day the lessor would have issued an invoice in respect of the lease for that lease price or portion of that lease price but for an undue delay;

the day the lessee is required to pay that lease price or portion of that lease price to the lessor under a written agreement.

Despite subsections (1) and (2), if tangible personal property, leased property, a taxable service, legal services or a telecommunication service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of the application sections,

all or a portion of the purchase price for the tangible personal property, taxable service, legal services or telecommunication service becomes due on the day the purchaser is required to pay that purchase price or portion of that purchase price to the vendor under the agreement, and

all or a portion of the lease price for the leased property becomes due on the day the lessee is required to pay that lease price or portion of that lease price to the lessor under the agreement.

For the purposes of

section 61.1, the application sections and this section, if consideration that is not money is given or required to be given on account of the purchase price or lease price,

the consideration that is given is deemed to be paid, and

the consideration that is required to be given is deemed to be required to be paid.

Deposits

4.83

For the purposes of the application sections, a deposit, whether refundable or not, given in respect of a supply is not consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply.

Determinations by commissioner

4.84

For the purposes of

section 20.01 (3), 20.3 (3), 21.01 (3), 22.01 (3), 37.1 (4), 40.1 (3), 41.1 (3), 47.1 (3) or 54.1 (3), if the commissioner believes that the attribution by the taxpayer of the consideration, lease price, price or purchase price under the

section is not an appropriate attribution, the commissioner may determine the attribution of the consideration, lease price, price or purchase price for the purposes of that section.

For the purposes of the application sections,

the commissioner may determine the consideration for tangible personal property that

passes at a sale,

is brought or sent into British Columbia, or

iii

is delivered in British Columbia, and

if the commissioner makes a determination under paragraph (a), the consideration for the tangible personal property is as determined by the commissioner under that paragraph.

For the purposes of the application sections,

the commissioner may determine the consideration for a lease of leased property, and

if the commissioner makes a determination under paragraph (a), the consideration for the leased property is as determined by the commissioner under that paragraph.

For the purposes of the application sections,

the commissioner may determine the consideration for a provision of a taxable service, legal services or a telecommunication service, and

if the commissioner makes determination under paragraph (a), the consideration for the taxable service, legal services or telecommunication service is as determined by the commissioner under that paragraph.

Time when tax must be paid

4.85

Despite any other provision of this Act or the regulations, but subject to subsection (2), tax imposed by this Act that is not otherwise payable on or before December 31, 2010 must be paid by December 31, 2010.

Subsection (1) does not apply

to penalties and interest that are or may be added to tax under this Act,

to tax payable under

section 25 (1), or

if the time at which the tax is payable is otherwise provided for by regulation under

section 93.1 (7) or 140.

Imposition of Tax

Tax in relation to Purchase and Use

Provincial sales tax

At the time of making a purchase, the purchaser must pay to the government a tax at the applicable rate under

section 6.

1.1

[Repealed 2010-5-92.]

If a person sells tangible personal property at a retail sale in British Columbia to a person who alleges that the tangible personal property is not being purchased for consumption or use, the seller must nevertheless require the other person to pay the tax, but the payment must be refunded by the commissioner on receipt of satisfactory evidence that the tax was wrongly paid.

A purchaser who, after March 30, 1998, pays or is liable to pay a charge described in paragraph (a) (iv) of the definition of "purchase price" in respect of tangible personal property purchased by that purchaser must, unless the charge was included or reflected in the purchase price of the tangible personal property at the time of its purchase, pay to the government a tax in respect of the charge at the applicable rate under

section 6, whether or not

the purchase of the tangible personal property occurred before March 31, 1998, or

more than 4 years have elapsed since the date of the purchase of the tangible personal property.

The tax under subsection (3) must be calculated separately for each charge and must be paid at the earlier of

the time each charge is paid, and

the time each charge becomes payable.

Transition — application of

section 5

5.1

The

definitions of "magazines", "newspapers" and "periodicals" in

section 1 (1) do not apply to the first reference to a form of those words in subsection (2) of this section.

In this section, publication means a magazine, newspaper or periodical other than a magazine, newspaper or periodical exempt from tax under

section 5.

Subject to subsection (4), tax is payable by a purchaser under

section 5 in respect of a purchase of tangible personal property

if, before May 1, 2010, the consideration for the tangible personal property becomes due or is paid without having become due,

if, before July 1, 2010, ownership of the tangible personal property is transferred or the tangible personal property is delivered to the purchaser, or

if,

before May 1, 2010, only a portion of the consideration for the tangible personal property becomes due or is paid without having become due, and

on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the purchaser.

Tax is payable by a purchaser under

section 5 in respect of a purchase of tangible personal property that is a subscription for a publication if a portion of the consideration for the subscription becomes due before July 1, 2010 or is paid before July 1, 2010 without having become due.

Subject to subsection (6), tax is not payable by a purchaser under

section 5 in respect of a purchase of tangible personal property if

all of the consideration for the tangible personal property becomes due on or after May 1, 2010,

none of the consideration for the tangible personal property is paid before May 1, 2010, and

on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the purchaser.

Tax is not payable by a purchaser under

section 5 in respect of a purchase of tangible personal property that is a subscription for a publication if

all of the consideration for the subscription becomes due on or after July 1, 2010, and

none of the consideration for the subscription is paid before July 1, 2010.

If tax is payable under

section 5 by reason of subsection (3) (

c) of this section, for the purpose of calculating the tax payable under

section 5, the purchase price of the tangible personal property is deemed to be the amount equal to the purchase price of the tangible personal property less that portion of the consideration for the tangible personal property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

If, in respect of a purchase of propane, tax is payable under

section 5 by reason of subsection (3) (

c) of this section, for the purpose of calculating the tax payable under

section 5 as determined under

section 6 (5), tax is payable in respect of the volume of propane determined by the following formula:

volume = total volume x

portion of purchase price

purchase price

where

total volume

the total volume of the propane;

portion of purchase price

the purchase price of the propane less that portion of the purchase price of the propane that is not paid before May 1, 2010 and becomes due on or after May 1, 2010;

purchase price

the purchase price of the propane.

If tax is payable under

section 5 by reason of subsection (4) of this section, for the purpose of calculating the tax payable under

section 5, the purchase price of the tangible personal property that is a subscription for a publication is deemed to be the amount equal to the purchase price of the subscription less that portion of the consideration for the subscription that is not paid before July 1, 2010 and becomes due on or after July 1, 2010.

Rates of tax

Subject to subsections (2), (3) and (5), the rate of the tax payable under

section 5 (1) is 7% of the purchase price of the tangible personal property.

Despite any other provision of this Division, the rate of the tax payable under

section 5 (1) on liquor is 10% of the purchase price.

