British Columbia Bill 45 (Government) — 4th Parliament, 41st Session — Previous Version 1

4-41 Gov Bill 45-1

British Columbia — Bills

2019 Legislative Session: 4th Session, 41st Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE CAROLE JAMES

MINISTER OF FINANCE AND DEPUTY PREMIER

BILL 45 – 2019

TAXATION STATUTES AMENDMENT ACT, 2019

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

Provincial Sales Tax Act

SECTION 1: [Provincial Sales Tax Act,

section 1]

adds

definitions of "e-substance", "e-vaping device" and "vapour product" to the Act;

amends

definitions consequential to amendments made by this Bill to the Act.

Section 1 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended

(

a) in the definition of "eligible tangible personal property" by adding the following paragraph:

(d.1) a vapour product; ,

(

b) by adding the following

definitions:

"e-substance" means a solid, liquid or gas

(

a) that is designed for use in an e-vaping device,

(

b) that, on being heated, produces a vapour, and

(

c) that may or may not contain nicotine,

but does not include cannabis within the meaning of the Cannabis Control and Licensing Act other than cannabis that is in liquid form; ,

"e-vaping device" means

(

a) a product or device containing an electronic or battery-powered heating element capable of vapourizing an e-substance for inhalation or release into the air, and

(

b) a prescribed product or device similar in nature or use to a product or device described in paragraph (a),

but does not include a product or device described in paragraph (

a) that is prescribed; ,

(

c) in the definition of "exclusive product" by striking out " or a manufactured building " and substituting " , a manufactured building or a vapour product ",

(

d) in paragraph (b.1) of the definition of "small seller" by adding " , vapour products " after " boats ", and

(

e) by adding the following definition:

"vapour product" means

(

a) an e-vaping device,

(

b) an e-substance, and

(

c) a cartridge, part or accessory for an e-vaping device; .

SECTION 2: [Provincial Sales Tax Act,

section 34] increases the rate of tax payable on purchased vapour products.

Section 34 is amended by adding the following subsection:

(11) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 81, 82, 82.01, 82.1, 82.2, 83, 84, 85 and 86 on a vapour product is 20% of the purchase price of the vapour product.

SECTION 3: [Provincial Sales Tax Act,

section 35] increases the rate of tax payable on leased vapour products.

Section 35 is amended by adding the following subsection:

(8) The rate of tax payable under sections 39, 41 and 82.01 on a vapour product is 20% of the lease price of the vapour product.

SECTION 4: [Provincial Sales Tax Act,

section 36] increases the rate of tax payable on gifts from outside British Columbia of vapour products.

Section 36 is amended by adding the following subsection:

(11) The rate of tax payable under

section 49 (6) (

c) on a vapour product is 20% of the fair market value of the vapour product on the entry date of the vapour product.

SECTION 5: [Provincial Sales Tax Act,

section 55] increases the rate of tax payable on vapour products brought into British Columbia from outside Canada.

Section 55 is amended

(

a) in subsections (1) (

c) and (2) (

b) by adding " and (3.6) " after " subsections (3) to (3.4) ",

(

b) in subsection (3) by adding " and (3.6) " after " subsections (3.1) to (3.4) ", and

(

c) by adding the following subsection:

(3.6) The rate of tax payable under subsections (1) and (2) on a vapour product is 20% of the taxable value of the vapour product.

Tobacco Tax Act

SECTION 6: [Tobacco Tax Act,

section 2]

increases the rate of tax on tobacco in the form of cigarettes;

increases the rate of tax on tobacco in a form other than cigars or cigarettes.

Section 2 of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended

(

a) in subsection (2) by striking out " 27.5¢ for each cigarette " and substituting " 29.5¢ for each cigarette ", and

(

b) in subsection (3) by striking out " 37.5¢ for each gram of tobacco " and substituting " 39.5¢ for each gram of tobacco ".

Transitional Provision

Provincial Sales Tax Act transition –

retroactive regulation-making power

SECTION 7: [Provincial Sales Tax Act transition – retroactive regulation-making power] authorizes retroactive regulations to be made, consequential to the addition by this Bill of the definition of "e-vaping device" to

section 1 of the Provincial Sales Tax Act .

7 A regulation made on or before December 31, 2020 for the purpose of prescribing a product or device that is excluded from the definition of "e-vaping device" in

section 1 of the Provincial Sales Tax Act may be made retroactive to a specified date that is not earlier than the date this

section comes into force and, if made retroactive, is deemed to have come into force on the specified date.

Commencement

8 This Act comes into force on January 1, 2020.

Explanatory Notes