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Volume 46, No. 4

B.C. Reg. 55/2003

The British Columbia Gazette,

Part II

February 25, 2003

B.C. Reg. 55/2003, deposited February 18, 2003, pursuant to the SOCIAL SERVICE TAX ACT [Sections 73 (1) (

b) and (c), 76 (1) (

k) and 138 (1) (q)]. Order in Council 140/2003, approved and ordered February 18, 2003.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that, effective February 19, 2003, the Social Service Tax Act Regulations, B.C. Reg. 84/58, is amended as set out in the attached Schedule. — G. M. COLLINS, Minister of Finance; G. CAMPBELL, Presiding Member of the Executive Council.

Schedule

Section 2.21 of the Social Service Tax Act Regulations, B.C. Reg. 84/58, is amended by adding the following to the list of prescribed tangible personal property:

Hanging gutters

Shade curtains .

Section 2.37 (4) is amended by adding the following:

(vv) closed bag containment systems, including pumps and waste management equipment that are integrated into the systems;

(ww) pumps used to pump water into or out of fish enclosures.

Section 3.13.1 is amended

(

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

"parts delivery vehicle" means a new or used motor vehicle that is

(

a) temporarily removed from a dealer's sale or lease inventory on or after February 19, 2003,

(

b) used only by the dealer, or by an officer, salesperson or employee of the dealer, and

(

c) used only to transport motor vehicle parts in the course of the dealer's business. ,

(

b) in subsection (2) (a), by striking out "a parts delivery vehicle,",

(

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

(

c) a dealer in respect of a parts delivery vehicle, , and

(

d) in subsection (4), by striking out "dealer use vehicle" and substituting "dealer use vehicle, parts delivery vehicle".

Section 13.1 is amended by repealing the definition of "mineral".

Section 13.9 (

c) is amended by striking out "vessels," and substituting "vessels, other than boom boats purchased or leased by a person described in

section 13.3 and used exclusively for purposes described in

section 13.3 (c),".

Section 13.11 is amended by repealing subsection (1) and substituting the following:

(1) A person, including a contractor described in

section 13.13 (2) (a), who claims an exemption under this Division in respect of machinery, equipment, parts or taxable services, must provide the vendor or lessor with a certification, in a form satisfactory to the commissioner, certifying that the person is eligible for the exemption and that the machinery, equipment or parts being purchased or leased, or for which taxable services are being purchased, qualify for the exemption.

7 The following

section is added:

Machinery or equipment installed by contractor

13.13

(1) In this section:

"eligible person" means a person that is eligible for an exemption under this Division, other than under this section, in relation to machinery, equipment or a part that will be used for an eligible purpose;

"eligible purpose" , in relation to machinery, equipment or a part, means a purpose for which the machinery, equipment or part will be used that, under this Division, qualifies it to be exempt from tax if purchased by an eligible person.

(2) For the purposes of

section 76 (1) (

k) of the Act and subject to sections 13.9 and 13.10, machinery, equipment or a part that is prescribed in this Division as exempt from tax if purchased or leased by an eligible person for an eligible purpose is exempt from tax if

(

a) the machinery, equipment or part

(

i) is purchased in, or brought or sent into, British Columbia, or

(ii) the delivery of which is received in British Columbia

by a contractor to satisfy the contractor's obligations under a lump sum or fixed price contract with an eligible person,

(

b) the machinery, equipment or part

(

i) on installation, will become a fixture described in

section 2.52 (b), and

(ii) will be used by the eligible person for an eligible purpose, and

(

c) the eligible person provides the contractor with a signed certification in a form satisfactory to the commissioner certifying that

(

i) the person is an eligible person, and

(ii) the machinery, equipment or part, once installed, will be used by the eligible person for an eligible purpose.

(3) For the purposes of

section 138 (1) (

q) of the Act, if

(

a) a vendor does not collect tax that it appears should have been collected from a contractor, or

(

b) a contractor does not pay tax that it appears should have been paid by the contractor

because of incorrect information provided in a certification under subsection (2) (c), the commissioner must impose the penalty under

section 115 (5.1) of the Act against the person who certified the incorrect information.

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