Despite any other provision of this Division but subject to subsection (4), the rate of the tax payable under

section 5 (1) on a passenger vehicle is as follows:

7% of the purchase price of the passenger vehicle, if the purchase price is less than $55 000;

8% of the purchase price of the passenger vehicle, if the purchase price is $55 000 or more but less than $56 000;

9% of the purchase price of the passenger vehicle, if the purchase price is $56 000 or more but less than $57 000;

10% of the purchase price of the passenger vehicle, if the purchase price is $57 000 or more.

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.

4.1

Despite any other provision of this Division, the tax payable under sections 5 (1), 11 and 16 on a manufactured home is the rate established under subsection (1) of this

section applied to the prescribed percentage of the purchase price, or if

section 11(4.1) applies, the fair market value, of the manufactured home, if the manufactured home

is a mobile home referred to in paragraph (

a) or (

b) of the definition of "manufactured home" in

section 1, and

is designed for, and will be used as, a family residential dwelling unit.

4.2

Despite any other provision of this Division, the tax payable under sections 5 (1), 11 and 16 on a manufactured home is the rate established under subsection (1) of this

section applied to a prescribed percentage of the purchase price, or if

section 11(4.1) applies, the fair market value, of the manufactured home, if the manufactured home

is a modular home referred to in paragraph (

c) or (

d) of the definition of "manufactured home" in

section 1, and

is designed for, and will be used as, a family residential dwelling unit.

4.3

For the purpose of subsections (4.1) and (4.2), family residential dwelling unit does not include

a recreational vehicle or a component such as a travel trailer, including a Park Model travel trailer manufactured to Canadian Standards Association Standard Z240, a tent trailer, a motor home, a slide-on camper, a chassis mounted camper or another vehicle or component of the same general classes, or

a prescribed structure, vehicle or component used for a prescribed purpose.

4.4

Subsections (4.1) and (4.2) do not apply to the following:

free standing appliances, free standing furniture and draperies sold with a manufactured home;

repair parts purchased for a manufactured home;

taxable services provided in respect of a manufactured home.

Despite any other provision of this Division, the rate of the tax payable under

section 5 (1) on propane that is taxable under this Act is 2.7 cents per litre of propane.

Liquor sold under special occasion licence

If liquor is acquired for sale under a special occasion licence that will be in effect before July 1, 2010, the holder of that licence or the agent of the holder must, at the time the licence is purchased,

inform the authorized branch representative of the amount of the total proceeds expected from the sale of the liquor at the special occasion, and

pay to that representative an amount equal to the additional tax that would be collectable under this Act based on the expected proceeds of the sales.

If the amount of tax collectable on the actual sale of the liquor in respect of which payment was made under subsection (1) is less than the amount of the payment under subsection (1), the commissioner may refund the amount of the difference out of the consolidated revenue fund.

Transition — application of

section 7

7.1

Tax is payable under

section 7 in respect of liquor acquired for sale under a special occasion licence if

the licence is purchased before May 1, 2010, or

the licence is in effect before July 1, 2010.

Tax is not payable under

section 7 in respect of liquor acquired for sale under a special occasion licence if

the licence is purchased on or after May 1, 2010, and

the licence is in effect only on or after July 1, 2010.

Repealed

8-9

[Repealed 2010-5-97.]

Tax if trade-in allowed on purchase

If tangible personal property, on which the purchaser has previously paid the applicable tax, is accepted at the time of sale by the seller on account of the price of the tangible personal property sold, the purchaser must pay a tax at the rate of

7% of the difference between the purchase price of the tangible personal property sold and the credit allowed for the tangible personal property accepted on account of the purchase price in trade, or

if the tangible personal property sold is a passenger vehicle, at the applicable rate as follows:

7% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is less than $55 000;

8% of that difference, if the purchase price of the passenger vehicle is $55 000 or more but less than $56 000;

iii

9% of that difference, if the purchase price of the passenger vehicle is $56 000 or more but less than $57 000;

10% of that difference, if the purchase price of the passenger vehicle is $57 000 or more.

Subsection (1) does not apply if the tangible personal property sold or the tangible personal property accepted on account of the property sold is a multijurisdictional vehicle.

Transition — application of

section 10

10.1

Tax is payable by a purchaser under

section 10 in respect of the tangible personal property sold

if, before May 1, 2010, the consideration for the tangible personal property sold becomes due or is paid without having become due,

if, before July 1, 2010, ownership of the tangible personal property sold is transferred or the tangible personal property sold is delivered to the purchaser, or

if,

before May 1, 2010, only a portion of the consideration for the tangible personal property sold becomes due or is paid without having become due, and

on or after July 1, 2010, ownership of the tangible personal property sold is transferred and the tangible personal property sold is delivered to the purchaser.

Tax is not payable by a purchaser under

section 10 in respect of the tangible personal property sold if

all of the consideration for the tangible personal property sold becomes due on or after May 1, 2010,

none of the consideration for the tangible personal property sold is paid before May 1, 2010, and

on or after July 1, 2010, ownership of the tangible personal property sold is transferred and the tangible personal property sold is delivered to the purchaser.

If tax is payable under

section 10 by reason of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 10, the purchase price of the tangible personal property sold is deemed to be the amount equal to the purchase price of the tangible personal property sold less that portion of the consideration for the tangible personal property sold that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax if property brought into B.C. for use

This

section applies to a person

who

resides, ordinarily resides or carries on business in British Columbia or enters British Columbia with the intention of residing or carrying on business in British Columbia, and

before July 1, 2010, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, other than a multijurisdictional vehicle, for use or consumption

by the person,

by another person at the first person's expense,

by another person for whom the first person acts as agent, or

by another person at the expense of a principal for whom the first person acts as agent, or

who uses in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia, tangible personal property, other than a multijurisdictional vehicle,

that the person has not leased, as lessee, and

that the person brought or had sent into British Columbia or that the person received delivery of in British Columbia before July 1, 2010.

For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if an employee or other representative of that person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of that person's products or services.

2.1

For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if

the property is used

by another person at the first person's expense,

by another person for whom the first person acts as agent, or

iii

by another person at the expense of a principal for whom the first person acts as agent, and

the use by the other person referred to in paragraph (

a) is intended to assist the business of the first person referred to in that paragraph.

A person to whom this

section applies under subsection (1) must

immediately report the matter in writing to the commissioner,

supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property, and

pay to the government, at the time or within the period specified in

section 14, tax calculated in accordance with this

section and sections 12 and 13.

Subject to subsections (4.1), (5) and (7), tax payable under subsection (3) must be calculated by multiplying the purchase price of the tangible personal property by the rate in

section 6 on the entry date of the property.

4.1

Subject to subsections (4.2) and (5), tax payable under subsection (3) with respect to tangible personal property that is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift must be calculated by multiplying the fair market value of the tangible personal property by the rate in

section 6 on the entry date of the property.

4.2

Subsection (4.1) does not apply if there is evidence satisfactory to the commissioner that

the person who provided the gift did not reside or ordinarily reside in British Columbia,

the person who provided the gift

paid tax under this Act, or

paid a sales tax to another province or under

section 165 (2) of the Excise Tax Act (Canada),

and that person is not eligible for a refund or rebate under this Act or under the law of the other jurisdiction, or

the gift meets a prescribed circumstance.

Subsections (4) and (4.1) do not apply to

tangible personal property to which

section 12 (1) to (3) or

section 13 applies, or

a multijurisdictional vehicle.

Subsection (7) applies to a motor vehicle

acquired outside British Columbia but in Canada, and

brought or sent into British Columbia or the delivery of which is received in British Columbia.

Subject to subsection (8), if a motor vehicle, on which the person referred to in subsection (3) has previously paid the tax under this Act, is accepted at the time of sale of a motor vehicle to which this

section applies by the seller on account of the price of the motor vehicle sold, the person referred to in subsection (3) must pay tax at the rate of

7% of the difference between the purchase price of the motor vehicle sold and the credit allowed for the motor vehicle accepted on account of the purchase price in trade, or

if the motor vehicle sold is a passenger vehicle, at the applicable rate as follows:

7% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is less than $55 000;

8% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is $55 000 or more but less than $56 000;

iii

9% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is $56 000 or more but less than $57 000;

10% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is $57 000 or more.

Subsections (6) and (7) do not apply to a motor vehicle to which

section 12 applies or to a multijurisdictional vehicle.

Calculation of tax if use in British Columbia temporary

This

section applies to tangible personal property in relation to which tax is payable under

section 11 (3), other than

property described in

section 13 (1), or

a multijurisdictional vehicle.

If the person liable to pay tax under

section 11 (3) establishes to the satisfaction of the commissioner that the property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use, the tax payable on that property must be calculated in accordance with the following formula:

Tax = (purchase price x rate) ÷ 3

where

purchase price

the purchase price of the property;

rate

the rate in

section 6 on the entry date of the property.

The tax must be calculated under subsection (2) separately for each 12 month period during any part of which the tangible personal property is in British Columbia, but the person is not liable

to pay tax on the property if it is in British Columbia during that period for fewer than a prescribed number of days, or

to pay to the government a total amount of tax on that property in excess of an amount equal to the amount determined in accordance with the following formula:

Amount = (purchase price x rate) – other sales tax

where

purchase price

the purchase price of the property or, in respect of prescribed tangible personal property referred to in

section 19 (1), the deemed purchase price of that property on its entry date;

rate

the rate in

section 6 on the entry date of the property;

other sales tax

the retail sales tax the person has paid on the property to another province.

Subsection (1) does not apply in respect of tangible personal property that is brought or sent into, or delivered in, British Columbia for use as a part of any other tangible personal property.

Calculation of tax if property is conveyance used interjurisdictionally

Tax payable under

section 11 (3) on the following must be calculated in accordance with subsection (2):

an aircraft used

interprovincially or internationally for commercial purposes, and

in flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia;

a part of an aircraft described in paragraph (a);

any railway rolling stock used interprovincially or internationally;

a vessel or any other conveyance, other than an aircraft, used in interprovincial or international trade for the commercial carriage of passengers or goods;

a part of any railway rolling stock described in paragraph (

c) or of a vessel or other conveyance described in paragraph (d).

The formula to be used for calculating tax payable under

section 11 (3) on tangible personal property to which this

section applies is as follows:

Tax = purchase price x rate x (BC usage ÷ total usage)

where

purchase price

purchase price of the tangible personal property;

rate

the rate in

section 6 on the entry date of the tangible personal property;

BC usage

the applicable meaning established under subsections (3) to (7);

total usage

the applicable meaning established under subsections (3) to (7).

For an aircraft described in subsection (1) (a), the tax payable must be calculated in accordance with the formula under subsection (2) using the following:

BC usage

the number of hours the aircraft will fly in the airspace over British Columbia in the flights referred to in subsection (1) (a) (ii) during the period beginning on the entry date of the aircraft and ending on the third anniversary of that date;

total usage

the total number of hours the aircraft will fly during the period referred to in the definition of "BC usage" in this subsection.

For a part described in subsection (1) (b), the tax payable under

section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:

BC usage

the number of hours the aircraft in which the

part is or is to be installed will fly in the airspace over British Columbia in the flights referred to in subsection (1) (a) (ii) during,

(

a) in the case of a prescribed part, the period beginning on the entry date of the prescribed part and ending on the third anniversary of that date, and

(

b) in any other case, the 12 months after the entry date of the part;

total usage

the total number of hours the aircraft in which the

part is or is to be installed will fly during the period referred to in the definition of "BC usage" in this subsection.

For railway rolling stock described in subsection (1) (c), or for a vessel or other conveyance described in subsection (1) (d), the tax payable under

section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:

BC usage

the distance the conveyance will travel, during the 12 months after its entry date, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;

total usage

the total distance the conveyance will travel during the 12 months after its entry date.

For a part described in subsection (1) (e), the tax payable under

section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:

BC usage

the distance the conveyance in which the

part is or is to be installed will travel, during the 12 months after the entry date of the part, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;

total usage

the total distance the conveyance in which the

part is or is to be installed will travel during the 12 months after the entry date of the part.

For the purpose of calculating under this

section the tax payable under

section 11 (3),

the number of hours or the distance a conveyance will travel during the relevant period in the airspace over, in the waters of or in British Columbia, and

the total number of hours or the total distance the conveyance will travel during the period referred to in paragraph (

a) must be based on a reasonable estimate of those hours or distances.

the actual number of hours or the actual distance a conveyance travels during the relevant period in the airspace over, in the waters of or in British Columbia, and

the total actual number of hours or the total actual distance the conveyance travels during that period

results in a different ratio from the ratio based on the estimate made under subsection (7), the tax must be adjusted accordingly at the end of that period and sections 80, 81, 82 (1), 83 to 88, 115 and 117 apply.

When tax is to be paid on property coming into British Columbia

Tax is payable under

section 11 (3) as follows:

for tangible personal property described in

section 12 (1), within 23 days after the day the property is first used in British Columbia during the 12 month period in respect of which tax is payable;

for tangible personal property that is described in

section 13 (1) (

a) to (d), within 23 days after the last day of the month in which the property is brought or sent into, or is delivered in, British Columbia;

c) and (d

[Repealed 2010-5-100.]

in any other case, on the entry date of the tangible personal property.

If more tax is required to be paid when tax calculated under

section 13 (2) to (6) is adjusted under

section 13 (8), the additional tax is payable within 23 days after the date the tax is adjusted.

Tax if conveyance purchased in B.C. for interjurisdictional use

Subject to

section 15.1, this

section applies to a person

who purchases in British Columbia an aircraft, vessel, railway rolling stock or other conveyance, and

who, from the date of purchase, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.

Despite any other provision of this Division, a person referred to in subsection (1) must pay, on the date of purchase in British Columbia, tax calculated in accordance with

section 13 (3) or (5).

Transition — application of

section 15

15.1

Tax is payable by a person under

section 15 in respect of an aircraft, vessel, railway rolling stock or other conveyance

if, before May 1, 2010, the consideration for the conveyance becomes due or is paid without having become due,

if, before July 1, 2010, ownership of the conveyance is transferred or the conveyance is delivered to the person, or

if,

before May 1, 2010, only a portion of the consideration for the conveyance becomes due or is paid without having become due, and

on or after July 1, 2010, ownership of the conveyance is transferred and the conveyance is delivered to the person.

Tax is not payable by a person under

section 15 in respect of an aircraft, vessel, railway rolling stock or other conveyance if

all of the consideration for the conveyance becomes due on or after May 1, 2010,

none of the consideration for the conveyance is paid before May 1, 2010, and

on or after July 1, 2010, ownership of the conveyance is transferred and the conveyance is delivered to the person.

If tax is payable under

section 15 by reason of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 15, the purchase price of the tangible personal property that is the conveyance is deemed to be the amount equal to the purchase price of the tangible personal property less that portion of the consideration for the tangible personal property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax if property brought into British Columbia by non-residents

In this section, non-resident means a person who does not reside, ordinarily reside or carry on business in British Columbia and who

owns real property in British Columbia, or

leases, as lessee, real property in British Columbia if the term of that lease, including the cumulative total of all options and rights to extend or renew the lease, is at least 5 years.

A non-resident who brings or sends tangible personal property into British Columbia before July 1, 2010, or who receives delivery of tangible personal property in British Columbia before July 1, 2010, must comply with subsection (3) if the tangible personal property is, for the 12 month period following its entry into British Columbia, to be used or consumed

primarily in British Columbia, and

primarily by one or more of the following:

the non-resident;

a person for whom the non-resident acts as agent;

iii

a person whose use or consumption of the tangible personal property is at the expense of the non-resident;

a person whose use or consumption of the tangible personal property is at the expense of a principal for whom the non-resident acts as agent.

A non-resident to whom subsection (2) applies must

immediately report the matter in writing to the commissioner,

supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property, and

pay to the government tax on the purchase price or lease price of the tangible personal property at the rate in

section 6 or 20, as the case may be.

Repealed

[Repealed 2004-9-7.]

Conversion to litres of propane

17.1

For the purpose of determining the amount of tax that, in relation to propane, is payable under this Act, the commissioner may establish formulas for converting measures of propane other than in litres into litres of propane.

How tax is to be calculated

The tax imposed by this Act must be

calculated separately on every purchase, and

computed to the nearest cent, with 1/2 cent counted as 1 cent.

If several items of tangible personal property are purchased on the same occasion or as part of one transaction, the total of the purchases is deemed to be one purchase for the purposes of this Act.

Effect of depreciation on purchase price valuation

If prescribed tangible personal property, other than property acquired for resale, becomes subject to tax under

section 11 (3), the purchase price of the property is deemed to be the greater of the following amounts:

the depreciated value, determined in accordance with the regulations, of the prescribed tangible personal property on the date it becomes subject to tax under the applicable subsection;

50% of the purchase price of the prescribed tangible personal property.

For the purpose of calculating under

section 12 (1) the tax payable in respect of each 12 month period on prescribed tangible personal property referred to in subsection (1), the date on which that property becomes subject to tax is

the first day during that period in which that property is in British Columbia, or

if that property is in British Columbia for a continuous period of more than 12 months, the first day of that continuous period.

If prescribed tangible personal property becomes subject to tax under

section 16, the purchase price of the property is deemed to be the greater of the following amounts:

the depreciated value, as determined in accordance with the regulations, of the prescribed tangible personal property at the time it is brought, sent or delivered into British Columbia;

50% of the purchase price of the prescribed tangible personal property.

Tax in relation to Leases

Tax on leases in British Columbia

Subject to this

section and sections 20.01, 20.1 and 21 (3), a lessee must pay to the government a tax as follows:

if the leased property is not a passenger vehicle, at the rate of 7% of the lease price of the leased property;

if the leased property is a passenger vehicle, at the applicable rate as follows:

7% of the lease price, if the tax rate value of the passenger vehicle is less than $55 000;

8% of the lease price, if the tax rate value of the passenger vehicle is $55 000 or more but less than $56 000;

iii

9% of the lease price, if the tax rate value of the passenger vehicle is $56 000 or more but less than $57 000;

10% of the lease price, if the tax rate value of the passenger vehicle is $57 000 or more.

For the purposes of subsection (1) (b), the tax rate value in respect of a passenger vehicle

means the fair market value of the vehicle,

must be determined under paragraph (

a) as at the later of

March 31, 1993, and

the first date on which the vehicle is leased by the lessor, and

is, for so long as the lessor remains the owner of the vehicle, the tax rate value determined for the vehicle under paragraphs (

a) and (b).

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.

Subsection (1) does not apply to a multijurisdictional vehicle, other than a short term rental vehicle.

Transition — application of

section 20

20.01

Tax is payable by a lessee under

section 20 in respect of leased property

if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

the rental period under the lease begins on or after July 1, 2010.

Tax is not payable by a lessee under

section 20 in respect of leased property if

all of the consideration for the leased property becomes due on or after May 1, 2010,

none of the consideration for the leased property is paid before May 1, 2010, and

the rental period under the lease begins on or after July 1, 2010.

If tax is payable under

section 20 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 20, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

is not paid before May 1, 2010,

becomes due on or after May 1, 2010, and

is attributable to the portion of the rental period that is on or after July 1, 2010.

If tax is payable under

section 20 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 20, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax on motor vehicle leased outside British Columbia

20.1

1) to (2

[Repealed 2010-5-108.]

If a person has paid tax under subsection (1) in respect of a motor vehicle, the commissioner may pay from the consolidated revenue fund a refund of the difference between the tax paid at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under

section 20 or 21.

A person who pays tax under this

section is not required to pay tax under

section 20 (1) or 21 (2) with respect to the same lease agreement.

Tax on property occasionally supplied with operator

20.2

A person, other than a person who has paid tax under

section 9 (1.1) or (1.3), who

purchases tangible personal property exempt from tax under

section 78 (1.2), or

is referred to in

section 9 (1.2)

must, when the property is, under an agreement, supplied with a person to operate it, pay tax at the applicable rate under

section 20 on the price at which that property would have been leased had it been leased without supplying a person to operate it.

Transition — application of

section 20.2

20.3

Tax is payable under

section 20.2 in respect of tangible personal property if

the tangible personal property is substantially supplied before July 1, 2010, or

paragraph (

a) of this subsection does not apply and the tangible personal property is supplied for a period that begins before July 1, 2010 and ends on or after July 1, 2010.

Tax is not payable under

section 20.2 in respect of tangible personal property if the tangible personal property is supplied on or after July 1, 2010.

If tax is payable under

section 20.2 by reason of subsection (1) (

b) of this section, for the purpose of calculating the tax payable under

section 20.2, the price at which the tangible personal property would have been leased had it been leased without supplying a person to operate it is deemed to be the portion of that price that is attributable to the portion of the period that is before July 1, 2010.

Tax if leased property brought into British Columbia

This

section applies to the following:

a person who

resides, ordinarily resides or carries on business in British Columbia or enters British Columbia with the intention of residing or carrying on business in British Columbia, and

before July 1, 2010, brings or sends into British Columbia or receives delivery in British Columbia of tangible personal property, other than a multijurisdictional vehicle, that the person has leased, as lessee;

a person who, before July 1, 2010, uses in British Columbia in the course of the person's business, whether or not the person's business is carried on in British Columbia, tangible personal property, other than a multijurisdictional vehicle, that the person has leased, as lessee;

a lessee who

leases in British Columbia any railway rolling stock, and

from the date the lease is granted, uses the railway rolling stock interprovincially or internationally;

a lessee who

leases in British Columbia an aircraft, and

from the date the lease is granted, uses the aircraft interprovincially or internationally for commercial purposes;

a lessee who

leases in British Columbia a vessel or other conveyance, other than railway rolling stock or an aircraft, and

from the date the lease is granted, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.

1.1

For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if

the property is used

by another person at the first person's expense,

by another person for whom the first person acts as agent, or

iii

by another person at the expense of a principal for whom the first person acts as agent, and

the use by the other person referred to in paragraph (

a) is intended to assist the business of the first person referred to in that paragraph.

Subject to

section 20.1, a person to whom this

section applies under subsection (1) (

a) or (

b) must

immediately report the matter in writing to the commissioner,

supply to the commissioner all pertinent information required by the commissioner in respect of the leased property, and

pay to the government, at the time specified in

section 24, tax calculated in accordance with subsections (4) to (6) of this

section and

section 23.

Despite

section 20 (1), a person to whom this

section applies under subsection (1) (

c) to (

e) must pay tax calculated in accordance with subsections (4) to (6) of this

section and

section 23.

The tax payable under this

section must be calculated in accordance with the following formula:

Tax = lease price x rate x (BC usage ÷ total usage)

where

lease price

lease price of the tangible personal property;

rate

the rate in

section 20 (1) on the date the lease price for the applicable rental period is paid;

BC usage

the applicable meaning established under subsection (5);

total usage

the applicable meaning established under subsection (5).

The following apply for the purposes of subsection (4):

in the case of an aircraft used

interprovincially or internationally for commercial purposes, and

in flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia,

BC usage

the number of hours the aircraft will fly in a rental period in the airspace over British Columbia in the flights referred to in subparagraph (ii);

total usage

the total number of hours the aircraft will fly in that rental period;

in the case of a vessel used in interprovincial or international trade for the commercial carriage of passengers or goods,

BC usage

the distance the vessel will travel in the waters of British Columbia in a rental period;

total usage

the total distance the vessel will travel in that rental period;

in the case of any railway rolling stock used interprovincially or internationally,

BC usage

the distance the railway rolling stock will travel in British Columbia in a rental period;

total usage

the total distance the railway rolling stock will travel in that rental period;

in the case of any conveyance used in interprovincial or international trade for the commercial carriage of passengers or goods, other than an aircraft, a vessel or any railway rolling stock,

BC usage

the distance the conveyance will travel in British Columbia in a rental period;

total usage

the total distance the conveyance will travel in that rental period;

in the case of any other tangible personal property,

BC usage

the number of hours the tangible personal property is in British Columbia in a rental period;

total usage

the total number of hours in that rental period.

Section 13 (7) applies for the purpose of calculating the tax payable under this

section in respect of an aircraft, vessel, any railway rolling stock or other conveyance, and

section 13 (8) applies in respect of that tax.

Transition — application of

section 21

21.01

Tax is payable by a lessee under

section 21 (3) in respect of leased property

if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

the rental period under the lease begins on or after July 1, 2010.

Tax is not payable by a lessee under

section 21 (3) in respect of leased property if

all of the consideration for the leased property becomes due on or after May 1, 2010,

none of the consideration for the leased property is paid before May 1, 2010, and

the rental period under the lease begins on or after July 1, 2010.

If tax is payable under

section 21 (3) by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 21 (3), the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

is not paid before May 1, 2010,

becomes due on or after May 1, 2010, and

is attributable to the portion of the rental period that is on or after July 1, 2010.

If tax is payable under

section 21 (3) by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 21 (3), the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Repealed

21.1

[Repealed 2010-5-112.]

Tax if sale and lease-back of conveyance

This

section applies to the lessee of a conveyance described in

section 13 (1) (

c) or (

d) who

became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement, and

had, before the sale to the lessor, paid as purchaser of the conveyance the tax applicable under Division 1 of this Part.

A lessee referred to in subsection (1) must pay to the government, in respect of a rental period of the lease, tax in accordance with subsections (3) to (5) and sections 23 and 24, if the ratio of

the distance of travel by the conveyance in British Columbia or in the waters of British Columbia during the rental period

the total distance of travel by the conveyance during that period

exceeds the highest ratio of distances, as adjusted under

section 13 (8) if applicable, used to determine the tax payable by the lessee under Division 1 of this Part.

Tax payable under subsection (2) must be calculated in accordance with the following formula:

Tax = lease price x rate x (lease ratio – purchase ratio)

where

lease price

the payment of the lease price payable for the rental period;

rate

the rate in

section 20 (1) on the date the lease price for the rental period is payable;

lease ratio

the ratio of the distance of travel by the conveyance in British Columbia, or in the waters of British Columbia, during the rental period to the total distance of travel by the conveyance during that period;

purchase ratio

the highest ratio of distances, as adjusted under

section 13 (8) if applicable, used to determine the tax payable by the lessee under Division 1 of this Part.

For the purpose of calculations under subsections (2) and (3), the distances of travel during a rental period are whichever of the following is applicable:

if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

in any other case, an estimate made in accordance with

section 13 (7) of the distances to be travelled.

Section 13 (8) applies in respect of tax payable under subsection (2).

Transition — application of

section 22

22.01

Tax is payable by a lessee under

section 22 in respect of leased property

if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

the rental period under the lease begins on or after July 1, 2010.

Tax is not payable by a lessee under

section 22 in respect of leased property if

all of the consideration for the leased property becomes due on or after May 1, 2010,

none of the consideration for the leased property is paid before May 1, 2010, and

the rental period under the lease begins on or after July 1, 2010.

If tax is payable under

section 22 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 22, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

is not paid before May 1, 2010,

becomes due on or after May 1, 2010, and

is attributable to the portion of the rental period that is on or after July 1, 2010.

If tax is payable under

section 22 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 22, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Repealed

22.1

[Repealed 2010-5-114.]

Tax must be calculated separately for each rental period

Tax imposed under sections 20 to 22 must be calculated separately for each payment of the lease price payable for each rental period of the lease.

When tax must be paid

Subject to subsection (2), tax imposed under sections 20 to 22 must be paid by the earlier of

the time that the lease price is paid, and

the date on which the lease price is payable.

If more tax is required to be paid when tax calculated under

section 21 (4) is adjusted in accordance with

section 13 (8), the additional tax is payable within 23 days after the date the tax is adjusted.

Tax if balance of lease price becomes due

If, before July 1, 2010, a lessee breaches a lease that provides for

the lease of tangible personal property, and

the payment of the whole of the outstanding balance of the lease price on breach of the lease,

the lessee must pay to the government, at the time the payment referred to in paragraph (

b) comes due, a tax at the rate of 7% of the amount of the outstanding balance of the lease price.

Despite sections 24, 93 and 96, the lessor must collect the tax imposed under subsection (1) at the time the payment referred to in subsection (1) (

b) comes due.

If a lessee does not pay the tax as required under subsection (1) and the lessor receives an amount in respect of the payment referred to in subsection (1) (

b) in a judgment, settlement or by any other way, the lessor must remit the lesser of

7% of the amount received, and

the amount of the tax that would have been payable under sections 20 to 22 if the lease had continued to the end of its term.

Repealed

[Repealed 2010-5-117.]

Repealed

[Repealed 2004-9-7.]

Tax in relation to Multijurisdictional Vehicles

Definitions

In this Division:

calculation year

means the period beginning on July 1 and ending on the following June 30;

fleet licence year

means, in respect of vehicles licensed as part of a fleet, the period beginning on a fleet licensing date for the fleet vehicles and ending on the day before the anniversary of that licensing date;

fleet licensing date

means, in respect of vehicles licensed in a calendar year as part of a fleet, the first date in that calendar year that the fleet vehicles are licensed as such;

licensing date

means,

in respect of a vehicle that is not licensed as part of a fleet, the date on which the vehicle is licensed, or

in respect of a vehicle that is licensed as part of a fleet, the fleet licensing date;

travel ratio

means, in respect of a vehicle, the travel ratio determined in accordance with

section 29 (4) or (5);

vehicle

does not include a trailer;

Tax if multijurisdictional vehicle licensed

1) to (3

[Repealed 2010-5-119.]

The travel ratio for a vehicle that is not licensed as part of a fleet is as follows:

if the vehicle was not a multijurisdictional vehicle for at least 90 days during the calculation year preceding the vehicle's licensing date, the ratio of

a reasonable estimate of the distance that the vehicle will travel in British Columbia during the vehicle licence year, and

a reasonable estimate of the total distance that the vehicle will travel in the vehicle licence year;

if the vehicle was a multijurisdictional vehicle for at least 90 days during the calculation year preceding the vehicle's licensing date, the ratio of

the distance travelled in British Columbia by that vehicle in the period beginning on the date in that calculation year that it became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and

the total distance travelled by that vehicle during that same period.

The travel ratio for a vehicle that is licensed as part of a fleet is as follows:

if none of the vehicles in the fleet, while part of that fleet, were multijurisdictional vehicles for at least 90 days during the calculation year preceding the fleet licensing date, the ratio of

a reasonable estimate of the distance that the vehicles in the fleet will travel in British Columbia during the fleet licence year, and

a reasonable estimate of the total distance that the vehicles in the fleet will travel in the fleet licence year;

if one or more of the vehicles in the fleet, while part of that fleet, were multijurisdictional vehicles for at least 90 days during the calculation year preceding the fleet licensing date, the ratio of

the distance travelled in British Columbia by the vehicles of the fleet in the period beginning on the first date in that calculation year that a vehicle in the fleet became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and

the total distance travelled by the vehicles of the fleet during that same period.

If the actual distance a vehicle referred to in subsection (4) (

a) travels in British Columbia during a vehicle licence year and the actual total distance the vehicle travels during that vehicle licence year results in a different travel ratio from the ratio estimated under that subsection, the tax payable under this

section in relation to the vehicle must be adjusted accordingly at the end of the vehicle licence year and sections 80, 81, 82 (1), 83 to 88, 115 and 117 apply.

If the actual distance the vehicles in a fleet of vehicles referred to in subsection (5) (

a) travel in British Columbia during a fleet licence year and the actual total distance the vehicles of the fleet travel during that fleet licence year results in a different travel ratio from the ratio estimated under that subsection, the tax payable under this

section in relation to a vehicle of that fleet must be adjusted accordingly at the end of the fleet licence year and sections 80, 81, 82 (1), 83 to 88, 115 and 117 apply.

Repealed

30-31

[Repealed 2010-5-119.]

Tax if fleet licensing changed

If a vehicle that was licensed by a person as part of a fleet is, before the end of the fleet licensing year applicable to that fleet and before July 1, 2010, licensed by that person as part of a different fleet,

the person must pay to the government the tax imposed by

section 29 (1) in respect of the vehicle's new fleet licence year, and

on application and on receipt of evidence satisfactory to the commissioner, the commissioner must provide to the person a refund of a portion of the tax previously paid in respect of the vehicle under this Division.

A refund under subsection (1) must be calculated and provided in accordance with the regulations.

The commissioner may, in accordance with the regulations,

pay a refund under subsection (1) to the person out of the consolidated revenue fund, or

credit the amount of the refund against the amount of any tax that the person is required to pay under this Division.

Repealed

[Repealed 2010-5-121.]

Refund or credit for trade-in vehicles

33.1

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 and before July 1, 2010, is accepted at the time of sale by the seller on account of the purchase price of another multijurisdictional vehicle in respect of which tax is payable under

section 29.

The commissioner may, in accordance with the regulations, provide a refund of a portion of the tax paid on a trade-in vehicle, and the refund 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.

A refund 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

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.

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

tax has been paid under this Division on the multijurisdictional vehicle being repaired, and

the replacement vehicle is used only

in accordance with the terms of the licence that was issued for the multijurisdictional vehicle being repaired, and

for the purposes for which that multijurisdictional vehicle would be used were it not being repaired.

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

the period during which the multijurisdictional vehicle is being repaired, and

the vehicle licence year of the multijurisdictional vehicle.

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

the period during which the multijurisdictional vehicle is being repaired, and

the licence year of the multijurisdictional vehicle.

Refund for short term rental vehicles

33.3

This

section applies to a short term rental vehicle that

is a multijurisdictional vehicle because it is licensed to travel in British Columbia under a licence to which a prorating agreement under

section 10 of the Commercial Transport Act applies, and

during a vehicle licence year is leased primarily for the purpose of the lessees transporting goods.

On application and on receipt of evidence satisfactory to the commissioner, the commissioner may provide a refund of the tax paid under this Division on the short term rental vehicle in respect of a licence year if tax was collected as required under

section 20 of this Act or

section 165 (2) of the Excise Tax Act (Canada) on its leasing during the licence year.

A refund under subsection (2) may be paid out of the consolidated revenue fund.

Liability of other persons

If tax is payable by a person under this Division in respect of a vehicle for a vehicle licence year, any other person who had management of or the right to determine the utilization of the vehicle while it was in British Columbia during the vehicle licence year is jointly and severally liable with any other person liable for that tax.

How tax is to be calculated

The tax imposed by this Division must be computed to the nearest cent, with 1/2 cent counted as 1 cent.

Services Related to Purchase

Tax if contract for property conversion related to purchase

A purchaser who

acquires tangible personal property

from another person, or

through another person acting as agent of the purchaser, and

within 6 months before or after acquiring the tangible personal property, enters into a contract with the other person or an associate of the person under which the original tangible personal property referred to in paragraph (

a) is processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property by that other person or associate,

must pay to the government tax at the rate of 7% of all amounts payable under the contract for or in relation to the resulting tangible personal property.

Tax payable under subsection (1) is in addition to tax payable on the original tangible personal property.

Tax is not payable under subsection (1) if the purchaser satisfies the commissioner that, at the time the tangible personal property referred to in subsection (1) (

a) was acquired, the purchaser did not have an intention to enter into the contract referred to in subsection (1) (b).

Tax is not payable under this

section on that portion of the amounts payable under the contract for tangible personal property on which tax is otherwise payable by the purchaser under this Act.

Tax under this

section must be paid, in respect of each amount payable under the contract, by the date on which the amount is paid or payable, whichever is earlier.

Tax if contract for modification of purchased property

In cases to which

section 36 (1) does not apply, if a purchaser of tangible personal property enters into an agreement with the seller of the property or an associate of the seller

that is

part of the contract to acquire the tangible personal property, or

a separate contract entered into within 2 days before or after entering into the contract to acquire the tangible personal property, and

under which the seller or an associate of the seller is to modify or process the tangible personal property,

the purchaser must pay to the government tax calculated in accordance with subsection (2).

The tax payable under subsection (1) must be calculated as follows:

if the tangible personal property referred to in subsection (1) is not a passenger vehicle, at the rate of 7% of the contract amount;

if the tangible personal property referred to in subsection (1) is a passenger vehicle, at the applicable rate as follows:

7% of the contract amount, if the purchase price of the passenger vehicle is less than $55 000;

8% of the contract amount, if the purchase price of the passenger vehicle is $55 000 or more but less than $56 000;

iii

9% of the contract amount, if the purchase price of the passenger vehicle is $56 000 or more but less than $57 000;

10% of the contract amount, if the purchase price of the passenger vehicle is $57 000 or more.

For the purposes of subsection (2), contract amount means the total of all amounts payable under the contract referred to in subsection (1) for or in relation to the modification or processing referred to in subsection (1) (b).

Tax is not payable under this

section on that portion of the amounts payable under the contract for tangible personal property on which tax is otherwise payable by the purchaser under this Act.

Tax under this

section must be paid, in respect of each amount payable under the contract, by the date on which the amount is paid or payable, whichever is earlier.

Transition — application of sections 36 and 37

37.1

In this section:

contract amount

in relation to

section 36, means the total of all amounts payable under the contract referred to in

section 36 (1) (

b) for or in relation to the resulting tangible personal property, and

in relation to

section 37, has the same meaning as in

section 37 (3);

services

in relation to

section 36, means the services described in

section 36 (1) (

b) that are provided under the contract referred to in that provision, and

in relation to

section 37, means the services described in

section 37 (1) (

b) that are provided under the contract referred to in

section 37 (1) (a) (

i) or (ii).

Tax is payable under

section 36 or 37 in respect of services

if, before May 1, 2010, the consideration for the services becomes due or is paid without having become due,

if the services are substantially provided before July 1, 2010,

if the services are partially provided before July 1, 2010, or

before May 1, 2010, only a portion of the consideration for the services becomes due or is paid without having become due, and

the services are provided on or after July 1, 2010.

Tax is not payable under

section 36 or 37 in respect of services if

all of the consideration for the services becomes due on or after May 1, 2010,

none of the consideration for the services is paid before May 1, 2010, and

the services are provided on or after July 1, 2010.

If tax is payable under

section 36 or 37 by reason only of subsection (2) (

c) of this section, for the purpose of calculating the tax payable under

section 36 or 37, the contract amount is deemed to be the amount equal to the contract amount for the services less that portion of the consideration for the services that

is not paid before May 1, 2010,

becomes due on or after May 1, 2010, and

is attributable to the portion of the services provided on or after July 1, 2010.

If tax is payable under

section 36 or 37 by reason of subsection (2) (

d) of this section, for the purpose of calculating the tax payable under

section 36 or 37, the contract amount is deemed to be the amount equal to the contract amount for the services less that portion of the consideration for the services that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax exempt property

Sections 36 (1) and 37 (1) do not apply if the tangible personal property in its resulting form after completion of the contract referred to in the applicable

section would be exempt from tax under this Act.

[Repealed 2010-5-125.]

Application of other provisions of Act

For the purposes of this Act, other than Division 1 of this Part,

the matters for which an amount referred to in

section 36 or 37 is payable are deemed to be a sale of tangible personal property at a retail sale,

an amount referred to in paragraph (

a) of this

section is deemed to be a purchase price, and

the person with whom the purchaser enters into a contract referred to in

section 36 or 37 is deemed to be a vendor in relation to the matters referred to in paragraph (a).

Taxable Services

Tax on the provision of taxable service in British Columbia

A tax on the provision of a taxable service in British Columbia must be paid to the government by a purchaser at the rate of 7% of the purchase price of the taxable service.

The tax payable under subsection (1) must be paid at the time the purchase price of the taxable service is paid or by the date on which the purchase price is payable, whichever is earlier.

Transition — application of

section 40

40.1

Tax is payable under

section 40 in respect of a taxable service

if, before May 1, 2010, the consideration for the taxable service becomes due or is paid without having become due,

if the taxable service is substantially provided before July 1, 2010,

if the taxable service is partially provided before July 1, 2010, or

before May 1, 2010, only a portion of the consideration for the taxable service becomes due or is paid without having become due, and

the taxable service is provided on or after July 1, 2010.

Tax is not payable under

section 40 in respect of a taxable service if

all of the consideration for the taxable service becomes due on or after May 1, 2010,

none of the consideration for the taxable service is paid before May 1, 2010, and

the taxable service is provided on or after July 1, 2010.

If tax is payable under

section 40 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 40, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the consideration for the taxable service that

is not paid before May 1, 2010,

becomes due on or after May 1, 2010, and

is attributable to the portion of the taxable service provided on or after July 1, 2010.

If tax is payable under

section 40 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 40, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the consideration for the taxable service that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax if service provided to British Columbia resident

This

section applies to a person who

resides, ordinarily resides or carries on business in British Columbia,

takes or sends tangible personal property out of British Columbia

primarily for the purpose of having taxable service provided in respect of the property, and

has taxable service provided in respect of the property, and

brings or sends into British Columbia or receives delivery in British Columbia of the property referred to in paragraph (

b) for use or consumption

by the person,

by another person at the first person's expense,

iii

by another person for whom the first person acts as agent, or

by another person at the expense of a principal for whom the first person acts as agent.

The person must

immediately report the matter in writing to the commissioner,

supply to the commissioner all pertinent information required by the commissioner in respect of the taxable service provided in relation to the property, and

on the date that the tangible personal property is returned to British Columbia as referred to in subsection (1) (c), pay to the government a tax in respect of the taxable service, with the tax calculated as 7% of the purchase price of the taxable service.

For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if an employee or other representative of that person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of that person's products or services.

Transition — application of

section 41

41.1

Tax is payable under

section 41 in respect of a taxable service if, before July 1, 2010, the taxable service

is substantially provided, or

is partially provided but not substantially provided.

Tax is not payable under 41 in respect of a taxable service if the taxable service is provided on or after July 1, 2010.

If tax is payable under

section 41 by reason of subsection (1) (

b) of this section, for the purpose of calculating the tax payable under

section 41, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the purchase price of the taxable service that is attributable to the portion of the taxable service provided on or after July 1, 2010.

Exceptions from tax

A person who takes or sends tangible personal property out of British Columbia primarily for the purpose of using that tangible personal property outside British Columbia for a period of time is exempt from tax under this Division in respect of any taxable service provided in respect of the tangible personal property while it is outside British Columbia during that period.

a prescribed taxable service, or

a taxable service purchased by a person who is a member of a prescribed class of persons.

Repealed

[Repealed 2007-31-39.]

How tax is to be calculated

The tax imposed by this Act must be

calculated separately on every purchase of a taxable service, and

computed to the nearest cent, with 1/2 cent counted as 1 cent.

If several taxable services are purchased on the same occasion or as part of one transaction, the total of the purchases is deemed to be one purchase for the purposes of this Act.

Application of other provisions of Act

For the purposes of applying the other provisions of this Act in relation to a tax imposed by this Division,

the receiving of a taxable service for consideration is deemed to be a purchase, and

the provision of a taxable service for consideration is deemed to be a sale of tangible personal property at a retail sale,

except that Division 1 of this Part does not apply to a purchase of a taxable service.

Legal Services

Tax if legal services provided in British Columbia

If the purchaser or recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services must be paid to the government by the purchaser at the rate of 7% of the purchase price.

If neither the purchaser nor the recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services must be paid to the government by the purchaser at the rate of 7% of the purchase price if the legal services are in relation to one or more of the following:

real property situated in British Columbia;

tangible personal property, within the meaning of paragraph (

a) of the definition of tangible personal property, that is ordinarily situated in British Columbia or that is to be delivered in British Columbia, or the contemplation of either of these;

the ownership, possession or use in British Columbia of property other than that referred to in paragraphs (

a) and (b), or the right to use such property in British Columbia, or the contemplation of any of these;

a court or administrative proceeding in British Columbia or a possible such proceeding;

the incorporation or contemplated incorporation of a corporation under the Business Corporations Act or the Society Act , or the registration or contemplated registration of a corporation as an extraprovincial company under the Business Corporations Act or as an extraprovincial society under the Society Act ;

any other matter that relates to British Columbia and is prescribed as being included for the purposes of this section.

Tax if legal services provided to British Columbia resident

A person who

resides, ordinarily resides or carries on business in British Columbia, and

is the purchaser of legal services provided outside British Columbia that relate to British Columbia

must pay a tax to the government in respect of the legal services, with the tax calculated as 7% of the purchase price of the legal services.

For the purposes of subsection (1), legal services relate to British Columbia if they relate to any of the following:

a matter referred to in

section 46 (2) (

a) to (f);

a matter that involves the

interpretation or application of an enactment as defined in the

Interpretation Act or a former or proposed such enactment;

a matter that involves the

interpretation or application of an enactment, or a former or proposed enactment, of a jurisdiction other than British Columbia, if the matter is in relation to

a physical or legal presence in British Columbia or a contemplated such presence,

an activity in British Columbia or a contemplated such activity, or

iii

a transaction in British Columbia or a contemplated such transaction;

a matter that involves the analysis or application of any law other than that referred to in paragraphs (

b) and (c), if the matter is in relation to

a physical or legal presence in British Columbia or a contemplated such presence,

an activity in British Columbia or a contemplated such activity, or

iii

a transaction in British Columbia or a contemplated such transaction;

a contract or covenant, or a contemplated contract or covenant, that is in relation to

a physical or legal presence in British Columbia or a contemplated such presence,

an activity in British Columbia or a contemplated such activity, or

iii

a transaction in British Columbia or a contemplated such transaction.

A person referred to in subsection (1) is exempt from tax under that subsection in relation to that portion of the purchase price which is for legal services that relate to a jurisdiction other than British Columbia if

the person resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and

part of the legal services referred to in subsection (1) relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of subsection (2).

For the purposes of subsection (3), the person must

make a reasonable estimate, subject to the regulations, of that portion of the purchase price which relates to legal services referred to in subsection (3) (b),

make and retain a record of the estimate and the basis on which it is made, and

if the person who provided the legal services is required by this Act to collect the tax payable, provide a copy of the record to that person.

Transition — application of sections 46 and 47

47.1

Tax is payable under

section 46 or 47 in respect of legal services

if, before May 1, 2010, the consideration for the legal services becomes due or is paid without having become due,

if the legal services are substantially provided before July 1, 2010,

if the legal services are partially provided before July 1, 2010, or

before May 1, 2010, only a portion of the consideration for the legal services becomes due or is paid without having become due, and

the legal services are provided on or after July 1, 2010.

Tax is not payable under

section 46 or 47 in respect of legal services if

all of the consideration for the legal services becomes due on or after May 1, 2010,

none of the consideration for the legal services is paid before May 1, 2010, and

the legal services are provided on or after July 1, 2010.

If tax is payable under

section 46 or 47 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 46 or 47, the purchase price of the legal services is deemed to be the amount equal to the purchase price of the legal services less that portion of the consideration for the legal services that

is not paid before May 1, 2010,

becomes due on or after May 1, 2010, and

is attributable to the portion of the legal services provided on or after July 1, 2010.

If tax is payable under

section 46 or 47 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 46 or 47, the purchase price of the legal services is deemed to be the amount equal to the purchase price of the legal services less that portion of the consideration for the legal services that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.