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

Part 1 – Non-Tax Budget Measures

Financial Administration Act

1 Section 21 (2) of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended by adding "26.1," after "26,".

2 The following section is added:

Payments to discharge liabilities resulting
from retroactive accounting changes

26.1  (1) A minister may pay out of the consolidated revenue fund money to discharge a liability for which the minister is responsible if both of the following apply:

(a) the liability is recorded by the Comptroller General in a fiscal year as having been incurred by the government in one or more previous fiscal years;

(b) the recording of the liability as described in paragraph (a) is the result of an accounting change that has been applied retroactively in conformity with the applicable standards and guidelines referred to in section 23.1 (1) of the Budget Transparency and Accountability Act.

(2) Money may be paid out under subsection (1) in the fiscal year in which the liability is recorded as described in subsection (1) (a) and in any subsequent fiscal year.

(3) Section 21 (3) does not apply to money paid out under this section.

Part 2 – Tax-Related Budget Measures

Carbon Tax Act

3 Section 1.1 of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended

(a) in subsection (2) by striking out "before it is released:" and substituting "that occurs either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia:", and

(b) by repealing subsection (4) and substituting the following:

(4) If

(a) imported fuel is sold either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia, and

(b) subsection (2) (a) to (c) does not, under subsection (3) or the regulations, apply to the sale,

subsection (2) does not apply to any subsequent sale of that fuel.

Income Tax Act

4 Section 4.301 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended

(a) in the description of "A" by striking out "$360" and substituting "$432", and

(b) in the description of "B" by striking out "3.2%" and substituting "3.5%" and by striking out "$16 000" and substituting "$19 000".

5 Sections 4.34 (1) and 4.35 (1) are amended by striking out "section 118.03 (1) of the federal Act." and substituting "section 122.8 (1) of the federal Act."

6 Section 4.34 (2) is amended

(a) by striking out "entitled to a deduction under section 118.03 of the federal Act" and substituting "deemed to have paid an amount under section 122.8 of the federal Act",

(b) in paragraph (a) (ii) of the description of "B" by striking out "section 118.03 (2) of the federal Act" and substituting "section 122.8 (2) of the federal Act" and by striking out "deduction" and substituting "deemed payment", and

(c) in paragraph (b) of the description of "B" by striking out "entitled to a deduction under section 118.03 (2.1) of the federal Act" and substituting "deemed to have paid an amount under section 122.8 (3) of the federal Act" and by striking out "a deduction is made" and substituting "the individual is deemed to have paid an amount".

7 Section 4.34 (3) is repealed and the following substituted:

(3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child, the following rules apply to those individuals for that taxation year in respect of that qualifying child:

(a) the individuals may deduct an amount under this section only if the individuals deduct an amount under section 118.03 of the federal Act;

(b) in respect of those individuals who meet the requirement referred to in paragraph (a) of this subsection,

(i) the total of all amounts deducted by the individuals under this section must not exceed the maximum amount that would be deductible for the year by any one of the individuals if that individual were the only individual entitled to deduct an amount under this section, and

(ii) the amount that is deductible under this section by any one of the individuals must be determined using the same proportion that, under section 118.03 (3) of the federal Act, is agreed to by that individual or is fixed for that individual by the federal minister.

8 Section 4.34 (3), as enacted by this Act, is amended

(a) in paragraph (a) by striking out "deduct an amount under section 118.03 of the federal Act;" and substituting "are deemed to have paid amounts under section 122.8 of the federal Act;", and

(b) in paragraph (b) (ii) by striking out "section 118.03 (3) of the federal Act," and substituting "section 122.8 (4) of the federal Act,".

9 The following section is added:

Child fitness equipment credit

4.341  For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 4.34 for the year, there may be deducted the amount determined by the following formula:

where

A is the amount deducted by the individual under section 4.34 for the year.

10 The following section is added:

BC education coaching tax credit

4.36  (1) In this section:

"coaching activity" means coaching or supervising students who are participating in an extracurricular activity or program;

"eligible coach" means

(a) a teacher, or

(b) an individual in a prescribed class of individuals;

"eligible coaching activity" means a coaching activity that meets the following criteria:

(a) the individual who is carrying out the coaching activity is an eligible coach;

(b) the students who are participating in the extracurricular activity or program to which the coaching activity relates are students of a qualifying school;

(c) the eligible coach is not paid to carry out the coaching activity;

"First Nation land" has the same meaning as in the First Nations Jurisdiction over Education in British Columbia Act (Canada);

"participating First Nation" has the same meaning as in the First Nations Jurisdiction over Education in British Columbia Act (Canada);

"qualifying school" means any of the following:

(a) a school as defined in the School Act;

(b) a francophone school as defined in the School Act;

(c) a Provincial school as defined in the School Act;

(d) an independent school as defined in the Independent School Act;

(e) a school operated on First Nation land by the government of Canada or by a participating First Nation or a Community Education Authority established by one or more participating First Nations under the First Nations Jurisdiction over Education in British Columbia Act (Canada);

(f) a school operated by the Nisga'a Nation, or a treaty first nation, under its own laws;

"teacher" means an individual who is paid to provide an educational program to students of a qualifying school.

(2) An individual is eligible for a deduction under this section for a taxation year if the individual meets the following criteria:

(a) the individual is resident in British Columbia on the last day of the taxation year;

(b) the individual carries out 10 or more hours of eligible coaching activities during the taxation year;

(c) the individual meets additional criteria that may be established by regulation;

(d) if requested by the minister, the individual provides information in the form required by the minister to establish the individual's eligibility for the deduction.

(3) For the purpose of computing the tax payable under this Act for a taxation year ending before January 1, 2018 by an individual who is eligible under subsection (2), there may be deducted an amount determined by multiplying $500 by the appropriate percentage for the year.

(4) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing classes of individuals for the purposes of paragraph (b) of the definition of "eligible coach" in subsection (1) of this section;

(b) establishing criteria for the purposes of subsection (2) (c) of this section.

(5) In making regulations under subsection (4), the Lieutenant Governor in Council may make different regulations for different classes of individuals.

(6) Regulations made under subsection (4) may be made retroactive to January 1, 2015 or a later date, and if made retroactive are deemed to have come into force on the date specified in the regulation.

11 Section 4.51 (2) (b) and (4) is amended by striking out "4.35 [child arts credit]" and substituting "4.35 [child arts credit], 4.36 [BC education coaching tax credit]".

12 Sections 4.51 (2) (b) and (4), 4.66 (a), 4.74 (a) and 4.76 (1) (b) (i) are amended by striking out "4.34 [child fitness credit]," and substituting "4.34 [child fitness credit], 4.341 [child fitness equipment credit],".

13 Section 4.52 (1) (b.1) is amended by striking out "2005" and substituting "2015".

14 Section 4.62 is amended

(a) in subsection (1) (b) by adding the following subparagraph:

(iii.21) section 4.341 [child fitness equipment credit]; , and

(b) in subsection (2) by adding the following paragraph:

(c.21) section 4.341 [child fitness equipment credit]; .

15 Section 4.62 is amended

(a) in subsection (1) (b) by adding the following subparagraph:

(iii.4) section 4.36 [BC education coaching tax credit]; , and

(b) in subsection (2) by adding the following paragraph:

(c.4) section 4.36 [BC education coaching tax credit]; .

16 Section 4.65 is amended by striking out "4.34 [child fitness credit]," in both places and substituting "4.34 [child fitness credit], 4.341 [child fitness equipment credit],".

17 Sections 4.65, 4.66 (a), 4.74 (a) and 4.76 (1) (b) (i) are amended by striking out "4.35 [child arts credit]," wherever it appears and substituting "4.35 [child arts credit], 4.36 [BC education coaching tax credit],".

18 Section 4.721 is amended

(a) in subsection (1) in paragraph (d) of the definition of "BC flow-through mining expenditure" by striking out "2015" and substituting "2016", and

(b) in subsection (1.1) by striking out "2015" in both places and substituting "2016".

19 Section 4.78 (2) is amended by adding the following paragraphs:

(c.21) section 4.341 [child fitness equipment credit];

(c.4) section 4.36 [BC education coaching tax credit]; .

20 Section 4.79 (1) is amended by adding the following paragraphs:

(d.21) section 4.341 [child fitness equipment credit];

(d.4) section 4.36 [BC education coaching tax credit]; .

21 Section 25.1 (1) is amended

(a) in paragraph (f.2) (i) of the definition of "excluded expense" by striking out "January 1, 2015," and substituting "January 1, 2016,", and

(b) in paragraph (f.2) (ii) of the definition of "excluded expense" by striking out "December 31, 2014 and before January 1, 2016" and substituting "December 31, 2015 and before January 1, 2017".

22 Section 81.2 is amended

(a) in subsection (1) by striking out "digital animation or visual effects tax credit" in both places and substituting "digital animation, visual effects and post-production tax credit", and

(b) by adding the following subsections:

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is 17.5% of the amount determined by the formula

(7) For a qualifying corporation to claim a tax credit in the amount determined under subsection (6) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin after February 28, 2015;

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

23 Section 82.3 is amended

(a) in subsection (1) by striking out "digital animation or visual effects production services tax credit" in both places and substituting "digital animation, visual effects and post-production services tax credit", and

(b) by adding the following subsections:

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 17.5% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital post-production activities for the accredited production.

(7) For an accredited production corporation to claim a tax credit in the amount determined under subsection (6) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin after February 28, 2015;

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

24 Section 117 is amended by striking out "January 1, 2015." and substituting "January 1, 2018."

25 Section 121 is amended by striking out "December 31, 2014." and substituting "December 31, 2017."

26 Section 134 (2) is amended in paragraph (b) (iii) of the description of "eligible salary and wages" by striking out "September 1, 2015," and substituting "September 1, 2018,".

Motor Fuel Tax Act

27 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended in the definition of "motive fuel" by striking out "fuel that is taxable under section 5;" and substituting "coloured fuel;".

28 Section 1.1 is amended

(a) in subsection (2) by striking out "before it is released:" and substituting "that occurs either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia:", and

(b) by repealing subsection (4) substituting the following:

(4) If

(a) imported fuel is sold either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia, and

(b) subsection (2) (a) to (c) does not, under subsection (3) or the regulations, apply to the sale,

subsection (2) does not apply to any subsequent sale of that fuel.

29 Section 5 is amended

(a) in subsection (1) by striking out "Subject to subsection (1.1)," and substituting "Subject to section 5.1 and subsection (1.1) of this section,",

(b) in subsection (2) by striking out "under this section" and substituting "under this section or section 5.1", and

(c) by adding the following subsection:

(2.1) Subsection (2) does not apply in respect of coloured fuel on which tax is payable under section 6 (3).

30 The following section is added:

Tax on coloured fuel if declaration not obtained

5.1  (1) Subject to subsection (2), a purchaser who

(a) purchases coloured fuel from a retail dealer through a cardlock system, or

(b) purchases more than 45 litres of coloured fuel from a retail dealer

must pay, at the time of purchase, the amount of tax that would be payable on the fuel if that fuel were not coloured fuel, unless the retail dealer obtains from the purchaser, at or before the time of sale, a declaration that the coloured fuel will be used for a purpose authorized under section 15.

(2) Subsection (1) does not apply if

(a) the purchaser is a farmer,

(b) the coloured fuel is marine diesel fuel or locomotive fuel, or

(c) the coloured fuel

(i) is transferred by the retail dealer to the supply tank or supplemental supply tank of a ship that is in or on water at the time of transfer, and

(ii) is to be used in the operation of the ship.

(3) The declaration referred to in subsection (1) must be in a form acceptable to the director.

31 Sections 9 (2) and 9.1 (3) are amended by striking out "on or before the 15th day of the month following the month in which the natural gas is used," and substituting "at the prescribed time and in the prescribed manner,".

32 Section 15 (1) is amended by adding the following paragraph:

(a.1) a locomotive; .

33 Section 20.11 is amended

(a) in subsections (2) and (3) by striking out "If the director is satisfied that" and substituting "Subject to subsection (3.01), if the director is satisfied that",

(b) in subsection (3) by striking out "and" at the end of paragraph (b), by adding "and" at the end of paragraph (c) and by adding the following paragraph:

(d) the person is not a deputy collector or retail dealer to whom a refund is payable under section 20.12, ,

(c) by adding the following subsection:

(3.01) A refund is not payable under subsection (2) or (3) in respect of the fuel if,

(a) in the case of a person who has paid security on fuel and has subsequently coloured and sold that fuel, the person has not complied with sections 14 and 14.1, or

(b) in the case of a person who has paid security on coloured fuel and has subsequently sold that coloured fuel, the person has not complied with section 14.1. ,

(d) in subsection (3.1) by striking out "If the director is satisfied that" and substituting "Subject to subsection (3.2), if the director is satisfied that", and

(e) by adding the following subsection:

(3.2) A refund is not payable under subsection (3.1) in respect of the substance if, in the case of a collector, deputy collector or retail dealer who has paid security on the substance and has subsequently coloured that substance, the collector, deputy collector or retail dealer has not complied with section 16.2.

34 The following section is added:

Refund of security on coloured fuel for
deputy collectors and retail dealers

20.12  (1) The director must pay to a deputy collector, from the consolidated revenue fund, a refund in the amount determined under subsection (2) if the director is satisfied that

(a) the deputy collector has paid security on fuel that was not coloured fuel at the time the deputy collector bought the fuel,

(b) the deputy collector has coloured the fuel referred to in paragraph (a) and has sold that coloured fuel,

(c) the deputy collector, in colouring and selling the fuel referred to in paragraph (a), has complied with sections 14 and 14.1, and

(d) a refund is not payable under section 20.11 (2) to the deputy collector.

(2) The amount of the refund payable under subsection (1) is the amount equal to the difference between

(a) the amount of security the deputy collector paid on the fuel, and

(b) the amount of security the deputy collector would have been required to pay on the fuel if the rate of tax on that fuel were 3¢ per litre.

(3) The director must pay to a retail dealer, from the consolidated revenue fund, a refund in the amount determined under subsection (4) if the director is satisfied that

(a) the retail dealer has paid security on fuel that was not coloured fuel at the time the retail dealer bought the fuel,

(b) the retail dealer has coloured the fuel referred to in paragraph (a) and has sold that coloured fuel to a purchaser who was liable to pay tax under this Act on that purchase,

(c) the retail dealer, in colouring and selling the fuel referred to in paragraph (a), has complied with sections 14 and 14.1, and

(d) in the case of a retail dealer who has sold coloured fuel, other than coloured fuel referred to in section 5.1 (2) (b) or (c), to a purchaser, other than a farmer, referred to in section 5.1 (1) (a) or (b), the retail dealer

(i) has obtained from the purchaser, at or before the time of sale, or after the time of sale, the declaration referred to in section 5.1 (1), or

(ii) has collected from the purchaser the amount of tax imposed under section 5.1 (1).

(4) The amount of the refund payable under subsection (3) is the amount equal to the difference between

(a) the amount of security the retail dealer paid on the fuel, and

(b) the amount of tax the retail dealer received from the purchaser for that fuel.

(5) If a refund is paid under subsection (3) to a retail dealer who has obtained from the purchaser, after the time of sale, the declaration referred to in section 5.1 (1), the purchaser is deemed to be, at the time of sale, a purchaser who is

(a) required to pay an amount of tax under section 5 (1), and

(b) not required to pay an amount of tax under section 5.1 (1).

(6) If a deputy collector or retail dealer receives an amount under this section for a fuel and subsequently receives security or collects tax or an amount as if it were tax on the fuel with respect to which the amount was paid, the deputy collector or retail dealer must pay to the government the amount received or collected on the fuel at the prescribed time and in the prescribed manner.

35 Section 20.2 (1) is amended by striking out "Despite sections 20 (2) and 20.11," and substituting "Despite sections 20 (2), 20.11 and 20.12,".

36 The following section is added:

Refund to purchaser of coloured fuel who pays tax
under section 5.1, but uses fuel for authorized purpose

22.1  (1) The director must pay to a purchaser of coloured fuel, from the consolidated revenue fund, a refund in the amount determined under subsection (2) if the director is satisfied that

(a) the purchaser has paid an amount of tax under section 5.1 (1) on the coloured fuel,

(b) the purchaser would not have been required to pay the amount referred to in paragraph (a) if the retail dealer had obtained from the purchaser, at or before the time of sale, the declaration referred to in section 5.1 (1), and

(c) the purchaser has used the coloured fuel for a purpose authorized under section 15.

