HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 — Tax Relief

Budget Measures Implementation Act, 2008

1 Section 37 of the Budget Measures Implementation Act, 2008, S.B.C. 2008, c. 10, is repealed.

2 Section 126 is amended by repealing item 11 of the table.

Income Tax Act

3 Section 4.1 (1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended

(a) in paragraph (a) by striking out "5.24%" and substituting "5.06%", and

(b) in paragraph (b) (ii) by striking out "7.98%" and substituting "7.7%".

4 Section 16 (1) (a) and (b), (2) (a) and (b) and (4) is amended by striking out "3.5%" and substituting "2.5%".

Land Tax Deferment Act

5 Section 5 of the Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is amended by adding the following subsections:

(2.1) By filing an application in accordance with section 12 and the regulations, an owner of eligible property may request the minister to enter an agreement for the purpose referred to in section 2 in respect of tax payable for the 2009 or 2010 taxation year if the following requirements are met:

(a) the eligible property includes a building used for residential purposes as the owner's principal residence;

(b) the owner has been ordinarily resident in British Columbia for not less than one year immediately before the date the owner applies under this Act;

(c) the owner is a Canadian citizen or a permanent resident as defined in the Immigration and Refugee Protection Act (Canada);

(d) the owner declares that the owner is, at the time of the application, facing financial hardship related to economic conditions;

(e) any other requirement prescribed by regulation.

(2.2) Subsection (2.1) applies also to an owner of eligible property that is or that includes a manufactured home, if the owner

(a) uses the manufactured home as the owner's principal residence, and

(b) meets the qualifications set out in paragraphs (b) to (e) of that subsection.

(7) If an owner of eligible property has made an agreement under section 2 with the minister, the owner is not required to qualify under the same subsection in this section as the owner previously qualified under in order to be permitted a subsequent deferral of tax under the agreement.

6 Section 8 is amended by adding the following subsections:

(3.1) Despite subsections (1) and (2), in respect of interest on taxes deferred under section 5 (2.1), the interest rate is the simple interest rate prescribed by the minister.

(3.2) The interest rate prescribed by the minister under subsection (3.1) during each successive 6 month period beginning on October 1 and April 1 in every year must not exceed a yearly rate that is the prime lending rate of the principal banker to the government on the 15th day of the fourth month immediately preceding that 6 month period.

7 Section 9 is amended by adding the following subsections:

(5) Despite subsections (1) and (2), in respect of interest on taxes deferred under section 5 (2.1), the interest rate is the simple interest rate prescribed by the minister.

(6) The interest rate prescribed by the minister under subsection (5) during each successive 6 month period beginning on October 1 and April 1 in every year must not exceed a yearly rate that is the prime lending rate of the principal banker to the government on the 15th day of the fourth month immediately preceding that 6 month period.

8 Section 18 (2) is amended

(a) by repealing paragraph (f) and substituting the following:

(f) prescribing a percentage for the purposes of section 5 (5) (a), which may be different for taxes deferred under section 5 (1) and (2.1); , and

(b) in paragraph (g) by striking out "section 5 (1) (e)" and substituting "section 5 (1) (e), (2.1) (e)".

School Act

9 Section 119 (6) of the School Act, R.S.B.C. 1996, c. 412, is amended

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

(b) by adding the following paragraphs:

(b.1) the total amount of credits to which owners in that municipality are entitled under section 131.2 [provincial industrial property tax credit],

(b.2) the net amount to be raised by school taxes under this Act in that municipality after the deduction of the amount referred to in paragraph (b.1), and .

10 Section 128 (4) (b) is repealed and the following substituted:

(a.1) the amount of any credit to which the assessed owner is entitled under section 131.2 [provincial industrial property tax credit] of this Act,

(b) the net amount of school taxes payable by the assessed owner after deduction of

(i) any grant to which the assessed owner may be eligible under the Home Owner Grant Act, or

(ii) the amount of the credit referred to in paragraph (a.1) of this subsection, and .

11 The following section is added:

Provincial industrial property tax credit

131.2 (1) In this section:

"class 4 property" means property that is assessed as property in the class 4 property class under the Assessment Act;

"class 5 property" means property that is assessed as property in the class 5 property class under the Assessment Act.

(2) For the 2009 and subsequent taxation years, an owner of class 4 property or class 5 property is entitled to a credit equal to 50% of the school taxes levied in the taxation year on the class 4 property or class 5 property.

(3) For the purpose of calculating the school taxes payable under this Act by an owner entitled to a credit under subsection (2), the collector for the municipality or the Surveyor of Taxes must deduct the amount of the credit from the school taxes otherwise payable under this Act by the owner.

12 Section 137 (6) is amended by striking out "other than section 124 (10)" and substituting ", other than sections 124 (10) and 131.2,".

Part 2 — Asset Protection

Court Order Enforcement Act

13 The Court Order Enforcement Act, R.S.B.C. 1996, c. 78, is amended by adding the following section:

Registered plans exempt from seizure

71.3 (1) In this section:

"DPSP" means a deferred profit sharing plan as defined in section 147 of the federal Act;

"enforcement process" means

(a) attachment,

(b) garnishment,

(c) execution,

(d) seizure, or

(e) any other remedy or legal process to enforce payment of a debt;

"federal Act" means the Income Tax Act (Canada);

"planholder" means

(a) with respect to a DPSP, a beneficiary under the plan,

(b) with respect to an RRIF, an annuitant as defined in paragraph (a) of the definition of "annuitant" in section 146.3 (1) of the federal Act, and

(c) with respect to an RRSP, an annuitant as defined in paragraph (a) of the definition of "annuitant" in section 146 (1) of the federal Act;

"registered plan" means a DPSP, an RRIF or an RRSP, whether registered before, on or after November 1, 2008;

"RRIF" means a registered retirement income fund as defined in section 146.3 of the federal Act;

"RRSP" means a registered retirement savings plan as defined in section 146 of the federal Act.

(2) Despite any other enactment, all property in a registered plan is exempt from any enforcement process.

(3) Subsection (2) does not apply

(a) to property contributed to a registered plan after or within 12 months before the date on which the debt being enforced came due,

(b) to property that has been or is being paid out of a registered plan,

(c) to an enforcement process that is being effected in support of the enforcement of a maintenance order as defined in the Family Maintenance Enforcement Act, or

(d) to an enforcement process initiated against a registered plan before November 1, 2008.

(4) For the purposes of subsection (3) (b),

(a) a transfer of property from a registered plan of the planholder

(i) to another registered plan of the planholder, or

(ii) after the death of the planholder, to the planholder's spouse or common-law partner as defined in section 248 of the federal Act who, under the terms of the registered plan, is entitled to receive that property on the planholder's death,

does not constitute a payment of that property out of a registered plan, and

(b) if an enforcement process is pursued against property being paid out of a registered plan of a planholder, that property is deemed, for the purposes of that enforcement process and Part 1 of this Act, to be a debt due to the planholder for or with respect to the salary or wages of the planholder.

(5) Subject to subsection (6), if a provision of this section is inconsistent or in conflict with a provision of another Act, the provision of this section prevails unless the other Act expressly provides that it, or a provision of it, applies despite this section.

(6) Nothing in this section makes any property in a registered plan subject to an enforcement process if that property would not, but for this section, be subject to an enforcement process.

Financial Institutions Act

14 Section 201 of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended

(a) by repealing subsection (3) (b) and substituting the following:

(b) a power or duty under Part 9, other than a power or duty under section 275, 277, 277.1 or 277.2, or , and

(b) by adding the following subsection:

(8) Unless confirmed or varied by the commission within 21 days after it is made, an order of the superintendent made under section 275 or 277 in exercise of a power delegated under this section ceases to have effect at the end of that 21-day period.

15 Section 266 (2) is amended by striking out "in an amount that does not exceed $100 000 for each prescribed separate deposit of the depositor".

16 Section 275 (b) is repealed and the following substituted:

(b) the credit union has failed to pay its liabilities, or in the opinion of the commission, will not be able to pay its liabilities as they become due and payable;

(b.1) the assets of the credit union are not, in the opinion of the commission, sufficient to give adequate protection to the credit union's depositors and creditors;

(b.2) the liquidity or capital of the credit union has, in the opinion of the commission, reached a level or is eroding in a manner that may detrimentally affect its depositors or creditors; .

17 Section 277 (g) (ii) is repealed and the following substituted:

(ii) the credit union to dispose of all or substantially all of its assets and liabilities to another credit union, or .

18 The following sections are added:

Additional circumstances in which section 277
orders may be made

277.1 If a credit union is not subject to the supervision of the commission, but the commission considers that

(a) one or more of the circumstances referred to in section 275 apply to the credit union, and

(b) supervision would not be adequate to ensure that a guarantee under section 266 would not need to be invoked,

the commission may make an order under section 277 with respect to the credit union as though that credit union were subject to the supervision of the commission.

Assistance to administrator in relation to section 277 orders

277.2 The commission may appoint one or more persons to assist the administrator in the management of a credit union that is subject to an order under section 277.

19 Section 285 is amended

(a) in subsection (1) by striking out everything after "the commission by order" and substituting "may delegate to the stabilization authority any of the commission's powers under section 277 (a) to (d) in relation to that credit union.", and

(b) by repealing subsection (2) and substituting the following:

(2) The commission may revoke a delegation made under subsection (1).

20 Section 289 is amended

(a) by repealing subsection (4) (l),

(b) in subsection (4) (m) (ii) by striking out "paragraphs (k) and (l)" and substituting "paragraph (k)", and

(c) by repealing subsection (5) and substituting the following:

(5) Without limiting subsection (4) (k), a regulation under that provision may classify deposits in a credit union according to ownership, type or special characteristics.

Law and Equity Act

21 Section 49 (1) of the Law and Equity Act, R.S.B.C. 1996, c. 253, is repealed and the following substituted:

(1) In this section:

"annuitant" means,

(a) in relation to a registered plan referred to in paragraph (a) of the definition of "registered plan" in this section, an annuitant as defined in section 146 (1) of the Income Tax Act (Canada), or

(b) in relation to a registered plan referred to in paragraph (b) of the definition of "registered plan" in this section, a holder as defined in section 146.2 (1) of the Income Tax Act (Canada);

"benefit payable under the registered plan", in relation to a registered plan, includes a distribution, transfer or payment of or from the registered plan;

"registered plan" means

(a) a retirement savings plan that

(i) was created before, or is created after, January 1, 1971, and

(ii) is registered under the Income Tax Act (Canada), or

a TFSA within the meaning of the Income Tax Act (Canada).

Pension Benefits Standards Act

22 Section 63 of the Pension Benefits Standards Act, R.S.B.C. 1996, c. 352, is amended

(a) in subsection (1) by striking out "subsections (3) and (3.1)," and substituting "subsections (3) to (3.3),", and

(b) by adding the following subsections:

(3.2) Despite subsection (3) (a), additional voluntary contributions made before, on or after November 1, 2008 are exempt from execution, seizure or attachment unless

(a) the additional voluntary contributions were made after or within 12 months before the date on which a debt came due and the execution, seizure or attachment is to enforce payment of that debt,

(b) the additional voluntary contributions have been or are being withdrawn from a pension plan,

(c) the execution, seizure or attachment is by

(i) a notice of attachment, order of garnishment or attachment order referred to in subsection (3.1), or

(ii) any other process to enforce a maintenance order as defined in the Family Maintenance Enforcement Act, or

(d) the execution, seizure or attachment was initiated against the additional voluntary contributions before November 1, 2008.

(3.3) For the purposes of subsection (3.2) (b),

(a) if additional voluntary contributions are transferred by a person to any of that person's registered plans, within the meaning of section 71.3 of the Court Order Enforcement Act, that transfer does not constitute a withdrawal of those additional voluntary contributions from a pension plan, and

(b) if execution, seizure or attachment is pursued against additional voluntary contributions being withdrawn from a pension plan by a member or former member, those additional voluntary contributions are deemed, for the purposes of that execution, seizure or attachment and Part 1 of the Court Order Enforcement Act, to be a debt due to the member or former member for or with respect to the salary or wages of the member or former member.

Part 3 — Property Value Assessment

Definitions

23 Definitions in the Assessment Act apply to this Part.

Valuation of property for 2009 taxation year

24 (1) In this section:

"2007 value", in relation to a property, means the actual value of the property as determined under section 3section 25;

"2008 value", in relation to a property, means the actual value of the property as determined under the Assessment Act for the 2009 taxation year as if this Part of this Act were not in force.

(2) Despite the Assessment Act, the actual value of a property for an assessment roll for the 2009 taxation year is the lesser of

(a) the 2007 value of the property, and

(b) the 2008 value of the property.

(3) This section does not apply in respect of properties to which one or more of sections 20 to 24 of the Assessment Act apply, except land that is valued under section 19 of that Act.

Determination of "2007 value"

25 (1) For the purposes of the definition of "2007 value" in section 2section 24, the actual value of a property is, subject to this section, the actual value of the property as determined under the Assessment Act.

(2) Section 18 of the Assessment Act does not apply for the purposes of this section.

(3) For the purpose of determining the actual value of the property, the valuation date is July 1, 2007.

(4) The actual value of the property is to be determined as if on the valuation date

(a) the property and all other properties were in the physical condition that they are in on October 31, 2008, and

(b) the permitted use of the property and of all other properties were the same as on October 31, 2008.

(5) Subsection (4) (a) does not apply to property referred to in section 10 (3) (b), (c) or (c.1) of the Assessment Act.

(6) The actual value of a property referred to in section 10 (3) (b), (c) or (c.1) of the Assessment Act is to be determined as if on the valuation date the property was in the physical condition that it is in on December 31, 2008.

(7) In applying section 19 of the Assessment Act for the purposes of this section, the reference to "on October 31 following the valuation date under section 18" in section 19 (10) of that Act is to be read as "on October 31, 2008".

Depreciation

26 (1) For the purpose of applying the Depreciation of Dams, Power Plants and Substations Regulation, B.C. Reg. 395/99, in respect of the 2009 taxation year, section 2 (1) (a) (ii) of that regulation is to be read as follows:

(ii) "age" is the number of years determined by subtracting one year from the chronological age or, if parts of an improvement have different chronological ages, the effective age of the improvement, and .

(2) For the purpose of applying the Depreciation of Dams, Power Plants and Substations Regulation, B.C. Reg. 395/99, in respect of the 2009 taxation year, section 2 (1) (b) (ii) of that regulation is to be read as follows:

(ii) "age" is the number of years determined by subtracting one year from the chronological age or, if parts of an improvement have different chronological ages, the effective age of the improvement.

(3) For the purpose of applying the Depreciation of Industrial Improvements Regulation, B.C. Reg. 379/88, in respect of the 2009 taxation year, section 2 (1) (b) of that regulation is to be read as follows:

(b) "age" is the number of years determined by subtracting one year from the chronological age or, where parts of an industrial improvement have different chronological ages, the effective age of the industrial improvement.

Designated ski hill property

27 Despite section 20.2 (2) of the Assessment Act, the actual value of a designated ski hill property for the 2009 taxation year is the actual value of that property as determined under that Act for the 2008 taxation year.

Designated port land

28 (1) Despite section 20.3 (2) of the Assessment Act, the actual value of designated port land for the 2009 taxation year is the actual value of that land as determined under that Act for the 2008 taxation year.

(2) Subsection (1) does not apply in respect of the designated port land referred to in items 14, 29 and 30 of the Schedule to the Port Land Valuation Regulation, B.C. Reg. 220/2007.

Valuation under section 21 of Assessment Act

29 (1) For the purpose of applying section 21 of the Assessment Act in respect of the 2009 taxation year, the reference to "on July 1 in the year previous to the year in which the assessment roll is prepared" in paragraph (b) (i) of the definition of "average current cost" in section 21 (3) of that Act is to be read as "on July 1, 2006".

(2) For the purpose of applying the Railway Right of Way Valuation Criteria Regulation, B.C. Reg. 326/96, in respect of the 2009 taxation year, the references to "preceding taxation year" in sections 1 (a), 2 (a) and 3 (a) of that regulation are to be read as "2007 taxation year".

Managed forest land

30 For the purpose of applying section 24 of the Assessment Act in respect of the 2009 taxation year, the references to "in the year of cutting" in section 24 (9) (c) and (d) of that Act are to be read as "in the year before the year of cutting".

Transition — regulations

31 (1) Despite this Part or any other enactment, the Lieutenant Governor in Council may make regulations as follows:

(a) respecting any matter that the Lieutenant Governor in Council considers is not provided for, or is not sufficiently provided for, in this Part in respect of the 2009 taxation year;

(b) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of more effectively bringing this Part into operation;

(c) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties in bringing this Part into effect, including, without limitation, provisions making an exception to or a modification of a provision in an enactment;

(d) resolving any errors, inconsistencies or ambiguities in this Part.

(2) Regulations made under subsection (1) before January 1, 2010 may be made retroactive to the extent necessary to apply for the purposes of the 2009 taxation year.

Actual value of property established by
Lieutenant Governor in Council

32 (1) Despite this Part or any other enactment, the Lieutenant Governor in Council may determine, by order made on or before March 31, 2009, the actual value of a property for the 2009 taxation year if the Lieutenant Governor in Council

(a) considers that unfairness to an owner of a property has occurred or is likely to occur in respect of the actual value of the property entered in an assessment roll for the 2009 taxation year, and

(b) considers it to be in the public interest.

(2) An order made under subsection (1) may be made only in respect of a property to which one or more of sections 20 to 24 of the Assessment Act apply, except land that is valued under section 19 of that Act.

(3) An order may not be made under subsection (1) unless the Lieutenant Governor in Council has received the recommendation of the minister charged with the administration of the Assessment Act after that minister has consulted with the assessment authority.

(4) In determining the actual value of a property under subsection (1), the Lieutenant Governor in Council may

(a) specify the actual value of the property, or

(b) establish rates, formulas, rules or principles for determining the actual value of the property.

(5) An order made under subsection (1) must apportion, or provide for the apportionment of, the actual value of the property between property classes and between land and improvements for the purposes of entry on the assessment roll.

(6) Orders made under subsection (1) may be made retroactive to the extent necessary to apply for the purposes of the 2009 taxation year.

(7) Orders made under subsection (1) may determine actual value differently for one or more of the following:

(a) different individual properties;

(b) different categories of properties, as specified in the order;

(c) different areas or categories of areas, as specified in the order;

(d) different property classes.

(8) If an order is made under subsection (1) in respect of a property, the assessor must assess the property on a supplementary roll or further supplementary roll for the 2009 taxation year.

(9) Despite the Assessment Act, no complaint or appeal may be made under that Act in respect of an entry made in a supplementary roll or further supplementary roll under subsection (8).

Rule respecting application of orders
and regulations does not apply

33 Section 74 (5) of the Assessment Act does not apply to an order or a regulation made under this Part.

Certification

34 For the purpose of applying section 9 of the Assessment Act in respect of the 2009 taxation year, the reference in that section to "the requirements of this Act" is to be read as "the requirements of this Act and Part 3 of the Economic Incentive and Stabilization Statutes Amendment Act, 2008".

References

35 For certainty, a reference in an enactment to actual value, assessed value or any other amount determined under or in accordance with the Assessment Act includes a reference to that amount as determined under this Part for the 2009 taxation year.

Port Land Valuation Regulation

36 The Schedule to the Port Land Valuation Regulation, B.C. Reg. 220/2007, is amended

(a) by repealing item 14 and substituting the following as indicated:

, and

(b) by adding the following items as indicated:

Transitional Provision

Transition — application of Regulations Act

37 The Regulations Act does not apply to the amendments to the Port Land Valuation Regulation, B.C. Reg. 220/2007, enacted by this Act.

Amendment to this Act

38 Sections 23 to 34 of the Economic Incentive and Stabilization Statutes Amendment Act, 2008 are repealed.

Part 4 — Commencement

Commencement

39 The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table: