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Volume 56, No. 4

94/2013

The British Columbia Gazette,

Part II

March 12, 2013

B.C. Reg. 94/2013 , deposited March 1, 2013, pursuant to the MOTOR FUEL TAX ACT [section 71]. Order in Council 126/2013, approved and ordered February 28, 2013.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that, effective April 1, 2013, the Motor Fuel Tax Regulation, B.C. Reg. 414/85, is amended as set out in the attached Schedule.

— M. DE JONG, Minister of Finance ; R. COLEMAN, Presiding Member of the Executive Council .

Schedule

Section 1.2 (1) and (2) of the Motor Fuel Tax Regulation, B.C. Reg. 414/85, is amended by striking out “ the Motor Fuel Tax Act , ” and substituting “ the Act, ”.

Section 2.01 is amended

(

a) by repealing subsection (1) and substituting the following:

(1) A person who is required to pay tax on fuel under

section 4 (3), 5 (2), 6 (2) or (4), 7 (2), 8 (2), 9 (2), 9.1 (3), 10 (3), 10.1 (3), 10.3 (3), 13 (3), 13.2 or 15 (3) of the Act must, at the same time tax is payable under that section, deliver to the director a return in a form specified by the director.

(1.1) A person who is required to pay tax on heating oil or non-motor fuel oil under

section 16.7 (5) of the Act must, at the same time tax is payable under that provision, deliver to the director a return in a form specified by the director. , and

(

b) in subsection (2) by striking out “ 8 (2) and 9 (2) (

b) of the Act ” and substituting “ 8 (2), 9 (2) and 10.3 (3) of the Act ”.

Section 2.021 is amended by adding “ 10.3 (2), ” after “ 10.1 (1.1), ”.

Section 2.03 is repealed and the following substituted:

Section 20.11 (5) and (6) of Act

2.03 A vendor, wholesale dealer or retail dealer to whom

section 20.11 (5) or (6) of the Act applies

(

a) must, on or before the 15th day of the month following the month in respect of which the vendor, wholesale dealer or retail dealer subsequently received or collected an amount referred to in

section 20.11 (5) or (6), as applicable, pay to the government the amount received or collected, and

(

b) must deliver to the director a return in a form specified by the director.

Section 2.3 (2) is repealed and the following substituted:

(2) Marine gas oil that is purchased for use in a marine gas turbine that propels a commercial passenger or cargo carrying ship is exempt from tax under the Act, other than

section 13.2 of the Act.

Section 3.01 is repealed.

Section 5.01 is amended

(

a) by renumbering the

section as

section 5.01 (1),

(

b) in subsection (1) by striking out “ A person who ” and substituting “ A person, other than a person referred to in

section 2.01 (1.1) of this regulation, who ”, and

(

c) by adding the following subsection:

(2) A person who is required under

section 2.01 (1.1) of this regulation to file a return for the payment of tax under the Act in respect of heating oil or non-motor fuel oil must keep, at the person’s principal office or principal place of business in British Columbia, records of the person’s operations that substantiate the information provided on the person’s tax return with respect to the manufacture or acquisition, and use, of the heating oil or non-motor fuel oil by the person.

8 The following

section is added:

Declaration under

section 16.6 of Act

5.011 A person who is required to obtain a declaration under

section 16.6 of the Act must keep the declaration at the person’s principal office or principal place of business in British Columbia.

9 The heading to

Part 2 is repealed and the following substituted:

Part 2 – Coloured Fuel, Heating Oil and Non-Motor Fuel Oil .

10 The following

section is added to

Part 2:

Definition

5.7 In sections 6 to 9 and 11, “authorized person” means a person who holds an authorization to colour fuel under

section 14 (1) of the Act.

Section 6 (1) (

b) and (

c) is repealed and the following substituted:

(

b) make a pre-mixed dye solution using a process acceptable to the director, and

(

c) use the pre-mixed dye solution referred to in paragraph (

b) to colour gasoline or light fuel oil so that the gasoline or light fuel oil is coloured to a concentration of 14 parts of dye per 1 million parts of gasoline or light fuel oil.

Section 11 (1) and (2) is amended by striking out “ labelled “MARKED” on ” and substituting “ labelled “COLOURED” or “MARKED” on ” .

Section 15.3 is repealed and the following substituted:

Suspension under

section 14 (4) or 14.1 (4) of Act

15.3

(1) In this section, “relevant provision” means

(a)

section 14 (4) of the Act, or

(b)

section 14 (4) of the Act as it applies under

section 14.1 (4) of the Act.

(2) The period for which an authorization may be suspended under a relevant provision is as follows:

(a) 12 months, if there has been

(

i) a previous suspension of the authorization, or

(ii) a previous suspension or cancellation of another authorization under

section 14, 14.1 or 16.3 of the Act;

(b) 3 months, if paragraph (

a) does not apply.

Section 15.4 is amended

(

a) in subsection (1) (

a) by striking out “ located on the farmer’s land and the land is classified as farm land, ” and substituting “ located on the farmer’s farm, ”, and

(

b) by repealing subsection (3) (

e) and substituting the following:

(

e) a copy of the applicant’s BC Farmer Identity Card issued by the BC Agriculture Council to the applicant or a declaration in a form acceptable to the director.

Section 15.5 is repealed and the following substituted:

Persons selling coloured fuel to farmers

15.5

(1) A retail dealer who sells coloured fuel to a person claiming an exemption under

section 15.4 (1) in respect of the sale must ensure the sale meets one of the requirements for exemption under

section 15.4 (1) and must obtain from the person

(

a) the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issued by the BC Agriculture Council to the person, or

(

b) a declaration in a form acceptable to the director.

(2) A retail dealer who sells coloured fuel to a farmer must issue an invoice to the farmer and specify on the invoice whether tax was included in the sale.

(3) The documentation referred to in subsection (1) must be retained by the retail dealer to substantiate non-collection of tax on the sale.

16 The following

section is added to

Part 2:

Application to heating oil and non-motor fuel oil

15.6

(1) Sections 5.7 to 10 apply in relation to

(

a) the colouring of heating oil or non-motor fuel oil as if the heating oil or non-motor fuel oil were a fuel, and

(

b) coloured heating oil or coloured non-motor fuel oil as if the coloured heating oil or coloured non-motor fuel oil were coloured fuel.

(2) Section 15.3 of this regulation applies to the suspension of an authorization under

section 14 (4) of the Act as that provision applies under 16.3 (6) of the Act.

17 The following

Part is added:

Part 2.1 – Propane Exemptions and Refunds

Definitions

15.7 In this Part:

“qualifying person” means a person, other than a farmer, who is a qualifying farmer as defined in

section 1 (1) of the Provincial Sales Tax Exemption and Refund Regulation;

“residential dwelling” has the same meaning as in the Provincial Sales Tax Exemption and Refund Regulation;

“residential use” has the same meaning as in the Provincial Sales Tax Exemption and Refund Regulation.

Exemption for propane – residential use

15.8 Propane purchased solely for residential use in a residential dwelling is exempt from tax under

section 10.3 of the Act if

(

a) the retail dealer delivers or provides the propane to

(

i) a residential dwelling,

(ii) a building that contains a residential dwelling, or

(iii) a storage receptacle located at and connected to a residential dwelling, and

(

b) in the case of a delivery or provision of propane to a residential dwelling that is part of a multi-use building, the retail dealer delivers or provides the propane to a storage receptacle, or through a meter, that services only the part of the building that is used only for residential use.

Exemption for propane – residential and farm use

15.9

(1) In this section:

“qualifying land” means, in relation to a qualifying person described in

(

a) paragraph (

a) of the definition of “ qualifying farmer ” in

section 1 (1) of the Provincial Sales Tax Exemption and Refund Regulation, the applicable land referred to in that paragraph,

(

b) paragraph (

b) of the definition of “ qualifying farmer ” in

section 1 (1) of the Provincial Sales Tax Exemption and Refund Regulation, the applicable land referred to in that paragraph, and

(

c) paragraph (

c) of the definition of “ qualifying farmer ” in

section 1 (1) of the Provincial Sales Tax Exemption and Refund Regulation, the applicable land referred to in that paragraph;

“qualifying person” does not include a person described in paragraph (

d) of the definition of “ qualifying farmer ” in

section 1 (1) of the Provincial Sales Tax Exemption and Refund Regulation.

(2) Subject to subsections (3) and (4), propane is exempt from tax under

section 10.3 of the Act if the propane is purchased by a farmer or qualifying person for use only for

(

a) residential use in a residential dwelling, and

(

b) in the case of a purchase

(

i) by a farmer, a purpose described in

section 15.12 (1) (

a) to (

f) of this regulation, or

(ii) by a qualifying person, a purpose described in

section 15.13 (1) of this regulation.

(3) In relation to a purchase of propane by a farmer, the exemption from tax provided for in subsection (2) applies only if

(

a) the farmer’s farm contains

(

i) a residential dwelling,

(ii) a building that contains a residential dwelling, or

(iii) a storage receptacle located at and connected to a residential dwelling, and

(

b) one of the following applies:

(

i) the retail dealer delivers the propane to a storage receptacle located on the farmer’s farm;

(ii) the propane is purchased on account from a bulk agent;

(iii) the propane is purchased through a keylock or cardlock system.

(4) In relation to a purchase of propane by a qualifying person, the exemption from tax provided for in subsection (2) applies only if

(

a) the qualifying land of the qualifying person contains

(

i) a residential dwelling,

(ii) a building that contains a residential dwelling, or

(iii) a storage receptacle located at and connected to a residential dwelling, and

(

b) one of the following applies:

(

i) the retail dealer delivers the propane to a storage receptacle owned by the qualifying person;

(ii) the propane is purchased on account from a bulk agent;

(iii) the propane is purchased through a keylock or cardlock system.

Exemption for propane in types of containers

15.10

(1) Propane contained in a sealed, pre-packaged container that holds not more than 4 litres of propane is exempt from tax under

section 10.3 of the Act.

(2) Propane purchased in a pre-filled or refilled cylinder that is designed to hold not more than 28 litres of propane is exempt from tax under

section 10.3 of the Act.

(3) If a collector sells, or a deputy collector or retail dealer buys, propane in a sealed, pre-packaged container that holds not more than 4 litres, the collector, deputy collector or retail dealer is exempt from paying security under

section 38, 39 or 40 of the Act, as applicable.

Exemption for propane made part of tangible personal property

15.11

(1) Subject to subsections (2) and (3), propane purchased for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into tangible personal property, as defined in

section 1 of the Provincial Sales Tax Act , for the purpose of retail sale or lease, as those terms are defined in that

section of that Act, is exempt from tax under

section 10.3 of the Act.

(2) If propane is used to produce energy or is used as a source of energy, the exemption under subsection (1) does not apply to the propane.

(3) The exemption under subsection (1) does not apply if the purchaser of the propane

(

a) is a small seller, as defined in

section 1 of the Provincial Sales Tax Act , or

(

b) is to retain an interest in the propane after the retail sale or lease of the tangible personal property referred to in subsection (1) of this section.

Exemption for propane – farmers

15.12

(1) Propane purchased by a farmer is exempt from tax under

section 10.3 of the Act if the propane is purchased for use

(

a) solely for a farm purpose other than operating a motor vehicle or machinery,

(

b) in machinery on a farm for a farm purpose,

(

c) in a tractor on other than a highway,

(

d) in a tractor on a highway

(

i) when proceeding to or returning from a location where use of the propane in the tractor is authorized under paragraph (c), or

(ii) for the purposes of the farmer’s farm,

(

e) in a farm truck being used by the farmer or other person in the operation of the farm, or

(

f) in a motor vehicle, other than a farm truck or tractor, on the farm for a farm purpose.

(2) The exemption from tax provided for in subsection (1) applies only if

(

a) the retail dealer delivers the propane to a storage receptacle located on the farmer’s farm,

(

b) the propane is purchased on account from a bulk agent, or

(

c) the propane is purchased through a keylock or cardlock system.

Exemption for propane – qualifying persons

15.13

(1) Propane purchased by a qualifying person is exempt from tax under

section 10.3 of the Act if the propane is purchased for use solely for a farm purpose other than operating a motor vehicle or machinery.

(2) The exemption from tax provided for in subsection (1) applies only if

(

a) the retail dealer delivers the propane to a storage receptacle owned by the qualifying person,

(

b) the propane is purchased on account from a bulk agent, or

(

c) the propane is purchased through a keylock or cardlock system.

Persons selling propane to farmers and qualifying persons

15.14

(1) A retail dealer who sells propane to a person claiming an exemption under

section 15.9 in respect of the sale must ensure the sale meets the requirements for exemption under

section 15.9 and must obtain from the person

(

a) the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issued by the BC Agriculture Council to the person, or

(

b) a declaration in a form acceptable to the director.

(2) A retail dealer who sells propane to a person claiming an exemption under

section 15.12 or 15.13 in respect of the sale must ensure the sale meets one of the requirements for exemption under

section 15.12 (2) or 15.13 (2), as applicable, and must obtain from the person

(

a) the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issued by the BC Agriculture Council to the person, or

(

b) a declaration in a form acceptable to the director.

(3) A retail dealer who sells propane to a farmer or qualifying person must issue an invoice to the farmer or qualifying person and must specify on the invoice whether tax was included in the sale.

(4) The documentation referred to in subsections (1) and (2) must be retained by the retail dealer to substantiate non-collection of tax on the sale.

Refund for propane – residential use

15.15 If the director is satisfied that a person paid tax under

section 10.3 of the Act in respect of propane used for residential use in a residential dwelling, the director must refund to the person the amount of tax paid by the person that can reasonably be attributed to the portion of the propane used for residential use in a residential dwelling.

Refund for propane – farmers

15.16 If

(

a) the director is satisfied that a farmer paid tax under

section 10.3 of the Act in respect of propane used for a purpose described in

section 15.12 (1) (

a) to (

f) of this regulation, and

(

b) the exemption from tax provided for in

section 15.12 (1) of this regulation did not apply because none of the requirements in

section 15.12 (2) of this regulation were met,

the director must refund to the farmer the amount of tax paid by the farmer that can reasonably be attributed to the amount of propane used for that purpose.

Refund for propane – qualifying persons

15.17 If

(

a) the director is satisfied that a qualifying person paid tax under

section 10.3 of the Act in respect of propane used for a purpose described in

section 15.13 (1) of this regulation, and

(

b) the exemption from tax provided for in

section 15.13 (1) of this regulation did not apply because none of the requirements in

section 15.13 (2) of this regulation were met,

the director must refund to the qualifying person the amount of tax paid by the qualifying person that can reasonably be attributed to the amount of propane used for that purpose.

Section 51.1 is amended in the definition of “Category 1 alternative motor fuel” by adding “ or ” at the end of paragraph (

a) and by repealing paragraph (b).

Section 51.2 (1) is amended by repealing item 7 from the table.

Section 52 is amended by striking out everything before paragraph (

a) and substituting the following:

52 A person who contravenes

section 2, 2.01, 2.02, 2.021, 2.03, 2.04, 5, 5.01, 5.011, 5.02, 5.03, 5.1, 6 (2), 7, 8 (2), 9, 10, 11 (3), 12, 13, 15.5, 15.11, 16, 21, 22, 23, 24, 25, 26 (4), 42 (2), 45 or 51.81 commits an offence and is liable .

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