(2) The amount of the refund payable under subsection (1) is the amount equal to the difference between

(a) the amount of tax paid by the purchaser under section 5.1 (1), and

(b) the amount of tax that would have been payable by the purchaser under section 5 if the retail dealer had obtained from the purchaser, at or before the time of sale, the declaration referred to in section 5.1 (1).

37 Section 37 (4) is amended by striking out "5 (1) and (1.1)," and substituting "5 (1) and (1.1), 5.1 (1),".

38 Section 43 (2) is amended by striking out "the director must" and substituting "the director must, unless subsection (2.01) of this section applies in respect of the fuel,".

39 Section 45.3 (1) is repealed and the following substituted:

(1) Subject to subsections (1.1) to (1.3), if the director is satisfied that a person purchased or used coloured fuel contrary to section 15, the director may impose on the person a penalty equal to the greater of

(a) the amount that is equal to 3 times the tax that would have been payable on the fuel if it had not been coloured fuel, and

(b) the amount, not to exceed $1 000, determined under the regulations.

(1.1) For the purposes of determining the amount of the penalty that may be imposed by the director on a person under subsection (1), if the director considers that it is impractical to ascertain the quantity of coloured fuel purchased or used, as the case may be, contrary to section 15, the amount of the penalty is the amount determined in accordance with subsection (1) (b).

(1.2) If a contravention referred to in subsection (1) continues for more than one day, separate amounts, each not to exceed $1 000, may be determined for the purposes of subsection (1) (b) for each day the contravention continues.

(1.3) If the director is satisfied that a person referred to in subsection (1) purchased or used coloured fuel contrary to section 15 for the purpose of operating more than one vehicle, separate amounts, each not to exceed $1 000, may be determined for the purposes of subsection (1) (b) for each vehicle.

40 Section 45.3 (2) is amended by striking out "section 5 or 15 (3)" and substituting "section 5, 5.1 or 15 (3)".

41 Section 50 (1) (b) is amended by striking out "20.11, 20.2," and substituting "20.11, 20.12, 20.2,".

42 Section 64 (4) is amended by adding the following paragraph:

(a.1) makes or participates in, assents to or acquiesces in the making of a false or deceptive statement in a declaration referred to in section 5.1 (1); .

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

(l.1) in relation to the penalty that may be imposed under section 45.3 for the purchase or use of coloured fuel contrary to section 15, respecting the determination of the amount referred to in section 45.3 (1) (b), including, without limitation, the following:

(i) prescribing amounts for contraventions of section 15, including greater amounts for second or subsequent contraventions;

(ii) prescribing a period of time within which a second or subsequent contravention of section 15 must occur for a greater amount to apply;

(iii) providing that in determining whether a contravention of section 15 is a second or subsequent contravention, as the case may be, the only question to be considered is the sequence of the imposition of penalties under section 45.3 and that no consideration may be given to the sequence of the contraventions or whether any contravention occurred before or after the imposition of a penalty;

(iv) establishing formulas that may be applied in determining the amount; .

Provincial Sales Tax Act

44 Section 1 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended in paragraph (b) of the definition of "collector" by striking out "171 or 172" and substituting "171, 172 or 172.1".

45 Section 1 is amended in paragraph (h) of the definition of "small seller" by striking out "170, 171 or 172" and substituting "170 or 171".

46 Section 1 is amended

(a) in paragraph (a) (x) and (xii) of the definition of "use" by striking out "brought into British Columbia" and substituting "brought or sent into or delivered in British Columbia", and

(b) in paragraph (a) (xi) of the definition of "use" by striking out "brought into British Columbia" and substituting "brought or sent into or delivered in British Columbia" and by adding "other than for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia" after "solely outside British Columbia".

47 Section 68 is amended

(a) by repealing the definition of "calculation year", and

(b) in the definition of "travel ratio" by striking out "determined in accordance with section 69 (4)" and substituting "determined in accordance with the regulations".

48 Section 69 (4) is repealed.

49 Section 71 is amended

(a) in subsections (1), (2) and (4) by striking out "section 69 (4) (a)" wherever it appears and substituting "section 69 (4) (a) as it read immediately before its repeal", and

(b) by adding the following subsection:

(5) This section does not apply in relation to tax imposed under section 69 on or after January 1, 2015.

50 Section 123 (2) is amended by striking out "2%" and substituting "3%".

51 The following section is added:

Transition – application of section 123 if change
in designation status or tax rate

123.01  (1) If accommodation is purchased in an area before the area becomes a designated accommodation area, section 123 applies in relation to the purchase, but only in respect of any consideration that

(a) becomes due on or after the date the area becomes a designated accommodation area, and

(b) has not been paid before that date.

(2) If accommodation is purchased in a designated accommodation area before the area ceases to be a designated accommodation area, section 123 applies in relation to the purchase, except in respect of any consideration that

(a) becomes due on or after the date the area ceases to be a designated accommodation area, and

(b) has not been paid before that date.

(3) If there is a change in the prescribed rate of tax that applies to accommodation purchased in a designated accommodation area, the new rate of tax applies to accommodation purchased, before the new rate of tax takes effect, in the designated accommodation area, but only in respect of any consideration that

(a) becomes due on or after the date the new rate of tax takes effect, and

(b) has not been paid before that date.

52 Section 124 (1) is amended

(a) in paragraph (a) by striking out "in a designated accommodation area," and substituting "in an area that is or has become a designated accommodation area,", and

(b) by striking out "must refund to the purchaser the tax paid under section 123 in accordance with subsection (2) of this section." and substituting "must refund to the purchaser, in accordance with subsection (2), the tax paid under section 123."

53 The following section is added:

Refund in relation to increase in tax rate

124.01  (1) If the director is satisfied that

(a) a purchaser purchased accommodation in a designated accommodation area,

(b) in relation to the purchase, the purchaser

(i) received a written confirmation of reservation,

(ii) entered into a written contract, or

(iii) made a deposit of money,

(c) the purchase is for a specified number of days of accommodation that are set out in the confirmation or contract or covered by the deposit, and

(d) an increase in the prescribed rate of tax that applies to accommodation purchased in the designated accommodation area took effect after the confirmation, contract or deposit was received, entered into or made,

the director must refund to the purchaser, in accordance with subsection (2), the tax paid under section 123.

(2) The amount of the refund under subsection (1) is equal to the difference between

(a) the amount of tax paid under section 123 on the purchase price of the accommodation for each of the specified number of days, and

(b) the amount of tax that would have been payable under section 123 on the purchase price of the accommodation for each of the specified number of days had the rate of tax not been increased.

54 The following section is added:

Property used to improve real property
situated outside British Columbia

158.1  If the director is satisfied that

(a) a contractor purchased in British Columbia, brought or sent into British Columbia, or received delivery of in British Columbia, tangible personal property,

(b) the contractor paid tax under Part 3 of the Act in respect of the tangible personal property,

(c) the tangible personal property was processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property,

(d) the contractor shipped the other tangible personal property referred to in paragraph (c) out of British Columbia for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia,

(e) under the terms of the contract, the other tangible personal property referred to in paragraph (c) was used so that it ceased to be personal property at common law, and

(f) the contractor paid sales tax under a law of another jurisdiction in respect of the other tangible personal property referred to in paragraph (c) and has not obtained and is not entitled to obtain, under that law, a refund of or a credit or rebate for that sales tax,

the director must refund to the contractor the tax paid under Part 3 of the Act in relation to the tangible personal property referred to in paragraph (a).

55 Section 168 (1) (d) is amended by striking out "section 172" and substituting "section 172 or 172.1".

56 Section 172 is amended

(a) in subsection (1) (c) by adding "or provides" after "sells",

(b) in subsection (1) (c) (ii) by striking out "sold," and substituting "sold or provided,",

(c) in subsection (1) (c) (iv) by adding "or provided" after "sold", and

(d) in subsections (2) and (2.2) by adding "or provides" after "sells".

57 The following section is added:

Person located outside British Columbia
must be registered

172.1  (1) Subject to subsection (2), a person must be registered under section 168 at the time the person sells or provides tangible personal property at a retail sale if the person is located outside British Columbia and, in the ordinary course of business, does all of the following:

(a) accepts orders to purchase tangible personal property, if the orders to purchase originate from locations in British Columbia;

(b) sells or provides tangible personal property to a person in British Columbia for use or consumption

(i) by the person,

(ii) by a third person at the expense of the person to whom the property is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the property is sold or provided acts as agent;

(c) holds the tangible personal property described in paragraph (b) in inventory in British Columbia at the time the tangible personal property is sold or provided.

(2) Subsection (1) does not apply to a person if the person sells or provides only tangible personal property that is exempt from tax imposed under this Act.

(3) Sections 83 [demand on third party] and 85 [books and records are property of the government] of the Financial Administration Act do not apply to a person who is required under subsection (1) of this section to be registered under section 168 of this Act.

58 Section 174 is amended

(a) in subsection (4) by striking out "under section 172" and substituting "under section 172 (1)", and

(b) by adding the following subsection:

(4.1) If a registrant who is required under section 172 (2.1) to be registered ceases to do all of the activities described in section 172 (2.1) (a) to (c) in the ordinary course of business,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

59 Section 174 is amended by adding the following subsections:

(4.2) If a registrant who is required under section 172.1 (1) to be registered ceases to do all of the activities described in section 172.1 (1) (a) to (c) in the ordinary course of business,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(7) Despite subsections (3) (b), (4) (b), (4.1) (b), (4.2) (b) and (5) (b), a registrant's registration is not deemed to be cancelled under those subsections if the registrant is otherwise required under section 169, 170, 171, 172 or 172.1 to be registered under section 168.

60 Section 202 is amended by striking out "171 [direct seller must be registered] or 172 [person located in Canada but outside British Columbia must be registered]," and substituting "171 [direct seller must be registered], 172 [person located in Canada but outside British Columbia must be registered] or 172.1 [person located outside British Columbia must be registered],".

61 Section 238 is amended by adding the following paragraph:

(d.1) for the purpose of the calculation of tax payable under section 69 (2) [tax if multijurisdictional vehicle licensed],

(i) requiring a person licensing a vehicle in British Columbia under a licence to which a prorating agreement applies to report to the Insurance Corporation of British Columbia the distance the vehicle travelled, in the calculation year immediately preceding the date the licence is issued, in British Columbia and in each other jurisdiction prescribed for the purposes of section 70 (2) [when tax under section 69 must be paid], and

(ii) prescribing a method for determining the travel ratio for a vehicle; .

62 Section 240 is amended

(a) in subsection (4) by striking out "The Lieutenant Governor in Council may amend," and substituting "Subject to subsection (4.1), the Lieutenant Governor in Council may amend,", and

(b) by adding the following subsection:

(4.1) The Lieutenant Governor in Council may not amend the rate of tax prescribed in relation to accommodation purchased in a designated accommodation area unless the amendment is requested by the designated recipient.

Small Business Venture Capital Act

63 Section 29.1 (1) (a.1) of the Small Business Venture Capital Act, R.S.B.C. 1996, c. 429, is amended by striking out "2014" and substituting "2015".

Tobacco Tax Act

64 Section 11 (1) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by adding "brought or sent into British Columbia by the wholesale dealer, or" after "in respect of tobacco".

65 Section 12 (3) is amended by adding "subject to the regulations," after "under subsection (2),".

66 Section 15 is repealed and the following substituted:

Allowance for collectors

15  (1) Subject to the regulations, a collector who pays an amount of security as required under this Act in relation to a reporting period may deduct from the amount payable and retain a prescribed allowance for the reporting period.

(2) Despite any other Act, a person retaining an allowance under this section is not, by retaining the allowance, made ineligible as a member of the Legislative Assembly of British Columbia.

67 Section 22 (2.1) is amended by striking out "received a refund of tax under this Act" and substituting "received a refund of an amount under this Act".

68 Section 26 (1) (a) and (b) is repealed and the following substituted:

(a) affects the date of payment, the interest or penalties or any liability for payment under this Act in respect of the amount assessed or imposed that is the subject matter of the appeal, or

(b) delays the collection of the amount assessed or imposed.

69 Section 34 is repealed and the following substituted:

Alternative remedies

34  (1) Remedies available to the government for the recovery of an amount owing under this Act may be exercised separately, concurrently or cumulatively.

(2) The liability of a person for the payment of an amount owing under this Act is not affected by a fine or penalty imposed on or paid by the person for contravention of this Act.

70 Section 35 (1) and (2) is repealed and the following substituted:

(1) In addition to any other penalty, the director may do any of the following:

(a) if the director is satisfied that a person who collected tax or received security in respect of tobacco wilfully failed to remit the tax or pay security in respect of the tobacco to the government as required under this Act, impose on the person a penalty equal to 100% of the amount not remitted or paid;

(b) in any case other than a case referred to in paragraph (a), if the director is satisfied that a person evaded the payment of tax or security to the government as required under this Act by wilfully making a false or deceptive statement or by wilful default or fraud, impose on the person a penalty equal to 25% of the amount evaded;

(c) in any case other than a case referred to in paragraph (a) or (b), if the director is satisfied that a person failed to collect any tax or remit or pay any tax or security to the government as required under this Act, impose on the person a penalty equal to 10% of the amount not collected, remitted or paid.

(2) The director may, at any time, assess interest, calculated at the rate and in the manner prescribed, on an amount owing to the government under this Act.

71 Section 39 is amended

(a) in subsection (2) by striking out "collect taxes as required by this Act" and substituting "collect or remit tax, or pay security to the government, as required under this Act" and by striking out "the tax that should have been collected, including arrears, penalties and interest," and substituting "the tax that should have been collected or remitted or the amount of security that should have been paid, including any penalties and interest,",

(b) in subsection (4) (c) by striking out "remittance of tax collected by the person," and substituting "payment of an amount to be paid or remitted under this Act,",

(c) in subsection (4) (f) by striking out "required by this Act or the regulations;" and substituting "or payment of security required under this Act;", and

(d) in subsections (5) (b), (10) and (11) by striking out "tax" wherever it appears and substituting "tax or security".

72 Section 40 (1) is repealed and the following substituted:

(1) In a prosecution for failure to collect, remit or pay an amount under this Act, the onus is on the accused to prove that the accused collected the amount or remitted or paid the amount.

73 Section 44 (2) is amended

(a) by adding the following paragraph:

(b.1) respecting the payment of additional security by a retail dealer or the payment of a refund of all or a portion of security paid by a retail dealer, in the event of a change in the rate of tax payable by a consumer of tobacco, including, without limitation, the following:

(i) requiring a retail dealer to provide to the director an inventory of any tobacco in the possession of the retail dealer at the time the change in the rate of tax payable takes effect;

(ii) requiring the payment of additional security by a retail dealer or permitting or requiring the payment of a refund of security paid by a retail dealer;

(iii) establishing circumstances in which additional security must be paid by a retail dealer or a refund of security paid by a retail dealer may or must be paid;

(iv) respecting the amount of the additional security to be paid by a retail dealer or the amount of a refund of security paid by a retail dealer and setting conditions of, or limitations on, the payment of additional security by a retail dealer or the payment of a refund of security paid by a retail dealer;

(v) in the case of a retail dealer who is required to pay additional security, respecting the deduction of an allowance from the amount payable by the retail dealer, including, without limitation, respecting the amount of an allowance and setting conditions of, or limitations on, the deduction of an allowance; , and

(b) by repealing paragraph (c) and substituting the following:

(c) for the purposes of section 15, respecting the amount of an allowance and setting conditions of, or limitations on, the deduction of an allowance; .

74 The following section is added:

Refunds authorized or required under regulations

44.2  The director,

(a) if authorized by a regulation under section 44 (2) (b.1), may pay from the consolidated revenue fund a refund of all or a portion of security paid by an applicant for a refund, and

(b) if required by a regulation under section 44 (2) (b.1), must pay from the consolidated revenue fund a refund of all or a portion of security paid by an applicant for a refund.

Transitional Provision

Provincial Sales Tax Act transition – persons
located outside British Columbia

75  (1) This section applies to the period beginning on the date this section comes into force and ending on September 1, 2015.

(2) A person who is located outside British Columbia and, in the ordinary course of business, does all of the activities described in section 172.1 (1) (a) to (c) of the Provincial Sales Tax Act, as enacted by this Act, is deemed to be an applicant for the purposes of section 168 of the Provincial Sales Tax Act.

Repeals

Small Business and Revenue Statutes Amendment Act, 2007

76 Section 63 (b) of the Small Business and Revenue Statutes Amendment Act, 2007, S.B.C. 2007, c. 31, is repealed.

Vancouver Tourism Levy Enabling Act

77 The Vancouver Tourism Levy Enabling Act, S.B.C. 2004, c. 29, is repealed.

Commencement

78  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: