1995 Legislative Session: 4th Session, 35th Parliament
FIRST READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
HONOURABLE ELIZABETH CULL
MINISTER OF FINANCE AND
CORPORATE RELATIONS
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 5 of the Commercial Transport Act, R.S.B.C. 1979, c. 55, is amended by renumbering subsection (1) as subsection (1.1) and by adding the following subsection:
(1) In this section:
"semi-trailer" does not include a semi-trailer for which a valid licence has been issued by a jurisdiction other than the Province;
"trailer" does not include a trailer for which a valid licence has been issued by a jurisdiction other than the Province.
2 Section 1 (1) of the Social Service Tax Act, R.S.B.C. 1979, c. 388, is amended by adding the following definitions:
"conveyance" does not include a vehicle;
"interjurisdictional commercial purposes" means, in relation to a vehicle, use of the vehicle in the Province while the vehicle is engaged in interprovincial or international trade for the commercial carriage of passengers or goods;
"multijurisdictional vehicle" means a vehicle in respect of which tax is payable under section 2.06 (2);
"trailer" means trailer as defined in the Motor Vehicle Act; .
3 Section 2 is amended
(a) in subsection (4) (a) (ii) and (b) by adding ", other than a multijurisdictional vehicle," after "tangible personal property",
(b) by repealing subsection (4.03) (b) (i),
(c) by repealing subsection (4.04),
(d) by repealing subsection (4.05) (a),
(e) in subsection (4.06) by striking out "subsections (4) and (4.04)," and substituting "subsection (4),",
(f) in subsection (4.08) by adding "or a multijurisdictional vehicle" after "subsections (4.01) to (4.05)",
(g) in subsection (4.012) by adding "or a multijurisdictional vehicle" after "subsections (4.01) to (4.09) apply",
(h) by repealing subsection (4.013) (c),
(i) in subsection (4.013) (d) by striking out "other than that referred to in paragraph (c),",
(j) in subsection (4.014) by striking out "vehicle,",
(k) in subsection (4.014) by striking out "or (4.013) (c)",
(l) in subsection (4.014) by striking out "(4.01), (4.03) or (4.04)." and substituting "(4.01) or (4.03).",
(m) by repealing subsection (4.015), and
(n) by adding the following subsection:
(9.4) Subsection (9) does not apply if the property sold or the tangible personal property accepted on account of the property sold is a multijurisdictional vehicle.
4 The following section is added:
2.06 (1) In this section:
"acquisition date" means, in respect of a vehicle, the date on which the vehicle is purchased or, in the case of a leased vehicle, the date on which the lessee first becomes entitled, under the lease, to have access to the vehicle;
"acquisition year" means, in respect of a vehicle, the calendar year in which the vehicle is purchased or, in the case of a leased vehicle, the calendar year in which the lessee first becomes entitled, under the lease, to have access to the vehicle;
"calculation year" means the period beginning on July 1 and ending on the following June 30;
"fleet licence year" means, in respect of vehicles licensed as part of a fleet, the period beginning on a fleet licensing date for the fleet vehicles and ending on the day before the anniversary of that licensing date;
"fleet licensing date" means, in respect of vehicles licensed in a calendar year as part of a fleet, the first date in that calendar year that fleet vehicles are licensed as such;
"licensing date" means,
(a) in respect of a vehicle that is not licensed as part of a fleet, the date on which the vehicle is licensed, or
(b) in respect of a vehicle that is licensed as part of a fleet, the fleet licensing date;
"travel ratio" means,
(a) for a vehicle that is not licensed as part of a fleet,
(i) if the vehicle was not, for at least 90 days during the calculation year preceding the vehicle's licensing date, a multijurisdictional vehicle, the ratio of
(A) a reasonable estimate of the distance that the vehicle will travel in the Province during the vehicle licence year, and
(B) a reasonable estimate of the total distance that the vehicle will travel in the vehicle licence year, or
(ii) if the vehicle was, for at least 90 days during the calculation year preceding the vehicle's licensing date, a multijurisdictional vehicle, the ratio of
(A) the distance travelled in the Province by that vehicle in the period beginning on the date in that calculation year that it became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and
(B) the total distance travelled by that vehicle during that same period, or
(b) for a vehicle that is licensed as part of a fleet,
(i) if none of the vehicles in the fleet, while part of that fleet, were, for at least 90 days during the calculation year preceding the fleet licensing date, multijurisdictional vehicles, the ratio of
(A) a reasonable estimate of the distance that the vehicles in the fleet will travel in the Province during the fleet licence year, and
(B) a reasonable estimate of the total distance that the vehicles in the fleet will travel in the fleet licence year, or
(ii) if one or more of the vehicles in the fleet, while part of that fleet, were, for at least 90 days during the calculation year preceding the fleet licensing date, multijurisdictional vehicles, the ratio of
(A) the distance travelled in the Province by the vehicles of the fleet in the period beginning on the first date in that calculation year that a vehicle in the fleet became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and
(B) the total distance travelled by the vehicles of the fleet during that same period;
"vehicle" does not include a trailer;
"vehicle licence year" means the period beginning on a date on which a licence is issued for a vehicle and ending on the expiry date for the licence established on that licensing date;
"vehicle taxable value" means, in respect of a vehicle,
(a) the purchase price of the vehicle, or
(b) if the vehicle is leased, the greater of
(i) the purchase price of the vehicle as described in the lease agreement, and
(ii) the price at which the legal and beneficial interest in the vehicle would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market,
and includes any capital expenditure made to the vehicle within 30 days after the vehicle's acquisition date.
(2) The following persons shall pay to Her Majesty in right of the Province tax in accordance with this section for a vehicle licence year:
(a) a person who, in the Province, licenses a vehicle, whether as part of a fleet or not, for interjurisdictional commercial purposes in the vehicle licence year;
(b) a person who licenses a vehicle outside the Province, whether as part of a fleet or not, and who, in the vehicle licence year, brings or sends that vehicle into the Province for interjurisdictional commercial purposes.
(3) The tax payable for a vehicle licence year under subsection (2) in respect of a vehicle shall,
(a) if the vehicle is licensed in the Province for interjurisdictional commercial purposes, be paid at the time that the vehicle is licensed for that vehicle licence year, or
(b) in any other case, unless paid earlier under subsection (4), be paid at the time that the vehicle first enters the Province for interjurisdictional commercial purposes in that vehicle licence year.
(4) If the vehicle in respect of which tax is payable under this section is licensed in a prescribed jurisdiction outside of the Province for interjurisdictional commercial purposes, the tax may be paid at the time that the vehicle is licensed in that jurisdiction for that vehicle licence year.
(5) The rate of tax payable under subsection (2) in respect of a vehicle shall, in each calendar year in which the tax is payable in respect of the vehicle, be the tax rate shown opposite that calendar year.
|
Calendar Year Tax Rate |
Tax Rate |
|
the acquisition year |
3.294% |
|
the calendar year following the acquisition year |
2.646% |
|
the second calendar year following the acquisition year |
2.177% |
|
the third calendar year following the acquisition year |
1.838% |
|
the fourth calendar year following the acquisition year |
1.597% |
|
the fifth calendar year following the acquisition year |
1.577% |
|
the sixth calendar year following the acquisition year |
1.509% |
|
the seventh calendar year following the acquisition year |
1.486% |
|
the eighth calendar year following the acquisition year |
1.497% |
|
the ninth and subsequent calendar years following the acquisition year |
1.533% |
(6) The tax payable for a vehicle licence year under this section in respect of a vehicle shall be calculated in accordance with the following formula:
Tax = TV x R x TR x T
where
TV = the vehicle taxable value;
R = the tax rate established under subsection (5);
TR = the travel ratio for the vehicle;
T = the number of whole or partial calendar months left in the vehicle licence year at the time that the vehicle is licensed divided by 12.
(7) Where the actual distance a vehicle referred to in paragraph (a) (i) of the definition of "travel ratio" in subsection (1) travels in the Province during a vehicle licence year and the actual total distance the vehicle travels during that vehicle licence year results in a different travel ratio from the ratio estimated under that paragraph, the tax payable under this section in relation to the vehicle shall be adjusted accordingly at the end of the vehicle licence year and sections 25, 27 and 39 apply.
(8) Where the actual distance the vehicles in a fleet of vehicles referred to in paragraph (b) (i) of the definition of "travel ratio" in subsection (1) travel in the Province during a fleet licence year and the actual total distance the vehicles of the fleet travel during that fleet licence year results in a different travel ratio from the ratio estimated under that paragraph, the tax payable under this section in relation to a vehicle of that fleet shall be adjusted accordingly at the end of the fleet licence year and sections 25, 27 and 39 apply.
(9) If tax is payable by a person under this section in respect of a vehicle for a vehicle licence year, any other person who had management of or the right to determine the utilization of the vehicle while it was in the Province during the vehicle licence year is jointly and severally liable with any other person liable for that tax.
(10) The tax imposed by this section shall be computed to the nearest cent, and 1/2› shall be counted as 1›.
(11) The commissioner, on application and on receipt of evidence satisfactory to the commissioner, shall provide a credit to a person who licenses a vehicle in the Province for interjurisdictional commercial purposes if
(a) the vehicle is so licensed within 5 years after its acquisition date,
(b) the vehicle was purchased after or was bought or sent into the Province after the coming into force of this section, and
(c) the person had previously paid tax on the purchase price of the vehicle under
(i) section 2 (1), or
(ii) section 2 (4) as that tax was calculated under section 2 (4.012).
(12) The credit to which a person is entitled under subsection (11)
(a) shall be calculated in accordance with the regulations,
(b) shall be applied against any tax payable by the person in respect of the vehicle under this section until the full amount of the credit has been applied in that manner, and
(c) shall not be provided to the person in any other manner.
(13) Where a vehicle that was licensed by a person as part of a fleet is, before the end of the fleet licensing year applicable to that fleet, licensed by that person as part of a different fleet,
(a) the person shall, in respect of the vehicle's new fleet licence year, pay to Her Majesty in right of the Province the tax imposed by subsection (2), and
(b) the commissioner, on application and on receipt of evidence satisfactory to the commissioner, shall provide to the person a refund of a portion of the tax previously paid in respect of the vehicle under this section, which refund shall be calculated and provided in accordance with the regulations.
(14) The commissioner may, in accordance with the regulations,
(a) pay the refund referred to in subsection (13) to the person out of the consolidated revenue fund, or
(b) credit the amount of the refund against the amount of any tax that the person is required to pay under this section.
(15) Where a vehicle in respect of which tax has been paid under one or more of subsections (2) to (9) is subsequently licensed for use solely within the Province,
(a) the owner shall pay to Her Majesty in right of the Province at the time of that licensing a tax at the rate of 7% on the depreciated value of the vehicle as determined under section 2.3, and
(b) the commissioner, on application and on receipt of evidence satisfactory to the commissioner, shall provide to the person a credit against the tax payable under paragraph (a), which credit shall be calculated and provided in accordance with the regulations.
(16) The commissioner may, in accordance with the regulations, provide to a person who purchased a vehicle in the Province or who brought or sent a vehicle into the Province a refund, determined in the prescribed manner, of not more than the amount of tax that the person is obliged to pay in respect of that vehicle under this section if
(a) the person, on purchasing the vehicle or on bringing or sending the vehicle into the Province, paid the tax payable under section 2, and
(b) the vehicle was purchased or was first brought or sent into the Province after December 31, 1991 and before the coming into force of this section.
(17) The commissioner may, in accordance with the regulations,
(a) pay the refund referred to in subsection (16) to the person out of the consolidated revenue fund, or
(b) credit the amount of the refund against the amount of any tax that the person is required to pay under this section.
5 Section 2.1 is amended
(a) in subsection (1) (a) by striking out "a passenger vehicle," and substituting "a passenger vehicle or a multijurisdictional vehicle,",
(b) in subsection (2) (a) (ii) and (b) by adding ", other than a multijurisdictional vehicle," after "tangible personal property",
(c) in subsection (3) (c.1) by striking out "a vehicle or any other conveyance" and substituting "any conveyance",
(d) in subsection (3.01) by striking out "vehicle,",
(e) by repealing subsection (3.03), and
(f) in subsection (9) (c) (i) by striking out "vehicle,".
6 Section 2.3 (1) is amended by striking out ", (4), or (4.04)," and substituting "or (4) or 2.06 (15),".
7 Section 4 (1) is amended by adding the following paragraphs:
(k.1) trailers used for interjurisdictional commercial purposes;
(k.2) parts purchased for use in
(i) a multijurisdictional vehicle, or
(ii) a trailer referred to in paragraph (k.1); .
8 Section 7 is amended
(a) in subsection (1) by striking out "and 2.3," and substituting ", 2.3 and 2.06 (3),", and
(b) in subsection (5) by striking out "2.1 (2) and 2.2 (2)," and substituting "2.06 (3), 2.1 (2) and 2.2 (2),".
9 Section 33 (1.1) is amended by adding "2.06," after "2.05,".
10 Section 37 is amended
(a) in subsection (2) (c.1) by adding "2.06," after "2.05,",
(b) in subsection (2) by adding the following paragraphs:
(e.7) prescribing one or more jurisdictions for the purposes of section 2.06 (4);
(e.8) prescribing the manner in which and the conditions on which the commissioner may provide a refund or credit under section 2.06 and the manner by which the amount of that refund or credit is to be determined; , and
(c) in subsection (2.1) (a) by striking out "vehicles,".
11 Section 39 is amended
(a) in subsection (4) by striking out "vehicle,",
(b) in subsection (4) by striking out ", (4.03) or (4.04)" and substituting "or (4.03)", and
(c) in subsection (5) by striking out "vehicle,".
12 This Act comes into force by regulation of the Lieutenant Governor in Council.
SECTION 1: [Commercial Transport Act, amends section 5] exempts extraprovincially licensed trailers from the application of section 5 of the Commercial Transport Act.
SECTION 2: [Social Service Tax Act, amends section 1] is self- explanatory.
SECTIONS 3 to 6: [Social Service Tax Act, amends section 2, adds section 2.06 and amends sections 2.1 and 2.3] replace the existing tax scheme relating to vehicles used for interjurisdictional commercial purposes with a recurring tax scheme and harmonize the wording of sections 2, 2.1 and 2.3 of the Social Service Tax Act with section 2.06 of that Act as enacted by this Bill.
SECTION 7: [Social Service Tax Act, amends section 4] exempts, from tax, trailers used for interjurisdictional commercial purposes and parts purchased for vehicles used for those purposes.
SECTION 8: [Social Service Tax Act, amends section 7] harmonizes the wording of the Social Service Tax Act with section 2.06 of that Act as enacted by this Bill.
SECTION 9: [Social Service Tax Act, amends section 33] makes it an offence to contravene section 2.06 of the Social Service Tax Act as enacted by this Bill.
SECTION 10: [Social Service Tax Act, amends section 37]
(a) permits the Lieutenant Governor in Council to exempt classes of persons from the tax imposed by section 2.06 of the Social Service Tax Act as enacted by this Bill;
(b) permits the Lieutenant Governor in Council to prescribe jurisdictions in which the tax, imposed under section 2.06 of the Social Service Tax Act as enacted by this Bill, may be paid and to prescribe how refunds under section 2.06 of the Social Service Tax Act as enacted by this Bill are to be determined and provided;
(c) harmonizes the wording of section 37 of the Social Service Tax Act with section 2.06 of that Act as enacted by this Bill.
SECTION 11: [Social Service Tax Act, amends section 39] harmonizes the wording of section 39 of the Social Service Tax Act with section 2.06 of that Act as enacted by this Bill.
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