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Volume 52, No. 6

B.C. Reg. 124/2009

The British Columbia Gazette,

Part II

March 24, 2009

B.C. Reg. 124/2009 , deposited March 18, 2009, pursuant to the SOCIAL SERVICE TAX ACT [Section 138]. Order in Council 245/2009, approved and ordered March 17, 2009.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that

(

a) effective February 22, 2006,

section 13.1 (1) of the Social Service Tax Act Regulations, B.C. Reg. 84/58, is amended in the definition of " manufacture " by adding the following paragraph:

(

k) the generation of heat, unless such activity is one step in an activity referred to in paragraph (a), (

b) or (

d) of this definition and occurs at

(

i) a manufacturing site described in

section 13.2 (2),

(ii) a mine site described in

section 13.2 (3), or

(iii) a well site, processing plant or refinery described in

section 13.2 (4). , and

(

b) effective February 18, 2009, the Social Service Tax Act Regulations are amended as set out in the attached schedule.

— C. HANSEN, Minister of Finance and Minister Responsible for the Olympics ; S. BOND, Presiding Member of the Executive Council .

Schedule

1 The Social Service Tax Act Regulations, Reg. 84/58, is amended

(

a) in

section 13.3 by renumbering the

section as

section 13.3 (1) and adding the following subsection:

(2) The exemption under subsection (1) (

e) does not apply to machinery or equipment, including transformers, pipes, valves and regulators, for use in the transmission or distribution of tangible personal property unless the machinery or equipment is for use on a vessel used exclusively in underwater logging operations. ,

(

b) in

section 13.9 (

c) by striking out " 13.3 " wherever it appears and substituting " 13.3 (1) ",

(

c) in

section 13.9 (

d) by striking out " 13.3 " and substituting " 13.3 (1) ",

(

d) by repealing

section 13.9.1 and substituting the following:

Additional exclusions — machinery and equipment used

to transmit or distribute tangible personal property

13.9.1 The exemption under

section 13.2 does not apply to machinery or equipment, including transformers, pipes, valves and regulators, for use in the transmission or distribution of tangible personal property unless the machinery or equipment is exempt under

section 13.8.1 or 13.8.2.

(

e) in

section 13.10.2 by adding the following subsections:

(3) Subject to subsection (5), materials purchased or leased to repair, maintain or modify machinery or equipment that is exempt from tax under this Division are exempt from tax if the materials

(

a) are purchased or leased by a person who is eligible to purchase or lease machinery or equipment exempt from tax, and

(

b) remain part of or attached to the machinery or equipment after the repair, maintenance or modification of that machinery or equipment.

(4) Subject to subsection (5), materials purchased or leased by a person to assemble machinery or equipment that would have been exempt from tax under this Division, had the assembled machinery or equipment been purchased or leased by the person as machinery or equipment, are exempt from tax if the materials remain part of, or attached to, the assembled machinery or equipment after assembly.

(5) Materials purchased or leased for a purpose described in subsection (3) or (4) do not qualify for exemption under this

section if they are used primarily for either of the following purposes:

(

a) lubricating the machinery or equipment referred to in those subsections;

(

b) repairing, maintaining, modifying, assembling or making any of the following:

(

i) bases and foundations, that are or become a part of realty, for the machinery or equipment;

(ii) scaffolding, walkways, catwalks and similar items unless such items

(

A) are an integral part of the machinery or equipment referred to in those subsections, and

(

B) are sold or leased as part of that machinery or equipment.

(6) For the purposes of subsection (3), "modify" , in respect of machinery or equipment, means to facilitate or enhance the performance by the machinery or equipment of the function that the machinery or equipment performs in relation to the use that, under this Division, qualifies it as exempt from tax. , and

(

f) in

section 13.11 (1), by striking out " equipment, parts or " and substituting " equipment, parts, materials or " and by striking out " equipment or parts " and substituting " equipment, parts or materials ".

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