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

Budget Transparency and Accountability Act

1 Section 8.1 (1) of the Budget Transparency and Accountability Act, S.B.C. 2000, c. 23, is amended by striking out "the consolidated revenue fund must be applied to reduce or eliminate that debt" and substituting "the general fund must, on or before September 15 following the end of the fiscal year, be applied to reduce or eliminate that debt or be transferred to the BC Prosperity Fund under section 47.1 (4) of the Financial Administration Act, or both".

Emergency Program Act

2 Section 4 (2) (c) of the Emergency Program Act, R.S.B.C. 1996, c. 111, is amended by adding "or other persons or organizations" after "local authorities".

3 Section 16 (1) is repealed and the following substituted:

(1) Any expenditures under this Act considered necessary or advisable by the minister to make payments or grants under section 4 (2) (c) or (d) or to implement a Provincial emergency plan or Provincial emergency measures under section 7 or 10 (1) (a) may be paid out of the consolidated revenue fund without an appropriation other than this section.

Financial Administration Act

4 Section 1 of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended in the definition of "special fund" by adding "the special fund established under section 47.1 or" after "means".

5 Section 21 (2) is amended by adding "26.2," after "26.1,".

6 The following section is added:

Payments for increased compensation obligations
arising in fiscal year

26.2  (1) In this section, "compensation" includes all remuneration payable to an individual, whether in the form of money or other benefit.

(2) The Minister of Finance may pay out of the consolidated revenue fund an amount in respect of compensation payable to individuals in a fiscal year by the government, a government organization, an organization funded by the government or a government organization, or the government of Canada in circumstances in which the government pays for the services provided by the government of Canada, if

(a) the amount in respect of compensation is an increase to existing compensation obligations,

(b) the liability is recognized in the fiscal year, and

(c) the existence of that liability or the amount of that liability was not known when the main estimates for that fiscal year were presented to the Legislative Assembly.

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

7 The following Part is added:

Part 5.1 – BC Prosperity Fund

BC Prosperity Fund

47.1  (1) In this section:

"fund" means the BC Prosperity Fund established under subsection (2);

"government reporting entity" has the same meaning as in the Budget Transparency and Accountability Act;

"surplus" has the same meaning as in the Budget Transparency and Accountability Act;

"taxpayer-supported government reporting entity" has the same meaning as in the Budget Transparency and Accountability Act.

(2) A fund known as the BC Prosperity Fund is established as a special fund.

(3) The fund consists of the following:

(a) $100 million transferred from the general fund on the date this section comes into force;

(b) amounts transferred to the fund under subsection (4);

(c) investment earnings of the fund.

(4) If there is a surplus reported by the Comptroller General in the public accounts for the government reporting entity for a fiscal year, Treasury Board may, on or before September 15 following the end of the fiscal year, direct that an amount not exceeding that surplus be transferred from the general fund to the fund.

(5) Subject to subsections (6) and (7) and the approval of Treasury Board, the Minister of Finance may pay money out of the fund for the following purposes:

(a) reducing the debt of the taxpayer-supported government reporting entity;

(b) supporting capital and operating improvements in health care, education, transportation and job training and providing family supports;

(c) any other purpose authorized under an appropriation in a Supply Act that applies for the fiscal year in which the payment is made.

(6) The Minister of Finance may not pay out of the fund more than 3/4 of the total of all amounts that have been transferred to or earned by the fund.

(7) Until the debt of the taxpayer-supported government reporting entity is eliminated, at least 2/3 of the money paid out of the fund in a fiscal year must be paid for the purpose of reducing the debt of the taxpayer-supported government reporting entity.

(8) Section 12 (3) does not apply in respect of the fund.

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

(10) Section 13 (2) of the Budget Transparency and Accountability Act first applies for the purposes of the 2017-2018 fiscal year in respect of the BC Prosperity Fund and the appropriations under this section.

Insurance Corporation Act

8 The Insurance Corporation Act, R.S.B.C. 1996, c. 228, is amended by adding the following section:

Fiscal year of corporation

22.1  (1) For fiscal years of the corporation that begin after 2016, the fiscal year of the corporation is the period from April 1 in one year to March 31 in the next year.

(2) The fiscal year of the corporation that began on January 1, 2016 ends on March 31, 2017.

9 Section 23 is amended

(a) in subsection (1) by striking out "The corporation must annually prepare and provide to the minister" and substituting "The corporation must prepare and provide to the minister by the date required by the minister",

(b) in subsection (2) (a) by striking out "at least once each year" and substituting "for each fiscal year of the corporation", and

(c) by repealing subsection (3) and substituting the following:

(3) On or before August 31 after the end of the preceding fiscal year of the corporation, the minister must either, as applicable,

(a) lay the reports and financial statement received by the minister under subsection (1) before the Legislative Assembly, if it is in session, or

(b) file the reports and financial statement with the Clerk of the Legislative Assembly, if the Legislative Assembly is not in session.

10 Section 24 (2) is amended by adding "or filed with the Clerk of the Legislative Assembly" after "Legislative Assembly".

11 Section 26 is amended

(a) in subsection (1) by repealing the definition of "management target" and substituting the following:

"management target" means,

(a) subject to paragraph (b), the ratio that reflects the total of

(i) the supervisory target as set out in the MCT guideline, and

(ii) the margin, determined by the corporation's actuary and validated by the independent actuary appointed by the board of the corporation, that

(A) reflects the corporation's risk profile in relation to the corporation's optional vehicle insurance business and its ability to respond to adverse events that arise from those risks, and

(B) has been determined in accordance with

(I) the MCT guideline, and

(II) the Guideline on Stress Testing issued by the Office of the Superintendent of Financial Institutions Canada as it is amended or replaced from time to time, and

(b) if a ratio is set under subsection (1.1), the lesser of the ratio determined under paragraph (a) of this definition and the ratio set under subsection (1.1); ,

(b) by adding the following subsection:

(1.1) The Lieutenant Governor in Council may, by order, set a ratio for the purposes of paragraph (b) of the definition of "management target" in subsection (1). , and

(c) in subsection (4) (b) by striking out ", for each calendar year," and by striking out "for that calendar year".

12 Section 28 is amended by adding "fiscal" before "year".

Public Service Benefit Plan Act

13 Section 6 of the Public Service Benefit Plan Act, R.S.B.C. 1996, c. 386, is amended

(a) by repealing subsections (2) and (2.1), and

(b) by adding the following subsection:

(6) This section does not apply in respect of the Long Term Disability Plan continued under this Act.

14 The following section is added:

Long Term Disability Fund special account

6.1  (1) In this section:

"former fund" means the Long Term Disability Fund that was continued and deemed to be established under section 6 (2), as that section read before its repeal;

"LTD plan" means the Long Term Disability Plan continued under this Act;

"special account" means the special account, as defined in section 1 of the Financial Administration Act, established under subsection (2) of this section.

(2) A special account, to be known as the Long Term Disability Fund special account, is established.

(3) The special account consists of the following:

(a) an opening balance, being the closing balance, as determined by the Minister of Finance, of the former fund immediately before that fund is dissolved;

(b) amounts received by the government as contributions paid under section 4 in respect of the LTD plan;

(c) amounts received by the government as contributions in respect of the LTD plan from employers, other than the government, of employees to whom the LTD plan applies;

(d) amounts transferred from a vote, as defined in section 1 of the Financial Administration Act, to the special account as contributions by the government in respect of the LTD plan;

(e) amounts received by the government as recoveries in respect of amounts paid in respect of the LTD plan;

(f) interest attributed to the special account in the amount calculated in accordance with the regulations made under subsection (7).

(4) Despite section 21 (3) of the Financial Administration Act, the minister may pay money out of the special account for the following purposes:

(a) for any payments required in respect of the LTD plan or under a contract made under this Part in respect of the LTD plan;

(b) for the administration of the special account or for any costs incurred for the management of the LTD plan or a contract made under this Part in respect of the LTD plan;

(c) for the return of contributions paid under section 4 of this Act in respect of the LTD plan and any interest attributable to those contributions;

(d) for the return of contributions paid to the LTD plan from employers, other than the government, of persons to whom the LTD plan applies and any interest attributable to those contributions.

(5) Section 27 (1) (a) and (b) of the Financial Administration Act does not apply to the appropriation under subsection (4) of this section.

(6) Treasury Board may direct that the balance of the special account be reduced by an amount equal to any part of the balance that Treasury Board considers is not required for the purposes of the LTD plan.

(7) For the purposes of subsection (3) (f), Treasury Board may make regulations prescribing the balance on which interest is calculated, the interest rate and the manner of calculating interest.

Special Accounts Appropriation and Control Act

15 Section 9.4 (5) (a) of the Special Accounts Appropriation and Control Act, R.S.B.C. 1996, c. 436, is amended by striking out "January 1, 2007" and substituting "January 1, 2006".

Wildfire Act

16 Section 65 of the Wildfire Act, S.B.C. 2004, c. 31, is repealed and the following substituted:

Appropriation

65  The minister may pay out of the consolidated revenue fund without an appropriation other than this section any expenditures the minister considers necessary or advisable for the following purposes:

(a) direct fire control carried out on any land;

(b) abating any risk to public safety that is on any land and is a result of fire control carried out under section 9;

(c) abating any risk to public safety that is on Crown land and is a result of a fire;

(d) compensating an owner or tenant of private land under section 9 (4) or (5);

(e) rehabilitating any land damaged by fire control carried out under section 9;

(f) rehabilitating Crown land that has been damaged by fire;

(g) abating a fire hazard that exists on Crown land;

(h) fire prevention and fire preparedness in respect of any land.

Transitional Provisions

Insurance Corporation Act transition – fiscal year

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

(a) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties encountered in bringing section 22.1 of the Insurance Corporation Act into effect, including, without limitation, provisions making an exception to or a modification of a provision in an enactment or providing for the application or continued application of a previous enactment;

(b) deeming a reference in any commercial paper, lease, licence, permit or other contract, agreement, instrument, certificate or document to a fiscal year of the corporation that begins on or after January 1, 2016, and that is for a period that is different than a period established by section 22.1 of the Insurance Corporation Act, to be a reference to a fiscal year of the corporation as established by that section.

(2) A regulation under subsection (1) may be made retroactive to the date this section comes into force or a later date, and if made retroactive is deemed to have come into force on the specified date.

(3) To the extent of any conflict between a regulation under subsection (1) and another enactment, the regulation prevails.

Public Service Benefit Plan Act transition – Long Term Disability Fund

18  (1) In this section, "LTD Fund" means the Long Term Disability Fund referred to in section 6 (2) of the Public Service Benefit Plan Act, as that section read before its repeal.

(2) The LTD Fund is dissolved and ceases to be held by the government in trust.

(3) A reference to the LTD Fund in any contract, instrument or document to which the government is a party is deemed to be a reference to the Long Term Disability Fund special account established under section 6.1 of the Public Service Benefit Plan Act.

Part 2 – Tax-Related Budget Measures

Carbon Tax Act

19 Section 1 (1) of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended by adding the following definition:

"common carrier" means a person who is in the business of transporting goods for members of the public; .

20 Section 14 is amended

(a) by repealing subsection (1) and substituting the following:

(1) In this section, "non-commercial aircraft or ship" means an aircraft or ship used solely for personal use. , and

(b) in subsection (2) (c) (i) (A) and (B) by striking out "the collector, deputy collector or retail dealer" and substituting "the retail dealer".

21 Section 30 is amended by adding the following subsection:

(5.1) A collector is exempt from the requirement to pay security under subsection (1) in respect of fuel if the collector sells the fuel to a deputy collector or retail dealer who is exempt from the requirement to pay security under section 31 (1) or 32 (1) in respect of that fuel.

22 Section 31 is amended by adding the following subsection:

(1.1) A deputy collector who buys fuel that is to be sold by the deputy collector outside of British Columbia is exempt from the requirement to pay security under subsection (1) in respect of the fuel if that fuel is to be removed from British Columbia

(a) by the collector or other deputy collector from whom the deputy collector bought the fuel,

(b) by a person acting on behalf of the collector or other deputy collector from whom the deputy collector bought the fuel,

(c) by the deputy collector or a person acting on behalf of the deputy collector, if the deputy collector or the person acting on behalf of the deputy collector has, at the time the deputy collector buys the fuel, entered into a contract with a common carrier for the removal of the fuel from British Columbia, or

(d) in prescribed circumstances.

Income Tax Act

23 Section 4.1 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended

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

(3) Subject to subsections (4) to (7) of this section and to sections 4.52 and 4.8 to 4.84, if the individual is a trust, the tax payable under this Act by the trust on its taxable income for a taxation year is the total of the following:

(a) the amount determined by the formula

where

(b) if section 122 (2) of the federal Act applies to the trust for the taxation year, the amount equal to the amount that would be determined under section 122 (1) (c) of the federal Act if

(i) subparagraph (i) of the description of "A" in section 122 (1) (c) of the federal Act were read as follows:

(i) the rate of tax payable under the Income Tax Act (British Columbia) by the trust for each taxation year referred to in the description of B were the highest percentage specified in section 4.1 (1) of that Act that applies in determining tax that might be payable by an individual under that Act for the year, and

(ii) the reference in the description of "B" in section 122 (1) (c) of the federal Act to "under this Part" were read as a reference to "under that Act".

(4) Subsection (3) of this section does not apply to a qualified disability trust, as defined in section 122 (3) of the federal Act, or a graduated rate estate. , and

(b) in subsections (5) and (6) by striking out "an inter vivos trust" wherever it appears and substituting "a trust".

24 Section 4.2 (1) is amended by striking out "4.69 and 4.7" and substituting "4.69, 4.7 and 20.1".

25 Section 4.301 is amended

(a) in the description of "A" by striking out "$432" and substituting "$436", and

(b) in the description of "B" by striking out "3.5%" and substituting "3.56%" and by striking out "$19 000" and substituting "$19 400".

26 Section 4.52 (1) (b.1) is amended by striking out "2015" and substituting "2016".

27 Section 4.721 is amended

(a) in subsection (1) in paragraph (d) of the definition of "BC flow-through mining expenditure" by striking out "2016" and substituting "2017", and

(b) in subsection (1.1) by striking out "2016" in both places and substituting "2017".

28 Section 4.78 (2) is amended by adding the following paragraph:

(n) section 20.1 [farmers' food donation tax credit].

29 Section 4.79 (1) is amended by adding the following paragraph:

(l.1) section 20.1 [farmers' food donation tax credit]; .

30 Section 18.1 is amended by adding the following paragraph:

(e.1) section 20.1 [farmers' food donation tax credit]; .

31 The following section is added:

Farmers' food donation tax credit

20.1  (1) In this section:

"agricultural products" means agricultural products as defined by regulation;

"eligible amount", in respect of a qualifying gift, has the same meaning as in section 248 of the federal Act;

"eligible donee" means a registered charity that

(a) is engaged in providing food to individuals in British Columbia without charge, and

(b) meets additional criteria that may be established by regulation;

"eligible taxpayer" means

(a) an individual, other than a trust or estate, who is subject to tax under section 2 (1), or

(b) a corporation that is subject to tax under section 2 (2).

(2) A gift is a qualifying gift of an eligible taxpayer for a taxation year if the following criteria are met:

(a) the gift is a gift of agricultural products produced in British Columbia by the eligible taxpayer or, if the eligible taxpayer is an individual, the spouse or common-law partner of the individual;

(b) the eligible taxpayer makes the gift to an eligible donee;

(c) the gift is made after February 16, 2016 and before January 1, 2019;

(d) if the eligible taxpayer is an individual,

(i) the individual, or the spouse or common-law partner of the individual, carries on the business of farming in British Columbia in the taxation year in which the gift is made, and

(ii) the amount of the gift is included in calculating the amount deducted by the individual under section 4.4 in computing the individual's tax payable for the taxation year;

(e) if the eligible taxpayer is a corporation,

(i) the corporation carries on the business of farming in British Columbia in the taxation year in which the gift is made, and

(ii) the amount of the gift is included in calculating the amount deducted by the corporation under section 110.1 (1) of the federal Act in computing the corporation's taxable income for the taxation year.

(3) For the purpose of computing the tax payable under this Act for a taxation year by an eligible taxpayer, there may be deducted an amount not exceeding the amount equal to 25% of the total of all amounts each of which is an eligible amount of a qualifying gift of the eligible taxpayer for the taxation year.

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

(a) defining agricultural products for the purposes of this section;

(b) establishing criteria for the purposes of the definition of "eligible donee" in subsection (1) of this section.

(5) Regulations made under subsection (4) may be made retroactive to February 17, 2016 or a later date, and if made retroactive are deemed to have come into force on the date specified in the regulation.

32 Section 25.1 (1) is amended

(a) in paragraph (f.2) (i) of the definition of "excluded expense" by striking out "January 1, 2016" and substituting "January 1, 2017", and

(b) in paragraph (f.2) (ii) of the definition of "excluded expense" by striking out "December 31, 2015 and before January 1, 2017" and substituting "December 31, 2016 and before January 1, 2018".

33 Section 25.1 (1) is amended in paragraph (b) of the definition of "qualified mining exploration expense" by striking out "January 1, 2017" and substituting "January 1, 2020".

34 Section 25.1 is amended

(a) in subsection (7) by adding "that ends before January 1, 2017" after "in respect of a taxation year", and

(b) by adding the following subsection:

(7.1) A taxpayer is not entitled to a mining exploration tax credit in respect of a taxation year that ends on or after January 1, 2017 unless, within 18 months after the end of the taxation year, the taxpayer files the information and records required under subsection (6) with respect to the tax credit.

35 Section 34 is amended by striking out "104 (2) and (23) (e)," and substituting "104 (2),".

36 Section 81.1 is amended

(a) in subsection (1) by adding "under subsection (2)" after "a regional tax credit",

(b) in subsection (1) (b) by adding "and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015" after "March 31, 2003",

(c) in subsection (2) by striking out "section" and substituting "subsection", and

(d) by adding the following subsections:

(4) A corporation is eligible for a regional tax credit under subsection (5) for a taxation year in respect of an eligible production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the regional tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is 12.5% of the amount determined by the formula

where

37 Section 81.11 is amended

(a) in subsection (1) by adding "under subsection (2)" after "a distant location regional tax credit",

(b) in subsection (1) (b) by adding "and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015" after "February 19, 2008",

(c) in subsection (2) by striking out "section" and substituting "subsection", and

(d) by adding the following subsections:

(4) A corporation is eligible for a distant location regional tax credit under subsection (5) for a taxation year in respect of an eligible production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 80 and 81.1,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the distant location regional tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is 6% of the amount determined by the formula

where

38 Section 82.2 is amended

(a) in subsection (1) by adding "under subsection (2)" after "a regional production services tax credit",

(b) in subsection (1) (b) by adding "and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015" after "March 31, 2003",

(c) in subsection (2) by striking out "section" and substituting "subsection", and

(d) by adding the following subsections:

(4) A corporation is eligible for a regional production services tax credit under subsection (5) for a taxation year in respect of an accredited production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 82.1,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the regional production services tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

where

39 Section 82.21 is amended

(a) in subsection (1) by adding "under subsection (2)" after "a distant location production services tax credit",

(b) in subsection (1) (b) by adding "and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015" after "February 19, 2008",

(c) in subsection (2) by striking out "section" and substituting "subsection", and

(d) by adding the following subsections:

(4) A corporation is eligible for a distant location production services tax credit under subsection (5) for a taxation year in respect of an accredited production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 82.1 and 82.2,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the distant location production services tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

where

40 The heading to Part 11 is repealed and the following substituted:

Part 11 – Home Renovation Tax Credit for Seniors and Persons with Disabilities .

41 Section 141 is amended

(a) in paragraph (b) (i) of the definition of "eligible individual" by striking out "senior at the end of the taxation year" and substituting "qualifying individual for the taxation year",

(b) in paragraph (b) (ii) of the definition of "eligible individual" by striking out "senior" and substituting "qualifying individual",

(c) by repealing paragraph (b) of the definition of "qualifying expenditure" and substituting the following:

(b) made or incurred under the terms of an agreement entered into

(i) before April 1, 2012, if the individual is a senior or a qualifying relation of a senior, or

(ii) before February 17, 2016, if the individual is

(A) a qualifying individual by reason of paragraph (b) of the definition of "qualifying individual", or

(B) a qualifying relation of another individual who is a qualifying individual by reason of paragraph (b) of the definition of "qualifying individual", ,

(d) by adding the following definition:

"qualifying individual", in respect of a taxation year, means an individual who

(a) is a senior at the end of the taxation year, or

(b) is entitled to a deduction under section 118.3 (1) of the federal Act, or would have been entitled to that deduction if that section were read without reference to paragraph (c) of that section, for the taxation year; ,

(e) in paragraph (a) of the definition of "qualifying principal residence" by striking out "senior at the end of the taxation year" and substituting "qualifying individual for the taxation year",

(f) in paragraph (b) of the definition of "qualifying principal residence" by striking out "if the individual is not a senior at the end of the taxation year," and substituting "if, at the end of the taxation year, the individual is a qualifying relation of another individual who is a qualifying individual for the taxation year," and by striking out "a qualifying relation of the individual who is a senior at the end of the taxation year," and substituting "the other individual,", and

(g) in paragraph (a) of the definition of "qualifying renovation" by striking out "senior" wherever it appears and substituting "qualifying individual".

42 Section 144 is amended

(a) in subsection (3) by striking out "the individual is not a senior but becomes a senior by the end of the calendar year," and substituting "the individual is not a qualifying individual for the taxation year that ends at the time of the bankruptcy but becomes a qualifying individual for the taxation year that ends at the end of the calendar year,", and

(b) in subsection (4) by striking out "another individual who is not a senior at that time but becomes a senior by the end of the calendar year," and substituting "another individual who is not a qualifying individual at that time but becomes a qualifying individual for the taxation year that ends at the end of the calendar year,".

Motor Fuel Tax Act

43 Section 38 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended by adding the following subsection:

(5.1) A collector is exempt from the requirement to pay security under subsection (1) in respect of fuel if the collector sells the fuel to a deputy collector or retail dealer who is exempt from the requirement to pay security under section 39 (1) or 40 (1) in respect of that fuel.

44 Section 39 is amended by adding the following subsections:

(0.1) In this section, "common carrier" means a person who is in the business of transporting goods for members of the public.

(1.1) A deputy collector who buys fuel that is to be sold by the deputy collector outside of British Columbia is exempt from the requirement to pay security under subsection (1) in respect of the fuel if that fuel is to be removed from British Columbia

(a) by the collector or other deputy collector from whom the deputy collector bought the fuel,

(b) by a person acting on behalf of the collector or other deputy collector from whom the deputy collector bought the fuel,

(c) by the deputy collector or a person acting on behalf of the deputy collector, if the deputy collector or the person acting on behalf of the deputy collector has, at the time the deputy collector buys the fuel, entered into a contract with a common carrier for the removal of the fuel from British Columbia, or

(d) in prescribed circumstances.

Property Transfer Tax Act

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

"permanent resident of Canada" means a permanent resident as defined in the Immigration and Refugee Protection Act (Canada);

"settlor", in relation to land held in trust, means the person who

(a) contributed the land to the trust estate, or

(b) contributed to the trust estate the assets used to acquire the land,

whether or not that person is the creator of the trust; .

46 Section 3 (1) is repealed and the following substituted:

(1) The tax payable under this Act in respect of a taxable transaction is the sum of the following:

(a) 1% of the taxable transaction's fair market value that does not exceed $200 000;

(b) 2% of that fair market value that exceeds $200 000 but does not exceed $2 000 000;

(c) 3% of that fair market value that exceeds $2 000 000.

47 Section 3.1 (2) is repealed and the following substituted:

(2) Despite section 3 (1), the tax payable under this Act for a correcting transaction is the tax payable calculated in accordance with section 3 (1) as that section read on the date of registration of the original transaction and as if the fair market value of the correcting transaction were determined at that date.

48 Section 4 (1) is amended

(a) in the definition of "eligible transaction" by adding "or refund" after "for an exemption",

(b) in the definition of "first time home buyer" by repealing paragraph (a) (ii) and substituting the following:

(ii) a permanent resident of Canada, , and

(c) by repealing the definition of "residential improvement" and substituting the following:

"residential improvement", in respect of a property, means

(a) an improvement that is permanently affixed to the property and is intended to be a dwelling, or

(b) if only part of an improvement that is permanently affixed to the property is intended to be a dwelling, that part of the improvement that is intended to be a dwelling.

49 Section 5 is amended

(a) in subsection (1) by striking out "a transferee who applies for registration of an eligible transaction at a land title office is exempt" and substituting "a transferee who applies for registration, at a land title office, of an eligible transaction in respect of a qualifying property is exempt", and

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

(b) disclose that the property to which the eligible transaction relates is a qualifying property, and .

50 Section 7 is amended

(a) in subsection (1) by striking out "under subsection (2)",

(b) in subsection (1.1) by striking out "only" and by striking out "paid by the transferee if" and substituting "paid on the registration of the transaction by the transferee if", and

(c) in subsection (2.1) (a) by adding "the amount of" after "a refund of the portion of".

51 Section 8 (2) is amended by striking out "subsection (1) (a)," and substituting "subsection (1),".

52 Section 11 (1) and (5) is amended

(a) by striking out "obligated" and substituting "obliged", and

(b) by adding "or 12.12 (8)" after "section 9".

53 Section 12 is repealed and the following substituted:

False declaration

12  If the administrator determines that a transferee who applies for an exemption under section 5 or 6 or a refund under section 7 or makes an application under section 12.12

(a) is not qualified under section 5 to receive an exemption from tax under section 2 (1) (a) or to obtain a refund under section 7, and

(b) provided a declaration under section 5 (2) or an application under section 7 or 12.12 that is false or misleading in respect of the matters referred to in paragraph (c) or (d) of the definition of "first time home buyer" in section 4 (1),

the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator under section 2 (1) (a), 9 or 12.12 (8), as applicable, a penalty in an amount equal to the amount of the exemption, refund or credit claimed in the application.

54 The following sections are added:

Definitions in relation to new housing program

12.01  (1) In this section and in sections 12.02 to 12.08:

"eligible transaction", for the purposes of determining the eligibility of a qualifying individual for an exemption or refund under sections 12.02 to 12.08, means a taxable transaction not referred to in paragraph (f) or (g) of the definition of "taxable transaction" in section 1 (1), for which an application for registration is made at a land title office after February 16, 2016;

"principal residence" means the usual place where an individual makes his or her home;

"property" means a parcel of land and the improvements in respect of which an application is made for

(a) an exemption under section 12.02 or 12.03, or

(b) a refund under section 12.04 or 12.06;

"qualifying individual" means an individual who is a Canadian citizen or a permanent resident of Canada;

"qualifying property" means a property the fair market value of which does not, on the registration date, exceed the sum of the qualifying value of that property and $50 000;

"qualifying value", in respect of a property, means $750 000;

"registration date", in respect of an eligible transaction, means the date on which the application for registration of the eligible transaction is made at a land title office;

"residential improvement", in respect of a property, means

(a) an improvement that is permanently affixed to the property and is intended to be a dwelling, or

(b) if only part of an improvement that is permanently affixed to the property is intended to be a dwelling, that part of the improvement that is intended to be a dwelling.

(2) For the purposes of the definition of "property", if the same residential improvement is located on more than one parcel, the parcels are deemed to be one parcel.

New housing exemption

12.02  (1) Subject to subsection (2) and sections 12.03 to 12.08, a transferee who applies for registration, at a land title office, of an eligible transaction in respect of a qualifying property that, on the registration date, contains a residential improvement is exempt from the obligation to pay tax under section 2 (1) (a) on the eligible transaction if

(a) the transferee is a qualifying individual on the registration date,

(b) the eligible transaction is in respect of either of the following:

(i) a qualifying property in respect of which the residential improvement

(A) was constructed or placed on the property, and

(B) on the registration date, has not been used as a dwelling since the construction of the residential improvement began or since the residential improvement was placed on the property, as the case may be;

(ii) a qualifying property that resulted from a subdivision of a parcel and in respect of which the residential improvement

(A) was developed from the division of an improvement that was on the parcel that was subdivided, and

(B) on the registration date, has not been used as a dwelling since the subdivision of the parcel,

(c) the qualifying property does not, on the registration date, contain a residential improvement other than a residential improvement that falls within the description in paragraph (b) (i) or (ii),

(d) the application is the first application for registration in respect of the qualifying property,

(i) in the case of a qualifying property described in paragraph (b) (i), since the residential improvement was completed or since the residential improvement was placed on the property, as the case may be, or

(ii) in the case of a qualifying property described in paragraph (b) (ii), since the subdivision of the parcel, and

(e) the transferee applies for an exemption under this section or section 12.03 by tendering with the application for registration an application for exemption.

(2) If the fair market value of a qualifying property exceeds the qualifying value of the property, the exemption under subsection (1) is the amount calculated as follows:

PTT x		QV + 50 000 - FMV
		50 000

where

(3) An application for exemption under subsection (1) must be in the form required by the minister and must

(a) disclose that the property to which the eligible transaction relates is a qualifying property, and

(b) include a consent, in the form required by the minister, by which the transferee consents to the administrator conducting inquiries respecting the transferee that the administrator considers necessary to confirm the qualifications of the transferee for the exemption.

New housing partial exemption

12.03  (1) Subject to subsection (3), if a qualifying property that is the subject matter of an eligible transaction is larger than 0.5 ha in area, a transferee who qualifies for an exemption under section 12.02 is exempt from the obligation to pay tax under section 2 (1) (a) on that transaction

(a) in respect of that portion of the fair market value of the property that is applicable to the residential improvement inhabited as the transferee's principal residence as required by section 12.05, and

(b) in respect of that portion of the fair market value of the property, not including improvements, that is equivalent to the ratio of 0.5 ha to the total area of the property.

(2) Subject to subsection (3), if a qualifying property not referred to in subsection (1) is the subject matter of an eligible transaction and has improvements on it that are in addition to the residential improvement inhabited as the transferee's principal residence as required by section 12.05, a transferee who qualifies for an exemption under section 12.02 is exempt from the obligation to pay tax under section 2 (1) (a) on that transaction

(a) in respect of that portion of the fair market value of the property that is applicable to that residential improvement, and

(b) in respect of the fair market value of the property, not including improvements.

(3) If the fair market value of a qualifying property exceeds the qualifying value of the property, the exemption under subsection (1) or (2) is the amount calculated as follows:

E x		QV + 50 000 - FMV
		50 000

where

New housing refund if property contains
residential improvement on registration date

12.04  (1) A transferee who is entitled to an exemption under section 12.02 or 12.03 in respect of an eligible transaction and who fails to apply for that exemption on the registration date may, within 18 months after that date, apply to the administrator for a refund of the tax paid on the registration of the transaction by the transferee.

(2) A transferee who is not entitled on the registration date to an exemption under section 12.02 or 12.03 in respect of an eligible transaction because the transferee is not a qualifying individual on that date may apply to the administrator for a refund of the tax paid on the registration of the transaction by the transferee if

(a) the transferee becomes a qualifying individual on or before the first anniversary of the registration date, and

(b) the application for the refund is made within 18 months after the registration date.

(3) On receiving an application under subsection (1), the administrator,

(a) if satisfied that the transferee would have qualified for an exemption under section 12.02 or 12.03 on the registration date, must pay out of the consolidated revenue fund a refund of the portion of the amount of tax paid by the transferee that is equivalent to the amount of the exemption to which the transferee would have been entitled had the application for the exemption been made on the registration date, or

(b) if not satisfied that the transferee would have qualified for an exemption under section 12.02 or 12.03 on the registration date, must refuse the application and provide the transferee with written notice under subsection (5) of the refusal.

(4) On receiving an application under subsection (2), the administrator,

(a) if satisfied that the transferee

(i) would have qualified for an exemption under section 12.02 or 12.03 on the registration date but for the transferee's failure to be a qualifying individual on that date, and

(ii) became a qualifying individual on or before the first anniversary of the registration date,

must pay out of the consolidated revenue fund a refund of the portion of the amount of tax paid by the transferee that would have been exempted under section 12.02 or 12.03 had the transferee been a qualifying individual on the registration date, and

(b) if not satisfied that the requirements for the refund set out in paragraph (a) (i) and (ii) have been met, must refuse the application and provide the transferee with written notice under subsection (5) of the refusal.

(5) If an application for a refund under subsection (1) or (2) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment for the purposes of allowing the applicant to file a notice of objection under section 19.

New housing program – obligation of transferee if property
contains residential improvement on registration date

12.05  A transferee who has applied for an exemption under section 12.02 or 12.03 or a refund under section 12.04 must,

(a) beginning on a date that is not more than 92 days after the registration date, and

(b) continuing to a date that is not earlier than the first anniversary of the registration date,

inhabit as the transferee's principal residence a residential improvement that the property contained on the registration date.

New housing refund if property does not contain
residential improvement on registration date

12.06  (1) A transferee to whom is transferred, under an eligible transaction, a qualifying property that does not, on the registration date, contain a residential improvement may apply to the administrator for a refund of the tax paid on the registration of the transaction by the transferee if

(a) the transferee is a qualifying individual on the registration date or becomes a qualifying individual on or before the first anniversary of the registration date,

(b) before the first anniversary of the registration date, the transferee establishes a residential improvement on the property

(i) that the transferee inhabits, as the transferee's principal residence,

(A) beginning at the time the residential improvement is completed, and

(B) subject to subsection (2) of this section, continuing to a date that is not earlier than the first anniversary of the registration date, and

(ii) in respect of which the total costs incurred to establish the residential improvement, when added to the fair market value of the property at the registration date, do not exceed the sum of the qualifying value of the property and $50 000, and

(c) the application for the refund is made on a date that is

(i) after the first anniversary of the registration date, and

(ii) on or before the date that is 18 months after the registration date.

(2) The requirement set out in subsection (1) (b) (i) (B) is deemed to have been met in respect of a property if the transferee fails to meet that requirement only because, before the first anniversary of the registration date,

(a) the transferee dies, or

(b) the property is transferred by the transferee pursuant to a written separation agreement or a court order under the Family Law Act.

(3) On receiving an application under subsection (1), the administrator,

(a) if satisfied that

(i) the property was, on the registration date, a qualifying property that did not contain a residential improvement, and

(ii) the requirements for the refund set out in subsection (1) (a), (b) and (c) have been met,

must pay out of the consolidated revenue fund a refund of the portion of the amount of tax paid by the transferee that is equivalent to the amount of the exemption to which the transferee would have been entitled under section 12.02 or 12.03, as applicable, if there were no requirement in section 12.02 (1) that the property contain a residential improvement described in section 12.02 (1) (b) (i) or (ii), or

(b) if not satisfied that the requirements for the refund set out in paragraph (a) (i) and (ii) have been met, must refuse the application and provide the transferee with written notice under subsection (4) of the refusal.

(4) If an application for a refund under subsection (1) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment for the purposes of allowing the applicant to file a notice of objection under section 19.

New housing program – unqualified transferee

12.07  (1) Subject to section 12.08, a transferee who has obtained an exemption under section 12.02 or 12.03 or a refund under section 12.04 is liable under subsection (3) of this section if and from the time that the transferee,

(a) in the case of a transferee who obtained an exemption under section 12.02 or 12.03 or a refund under section 12.04 (3) (a), is not a qualifying individual on the registration date,

(b) in the case of a transferee who obtained a refund under section 12.04 (4) (a), does not become a qualifying individual on or before the first anniversary of the registration date,

(c) in the case of a transferee who obtained an exemption under section 12.02 or 12.03, fails or refuses to comply with section 12.02 (1) (e) or (3), or

(d) subject to subsection (2), fails to inhabit the residential improvement referred to in section 12.05 as the transferee's principal residence as required by that section.

(2) If subsection (1) (d) applies only because the transferee, before the first anniversary of the registration date, fails to comply with section 12.05 (b), the transferee is liable under subsection (4) of this section from the date the transferee ceases to inhabit the property as the transferee's principal residence.

(3) A transferee referred to in subsection (1) must pay to the administrator tax in the same amount that the transferee would have been obliged to pay under section 2 (1) (a) had the transferee not received the exemption or refund.

(4) A transferee referred to in subsection (2) must pay to the administrator tax in the amount calculated in accordance with whichever of the following applies:

(a) if the period between the registration date and the date from which the transferee is liable under subsection (2) is greater than or equal to 360 days, the transferee is liable for the amount that would apply under subsection (3) reduced by 100%;

(b) if the period between the registration date and the date from which the transferee is liable under subsection (2) is less than 360 days, the transferee is liable for the amount that would apply under subsection (3) multiplied by

where

(5) A transferee not referred to in subsection (1) who has obtained an exemption under section 12.02 or 12.03 or a refund under section 12.04 or 12.06 for an amount greater than the amount to which the transferee is entitled under this Act must pay to the administrator as a tax liability the amount by which the exemption or refund received exceeded the exemption or refund to which the transferee was entitled.

New housing exemption or refund retained

12.08  Section 12.07 (1) to (4) does not apply to a transferee who has obtained an exemption under section 12.02 or 12.03 or a refund under section 12.04 if the transferee does not comply with section 12.05 only because, before the first anniversary of the registration date,

(a) the transferee dies, or

(b) the property is transferred by the transferee pursuant to a written separation agreement or a court order under the Family Law Act.

55 The following sections are added:

Definitions for sections 12.09 to 12.12

12.09  In this section and in sections 12.10 to 12.12:

"first time home buyers' credit" means a credit referred to in section 12.12 (1) (b);

"first time home buyers' exemption or refund" means an exemption under section 5 or 6 or a refund under section 7;

"new housing credit" means a credit referred to in section 12.11 (1) (b);

"new housing exemption or refund" means an exemption under section 12.02 or 12.03 or a refund under section 12.04 or 12.06.

Transferee must not apply for both first time home buyers'
exemption or refund and new housing exemption or refund

12.10  Despite sections 4 to 12.08, a transferee is not entitled to and must not apply for both a first time home buyers' exemption or refund and a new housing exemption or refund in respect of the same taxable transaction.

Application to cancel first time home buyers'
application and obtain new housing credit

12.11  (1) A transferee who has applied for a first time home buyers' exemption or refund in respect of a taxable transaction may, whether or not the transferee has received the exemption or refund, apply to the administrator

(a) to cancel the transferee's application for the first time home buyers' exemption or refund, and

(b) to obtain a credit under this section in respect of the tax payable under this Act on the registration of the taxable transaction by the transferee.

(2) An application under subsection (1) may only be made within 18 months after the registration date of the taxable transaction.

(3) On receiving an application under subsection (1), the administrator,

(a) if satisfied that the transferee would have qualified for a new housing exemption or refund in respect of the taxable transaction had the transferee applied for the exemption or refund in accordance with section 12.02, 12.03, 12.04 or 12.06, as applicable, must grant the application under subsection (1) of this section and must

(i) cancel the transferee's application for the first time home buyers' exemption or refund, and

(ii) provide to the transferee a new housing credit in the amount provided for in subsection (4) of this section, or

(b) if not satisfied that the transferee would have qualified for a new housing exemption or refund had the transferee applied for the exemption or refund in accordance with section 12.02, 12.03, 12.04 or 12.06, as applicable, must refuse to grant the application and provide the transferee with written notice under subsection (8) of this section of the refusal.

(4) The amount of the new housing credit to which a transferee is entitled under subsection (3) (a) (ii) in respect of a taxable transaction is equal to the amount of the new housing exemption or refund to which the transferee would have been entitled in respect of the taxable transaction had the transferee applied for the exemption or refund in accordance with section 12.02, 12.03, 12.04 or 12.06, as applicable.

(5) In the case of a transferee who is entitled to a new housing credit for a taxable transaction and who has received a first time home buyers' exemption or refund in respect of the tax payable on the registration of the taxable transaction, the following applies:

(a) the transferee is deemed to have received, instead of a first time home buyers' exemption or refund, a new housing credit in an amount equal to the amount received;

(b) if the amount, under subsection (4), of the new housing credit exceeds the amount received, the administrator must pay out of the consolidated revenue fund to the transferee a refund of the tax paid by the transferee in respect of the taxable transaction equal to the difference between those amounts;

(c) if the amount, under subsection (4), of the new housing credit is less than the amount received, the transferee, from and after the date the transferee makes the application under subsection (1), is liable to pay to the administrator, as tax under this Act in respect of the taxable transaction, the amount of the difference between those amounts;

(d) if the amount, under subsection (4), of the new housing credit is equal to the amount received, no amount is payable by or to the administrator or the transferee.

(6) In the case of a transferee who is entitled to a new housing credit for a taxable transaction and who has not received a first time home buyers' exemption or refund in respect of the tax payable on the registration of the taxable transaction, the administrator must pay out of the consolidated revenue fund to the transferee a refund of the tax paid by the transferee in respect of the taxable transaction equal to the amount, under subsection (4), of the new housing credit.

(7) If the administrator makes a determination under section 12 in respect of an application for a first time home buyers' exemption or refund before or after the cancellation of that application under subsection (3) (a) (i) of this section, the transferee must, despite the cancellation of that application, pay to the administrator the penalty owing under section 12 in respect of the application.

(8) If an application under subsection (1) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment for the purposes of allowing the applicant to file a notice of objection under section 19.

(9) A transferee who obtains a new housing credit under this section in an amount greater than the amount to which the transferee is entitled must pay to the administrator as a tax liability the amount by which the credit received exceeds the credit to which the transferee was entitled.

Application to cancel new housing application
and obtain first time home buyers' credit

12.12  (1) A transferee who has applied for a new housing exemption or refund in respect of a taxable transaction may, whether or not the transferee has received the exemption or refund, apply to the administrator

(a) to cancel the transferee's application for the new housing exemption or refund, and

(b) to obtain a credit under this section in respect of the tax payable under this Act on the registration of the taxable transaction by the transferee.

(2) An application under subsection (1) may only be made within 18 months after the registration date of the taxable transaction.

(3) On receiving an application under subsection (1), the administrator,

(a) if satisfied that the transferee would have qualified for a first time home buyers' exemption or refund in respect of the taxable transaction had the transferee applied for the exemption or refund in accordance with section 5, 6 or 7, as applicable, must grant the application under subsection (1) of this section and must

(i) cancel the transferee's application for the new housing exemption or refund, and

(ii) provide to the transferee a first time home buyers' credit in the amount provided for in subsection (4) of this section, or

(b) if not satisfied that the transferee would have qualified for a first time home buyers' exemption or refund had the transferee applied for the exemption or refund in accordance with section 5, 6 or 7, as applicable, must refuse to grant the application and provide the transferee with written notice under subsection (7) of this section of the refusal.

(4) The amount of the first time home buyers' credit to which a transferee is entitled under subsection (3) (a) (ii) in respect of a taxable transaction is equal to the amount of the first time home buyers' exemption or refund to which the transferee would have been entitled in respect of the taxable transaction had the transferee applied for the exemption or refund in accordance with section 5, 6 or 7, as applicable.

(5) In the case of a transferee who is entitled to a first time home buyers' credit for a taxable transaction and who has received a new housing exemption or refund in respect of the tax payable on the registration of the taxable transaction, the following applies:

(a) the transferee is deemed to have received, instead of a new housing exemption or refund, a first time home buyers' credit in an amount equal to the amount received;

(b) if the amount, under subsection (4), of the first time home buyers' credit exceeds the amount received, the administrator must pay out of the consolidated revenue fund to the transferee a refund of the tax paid by the transferee in respect of the taxable transaction equal to the difference between those amounts;

(c) if the amount, under subsection (4), of the first time home buyers' credit is less than the amount received, the transferee, from and after the date the transferee makes the application under subsection (1), is liable to pay to the administrator, as tax under this Act in respect of the taxable transaction, the amount of the difference between those amounts;

(d) if the amount, under subsection (4), of the first time home buyers' credit is equal to the amount received, no amount is payable by or to the administrator or the transferee.

(6) In the case of a transferee who is entitled to a first time home buyers' credit for a taxable transaction and who has not received a new housing exemption or refund in respect of the tax payable on the registration of the taxable transaction, the administrator must pay out of the consolidated revenue fund to the transferee a refund of the tax paid by the transferee in respect of the taxable transaction equal to the amount, under subsection (4), of the first time home buyers' credit.

(7) If an application under subsection (1) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment for the purposes of allowing the applicant to file a notice of objection under section 19.

(8) A transferee who obtains a first time home buyers' credit under this section in an amount greater than the amount to which the transferee is entitled must pay to the administrator as a tax liability the amount by which the credit received exceeds the credit to which the transferee was entitled.

56 The following section is added:

Additional information to be included in return

12.13  (1) In this section, "bare trustee" means a trustee of a trust who can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust's property.

(2) In addition to any other required information, a return that must be filed under section 2 in respect of a taxable transaction must include the information required under this section.

(3) If the transferee is an individual,

(a) the return must state whether or not the transferee is a Canadian citizen or a permanent resident of Canada, and

(b) in the case of a transferee who is not a Canadian citizen or a permanent resident of Canada, the return must state whether or not the transferee is a citizen of a foreign country or state and, if so, must identify the foreign country or state.

(4) If the transferee is a corporation,

(a) the return must state the total number of directors of the transferee and the number of those directors who are Canadian citizens or permanent residents of Canada, and

(b) in relation to each director of the transferee who is not a Canadian citizen or a permanent resident of Canada,

(i) the return must state the name and address of the director, and

(ii) the return must state whether or not the director is a citizen of a foreign country or state and, if so, must identify the foreign country or state.

(5) If the transferee is, as a bare trustee of a trust, acquiring the land to which the taxable transaction relates, the return must include, in addition to the information required under subsection (3) or (4), as applicable, the following information in relation to each settlor and each beneficiary of the trust:

(a) in the case of a settlor or a beneficiary who is an individual,

(i) the return must state the name and address of the settlor or beneficiary and whether or not the settlor or beneficiary is a Canadian citizen or a permanent resident of Canada, and

(ii) in the case of a settlor or a beneficiary who is not a Canadian citizen or a permanent resident of Canada, the return must state whether or not the settlor or beneficiary is a citizen of a foreign country or state and, if so, must identify the foreign country or state;

(b) in the case of a settlor or a beneficiary that is a corporation,

(i) the return must state the name and address of each director of the settlor or beneficiary and whether or not the director is a Canadian citizen or a permanent resident of Canada, and

(ii) in the case of a director who is not a Canadian citizen or a permanent resident of Canada, the return must state whether or not the director is a citizen of a foreign country or state and, if so, must identify the foreign country or state.

57 Section 14 (1) is amended

(a) in the definition of "family member" by striking out "a Canadian citizen or a permanent resident, as defined in the Immigration and Refugee Protection Act (Canada), who is" and substituting "an individual who is a Canadian citizen or a permanent resident of Canada and who is",

(b) in the definitions of "related individual", "sibling" and "spouse" by striking out "as defined in the Immigration and Refugee Protection Act (Canada)" and substituting "of Canada", and

(c) by repealing the definition of "settlor".

58 Section 17 (a) is repealed and the following substituted:

(a) a return or other record required to be made, provided or kept under this Act is accurate, .

59 Section 18 (6) is repealed and the following substituted:

(6) If any of the following exemptions, refunds or credits has been applied for, the notice of assessment may be issued within 24 months after the application for registration of the taxable transaction to which the application under paragraph (a), (b) or (c) relates:

(a) an exemption applied for under section 5, 6, 12.02 or 12.03;

(b) a refund applied for under section 7, 12.04 or 12.06;

(c) a credit applied for as part of an application made under section 12.11 or 12.12.

60 Section 19 (2) is repealed and the following substituted:

(2) A person who objects to any of the following must mail a notice of objection to the minister within 90 days after the date shown on the notice of assessment:

(a) a refusal by the administrator to grant an exemption under section 5, 6, 12.02 or 12.03;

(b) a refusal by the administrator to pay a refund under section 7, 12.04 or 12.06;

(c) a refusal by the administrator to grant an application under section 12.11 or 12.12;

(d) the imposition of a penalty under section 12.

61 Section 31 (1) is amended

(a) in paragraph (a) by striking out "may relate to the amount of tax payable under this Act," and substituting "may relate to tax that is or may be payable under this Act,", and

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

(b) examine land described in a transfer or any land an examination of which may, in the person's opinion, assist in determining

(i) the accuracy of

(A) a return or other record required to be made, provided or kept under this Act, or

(B) information that is or should be in a return or record referred to in clause (A),

(ii) whether or not tax is payable under this Act, or

(iii) the amount of tax, if any, payable under this Act, and .

62 Section 33 (2) is repealed and the following substituted:

(2) Each of the following must provide assistance and access to their records to the administrator free of charge for the purpose of assisting the administrator in determining the past and present principal residences of an individual who applies for an exemption under section 5, 6, 12.02, 12.03 or 14 or a refund under section 7, 12.04 or 12.06 or makes an application under section 12.11 or 12.12:

(a) the British Columbia Hydro and Power Authority;

(b) the Insurance Corporation of British Columbia and the ministry of the minister responsible for the administration of section 3 or 25 of the Motor Vehicle Act, in respect of registration and licensing of motor vehicles and licensing and certification of drivers of motor vehicles.

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 "for the 2012 to 2015 calendar years,".

Tourist Accommodation (Assessment Relief) Act

64 Section 1 of the Tourist Accommodation (Assessment Relief) Act, R.S.B.C. 1996, c. 454, is amended by adding the following definition:

"rural area" has the same meaning as in the Assessment Act; .

65 Section 2 is amended

(a) in subsection (1) by striking out "the assessed value of an eligible property" and substituting "if an eligible property is located in a municipality, the assessed value of the eligible property", and

(b) in subsection (2) by striking out "an eligible property" and substituting "an eligible property referred to in subsection (1)".

66 The following section is added:

Reduction in assessed value for eligible property
located in rural area

2.1  (1) Subject to subsection (2), if an eligible property is located in a rural area, the assessed value of the eligible property, for the purpose of its taxation under a designated Act, is to be reduced by the smaller of the following amounts:

(a) $500 000 less 15% of the amount by which the assessed value is over $4 000 000;

(b) 50% of the assessed value.

(2) If an eligible property referred to in subsection (1) is a strata lot that is included in a strata plan, the assessed value of the eligible property, for the purpose of its taxation under a designated Act, is to be reduced by the amount determined by the following formula:

A = B		C
		D

where

(3) If the amount determined under subsection (1) or (2) in respect of an eligible property is a negative amount, no change is to be made in the assessed value of the eligible property.

67 Section 3 (2) (b) is amended by striking out "section 2 (1) or (2)." and substituting "section 2 (1) or (2) or 2.1 (1) or (2)."

Transitional Provisions

Property Transfer Tax Act transition – rate of tax

68  (1) In this section, "Act" means the Property Transfer Tax Act.

(2) Unless a contrary intention appears, words and expressions in this section have the same meaning as in the Act.

(3) If section 3 (2) of the Act applies in respect of a transferee who applied before February 17, 2016 for registration, at a land title office, of the taxable transaction referred to in section 3 (2) (a) of the Act, the tax owing on the taxable transactions referred to in section 3 (2) (b) of the Act must be calculated under section 3 (2) of the Act in accordance with section 3 (1) of the Act as that section read immediately before February 17, 2016.

(4) If section 3 (3) of the Act applies in respect of taxable transactions and the transferee referred to in section 3 (3) (a) of the Act applied before February 17, 2016 for registration, at a land title office, of the taxable transaction referred to in that provision, the tax owing on the taxable transactions referred to in section 3 (3) (a) and (b) of the Act must be calculated under section 3 (3) of the Act in accordance with section 3 (1) of the Act as that section read immediately before February 17, 2016.

(5) If section 3 (3.2), (3.21), (3.3) or (3.4) of the Act applies in respect of a transferee who applied before February 17, 2016 for registration, at a land title office, of a taxable transaction referred to in that provision, the tax payable by the transferee under that provision must be calculated under that provision in accordance with section 3 (1) of the Act as that section read immediately before February 17, 2016.

(6) If section 3 (4) of the Act applies in respect of taxable transactions and the transferee referred to in section 3 (4) (a) of the Act applied before February 17, 2016 for registration, at a land title office, of the taxable transaction referred to in that provision, the tax owing on the taxable transactions referred to in section 3 (4) (a) and (b) of the Act must be calculated under section 3 (4) of the Act in accordance with section 3 (1) of the Act as that section read immediately before February 17, 2016.

(7) If section 3 (6) of the Act applies in respect of a taxable transaction described in paragraph (g) of the definition of "taxable transaction" in section 1 (1) of the Act and the application for registration of a transaction referred to in paragraph (g) (i) of that definition was made at a land title office before February 17, 2016, the tax owing on the taxable transaction must be calculated under section 3 (6) of the Act in accordance with section 3 (1) of the Act as that section read immediately before February 17, 2016.

(8) If the administrator makes an assessment of tax under section 20 (1) of the Act in respect of taxable transactions referred to in subsection (4) or (6) of this section, the tax payable under the Act in respect of a taxable transaction referred to in section 20 (1) (b) of the Act must be calculated under section 20 (3) (a) of the Act in accordance with section 3 (1) of the Act as that section read on the date of registration of the taxable transaction.

Tourist Accommodation (Assessment Relief) Act transition

69  The Tourist Accommodation (Assessment Relief) Act, as amended by this Act, applies for the purposes of assessment and taxation in respect of the 2017 taxation year and subsequent taxation years.

Commencement

70  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: