BILL 2 – 2006
BUDGET MEASURES IMPLEMENTATION ACT, 2006

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

Home Owner Grant Act

1 Section 1 of the Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended by adding the following definition:

"threshold amount" means the amount prescribed under section 18 (2) (f).

2 Sections 2 (3), 3 (4), 4 (4) and 5 (4) are amended by striking out "$685 000" in both places and substituting "the threshold amount".

3 Section 18 is amended

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

(f) prescribe an amount as the threshold amount for the purposes of sections 2 (3), 3 (4), 4 (4) and 5 (4). , and

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

(3) If made before December 31 in any year, regulations under subsection (2) may be made retroactive to January 1 of that year, and if made retroactive are deemed to have come into force on that date.

4 Schedule 1 is amended by striking out "$820" in both places and substituting "$920" and by striking out "$470" and substituting "$570".

5 Schedule 2 is amended by striking out "$845" in both places and substituting "$945" and by striking out "$745" and substituting "$845".

Income Tax Act

6 Section 4.5 (1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended in the description of D by striking out "$5 000" and substituting "$10 000".

7 Section 4.721 (1) is amended by repealing paragraph (a) of the definition of "BC flow-through mining expenditure" and substituting the following:

(a) would be a flow-through mining expenditure, of an individual, as defined in section 127 (9) of the federal Act if

(i) a reference in that definition to "October 17, 2000" were read as a reference to "July 30, 2001", and

(ii) a reference in that definition to "2006" were read as a reference to "2009", and .

8 Section 25.1 (1) is amended in paragraph (f.2) of the definition of "excluded expense"

(a) in subparagraph (i) by striking out "January 1, 2006" and substituting "January 1, 2009", and

(b) in subparagraph (ii) by striking out "after December 31, 2005 and before January 1, 2007" and substituting "after December 31, 2008 and before January 1, 2010".

9 Section 47 is amended by adding the following subsection:

(3) Despite subsection (1), the time periods set out in sections 4.721 (5), 25.1 (7), 85 (2), 103 (2), 110 (2) and 114 (2) of this Act must not be extended.

10 Section 80 (5) is amended

(a) in paragraph (a) by striking out "April 1, 2006" and substituting "April 1, 2008", and

(b) by repealing paragraph (d).

11 Section 82.1 (6) (a) is amended by striking out "April 1, 2006" and substituting "June 1, 2008".

International Financial Activity Act

12 Section 19 (1) of the International Financial Activity Act, S.B.C. 2004, c. 49, is amended

(a) by striking out "adjusted interest +", and

(b) by striking out the description of "adjusted interest".

Mineral Tax Act

13 Section 8 of the Mineral Tax Act, R.S.B.C. 1996, c. 291, is amended by adding the following subsection:

(8) If an operator of a mine sells a mineral product from the mine to a related person operating the same mine to enable the related person to fulfill a pre-existing contract with a third party and the pre-existing contract price is greater than the price paid or payable by the related person, the operator's proportionate share of the transaction value of the mineral product for the purpose of subsection (1) (a) must be determined in accordance with the following formula:

where:

Motor Fuel Tax Act

14 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended in the definitions of "marine diesel fuel" and "motive fuel" by adding "or biodiesel fuel" after "diesel fuel" wherever it appears.

15 Section 13 (1) and (2) is amended by striking out "12".

16 Section 15 (1) is amended

(a) by striking out "Subject to section 15.1, a" and substituting "A",

(b) by repealing paragraph (i.1),

(c) in paragraph (k) by striking out "(i.1)" in both places and substituting "(m)", and

(d) by adding the following paragraph:

(m) a motor vehicle that is not licensed to operate on a highway.

17 Section 15.1 is repealed.

18 Section 45.3 (1) is amended by striking out "or 15.1".

Property Transfer Tax Act

19 Section 14 of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended

(a) in subsection (1) by repealing paragraph (c) of the definition of "family farm" and substituting the following:

(c) for the purpose of an exemption claimed under subsection (3) (c), (c.1), (c.2), (d), (d.1) or (d.2) or subsection (4) (p.22) (ii) (B), was used, owned and farmed by the settlor or the deceased; ,

(b) in subsection (1) by repealing the definition of "family farm corporation" and substituting the following:

"family farm corporation" means a corporation of which

(a) the principal activity is farming farm land, and

(b) no shareholder is a corporation; ,

(c) in subsection (1) by repealing paragraph (a) (ii) of the definition of "recreational residence" and substituting the following:

(ii) if an exemption is claimed under subsection (3) (c) or (d) or subsection (4) (p.21) (iii) (B), the settlor or the deceased usually resided on a seasonal basis for recreational purposes, ,

(d) in subsection (3) (c.2) (ii) (C) by striking out "the deceased;" and substituting "the deceased, and",

(e) by repealing subsection (4) (p.2) and substituting the following:

(p.2) a transfer to the Public Guardian and Trustee, if

(i) the land transferred is to be held in trust by the Public Guardian and Trustee for the sole benefit of a minor,

(ii) the minor is a related individual of

(A) the transferor, or

(B) the person whose estate is the transferor, and

(iii) the land transferred was

(A) the principal residence of the transferor,

(B) the principal residence of the person whose estate is the transferor, or

(C) the principal residence of the minor;

(p.21) a transfer to the Public Guardian and Trustee, if

(i) the land transferred is to be held in trust by the Public Guardian and Trustee for the sole benefit of a minor,

(ii) the minor is a related individual of

(A) the transferor, or

(B) the person whose estate is the transferor, and

(iii) the land transferred was

(A) a recreational residence of the transferor, or

(B) the recreational residence of the person whose estate is the transferor;

(p.22) a transfer to the Public Guardian and Trustee, if

(i) the land transferred is to be held in trust by the Public Guardian and Trustee for the sole benefit of a minor,

(ii) the minor is a related individual, or a sibling or a spouse of a sibling, of

(A) the transferor, or

(B) the person whose estate is the transferor, and

(iii) the land transferred was a family farm; ,

(f) in subsection (4) by adding the following paragraph:

(w) a transfer referred to in paragraph (f) of the definition of "taxable transaction", if

(i) the amalgamation was effected under section 17 of the Society Act, and

(ii) at the request of the administrator and within the time period specified by the administrator, the new society files with the administrator a certificate of incorporation respecting the amalgamation. , and

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

(5) For the purposes of an exemption under subsection (3) (c) or (d) or subsection (4) (p.21), no more than one recreational residence may be claimed in respect of the deceased's estate or, as the case may be, the trust referred to in subsection (3) (d).

20 Section 15 (1) and (3) is amended by adding "or (4) (p.2)" after "14 (3) (b) to (e)".

Social Service Tax Act

21 Section 1 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended

(a) in the definition of "software" by striking out "or modifications to such programs" and "or modifications", by repealing paragraph (a) and by striking out "paragraph (a), (b) or (c)" and substituting "paragraph (b) or (c)", and

(b) by adding the following definitions:

"short term rental vehicle" means a vehicle used, during a vehicle licence year, as prescribed by regulation;

"vehicle licence year" means the period beginning on a date on which a licence is issued for a vehicle and ending on the expiry date for the licence established on that licensing date; .

22 Section 1 is amended in the definition of "tangible personal property" by striking out "and" at the end of paragraph (c), by adding ", and" at the end of paragraph (d) and by adding the following paragraph:

(e) heat; .

23 Sections 6 (3), 10 (1) (b), 20 (1) (b) and 37 (2) (b) are amended

(a) by striking out "$49 000" in both places and substituting "$55 000",

(b) by striking out "$50 000" in both places and substituting "$56 000", and

(c) by striking out "$51 000" in both places and substituting "$57 000".

24 Section 9 (2) (a) and (b) is amended by striking out "section 73" and substituting "section 73 (1)".

25 Section 20 is amended

(a) in subsection (1) by striking out "Subject to subsection (3)" and substituting "Subject to this section",

(b) in subsection (1) (a) by striking out "or multijurisdictional vehicle", and

(c) by adding the following subsection:

(4) Subsection (1) does not apply to a multijurisdictional vehicle, other than a short term rental vehicle.

26 Section 28 is amended by repealing the definition of "vehicle licence year".

27 The following section is added:

Refund for short term rental vehicles

33.3 (1) This section applies to a short term rental vehicle that

(a) is a multijurisdictional vehicle because it is licensed to travel in British Columbia under a licence to which a prorating agreement under section 10 of the Commercial Transport Act applies, and

(b) during a vehicle licence year is leased primarily for the purpose of the lessees transporting goods.

(2) On application and on receipt of evidence satisfactory to the commissioner, the commissioner may provide a refund of the tax paid under this Division on the short term rental vehicle in respect of a licence year if tax was collected as required under section 20 on its leasing during the licence year.

(3) A refund under subsection (2) may be paid out of the consolidated revenue fund.

28 Section 38 (2) is amended by striking out "section 73" in both places and substituting "section 73 (1)".

29 Section 66 is amended by repealing the definition of "pneumatic tire".

30 Section 67 is amended

(a) by repealing subsection (1),

(b) in subsection (3) by striking out "a new pneumatic tire or", and

(c) by repealing subsections (4) and (5) and substituting the following:

(4) For the purposes of this section,

(a) any sale of tangible personal property to which one or more new lead-acid batteries are attached, or in connection with which one or more new lead-acid batteries are supplied, is a sale of each of the new lead-acid batteries, and

(b) a lead-acid battery is to be considered as new from the time of its manufacture until immediately after its acquisition at its first retail sale anywhere.

(5) A person who

(a) acquired, in British Columbia, a new lead-acid battery in a transaction in which a levy was not payable under this section, and

(b) becomes, for any period, a user of that battery

is deemed, at the time the person becomes a user, to be a purchaser at the first retail sale of that battery and must pay the appropriate levy under this section.

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

(j.1) software that is

(i) referred to in paragraph (b) or (c) of the definition of "software",

(ii) sold by a person who retains no rights or interests in the software, and

(iii) sold as part of a business sold as a going concern;

(j.2) software that

(i) is referred to in paragraph (j.1) (ii) and (iii),

(ii) was modified in a manner that involved changes to the source code, and

(iii) was modified solely to meet the requirements of a specific person and

(A) the purchase price or lease price, as applicable, of the modifications was separate from that of the unmodified software, and

(B) the purchase price or lease price of the modifications was greater than the purchase price or lease price, as applicable, of the software in its unmodified form; .

32 Section 88 (a) (i) and (ii) is amended by striking out "section 73" and substituting "section 73 (1)".

33 The following section is added:

Hybrid electric buses

90.3 (1) In this section, "passenger bus", "shuttle bus" and "hybrid electric vehicle" have the meanings prescribed in the regulations.

(2) On application by a person who

(a) purchases parts required for the modification of a passenger bus or shuttle bus so that the bus

(i) qualifies as a hybrid electric vehicle, or

(ii) operates exclusively on hydrogen-enriched compressed natural gas,

(b) pays tax under section 5, and

(c) satisfies the commissioner that the person qualifies under this section,

the commissioner must refund to that person out of the consolidated revenue fund an amount determined in accordance with the regulations.

34 Section 130 is amended by adding the following paragraph:

(a.1) prescribing the circumstances in which a vehicle is a short term rental vehicle; .

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

(n.1) prescribing the circumstances in which, and the terms and conditions on which, heat is exempt from taxation imposed by one or more of sections 5 to 25 and 112.3; .

 
Transitional Provisions

Deemed designation under the Health Authorities Act

36 (1) The following real property is deemed to have been designated under section 15.01 (2) (a) [exemption from property taxes in relation to future hospital requirements] of the Health Authorities Act for the purposes of the 2006 taxation year:

Parcel identifier: 007-368-704

Lot 1, except that part shown as dedicated road on Plan BCP1915, Block 376, District Lot 526, Plan 16793.

(2) The change effected by subsection (1) is to be treated as if it were an error or omission in the assessment roll, and must be corrected under section 12 (4) of the Assessment Act.

(3) This section is retroactive to the extent necessary to give it effect for the purposes of assessment and taxation during the 2006 taxation year.

Transitional -- Motor Fuel Tax Act

37 If made before December 31, 2006, regulations that are consequential to the repeal of section 15.1 of the Motor Fuel Tax Act may be made retroactive to February 22, 2006, and if made retroactive are deemed to have come into force on that date.

Taxation of heat under Social Service Tax Act

38 If made before December 31, 2006, regulations under

(a) section 73 (1) (b) of the Social Service Tax Act in relation to heat, or

(b) section 138 (1) (n.1) of that Act

may be made retroactive to February 21, 2000, and if made retroactive are deemed to have come into force on that date.

Taxation of short term rental vehicles under Social Service Tax Act

39 If made before December 31, 2006, regulations under section 130 (a.1) of the Social Service Tax Act may be made retroactive to February 22, 2006, and if made retroactive are deemed to have come into force on that date.

Transitional -- Social Service Tax Act

40 (1) If made before July 1, 2006, regulations under section 76 (1) (k) or 90.3 of the Social Service Tax Act may be made retroactive to a date on or after July 31, 2001, and if made retroactive are deemed to have come into force on the specified date.

(2) The definition of "software" in section 1 of the Social Service Tax Act, as amended by this Act, applies with respect to the tax on the purchase of software if the purchase occurred before the coming into force of this Act but the purchase price is neither paid nor payable until after this Act comes into force.

Commencement

41 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: