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1997 Legislative Session: 2nd Session, 36th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE ANDREW PETTER

MINISTER OF FINANCE AND

CORPORATE RELATIONS AND

MINISTER RESPONSIBLE FOR

INTERGOVERNMENTAL RELATIONS

BILL 36 – 1997

TOBACCO TAX AMENDMENT ACT, 1997

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province

of British Columbia, enacts as follows:

Section 1 of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by adding the

following

definitions:

"band" has the same meaning as in the Indian Act (Canada);

"band bylaw" means a bylaw passed by a band that imposes a tax on an Indian or

band purchasing tobacco on a reserve, where the tax is collected by the Province

under an agreement referred to in

section 43.1;

"Indian" has the same meaning as in the Indian Act (Canada);

"reserve" has the same meaning as in the Indian Act (Canada); .

Section 2 is amended

(

a) in subsection (9) by striking out "subsection (8)," and substituting "subsections (8)

and (11)," ,

(

b) by adding the following subsection:

(10.1) Despite subsections (9) and (10), a person who sells tobacco to a retail dealer and

receives money in respect of the tax payable on the tobacco must remit that

money to the minister. , and

(

c) in subsection (11) by striking out "by a dealer from a consumer in respect of a sale"

and substituting "by a dealer, other than a security received under

section 12, in respect

of a sale" .

Section 6 is amended by adding the following subsections:

(4) The director may require the applicant for a dealer's permit, as a condition of

granting the permit, to deposit a bond by way of cash or other security, if the

director considers, due to a previous failure of a dealer or a class of dealer to

comply with this Act, that there is a significant risk that an applicant may not

collect or remit taxes under this Act.

(5) If the director requires that a bond be deposited under subsection (4),

section 37

applies.

Section 13 is amended

(

a) in paragraphs (

a) and (

b) by striking out "Act," and substituting "Act or a band

bylaw," ,

(

b) in paragraph (d) (

i) by striking out "another government," and substituting "another

government or a band,", and

(

c) in paragraph (d) (iii) by striking out "other government," and substituting "other

government or band," .

Section 22 (5) is amended by adding "or on the basis of other information" after "under

section 21" .

6 The following

section is added:

Band tax agreement

43.1

(1) In this section, "band tobacco tax" means a tax imposed by a bylaw passed by

a band that is payable by a consumer of tobacco products who is exempt under

the Indian Act (Canada) from paying the tax imposed by this Act.

(2) The Minister of Finance and Corporate Relations may enter into a tax collection

agreement on behalf of the government with a band that has imposed a band

tobacco tax.

(3) An agreement under subsection (2) must include provision for the director, as

agent for the band, to collect the band tobacco tax, and may include provision for

a commission, fee or charge to be paid to the government for the services of the

director.

(4) Despite the Financial Administration Act , band

tobacco tax that is collected for a band by the director under an agreement

entered into under subsection (2) must be paid into the consolidated revenue

fund.

(5) The Minister of Finance and Corporate Relations, out of the consolidated revenue

fund,

(

a) must pay to the band money that, under the tax collection agreement, is

payable to the band,

(

b) if required or permitted to do so under the tax collection agreement, may

advance money to the band in anticipation of the collection of band tobacco

tax under the agreement, and

(

c) if required or permitted to do so under the tax collection agreement, may

make payments to the band based on estimates of band tobacco tax

collected.

Explanatory Notes

[This Bill amends the Revised Statutes of British Columbia,

1996. The Revised Statutes of British Columbia, 1996 came into force on April

21, 1997.]

SECTION 1: [Tobacco Tax Act, amends

section 1] provides authorization for the Province

to enter into an agreement with Indian bands to collect a band tobacco tax on

their behalf.

SECTION 2: [Tobacco Tax Act, amends

section 2] imposes a requirement on an unregistered wholesale dealer to remit any money received from a retail dealer in

respect of the tax payable on tobacco purchased for a retail sale.

SECTION 3: [Tobacco Tax Act, adds

section 6 (4) and (5)] allows the director to require a

bond from applicants for a dealer's permit.

SECTION 4: [Tobacco Tax Act, amends

section 13 ] provides authorization for the

Province to enter into an agreement with Indian bands to collect a band tobacco

tax on their behalf.

SECTION 5: [Tobacco Tax Act, amends

section 22 (5)] deters black market sales by

allowing the director to make an assessment based on information received

from other sources, such as the RCMP or other jurisdictions through tax information sharing agreements.

SECTION 6: [Tobacco Tax Act, enacts

section 43.1] provide authorization for the Province

to enter into an agreement with Indian bands to collect a band tobacco tax on

their behalf.

Copyright © 1997: Queen's Printer, Victoria, British Columbia, Canada