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1998/99 Legislative Session: 3rd Session, 36th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE JOY MacPHAIL

MINISTER OF FINANCE AND

CORPORATE RELATIONS

BILL 52 – 1999

TAXATION STATUTES AMENDMENT ACT, 1999

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

Province of British Columbia, enacts as follows:

Assessment Act

1 The Assessment Act, R.S.B.C. 1996, c. 20, is amended by adding the following section:

Special valuation rules for dams, power plants and substations

20.1

(1) In this section:

"dam" means any structure designed and built to control or store water flowing in a

water course for the purposes of, or for purposes ancillary to, generating

electricity;

"power plant" means any structure designed and built to contain boilers, turbines

or compressors for the purposes of, or for purposes ancillary to, generating

electricity;

"substation" means a facility at which electric current is switched, transformed or

converted

(

a) at a dam or a power plant,

(

b) between a power plant and a transmission system, or

(

c) between a transmission system and a distribution network.

(2) This

section applies to properties where there is a dam, power plant or substation,

other than properties to which

section 20 applies.

(3) Despite any other

section of this Act, the actual value of a property to which this

section applies is

(

a) the actual value of the land as determined under

section 19, and

(

b) the cost of

(

i) the dams, power plants and substations on the property, and

(ii) any other improvements on the property,

determined in accordance with the manuals prescribed under subsection

(4) (

a) of this section, less depreciation determined in accordance with the

rates and applied in the manner prescribed under subsection (4) (

b) of this

section.

(4) For the purposes of this section, the Lieutenant Governor in Council may make

regulations prescribing

(

a) manuals establishing rates, formulas, rules or principles for the calculation

of cost, and

(

b) depreciation rates and principles for the application of depreciation.

(5) Regulations under subsection (4) may be different for individual properties or

properties with different categories of dams, power plants and substations.

Corporation Capital Tax Act

Section 13 (3) of the Corporation Capital Tax Act, R.S.B.C. 1996, c. 73, is amended

(

a) by striking out "and" at the end of paragraph (

b) and by adding the following paragraphs:

(b.1) the amount, if any, by which the aggregate of the eligible expenditures of

the corporation incurred after March 31, 1999 for the second preceding

taxation year exceeds the aggregate of

(

i) the eligible expenditures of the corporation for the second preceding

taxation year with respect to property that does not qualify as eligible

property or eligible tourism property of the corporation at the end of

the taxation year, and

(ii) the amounts of amortization, depreciation and other charges taken

into account in computing the corporation's income or loss for the

taxation year and the 2 immediately preceding taxation years in

accordance with generally accepted accounting principles in respect

of the eligible expenditures referred to in this paragraph,

(b.2) the amount, if any, by which the aggregate of the eligible expenditures of

the corporation incurred after March 31, 1999 for the third preceding

taxation year exceeds the aggregate of

(

i) the eligible expenditures of the corporation for the third preceding

taxation year with respect to property that does not qualify as eligible

property or eligible tourism property of the corporation at the end of

the taxation year, and

(ii) the amounts of amortization, depreciation and other charges taken

into account in computing the corporation's income or loss for the

taxation year and the 3 immediately preceding taxation years in

accordance with generally accepted accounting principles in respect

of the eligible expenditures referred to in this paragraph, and , and

(

b) in paragraph (

c) by striking out "paragraphs (

a) and (b)" and substituting "paragraphs

(

a) to (b.2)".

Section 40 is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" , and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the administrator under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the corporation at the time the demand is

served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

corporation, in any other case.

Section 43 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 40 is sufficiently given if it is delivered as set out in

subsection (1) of this

section or is sent by electronic mail or fax to the electronic

mail address or fax number stated in the person's last return or to the last

electronic mail address or fax number known to the administrator. , and

(

b) in subsection (2) by striking out "or mailed" and substituting ", mailed or sent" .

Hotel Room Tax Act

Section 21 (2) of the Hotel Room Tax Act, R.S.B.C. 1996, c. 207, is repealed and the

following substituted:

(2) If a decision of the director or the minister is set aside or the amount of an

assessment or penalty is reduced on appeal, the director must refund from the

consolidated revenue fund

(

a) the amount or excess amount paid, and

(

b) any additional interest or penalty imposed and paid.

Section 28 is amended

(

a) in subsections (2) and (3) by striking out ", by registered letter or by a letter served

personally," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsection (7) by striking out "mailed or" , and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the director under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Income Tax Act

Section 3 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by striking out "19,"

and substituting "19 (2) and (3)," .

Section 6 (1) (

g) is repealed and the following substituted:

(

g) for the 1999 taxation year,

(i) 30% of the amount by which that tax exceeds $5 300, and

(ii) 19% of the amount by which that tax exceeds $8 660 before the tax

payable under subparagraph (

i) is added;

(

h) for the 2000 and subsequent taxation years,

(i) 30% of the amount by which that tax exceeds $5 300, and

(ii) 15% of the amount by which that tax exceeds $8 660 before the tax

payable under subparagraph (

i) is added.

Section 16 is amended by striking out "8.5%" wherever it appears and substituting

"5.5%" .

Section 17 is amended

(

a) by repealing subsection (3) (

b) and substituting the following:

(

b) the taxation year for which the deduction is claimed must be the taxation

year in which the corporation commenced business operations or the

taxation year immediately following that taxation year; , and

(

b) by repealing subsection (4) (

c) and substituting the following:

(

c) at any time during the taxation year for which the deduction is claimed or a

previous taxation year, the corporation was associated with another

corporation within the meaning of

section 256 of the federal Act; .

Section 19 is amended

(

a) by repealing subsections (1) to (3) and substituting the following:

(1) In this section:

"adjusted taxable income" , in relation to a taxpayer for a taxation year, means the

amount that would be the taxpayer's taxable income for the year if that amount

were calculated

(

a) as though

(i)

section 12 (1) (

o) and (z.5),

(ii)

section 18 (l) (m), except as that paragraph applies to an amount paid

or payable under a prescribed Act,

(iii)

section 20 (l) (v.1),

(iv)

section 69 (6), and

(v)

section 69 (7)

of the federal Act had not been enacted, and

(

b) as though tax payable in respect of the taxation year under the Mineral Tax

Act or any other prescribed Act was deductible in computing the taxpayer's

taxable income;

"notional tax" , in relation to a taxpayer for a taxation year, means the tax that

would, but for

section 120.1 of the federal Act, be payable under this Part by the

taxpayer for the taxation year if the taxpayer's taxable income under this Part for

the taxation year was the amount, if any, by which

(

a) the aggregate of all amounts, each of which is the adjusted taxable income

of the taxpayer for the taxation year and for all preceding taxation years

ending after May 5, 1973,

exceeds

(

b) the amount determined under paragraph (

a) for the immediately preceding

taxation year;

"tax otherwise payable" means the amount that would, but for this

section and

section 120.1 of the federal Act, be the tax otherwise payable under this Part.

(2) If

(

a) the tax otherwise payable by a taxpayer for a taxation year

is greater than

(

b) the notional tax of the taxpayer for the taxation year,

the difference must be deducted from the tax otherwise payable by the taxpayer

for the taxation year.

(3) If

(

a) the notional tax of a taxpayer for a taxation year

is greater than

(

b) the tax otherwise payable by the taxpayer for the taxation year,

the difference must be added to the tax otherwise payable by the taxpayer for the

taxation year. , and

(

b) in subsection (4) by striking out "For the purpose of subsections (1) and (3), in calculating

the tax that would be payable" and substituting "For the purpose of subsections

(2) and (3), in calculating the tax otherwise payable" .

Section 27 (3) is repealed.

Section 79 (1) is amended in the definition of "eligible production"

(

a) in paragraph (

d) by striking out "at least 75% of the cost of producing the production,"

and substituting "in the case of a production that is not a documentary, at least 75% of

the cost of producing the production," , and

(

b) by adding the following paragraph:

(d.1) in the case of a production that is a documentary, at least 75% of the cost of

producing the production, other than costs determined by reference to the

amount of income from the production, or, in the case of an interprovincial

co-production or a treaty co-production, at least 75% of the cost of

producing the British Columbia portion of the production, other than costs

determined by reference to the amount of income from the production, is

payable to BC-based individuals or BC-based corporations in respect of

goods or services provided by

(

i) BC-based individuals who are employees, or

(ii) BC-based individuals, or BC-based corporations, in the course of

carrying on business through a permanent establishment in British

Columbia; .

Income Tax Amendment Act, 1998

Section 4 of the Income Tax Amendment Act, 1998, S.B.C. 1998, c. 8, is repealed.

Section 9 (6) is repealed.

Insurance Premium Tax Act

Section 25 of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" , and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the commissioner under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Section 34 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 25 is sufficiently made if it is delivered as set out in

subsection (1) of this

section or is sent by electronic mail or fax to the electronic

mail address or fax number stated in the person's last return or to the last

electronic mail address or fax number known to the commissioner. , and

(

b) in subsection (2) by striking out "or mailed" and substituting ", mailed or sent" .

International Financial Business (Tax Refund) Act

Section 1 of the International Financial Business (Tax Refund) Act, R.S.B.C. 1996,

c. 235, is amended

(

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

"nonresident broker" means a nonresident who

(

a) is licensed or registered under the laws of a foreign country or a political

division of a foreign country to trade in securities as principal or agent,

(

b) is not licensed or registered under the Securities Act or a similar law of

another province to carry on any activity in a province, and

(

c) is not related within the meaning of

section 251 of the Income Tax Act

(Canada) to a corporation that is licensed or registered under the Securities

Act or a similar law of another province to carry on any activity in a

province; , and

(

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

(

g) if a financial institution is acting

(

i) as a principal in making or offering to make, with a nonresident

broker acting as agent for a nonresident, an agreement for acquiring,

disposing of, subscribing for or underwriting securities, or

(ii) as an agent for a resident in making or offering to make, with a

nonresident broker acting as agent for a nonresident, an agreement

for acquiring, disposing of, subscribing for or underwriting

securities,

the nonresident broker is deemed to be the nonresident for the purposes of

paragraphs (

a) and (

c) of the definition of "dealing in securities" .

Section 7 (2) is amended by striking out "or" at the end of paragraph (b), by adding ", or"

at the end of paragraph (

c) and by adding the following paragraph:

(

d) comes within paragraph (

a) of the definition of "dealing in securities" and

is carried on for, with or on behalf of a nonresident broker.

Logging Tax Act

20 The Logging Tax Act, R.S.B.C. 1996, c. 277, is amended by adding the following section:

Deemed payment in first 2 years of operation

2.1 If a taxpayer has made a deduction for a taxation year in accordance with

section 17

of the Income Tax Act, the taxpayer is deemed

(

a) to have paid on account of tax under this Act for the taxation year the

amount that would have been deducted under

section 15 of the Income Tax

Act if no amount had been deducted under

section 17 of that Act, and

(

b) to have paid that amount at the time referred to in

section 15 (2) (

c) of this

Act.

Section 32 is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" , and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the commissioner under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Section 39 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 32 is sufficiently made if it is delivered as set out in

subsection (1) of this

section or is sent by electronic mail or fax to the electronic

mail address or fax number stated in the person's last return or to the last

electronic mail address or fax number known to the commissioner. , and

(

b) in subsection (2) (

b) by striking out "or mailed" and substituting ", mailed or sent" .

Mineral Tax Act

Section 1 (1) of the Mineral Tax Act, R.S.B.C. 1996, c. 291, is amended

(

a) by repealing the definition of "fiscal year of the mine" and substituting the

following:

"fiscal year of the mine" means,

(

a) in respect of a placer gold mine, the calendar year, and

(

b) in respect of any other mine,

(

i) the period, not exceeding 12 months, for which the accounts of the

mine have been or are ordinarily made up, or

(ii) in the absence of a chosen period, the calendar year; ,

(

b) in paragraph (

a) of the definition of "mineral" by striking out "as defined in that

Act" , and

(

c) by adding the following

definitions:

"placer gold mine" means a mine having the following characteristics:

(

a) substantially all of the mineral product produced from the mine is placer

minerals;

(

b) gold produced from the mine accounts for the majority of the value of the

placer minerals produced from the mine;

"placer gold mine operator" means the operator of a placer gold mine;

"placer mineral" has the same meaning as in the Mineral Tenure Act ; .

24 The following

section is added:

Application of this Act to placer gold mine operators

1.1 Sections 2, 3 to 7, 8 (1) to (3), 9, 10, 11 and 13 to 15 do not apply in respect of a placer

gold mine, or to the placer gold mine operator, for any fiscal year of the mine ending

after December 31, 1998.

25 The following

section is added:

Imposition of tax on placer gold mine operator

2.2 A person who is a placer gold mine operator must, for each placer gold mine of which

that person is an operator, pay in respect of each calendar year a tax equal to 0.5% of

the amount that is the operator's proportionate share of the transaction value of the

mineral product disposed of in the calendar year.

Section 12 is amended

(

a) in subsection (1) by adding ", other than a placer gold mine operator," after "Each

operator of a mine" ,

(

b) by adding the following subsection:

(1.1) Each placer gold mine operator must, on or before March 31 of each year, deliver

to the commissioner a return for the mine for the previous calendar year in the

prescribed form and containing the prescribed information. ,

(

c) in subsection (2) by adding ", other than a placer gold mine operator," after "an

operator of a particular mine" ,

(

d) by repealing subsection (2) (

b) and substituting the following:

(

b) the particular mine was not in commercial operation and

(

i) the operator was not engaged in any reclamation activities with

respect to the mine at any time during the fiscal year of the mine, and

(ii) all of the mineral product derived from the mine and all of the assets

used in the operation of the mine have been sold or otherwise

disposed of. ,

(

e) by adding the following subsection:

(2.1) Despite subsection (1.1), unless the commissioner issues a demand for the return,

a placer gold mine operator is not required to deliver a return if

(

a) the fair market value of the placer minerals produced from the mine in the

calendar year for which the return would otherwise be required is less than

$50 000,

(

b) the transaction value of the placer minerals disposed of from the mine in the

calendar year for which the return would otherwise be required is less than

$50 000, and

(

c) the placer gold mine operator is an individual. , and

(

f) in subsection (7) by adding ", other than a placer gold mine operator," after "Each

operator" .

27 The following

section is added:

When placer gold mine operator must pay tax

13.1 Each placer gold mine operator must, on or before March 31 of any year, pay to the

commissioner the amount of tax payable by the operator for the mine for the previous

calendar year.

Section 16 (1) and (2) is amended by striking out "section 12 (1)," and substituting

"section 12 (1) or (1.1)," .

Section 18 is amended by adding "or (1.1)" after "section 12 (1)" .

Section 21 is repealed and the following substituted:

Notice of assessment

(1) The commissioner must, with all due dispatch, examine each return filed by an

operator of a mine or by any other person who is obliged under

section 12 to file

the return.

(2) If a return is not filed for a fiscal year of a mine as required by

section 12, the

commissioner may estimate the amount of tax payable by an operator for that

year in respect of the mine.

(3) If it appears from an examination of a return under subsection (1) or, if a return

is not filed as required under

section 12, from an estimate made under

subsection (2) of this section, that an amount of tax should have been paid by an

operator, the commissioner may assess the operator for the amount of that tax and

any related interest or penalties.

(4) Liability for tax under this Act is not affected by an incorrect or incomplete

assessment or by the fact that an assessment has not been made.

(5) Without limiting subsection (3), the commissioner may assess or reassess tax,

interest and penalties under this Act or notify in writing an operator or other

person by whom a return has been or ought to have been filed that the commissioner

requires further information

(

a) at any time, if the operator or other person by whom a return has been or

ought to have been filed has made a misrepresentation that is attributable to

carelessness, willful default or fraud in filing of the return or in supplying

information, and

(

b) in any other case, within 6 years after the end of the fiscal year of the mine

for which the return was required, whether or not any tax was payable under

this Act.

(6) The commissioner must, after making an assessment or reassessment of an

operator under this section, prepare and mail to the operator, at the last known

address for that operator, a notice of assessment that contains the following

information as applicable:

(

a) the name and address of the operator to whom the notice is directed;

(

b) information sufficient to enable the mine to which the notice relates to be

identified;

(

c) the fiscal year of the mine to which the notice applies;

(

d) the date of issue of the notice;

(

e) the total amount of the taxes payable by the operator for the mine in respect

of the particular fiscal year of the mine;

(

f) the amount of interest and penalties payable by the operator in respect of the

fiscal year of the mine;

(

g) the total amount of installments and taxes paid in respect of the fiscal year

of the mine, including any interest and penalties paid;

(

h) the total amount of the reclamation tax credit for the fiscal year of the mine;

(

i) the total outstanding balance to be paid by the operator or refunded to the

operator in respect of the fiscal year of the mine.

(7) After the commissioner mails a notice of assessment under subsection (6),

(

a) if the notice of assessment reflects an outstanding balance to be paid by an

operator, the part of the amount assessed that remains unpaid is payable

immediately, or

(

b) if the notice of assessment reflects an outstanding balance to be refunded to

an operator, the minister, on the certificate of the commissioner as to the

facts, must, subject to subsection (8), requisition a refund of the amount

overpaid from the consolidated revenue fund.

(8) Instead of making a refund or repayment that might otherwise be made under

subsection (7), the commissioner may, if the taxpayer is liable or about to become

liable to make any payment under this Act, apply the amount of the refund or

repayment to that other liability and notify the taxpayer of that action.

Section 22 (3) is amended by adding "who is not a placer gold mine operator, or of the

transaction value of the minerals disposed of by a placer gold mine operator," after "net

current proceeds of an operator" .

Section 27 (2) is amended by striking out "An appeal" and substituting "Within 90 days

after the date on which the board makes a decision under

section 26 (3), an appeal" .

Section 39 (4) is amended by striking out "section 12 (1) or (5)," and substituting "section

12 (1), (1.1) or (5)," .

Section 45 is amended by striking out "section 12 (1), (5) and (7)" and substituting

"section 12 (1), (1.1), (5) and (7)" .

Mining Tax Act

Section 32 of the Mining Tax Act, R.S.B.C. 1996, c. 295, is amended

(

a) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

b) in subsections (5) (

b) and (6) by striking out "mailed or" , and

(

c) by adding the following subsection:

(6.1) Money demanded from a person by the commissioner under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Section 44 is amended

(

a) by adding the following subsection:

(1.1) A demand under

section 32 is sufficiently given if it is delivered as set out in

subsection (1) of this

section or is sent by electronic mail or fax to the electronic

mail address or fax number stated in the person's last return or to the last

electronic mail address or fax number known to the commissioner. , and

(

b) in subsection (2) by striking out "or mailed" and substituting ", mailed or sent" .

Motor Fuel Tax Act

Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended

(

a) by adding the following definition:

"ethanol blended gasoline" means fuel of which more than 1% but less than 85%

is ethanol and the remainder of which is primarily gasoline; , and

(

b) in the definition of "gasoline" by adding `, and "gasoline" includes ethanol blended

gasoline;' at the end.

Section 4 (1) (

a) and (

b) is repealed and the following substituted:

(

a) outside the Greater Vancouver transportation service region must pay to the

government, at the time of purchase, tax on the gasoline at the following

rates:

(

i) effective April 1, 1999, 8¢ per litre;

(ii) effective June 1, 1999, 7¢ per litre;

(iii) effective October 1, 1999, 6.75¢ per litre,

(

b) inside the Greater Vancouver transportation service region must pay to the

government, at the time of purchase, tax on the gasoline at the following

rates:

(

i) effective April 1, 1999, 12¢ per litre less the applicable rate of tax

payable at the time of purchase under paragraph (c);

(ii) effective June 1, 1999, 11¢ per litre less the applicable rate of tax

payable at the time of purchase under paragraph (c);

(iii) effective October 1, 1999, 10.75¢ per litre less the applicable rate of

tax payable at the time of purchase under paragraph (c), and .

39 The following

section is added:

Exemption for ethanol portion of ethanol blended gasoline

4.1 Despite any other provision of this Act, ethanol blended gasoline is subject to a

reduced rate of tax calculated as follows:

Rate = gasoline tax rate x

(100 - ethanol percentage)

where

gasoline tax rate

the applicable rate of tax imposed under sections 4, 12.1,

13 and 13.1, as applicable

ethanol percentage

the percentage of ethanol in the ethanol blended gasoline.

Section 10 (1) (

a) and (

b) are repealed and the following substituted:

(

a) outside the Greater Vancouver transportation service region must pay to the

government, at the time of purchase, tax on the fuel at the following rates:

(

i) effective April 1, 1999, 8.5¢ per litre;

(ii) effective June 1, 1999, 7.5¢ per litre;

(iii) effective October 1, 1999, 7.25¢ per litre,

(

b) inside the Greater Vancouver transportation service region must pay to the

government, at the time of purchase, tax on the fuel at the following rates:

(

i) effective April 1, 1999, 12.5¢ per litre less the applicable rate of tax

payable at the time of purchase under paragraph (c);

(ii) effective June 1, 1999, 11.5¢ per litre less the applicable rate of tax

payable at the time of purchase under paragraph (c);

(iii) effective October 1, 1999, 11.25¢ per litre less the applicable rate of

tax payable at the time of purchase under paragraph (c), and .

Section 13 (1) and (2) is amended by striking out "2¢ per litre" and substituting "3¢ per

litre" .

Part 2 is amended by adding the following section:

Additional tax for British Columbia Ferry Corporation

13.1

(1) In addition to the tax payable under sections 4, 10, 12.1 and 13, a purchaser of

gasoline or motive fuel must pay to the government, at the time of purchase, for

the raising of revenue for the purposes of the British Columbia Ferry Corporation

tax on the gasoline or motive fuel at the following rates:

(

a) effective April 1, 1999, 1¢ per litre;

(

b) effective October 1, 1999, 1.25¢ per litre.

(2) In addition to the tax payable under sections 4, 10, 12.1 and 13, a person who uses

gasoline or motive fuel on which tax is not otherwise payable under this

section

must pay to the government, at the time that any tax payable by the person under

section 4 (2) or 10 (3) is payable, for the raising of revenue for the purposes of

the British Columbia Ferry Corporation tax on the gasoline or motive fuel at the

following rates:

(

a) effective April 1, 1999, 1¢ per litre;

(

b) effective October 1, 1999, 1.25¢ per litre.

Section 15 (1) is amended

(

a) by striking out "A person" and substituting "Subject to

section 15.1, a person" , and

(

b) by repealing paragraph (

h) and substituting the following:

(

h) a commercial motor vehicle, other than a pick-up truck, when used on other

than a highway for the transportation of

(

i) drilling rigs, drilling equipment and supplies,

(ii) fuel, water, well-servicing equipment and supplies, and

(iii) geophysical and seismic equipment and supplies,

for persons actively engaged in exploring or drilling for petroleum and

natural gas; .

44 The following

section is added:

Authority to use coloured fuel in certain vehicles

provided clear fuel tax rate is paid

15.1

(1) Subject to subsection (2), a person may use coloured fuel for a purpose not

authorized by

section 15, but only to operate a motor vehicle that

(

a) is used in a logging or mineral mining operation,

(

b) is not licensed to operate on a highway, and

(

c) is not used on a highway.

(2) A person who uses coloured fuel to operate a motor vehicle referred to in

subsection (1) must pay to the government, on or before the 15th day of the month

following the month in which the fuel is used, tax equal to the difference between

(

a) the tax that the person would have paid on the fuel if the fuel had not been

taxed as coloured fuel, and

(

b) the tax paid by the person on that fuel.

(3) The tax payable under subsection (2) is additional to any tax payable under

section 5.

Section 22 (2) is amended by striking out "section 12.1" in both places and substituting

"section 12.1, 13 or 13.1" .

Section 48 is amended by renumbering the

section as

section 48 (1) and adding the

following subsection:

(2) The director may assess at any time interest payable under subsection (1).

Section 57 is amended

(

a) in subsections (2) and (3) by striking out ", by written notice," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsections (6) (

b) and (7) by striking out "mailed or" , and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the director under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Section 64 (1) is amended by striking out "12.1 (2)," and substituting "12.1 (2), 13, 13.1," .

Section 71 (2) is amended by adding the following paragraph:

(k.1) prescribing types of motor vehicles for the purposes of

section 15 (1) (

d) and (e), based on the make, description or use of those vehicles or any

combination of those things; .

Property Transfer Tax Act

Section 1 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended by

adding the following

definitions:

"parcel" means a parcel as defined in the Land Title Act that has not been subdivided

into smaller parcels and that

(

a) bears a parcel identifier, or

(

b) under land title office practice, is to be assigned a parcel identifier on registration

under the Land Title Act of a transfer of the parcel;

"parcel identifier" means a permanent parcel identifier assigned under

section 58

of the Land Title Act ; .

Section 3 is amended by adding the following:

(3.1) In subsections (3.2) to (3.5), words and expressions used have the same meaning

as in

section 14 (3) (

j) and (4) (

k) and (k.1).

(3.2) If the exemption set out in

section 14 (3) (

j) is not available to a transferee only

because the condition set out in

section 14 (3) (j) (ii) is not fulfilled, the tax

payable by the transferee must be calculated as if all of the taxable transactions

in relation to a transfer of all of, or a registered ownership interest in, one or more

of the smaller parcels created under the subdivision were a single taxable

transaction with a fair market value calculated

(

a) firstly, by determining the difference between the following 2 percentages

by subtracting from the percentage under subparagraph (

i) the percentage

under subparagraph (ii):

(

i) the transferee's proportionate share, expressed as a percentage, of the

fair market value of the smaller parcels, calculated using the fair

market values as they were immediately after the subdivision;

(ii) the transferee's proportionate share, expressed as a percentage, of the

fair market value of the original parcel referred to in

section

14 (3) (j) (i), calculated using the fair market value as it was

immediately before the subdivision, and

(

b) secondly, by multiplying the total fair market value of all of the smaller

parcels, calculated at the time of the application to register the transfer to

the transferee, by the difference determined under paragraph (a), to obtain

the fair market value that is subject to tax.

(3.3) If the exemption set out in

section 14 (4) (

k) is not available to the trustee only

because the trustee

(

a) transfers all of, or a registered ownership interest in, one or more of the

parcels created under the subdivision to one or more transferees, in this

subsection called the "third parties", none of whom was a registered owner

of one or more of the original parcels immediately before their transfer to

the trustee, or

(

b) retains all of, or a registered ownership interest in, one or more of the

parcels created under the subdivision,

the tax payable by the trustee must be calculated as if the transfer of the original

parcels were a single taxable transaction with a fair market value calculated

(

c) firstly, by determining the third parties' proportionate share, expressed as a

percentage, of the fair market value of the parcels created under the subdivision,

calculated using the fair market values as they were immediately

after the subdivision,

(

d) secondly, by determining the proportionate share retained by the trustee,

expressed as a percentage, of the fair market value of the parcels created

under the subdivision, calculated using the fair market values as they were

immediately after the subdivision,

(

e) thirdly, by determining the sum of the percentages determined under

paragraphs (

c) and (d), and

(

f) fourthly, by multiplying the total fair market value of the original parcels,

calculated using the fair market values as they were immediately before the

subdivision, by the percentage determined under paragraph (e), to obtain

the fair market value that is subject to tax.

(3.4) If the exemption set out in

section 14 (4) (k.1) is not available to an original

owner only because the condition set out in

section 14 (4) (k.1) (ii) is not fulfilled,

the tax payable by the original owner as transferee must be calculated as if all of

the taxable transactions in relation to a transfer of all of, or a registered ownership

interest in, one or more of the parcels were a single taxable transaction with a fair

market value calculated

(

a) firstly, by determining the difference between the following 2 percentages

by subtracting from the percentage under subparagraph (

i) the percentage

under subparagraph (ii):

(

i) the original owner's proportionate share, as transferee, expressed as

a percentage, of the fair market value of all of the parcels created

under the subdivision, calculated using the fair market values as they

were immediately after the subdivision;

(ii) the original owner's proportionate share, expressed as a percentage,

of the fair market value of the original parcels referred to in

section

14 (4) (k.1) (ii), calculated using the fair market values as they were

immediately before the subdivision, and

(

b) secondly, by multiplying the total fair market value of all of the parcels

created under the subdivision, calculated at the time of the application to

register the transfer to the original owner, by the difference determined

under paragraph (a), to obtain the fair market value that is subject to tax.

(3.5) Subsections (3.2) to (3.4) do not operate to impose a tax that is greater than the

tax that would be payable under this Act without those subsections.

Section 7 (1) is amended by striking out "12 months" and substituting "18 months" .

Section 14 is amended

(

a) in subsection (3) (

c) by repealing subparagraph (iii) and substituting the following:

(iii) immediately before the deceased's death, the land transferred

(

A) was the deceased's family farm, recreational residence or

principal residence, or

(

B) had been the transferee's principal residence for a continuous

period of at least 6 months; ,

(

b) in subsection (3) by repealing paragraph (

j) and substituting the following:

(

j) a transfer if

(

i) a parcel, in this subsection called the "original parcel", is subdivided

into smaller parcels and the transferee of all of, or a registered

ownership interest in, one or more of those smaller parcels was one

of the registered owners of the original parcel immediately before its

subdivision, and

(ii) the transferee's proportionate share of the fair market value of those

smaller parcels, calculated using the fair market values as they were

immediately after the subdivision, does not exceed the transferee's

proportionate share of the fair market value of the original parcel,

calculated using the fair market value as it was immediately before

the subdivision; , and

(

c) in subsection (4) by repealing paragraph (

k) and substituting the following:

(

k) a transfer of 2 or more adjacent parcels, in this subsection called the

"original parcels", from their registered owners, in this subsection called the

"original owners", to a person who is registered under the transfer as a

trustee under the Land Title Act , if

(

i) the transfer is to facilitate the subdivision of the original parcels, and

(ii) after the registration under the Land Title Act of the plan of subdivision,

the trustee transfers all of the parcels created under the

subdivision to the original owners or to any one or more of them;

(k.1) a transfer of all of, or a registered ownership interest in, one or more of the

parcels created under a subdivision described in paragraph (k), if

(

i) the transfer is from the trustee referred to in paragraph (

k) to any of

the original owners, and

(ii) that original owner's proportionate share of the fair market value of

the parcels created under the subdivision, calculated using the fair

market values as they were immediately after the subdivision, does

not exceed that original owner's proportionate share of the fair

market value of the original parcels, calculated using the fair market

values as they were immediately before the subdivision; .

Section 18 is amended by adding the following subsections:

(6.1) If an exemption has been applied for under

section 14 (3) (j), the assessment must

be issued within 24 months after the date of the first transfer after the subdivision.

(6.2) If an exemption has been applied for under

section 14 (4) (

k) or (k.1), the

assessment must be issued within 24 months after the date of the last of the

transfers to the trustee to facilitate the subdivision.

Section 19 (4) and (5) is repealed and the following substituted:

(4) On receipt of the notice of objection and of the relevant information from the

office of the administrator, the minister must decide the amount of the penalty or

tax owing or the refund payable, as the case may be.

(5) The minister must deliver to the person who objected to the assessment made

under

section 18 a notice of the minister's decision under subsection (4) of this

section and, if the minister's decision is to vary the assessment, the administrator

must deliver a notice of assessment reflecting the variation to the person who

objected.

Section 21 (3) is repealed and the following substituted:

(3) A petition must be filed in the court registry within 90 days after the date on the

minister's notice under

section 19 (5) of the minister's decision.

Section 27 is amended

(

a) in subsections (1) and (2) by striking out ", by registered letter or by a letter served

personally," ,

(

b) by adding the following subsection:

(2.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsections (5) (

b) and (6) by striking out "mailed or" , and

(

d) by adding the following subsection:

(6.1) Money demanded from a person by the administrator under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Social Service Tax Act

Section 6 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended

(

a) in subsection (3) by striking out "Despite any other provision of this Division," and

substituting "Despite any other provision of this Division but subject to

subsection (4)," , and

(

b) by adding the following subsection:

(4) If a passenger vehicle qualifies under the regulations as an alternative fuel

vehicle, the applicable tax rate established under subsection (3) must be

determined in accordance with the regulations.

Section 17 is amended

(

a) by striking out "If the minister considers fit, the minister" and substituting "The

commissioner" , and

(

b) by striking out "by the minister." and substituting "by the commissioner."

Section 20 is amended

(

a) in subsection (1) by striking out "Subject to sections 20.1 and 21 (3)," and substituting

"Subject to subsection (3) and sections 20.1 and 21 (3)," , and

(

b) by adding the following subsection:

(3) If a passenger vehicle qualifies under the regulations as an alternative fuel

vehicle, the applicable tax rate established under subsection (1) (

b) and the tax

rate value under subsection (2) must be determined in accordance with the

regulations.

Section 27 is amended

(

a) by striking out "If the minister considers" and substituting "If the commissioner

considers" , and

(

b) by striking out "the minister may" and substituting "the commissioner may" .

62 The following sections are added:

Refund or credit for trade-in vehicles

33.1

(1) In this section, "trade-in vehicle" means a multijurisdictional vehicle on which

tax has been paid under this Division and that, before the expiration of its current

vehicle licence year, is accepted at the time of sale by the seller on account of the

purchase price of another multijurisdictional vehicle.

(2) The commissioner may, in accordance with the regulations, provide a refund or

credit of a portion of the tax paid on a trade-in vehicle, and the refund or credit

must, subject to subsection (3), correspond to the tax paid for the balance of the

current vehicle licence year remaining after the trade-in vehicle has been traded.

(3) A refund or credit under subsection (2) must be calculated and provided in

accordance with the regulations and may be paid out of the consolidated revenue

fund.

Refund for replacement vehicles

33.2

(1) In this section, "replacement vehicle" means a vehicle that is leased to be used

as a replacement for a multijurisdictional vehicle that is being repaired and is

therefore unavailable for use during part of its vehicle licence year.

(2) Subject to subsection (3), if a person has paid tax under this Division or under

section 20 (1) on a replacement vehicle, the commissioner may provide a refund

of that tax to that person if

(

a) tax has been paid under this Division on the multijurisdictional vehicle

being repaired, and

(

b) the replacement vehicle is used only

(

i) in accordance with the terms of the licence that was issued for the

multijurisdictional vehicle being repaired, and

(ii) for the purposes for which that multijurisdictional vehicle would be

used were it not being repaired.

(3) Any refund under this

section is, if the refund is in respect of tax paid under

section 20 (1), limited to the tax paid on lease payments for the replacement

vehicle in respect of rental periods, or portions of rental periods, that are wholly

within

(

a) the period during which the multijurisdictional vehicle is being repaired,

and

(

b) the vehicle licence year of the multijurisdictional vehicle.

(4) Any refund under this

section is, if the refund is in respect of tax paid under this

Division, limited to the tax paid that is attributable to the portion of the

replacement vehicle's vehicle licence year that is wholly within

(

a) the period during which the multijurisdictional vehicle is being repaired,

and

(

b) the licence year of the multijurisdictional vehicle.

Section 76 (1) is amended by adding the following paragraphs:

(

h) labels that are purchased to be attached to tangible personal property held

for sale or lease and that are intended to remain with the tangible personal

property after it is sold or leased;

(

i) logs purchased or otherwise acquired for use as boomsticks to form a frame

to contain logs to be towed over water.

Part 4 is amended by adding the following section:

Purchases or leases of alternative fuel vehicles

90.2 On application by a person who

(

a) is a purchaser, lessee or user of a motor vehicle that qualifies under the

regulations as an alternative fuel vehicle,

(

b) has paid tax under

section 5 or 20, or has paid tax calculated under

section 11 (4), on that vehicle, and

(

c) satisfies the commissioner that the person qualifies under this

section and

the regulations,

the commissioner must refund to that person out of the consolidated revenue fund an

amount determined in accordance with the regulations.

Section 103 is amended

(

a) in subsection (2) by striking out "under this Act or the regulations and does not collect

or remit the taxes," and substituting ", or to pay taxes, under this Act or the regulations

and does not collect, remit or pay the taxes, as the case may be," ,

(

b) by repealing subsections (3) and (4) and substituting the following:

(3) On registration of a certificate of indebtedness against the real property of a

person under subsection (2) (a), a lien is created on the real property against

which the lien is registered for,

(

a) if the lien relates to taxes that were required to be collected or were

collected before registration, the amount of those taxes remaining

uncollected or unremitted, or both, and any related interest and penalty on

those taxes, or

(

b) if the lien relates to taxes that were required to be paid before registration,

the amount of those taxes remaining unpaid, and any related interest and

penalty on those taxes.

(4) On registration of a lien against the personal property of a person under

subsection (2) (b), a lien is created on the personal property in which the person

has a legal or equitable interest, including, in the case of a lien referred to in

paragraph (

a) of this subsection, any portion of the property that is subject to a

prior lien or security interest, for,

(

a) if the lien relates to taxes that were required to be collected or were

collected before registration, the amount of those taxes remaining

uncollected or unremitted, or both, and any related interest and penalty on

those taxes, or

(

b) if the lien relates to taxes that were required to be paid before registration,

the amount of those taxes remaining unpaid, and any related interest and

penalty on those taxes. ,

(

c) in subsection (5) by adding ", other than a lien referred to in subsection (4) (b), that is"

after "a lien" , and

(

d) in subsection (7) by adding ", other than liens referred to in subsection (4) (b)," after

"all the liens registered under subsection (2) (b)" .

Section 108 is amended

(

a) in subsections (2) and (3) by striking out ", by registered letter or by a letter served

personally," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsection (7) by striking out "mailed or" , and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the commissioner under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Section 118 (1) (

a) is amended by adding "or a valuation of the commissioner under

section 17 or 27" after "or 103 (11)" .

Section 120 (2) is repealed and the following substituted:

(2) If a decision of the commissioner or the minister is set aside or the amount of an

estimate, assessment or penalty is reduced on appeal, the commissioner must

refund from the consolidated revenue fund

(

a) the amount or excess amount paid, and

(

b) any additional interest or penalty imposed and paid.

Section 130 is amended by adding the following paragraphs:

(b.1) prescribing, in respect of motor vehicles that have been modified to adapt

them to facilitate the use by, or the transportation of, an individual using a

wheelchair, the method by which the purchase price, lease price or tax rate

value of those vehicles may be determined, and the criteria on which and

the circumstances in which the prescribed method of calculation may be

made;

(

h) prescribing alternative fuel vehicles for the purposes of sections 6, 20 and

90.2;

(

i) establishing for the purposes of

section 6 or 20 a tax rate for alternative fuel

vehicles, including different tax rates for different classes of alternative fuel

vehicles;

(

j) establishing the amount of a refund under

section 90.2, including different

amounts for different classes of alternative fuel vehicles.

Section 138 (1) is amended by adding the following paragraph:

(f.1) exempting from tax under

section 9 (1.1) or 11 household goods or

equipment initially brought into British Columbia for an individual's

Tobacco Tax Act

Section 26 (2) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is repealed and the

following substituted:

(2) If a decision of the director or the minister is set aside or the amount of an

assessment or penalty is reduced on appeal, the director must refund from the

consolidated revenue fund

(

a) the amount or excess amount paid, and

(

b) any additional interest or penalty imposed and paid.

Section 32 is amended

(

a) in subsections (2) and (3) by striking out ", by registered letter or by a letter served

personally," ,

(

b) by adding the following subsection:

(3.1) A demand under this

section may be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax. ,

(

c) in subsections (6) (

b) and (7) by striking out "mailed or" , and

(

d) by adding the following subsection:

(7.1) Money demanded from a person by the director under this

section becomes

payable

(

a) as soon as the person is served with the demand, if the person is indebted or

liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the

taxpayer, in any other case.

Validation of assessment valuations – Assessment Act

(1) This

section applies to assessments of

(

a) dams, power plants and substations, as those are defined in

section 20.1 of

the Assessment Act as enacted by this Act, and

(

b) any other improvements on the properties where the dams, power plants and

substations were located,

that were made under the Assessment Act for any of the 1994 to 1999 taxation

years.

(2) Despite any provision of the Assessment Act , the assessments on the authenticated

assessment roll are conclusively deemed to be the actual values of the

dams, power plants, substations and other improvements for those taxation years

for the purposes of that Act, and no complaint or appeal may be made under that

Act in respect of those assessments.

(3) This

section is retroactive to the extent necessary to give full force and effect to

its provisions and must not be construed as lacking retroactive effect in relation

to any matter because it makes no specific reference to that matter.

Transitional – Mineral Tax Act

74 The following applies in respect of any placer gold mine that did not, before

January 1, 1999, have a calendar year as the fiscal year of the mine:

(

a) the portion of the year that

(

i) begins immediately after the end of the last fiscal year of the mine

that ends in 1998, and

(ii) ends on December 31, 1998

constitutes a fiscal year of the mine;

(

b) after December 31, 1998, the placer gold mine has a calendar year as the

fiscal year of the mine;

(

c) the Mineral Tax Act , as it read before January 1, 1999, applies to all matters

relating to each fiscal year of the mine that ends in 1998 and, without

limiting this, all records, reports, returns, filings and payments required in

relation to each fiscal year of the mine that ends in 1998 must be prepared,

kept or made, as the case may be, at the time and in the manner required by

the Mineral Tax Act, as it read before January 1, 1999.

Transitional – Mineral Tax Act

75 Sections 2.2 and 13.1 of the Mineral Tax Act as enacted by this Act are enacted, apply

and have effect despite the Tax and Consumer Rate Freeze Act .

Transitional – Social Service Tax Act

(1) Regulations that may be made under the Social Service Tax Act as a result of the

enactment of that part of

section 62 enacting

section 33.1 of the Social Service

Tax Act, and of the enactment of sections 69 and 70 of this Act, may, if made

before April 1, 2000, be made retroactive to March 31, 1999.

(2) Regulations that may be made under the Social Service Tax Act as a result of the

enactment of

section 70 may, if made before April 1, 2000, be made retroactive

to July 1, 1998.

Commencement

(1) Sections 2, 38, 40, 42, 45 and 48 are deemed to have come into force on

April 1, 1999 and are retroactive to the extent necessary to give them effect on

and after that date.

(2) Sections 3 to 8, 10 to 13, 16 to 19, 21, 22, 26 (d), 30, 32, 35, 36, 43, 44, 46, 47,

49 to 51 and 53 to 72 are deemed to have come into force on March 31, 1999 and

are retroactive to the extent necessary to give them effect on and after that date.

(3) Sections 9, 14 and 15 come into force on July 1, 1999.

(4) Section 20 is deemed to have come into force on May 1, 1996 and is retroactive

to the extent necessary to give it effect on and after that date.

(5) Sections 23 to 25, 26 (

a) to (c), (

e) and (f), 27 to 29, 31, 33, 34, 74 and 75 are

deemed to have come into force on January 1, 1999 and are retroactive to the

extent necessary to give them effect on and after that date.

(7) Section 41 comes into force on June 1, 1999.

(8) Sections 37 and 39 come into force by regulation of the Lieutenant Governor in

Council.

(9) Section 52 is deemed to have come into force on January 1, 1998 and is

retroactive to the extent necessary to give it effect on and after that date.

Explanatory Notes

Assessment Act

SECTION 1: [Assessment Act, enacts

section 20.1] authorizes the valuation of properties

where there are dams, power plants and substations to be done in accordance

with prescribed manuals and depreciation tables.

Corporation Capital Tax Act

SECTION 2: [Corporation Capital Tax Act, amends

section 13 (3)] allows eligible expenditures

incurred after March 31, 1999 to be deducted in the taxation year in

which they were incurred and in the 3 subsequent taxation years for the purpose

of calculating corporation capital tax.

SECTION 3: [Corporation Capital Tax Act, amends

section 40]

(

a) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

b) is consequential to the proposed provision relating to service of demands on

third parties;

(

c) establishes that money demanded by the administrator from a third party

becomes payable on receipt of the demand or as soon as the funds become

available.

SECTION 4: [Corporation Capital Tax Act, adds

section 43 (1.1)] is consequential to the

proposed provision relating to service of demands on third parties.

Hotel Room Tax Act

SECTION 5: [Hotel Room Tax Act, repeals and replaces

section 21 (2)] reflects the current

practice by which the director, rather than the minister, issues refunds resulting

from appeals.

SECTION 6: [Hotel Room Tax Act, amends

section 28]

(

a) is consequential to the proposed provision relating to service of demands on

third parties;

(

b) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

c) is consequential to the proposed provision relating to service of demands on

third parties;

(

d) establishes that money demanded by the director from a third party becomes

payable on receipt of the demand or as soon as the funds become available.

Income Tax Act

SECTION 7: [Income Tax Act, amends

section 3] is consequential to the proposed amendments

section 19 of the Income Tax Act .

SECTION 8: [Income Tax Act, amends

section 6] reduces the personal income tax surtax,

effective in the 2000 taxation year.

SECTION 9: [Income Tax Act, amends

section 16] reduces the small business income tax

rate, effective July 1, 1999.

SECTION 10: [Income Tax Act, amends

section 17] in relation to the small business tax

holiday under that section,

by the proposed subsection (3) (b), recognizes that some corporations may

not in fact carry on business until after their first taxation year, and

by the proposed subsection (4) (c), allows a corporation to claim the small

business tax holiday for its first year of operation if it did not become associated

with another corporation until its second year of operation.

SECTION 11: [Income Tax Act, amends

section 19]

clarifies that amounts payable under the Mineral Tax Act are to be included

for the purposes of calculations under this section, and

allows a taxpayer to add back any resource allowances determined under

the federal Income Tax Act for the purposes of calculations under this

section.

SECTION 12: [Income Tax Act, amends

section 27] repeals a tax exemption for the

Vancouver International Airport Authority corporation that has become

redundant as a result of amendments to the federal Income Tax Act.

SECTION 13: [Income Tax Act, amends

section 79] for documentary productions, removes

the requirement that goods and services provided by BC-based individuals and

corporations must be provided within the Province in order for a production to

be eligible for a film and television tax credit.

Income Tax Amendment Act, 1998

SECTION 14: [Income Tax Amendment Act, 1998, repeals

section 4] repeals a reduction in

the small business income tax rate that is superseded by the proposed

amendment to

section 16 of the Income Tax Act .

SECTION 15: [Income Tax Amendment Act, 1998, amends

section 9] is consequential to the

proposed repeal of

section 4 of the Income Tax Amendment Act, 1998 .

Insurance Premium Tax Act

SECTION 16: [Insurance Premium Tax Act, amends

section 25]

(

a) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

b) is consequential to the proposed provision relating to service of demands on

third parties;

(

c) establishes that money demanded by the commissioner from a third party

becomes payable on receipt of the demand or as soon as the funds become

available.

SECTION 17: [Insurance Premium Tax Act, adds

section 34 (1.1)] is consequential to the

proposed provision relating to service of demands on third parties.

International Financial Business (Tax Refund) Act

SECTION 18: [International Financial Business (Tax Refund) Act, amends

section 1]

allows a nonresident broker to be the other party in a transaction that is eligible

for a tax refund under the Act.

SECTION 19: [International Financial Business (Tax Refund) Act, amends

section 7]

exempts a financial institution from the requirement to obtain a declaration if

it is acting as a principal in a transaction with a nonresident broker.

Logging Tax Act

SECTION 20: [Logging Tax Act, enacts

section 2.1] harmonizes the tax under this Act with

the tax under the Income Tax Act for corporations taking advantage of the 2

year start-up tax holiday under

section 17 of the Income Tax Act.

SECTION 21: [Logging Tax Act, amends

section 32]

(

a) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

b) is consequential to the proposed provision relating to service of demands on

third parties;

(

c) establishes that money demanded by the commissioner from a third party

becomes payable on receipt of the demand or as soon as the funds become

available.

SECTION 22: [Logging Tax Act, adds

section 39 (1.1)] is consequential to the proposed

provision relating to service of demands on third parties.

Mineral Tax Act

SECTION 23: [Mineral Tax Act, amends

section 1] re-enacts and adds

definitions applicable

to placer gold mines.

SECTION 24: [Mineral Tax Act, enacts

section 1.1] enumerates the sections of the Mineral

Tax Act that are inapplicable to placer gold mines.

SECTION 25: [Mineral Tax Act, enacts

section 2.2] provides the method by which tax is

imposed in respect of placer gold mines.

SECTION 26: [Mineral Tax Act, amends

section 12]

(

a) and (

b) establishes the requirement for the filing of a return by an operator of a placer

gold mine.

(

c) clarifies that the exemption criteria set out in

section 2 (2) of the Mineral Tax

Act in respect of the filing requirements required by that

section do not apply

to placer gold mine operators.

(

d) ensures that mine operators must file required returns until all of the mineral

product inventories and mine assets have been sold or otherwise disposed of.

(

e) establishes the exemption criteria applicable to placer gold mine operators in

respect of the filing requirements required by the proposed

section 12 (1.1) of

the Mineral Tax Act .

(

f) clarifies that placer gold mine operators are not required to deliver exploration

account returns.

SECTION 27: [Mineral Tax Act, enacts

section 13.1] establishes when placer gold mine

operators must pay tax.

SECTION 28: [Mineral Tax Act, amends

section 16] applies interest provisions to returns

required to be filed in respect of placer gold mines.

SECTION 29: [Mineral Tax Act, amends

section 18] applies penalty provisions to returns

required to be filed in respect of placer gold mines.

SECTION 30: [Mineral Tax Act, re-enacts

section 21] allows the commissioner of mineral

tax to make an assessment when no return is filed.

SECTION 31: [Mineral Tax Act, amends

section 22 (3)] allows the commissioner of mineral

tax to make an assessment of the transaction value of the minerals disposed of

by a placer gold mine operator when records are inadequate or are not produced

as required.

SECTION 32: [Mineral Tax Act, amends

section 27 (2)] imposes a 90 day time limit on

appeals from decisions of the Mineral Tax Review Board.

SECTION 33: [Mineral Tax Act, amends

section 39 (4)] establishes that the failure of a

placer gold mine operator to deliver a return as required by the proposed

section 12 (1.1) of the Mineral Tax Act constitutes an offence.

SECTION 34: [Mineral Tax Act, amends

section 45] expressly permits the minister to

prescribe the form required for a return by a placer gold mine operator.

Mining Tax Act

SECTION 35: [Mining Tax Act, amends

section 32]

(

a) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

b) is consequential to the proposed provision relating to service of demands on

third parties;

(

c) establishes that money demanded by the commissioner from a third party

becomes payable on receipt of the demand or as soon as the funds become

available.

SECTION 36: [Mining Tax Act, adds

section 44 (1.1)] is consequential to the proposed

provision relating to service of demands on third parties.

Motor Fuel Tax Act

SECTION 37: [Motor Fuel Tax Act, amends

section 1] is consequential to the proposed

section 4.1.

SECTION 38: [Motor Fuel Tax Act, repeals and replaces

section 4 (1) (

a) and (b)] reduces

the tax rate on clear gasoline

by 1¢ per litre effective April 1, 1999 so that, under the proposed new

section 13.1 of the Motor Fuel Tax Act , 1¢ per litre of tax collected on clear

gasoline may be dedicated to the British Columbia Ferry Corporation,

by a further 1¢ per litre effective June 1, 1999 so that, under the proposed

amendment to

section 13 of the Motor Fuel Tax Act , an additional 1¢ per

litre of tax collected on clear gasoline may be dedicated to the BC Transportation

Financing Authority, and

by a further 0.25¢ per litre effective October 1, 1999 so that, under the

proposed new

section 13.1 of the Motor Fuel Tax Act , an additional 0.25¢

per litre of tax collected on clear gasoline may be dedicated to the British

Columbia Ferry Corporation.

SECTION 39: [Motor Fuel Tax Act, enacts

section 4.1] for the purpose of exempting the

ethanol portion of ethanol blended gasoline from tax, provides that ethanol

blended gasoline is subject to a reduced tax rate.

SECTION 40: [Motor Fuel Tax Act, repeals and replaces

section 10 (1) (

a) and (b)] reduces

the tax rate on clear motive fuel

by 1¢ per litre effective April 1, 1999 so that, under the proposed new

section 13.1 of the Motor Fuel Tax Act , 1¢ per litre of tax collected on clear

motive fuel may be dedicated to the British Columbia Ferry Corporation,

by a further 1¢ per litre effective June 1, 1999 so that, under the proposed

amendment to

section 13 of the Motor Fuel Tax Act , an additional 1¢ per

litre of tax collected on clear motive fuel may be dedicated to the BC Transportation

Financing Authority, and

by a further 0.25¢ per litre effective October 1, 1999 so that, under the

proposed new

section 13.1 of the Motor Fuel Tax Act , an additional 1¢ per

litre of tax collected on clear motive fuel may be dedicated to the British

Columbia Ferry Corporation.

SECTION 41: [Motor Fuel Tax Act, amends

section 13 (1) and (2)] dedicates an additional

1¢ per litre of the tax collected on clear gasoline and clear motive fuel to the

BC Transportation Financing Authority, effective June 1, 1999.

SECTION 42: [Motor Fuel Tax Act, enacts

section 13.1] dedicates to the British Columbia

Ferry Corporation, effective April 1, 1999, 1¢ per litre and, effective October

1, 1999, an additional 0.25¢ per litre, of the tax collected on clear gasoline and

clear motive fuel.

SECTION 43: [Motor Fuel Tax Act, amends

section 15 (1)]

(

a) is consequential to the proposed

section 15.1;

(

b) clarifies that the coloured fuel exemption for the oil and gas industry does not

authorize the use of coloured fuel in pick-up trucks.

SECTION 44: [Motor Fuel Tax Act, enacts

section 15.1] allows the use of coloured fuel in

certain vehicles for a purpose not authorized by

section 15 of the Act, provided

tax is paid at the clear fuel tax rate.

SECTION 45: [Motor Fuel Tax Act, amends

section 22 (2)] is consequential to the proposed

section 13.1.

SECTION 46: [Motor Fuel Tax Act, adds

section 48 (2)] clarifies that interest may be

assessed on an amount payable under the Act.

SECTION 47: [Motor Fuel Tax Act, amends

section 57]

(

a) is consequential to the proposed provision relating to service of demands on

third parties;

(

b) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

c) is consequential to the proposed provision relating to service of demands on

third parties;

(

d) establishes that money demanded by the director from a third party becomes

payable on receipt of the demand or as soon as the funds become available.

SECTION 48: [Motor Fuel Tax Act, amends

section 64 (1)] adds, in the offence provision, a

reference to

section 13 of the Act and to the proposed

section 13.1.

SECTION 49: [Motor Fuel Tax Act, adds

section 71 (2) (k.1)] clarifies the extent of the Lieutenant

Governor in Council's power to make regulations relating to the use of

coloured fuel in certain vehicles.

Property Transfer Tax Act

SECTION 50: [Property Transfer Tax Act, amends

section 1 (1)] adds

definitions of "parcel"

and "parcel identifier".

SECTION 51: [Property Transfer Tax Act, adds

section 3 (3.1) to (3.5)] in specified circumstances

in which tax exemptions under

section 14 are not available, limits the

property transfer tax payable

by certain transferees, after subdivision of a single parcel in which they held

an ownership interest, to tax based on the net increase in their share of fair

market value over the pre-subdivision values;

by certain trustees, after transfers to them to facilitate subdivisions of 2 or

more adjacent parcels, to tax, of no more than the limit provided, based on

the fair market value of that portion of the original parcels that was transferred

to the trustees but not transferred by them back to the original

owners;

by certain transferees from the trustees, after a subdivision of the type just

mentioned, of 2 or more adjacent parcels in which they held an ownership

interest, to tax based on the net increase in their share of fair market value

over the pre-subdivision values.

SECTION 52: [Property Transfer Tax Act, amends

section 7 (1)] with retroactive effect from January 1, 1998, extends to 18 months the period during which a transferee may apply for a refund under the "First Time Home Buyers Program".

SECTION 53: [Property Transfer Tax Act, amends

section 14]

(

a) in relation to exemption from tax for certain transfers from trustees of trusts arising on death, adds an exemption for land transferred that was the transferee's principal residence for a continuous period of at least 6 months;

(

b) clarifies that the exemption may be claimed if a single parcel of land is subdivided into smaller parcels and the transferees' proportionate shares of fair market value afterwards are not greater than their pre-subdivision proportionate shares;

(

c) clarifies that the exemption may be claimed if

2 or more adjacent parcels are transferred to a trustee to facilitate

a subdivision, in the circumstances described, and the conditions set out

are fulfilled;

all of, or a registered ownership interest in, one or more of the parcels

created by a subdivision referred to in the just-mentioned provision are

transferred by the trustee back to any of the original owners, and the conditions

set out are fulfilled.

SECTION 54: [Property Transfer Tax Act, adds

section 18 (6.1) and (6.2)] extends from 12 months to 24 months the periods within which tax assessments must be issued in respect of specified exemptions from tax that have been applied for.

SECTION 55: [Property Transfer Tax Act, repeals and replaces

section 19 (4) and (5)] clarifies that it is the minister who decides the matters referred to in

section 19 (4) of the Act, as re-enacted, and clarifies the roles of the minister and administrator.

SECTION 56: [Property Transfer Tax Act, repeals and replaces

section 21 (3)] clarifies the time within which a petition to appeal the minister's decision to the Supreme Court must be filed.

SECTION 57: [Property Transfer Tax Act, amends

section 27]

(

a) is consequential to the proposed provision relating to service of demands on

third parties;

(

b) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

c) is consequential to the proposed provision relating to service of demands on

third parties;

(

d) establishes that money demanded by the administrator from a third party

becomes payable on receipt of the demand or as soon as the funds become

available.

Social Service Tax Act

SECTION 58: [Social Service Tax Act, amends

section 6] ensures that tax payable on the

purchase price of a passenger vehicle that qualifies as an alternative fuel

vehicle is not affected by the additional cost of the alternative fuel features.

SECTION 59: [Social Service Tax Act, amends

section 17] allows the commissioner, rather

than the minister, to make a valuation of tangible personal property.

SECTION 60: [Social Service Tax Act, amends

section 20] ensures that tax payable on the

lease value of a passenger vehicle that qualifies as an alternative fuel vehicle is

not affected by the additional cost of the alternative fuel features.

SECTION 61: [Social Service Tax Act, amends

section 27] allows the commissioner, rather

than the minister, to make a valuation of lease price.

SECTION 62: [Social Service Tax Act, enacts sections 33.1 and 33.2]

provides for a refund or credit of tax paid on a multijurisdictional vehicle

that is traded in before the end of its vehicle licence year;

provides for a refund of tax paid on leasing a vehicle to replace a multijurisdictional

vehicle while that multijurisdictional vehicle is being repaired.

SECTION 63: [Social Service Tax Act, adds

section 76 (1) (

h) and (i)]

exempts product labels from taxes imposed by sections 5 to 25 of the Social

Service Tax Act if those labels are intended to remain with the product to

which they are attached after the sale or lease of that product.

exempts boomsticks from taxes imposed by sections 5 to 25 of the Act;

SECTION 64: [Social Service Tax Act, enacts

section 90.2] provides for a refund of tax paid

on qualifying motor vehicles powered by alternative fuels.

SECTION 65: [Social Service Tax Act, amends

section 103] extends the lien provisions to

cover unpaid taxes in addition to the uncollected and unremitted taxes that

were previously covered.

SECTION 66: [Social Service Tax Act, amends

section 108]

(

a) is consequential to the proposed provision relating to service of demands on

third parties;

(

b) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

c) is consequential to the proposed provision relating to service of demands on

third parties;

(

d) establishes that money demanded by the commissioner from a third party

becomes payable on receipt of the demand or as soon as the funds become

available.

SECTION 67: [Social Service Tax Act, amends

section 118] is consequential to the proposed

amendments to sections 17 and 27 of the Act.

SECTION 68: [Social Service Tax Act, repeals and replaces

section 120 (2)] reflects the

current practice by which the commissioner, rather than the minister, issues

refunds resulting from appeals.

SECTION 69: [Social Service Tax Act, amends

section 130]

allows regulations to be made to alter the manner in which the purchase

price, lease price or tax rate value may be calculated for certain vehicles that

have been modified to accommodate wheelchairs;

empowers the Lieutenant Governor in Council to make regulations relating

to alternative fuel vehicles.

SECTION 70: [Social Service Tax Act, adds

section 138 (1) (f.1)] clarifies that the Lieutenant

Governor in Council has the authority to make regulations exempting settlers'

effects from tax, whether or not their use changes.

Tobacco Tax Act

SECTION 71: [Tobacco Tax Act, repeals and replaces

section 26 (2)] reflects the current

practice by which the director, rather than the minister, issues refunds resulting

from appeals.

SECTION 72: [Tobacco Tax Act, amends

section 32]

(

a) is consequential to the proposed provision relating to service of demands on

third parties;

(

b) expands the ways in which demands may be served on third parties to include

service by electronic mail and by fax;

(

c) is consequential to the proposed provision relating to service of demands on

third parties;

(

d) establishes that money demanded by the commissioner from a third party

becomes payable on receipt of the demand or as soon as the funds become

available.

Copyright © 1999: Queen's Printer, Victoria, British Columbia, Canada