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This Act is current to January 3, 2018
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Provincial Sales Tax Act

[SBC 2012] CHAPTER 35

Part 3 — Taxes in Relation to Tangible Personal Property

Division 1 — Rates of Tax

Rates of tax in relation to purchase price

34  (1) Subject to this section, the rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 80, 80.3 to 80.6, 81 to 84, 85 and 86 on tangible personal property is 7% of the purchase price of the tangible personal property.

(2) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 81, 82, 82.2, 84 and 86 on liquor is 10% of the purchase price of the liquor.

(3) Subject to subsections (5) and (6), the rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52, 81, 82, 82.2, 82.3, 83, 84, 85 and 86 on a vehicle, boat or aircraft is 12% of the purchase price of the vehicle, boat or aircraft.

(4) Subsections (5) and (6) apply in relation to a vehicle, boat or aircraft if the person who must pay tax under the applicable section on the vehicle, boat or aircraft, or another person referred to in section 49 (1) (b),

(a) acquired the vehicle, boat or aircraft at a sale in Canada that is a taxable supply under Part IX [Goods and Services Tax] of the Excise Tax Act by a registrant,

(b) imported the vehicle, boat or aircraft from outside Canada, or

(c) acquired the vehicle, boat or aircraft in prescribed circumstances.

(5) Subject to subsection (6), the rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52 and 81 to 86 on a vehicle, boat or aircraft is 7% of the purchase price of the vehicle, boat or aircraft.

(6) The rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52 and 81 to 86 on a passenger vehicle is as follows:

(a) 7% of the purchase price of the passenger vehicle, if the original purchase price is less than $55 000;

(b) 8% of the purchase price of the passenger vehicle, if the original purchase price is $55 000 or more but less than $56 000;

(c) 9% of the purchase price of the passenger vehicle, if the original purchase price is $56 000 or more but less than $57 000;

(d) 10% of the purchase price of the passenger vehicle, if the original purchase price is $57 000 or more.

(7) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 80, 80.3 to 80.6 and 82.2 on a manufactured mobile home is 7% of the amount equal to 50% of the purchase price of the manufactured mobile home.

(8) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 80, 80.3 to 80.6 and 82.2 on a manufactured modular home is 7% of the amount equal to 55% of the purchase price of the manufactured modular home.

(8.1) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52 and 82.2 on a portable building is 7% of the amount equal to 45% of the purchase price of the portable building.

(9) Subsections (7) to (8.1) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies sold with a manufactured building;

(b) repair parts purchased for a manufactured building;

(c) related services provided in respect of a manufactured building.

(10) The rate of tax payable under sections 37, 49 (6) (a), 52, 81, 82, 84 and 86 on electricity is 3.5% of the purchase price of the electricity.

Rates of tax in relation to lease price

35  (1) In this section, "tax rate value",

(a) in relation to a passenger vehicle other than a modified business vehicle or, subject to subsection (1.1), a modified motor vehicle, means, for so long as the lessor remains the owner of the passenger vehicle, the fair market value of the passenger vehicle on the first date on which the lessor leases the passenger vehicle to any person,

(b) in relation to a modified business vehicle, means, for so long as the lessor remains the owner of the modified business vehicle, the fair market value of the modified business vehicle on the first date on which the lessor leases the modified business vehicle to any person less the portion of that fair market value that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle", and

(c) subject to subsection (1.1), in relation to a modified motor vehicle that is a passenger vehicle, means, for so long as the lessor remains the owner of the modified motor vehicle, the fair market value of the modified motor vehicle on the first date on which the lessor leases the modified motor vehicle to any person less the portion of that fair market value that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

(1.1) If a modified motor vehicle that is a passenger vehicle is leased to a person, at the time the lease is entered into, for a period of less than one year, for the purposes of this section the tax rate value in respect of that lease of the vehicle must be determined as if the vehicle were not a modified motor vehicle.

(2) Subject to this section, the rate of tax payable under sections 39 [tax on leases], 41 [tax if leased property used in British Columbia during rental period], 82.01 [tax if leased property used for new purpose] and 102 [tax on leased property occasionally supplied with operator] on tangible personal property is 7% of the lease price of the tangible personal property.

(3) The rate of tax payable under sections 39, 41, 82.01 and 102 on a passenger vehicle is as follows:

(a) 7% of the lease price, if the tax rate value of the passenger vehicle is less than $55 000;

(b) 8% of the lease price, if the tax rate value of the passenger vehicle is $55 000 or more but less than $56 000;

(c) 9% of the lease price, if the tax rate value of the passenger vehicle is $56 000 or more but less than $57 000;

(d) 10% of the lease price, if the tax rate value of the passenger vehicle is $57 000 or more.

(4) The rate of tax payable under sections 39, 41 and 82.01 on a manufactured mobile home is 7% of the amount equal to 50% of the lease price of the manufactured mobile home.

(5) The rate of tax payable under sections 39, 41 and 82.01 on a manufactured modular home is 7% of the amount equal to 55% of the lease price of the manufactured modular home.

(6) The rate of tax payable under sections 39, 41 and 82.01 on a portable building is 7% of the amount equal to 45% of the lease price of the portable building.

(7) Subsections (4) to (6) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies leased with a manufactured building;

(b) repair parts leased for a manufactured building.

Rates of tax in relation to gifts

36  (1) Subject to this section, the rate of tax payable under section 49 (6) (c) is 7% of the fair market value of the tangible personal property on the entry date of the property.

(2) The rate of tax payable under section 49 (6) (c) on liquor is 10% of the fair market value of the liquor on the entry date of the liquor.

(3) Subject to subsections (5) and (6), the rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a vehicle, boat or aircraft is 12% of the fair market value of the vehicle, boat or aircraft on the entry date of the vehicle, boat or aircraft.

(4) Subsections (5) and (6) apply if

(a) the donor who gave the gift to the person who must pay tax in accordance with section 49 (6) (c) or 50 (2) (b)

(i) is a registrant under Part IX [Goods and Services Tax] of the Excise Tax Act, or

(ii) acquired the vehicle, boat or aircraft in prescribed circumstances, or

(b) the person who must pay tax in accordance with section 49 (6) (c) or 50 (2) (b) imported the vehicle, boat or aircraft from outside Canada.

(5) Subject to subsection (6), the rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a vehicle, boat or aircraft is 7% of the fair market value of the vehicle, boat or aircraft on the entry date of the vehicle, boat or aircraft.

(6) The rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a passenger vehicle is as follows:

(a) 7% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is less than $55 000;

(b) 8% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $55 000 or more but less than $56 000;

(c) 9% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $56 000 or more but less than $57 000;

(d) 10% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $57 000 or more.

(7) The rate of tax payable under section 49 (6) (c) on a manufactured mobile home is 7% of the amount equal to 50% of the fair market value of the manufactured mobile home on the entry date of the manufactured mobile home.

(8) The rate of tax payable under section 49 (6) (c) on a manufactured modular home is 7% of the amount equal to 55% of the fair market value of the manufactured modular home on the entry date of the manufactured modular home.

(8.1) The rate of tax payable under section 49 (6) (c) on a portable building is 7% of the amount equal to 45% of the fair market value of the portable building on the entry date of the portable building.

(9) Subsections (7) to (8.1) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies given as a gift with a manufactured building;

(b) repair parts given as a gift for a manufactured building.

(10) The rate of tax payable under section 49 (6) (c) on electricity is 3.5% of the fair market value of the electricity on the entry date of the electricity.

Division 2 — Purchases of Tangible Personal Property

Tax on purchase

37  (1) A purchaser who purchases tangible personal property at a sale in British Columbia must pay to the government tax at the applicable rate under section 34.

(2) Subsection (1) does not apply to the following:

(a) a purchaser of tangible personal property, if the purchaser must pay tax imposed under Division 5 [Property Brought into British Columbia from Outside Canada] in relation to the tangible personal property;

(b) a purchaser of a taxable conveyance, as defined in section 59, if the purchaser must pay tax imposed under section 60 [tax if conveyance purchased in British Columbia for interjurisdictional use] in relation to the taxable conveyance;

(c) a purchaser of a vehicle, if the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a) [tax if multijurisdictional vehicle licensed];

(c.1) a purchaser of an exclusive product, if the purchaser must pay tax imposed under section 99 (1) or (2) [tax on acquisition of exclusive product by independent sales contractor] in relation to the exclusive product;

(d) a purchaser of a reusable container, if the purchaser must pay tax imposed under section 101 (1) [tax on reusable containers].

(3) If a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the tangible personal property is being purchased for resale, the person must nevertheless pay tax under subsection (1) as if the person were a purchaser and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

(4) If a collector sells a vehicle at a sale in British Columbia to a person who alleges that the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a), the collector must nevertheless levy and collect the tax under subsection (1) of this section unless the collector obtains from that person, at or before the time the tax is payable,

(a) the account number assigned by the Insurance Corporation of British Columbia to the person who licenses the vehicle in British Columbia under a licence to which a prorating agreement applies, or

(b) a declaration in a form acceptable to the director.

(5) If a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the person is exempt under section 79 (1) or 80.5 (6) from paying tax under subsection (1) of this section, the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) a declaration in a form acceptable to the director from that person.

(6) If a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the person is exempt under section 80.1 (1) or 80.5 (7) from paying tax under subsection (1) of this section, the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number or, from that person, a declaration in a form acceptable to the director, and

(b) a declaration in a form acceptable to the director and made by the party referred to in section 80.1 (1) (c) or 80.5 (7).

Division 3 — Leases of Tangible Personal Property

Application of this Division

38  This Division does not apply in relation to the following:

(a) a conveyance that is subject to tax or is exempt from tax under Division 6 [Conveyances Used Interjurisdictionally];

(b) subject to section 39 (2) and (4), a multijurisdictional vehicle or a vehicle that is to be immediately licensed in British Columbia as described in section 69 (1) (a) [tax if multijurisdictional vehicle licensed].

Tax on leases

39  (1) A lessee of tangible personal property must pay to the government tax at the applicable rate under section 35 [rates of tax in relation to lease price] if one or more of the following apply:

(a) the lessee enters into the lease in British Columbia;

(b) the tangible personal property is located in British Columbia at the time the lessee enters into the lease;

(c) the lessee or any other person referred to in the definition of "lessee" takes or intends to take possession of the tangible personal property in British Columbia;

(d) the lessee or any other person referred to in the definition of "lessee" receives delivery in British Columbia of the leased tangible personal property;

(e) the tangible personal property is a vehicle that is registered for use in British Columbia under the vehicle registration legislation;

(f) the lessee leases the tangible personal property in prescribed circumstances.

(2) Subsection (1) applies in relation to a short term rental vehicle leased to the lessee.

(3) Subsection (1) does not apply to a lessee of tangible personal property if the lessee must pay tax imposed under section 40 in relation to the lease.

(4) If a collector, as lessor, leases a vehicle to a person who alleges that the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a), the collector must nevertheless levy and collect the tax under subsection (1) of this section unless the collector obtains from that person, at or before the time the tax is payable,

(a) the account number assigned by the Insurance Corporation of British Columbia to the person who licenses the vehicle in British Columbia under a licence to which a prorating agreement applies, or

(b) a declaration in a form acceptable to the director.

Tax on motor vehicle leased outside British Columbia and registered for use in British Columbia

40  (1) In this section, "taxable value", in relation to a motor vehicle, means the fair market value of the motor vehicle on the date the motor vehicle is registered for use in British Columbia under the vehicle registration legislation.

(2) If a lessee of a motor vehicle leases the motor vehicle for a period of more than 28 days from a person who is located outside British Columbia and registers the motor vehicle for use in British Columbia under the vehicle registration legislation, the lessee must pay to the government tax as follows:

(a) if the motor vehicle is not a passenger vehicle, at the rate of 7% of the taxable value of the motor vehicle;

(b) if the motor vehicle is a passenger vehicle, at the applicable rate as follows:

(i) 7% of the taxable value, if the taxable value of the passenger vehicle is less than $55 000;

(ii) 8% of the taxable value, if the taxable value of the passenger vehicle is $55 000 or more but less than $56 000;

(iii) 9% of the taxable value, if the taxable value of the passenger vehicle is $56 000 or more but less than $57 000;

(iv) 10% of the taxable value, if the taxable value of the passenger vehicle is $57 000 or more.

Tax if leased property used in British Columbia during rental period

41  (1) Subject to subsection (2), this section applies to a lessee of tangible personal property in relation to a rental period under the lease if

(a) the lessee brings or sends into British Columbia the tangible personal property,

(b) the lessee

(i) is a BC resident, or

(ii) uses the tangible personal property in British Columbia in the course of the lessee's business, whether or not the lessee's business is carried on in British Columbia, and

(c) the tangible personal property is for use or is used in British Columbia during the rental period.

(2) This section does not apply to a lessee if the lessee must pay tax imposed under section 39 or 40 in relation to the lease.

(3) A lessee to whom this section applies must pay to the government, in relation to the rental period under the lease, tax on the tangible personal property in the amount determined by the following formula:

amount = rate xBC usage

total usage
where
rate = the applicable rate under section 35 [rates of tax in relation to lease price];
BC usage = the number of hours the tangible personal property is in British Columbia in the rental period;
total usage = the total number of hours in that rental period.

(3.1) For the purposes of applying the applicable rate under section 35 in relation to the calculation under subsection (3) of this section, the lease price of the tangible personal property is that portion of the lease price that is attributable to the rental period.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the rental period ends.

(5) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if balance of lease price becomes due on breach of lease

42  (1) If a lessee breaches a lease that provides for

(a) the lease of tangible personal property that is subject to tax under section 39, and

(b) the payment, on breach of the lease, of some or all of the outstanding balance of the lease price,

the lessee must pay to the government tax at the rate of 7% of the amount of the payment referred to in paragraph (b) of this subsection.

(2) Tax payable under subsection (1) must be paid,

(a) subject to paragraph (b) of this subsection, at the time the payment referred to in subsection (1) (b) becomes due under the terms of the lease, or

(b) if the tax is not levied in accordance with subsection (4), on or before the last day of the month after the month in which the payment referred to in subsection (1) (b) becomes due under the terms of the lease.

(2.1) Despite subsection (2), if the tax under subsection (1) is payable by a registrant and is not levied in accordance with subsection (4), the tax must be paid on or before the prescribed date and in the prescribed manner.

(3) If a person must pay tax under subsection (1) and the tax is payable in accordance with subsection (2) (b), the person must file a taxpayer return with the director.

(4) If the lessor is a collector and the tax under subsection (1) is payable in accordance with subsection (2) (a), the lessor must levy and collect the tax at the time the tax is payable in accordance with that subsection.

Additional tax on lease of passenger vehicle

43  (1) In addition to any tax payable under section 39, a lessee who leases a passenger vehicle must pay to the government, for the raising of revenue for the BC Transportation Financing Authority continued under the Transportation Act, tax at the rate of $1.50 for each day or portion of a day that the lessee leases the vehicle.

(2) Subsection (1) does not apply if the passenger vehicle that is the subject matter of the lease is leased to the lessee for a period of

(a) 8 consecutive hours or less, or

(b) more than 28 consecutive days.

Exemption if lease under sale and lease-back arrangement

44  (1) Tangible personal property is exempt from tax imposed under this Division if

(a) the tangible personal property was sold to the lessor by the lessee under a sale and immediate lease-back arrangement, and

(b) the lessee had, before the sale to the lessor,

(i) paid tax imposed under this Part in respect of the tangible personal property, other than tax imposed under section 51 [tax if tangible personal property brought into British Columbia for temporary use] or Division 6 [Conveyances Used Interjurisdictionally], and for which the lessee has not obtained and is not entitled to obtain a refund under this Act,

(ii) paid tax imposed under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act in respect of the tangible personal property and for which the lessee has not obtained and is not entitled to obtain a refund under those Acts, or

(iii) in respect of the tangible personal property, paid tax imposed under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under that Act, and for which the lessee has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(2) If a collector, as lessor, leases tangible personal property to a person who alleges that the person is exempt under subsection (1) from paying tax under this Division, the collector must nevertheless levy and collect the tax under this Division unless the collector obtains from that person, at or before the time the tax is payable,

(a) any information or document required by the regulations, and

(b) any information or document required by the director.

Refund for leased property used outside British Columbia

45  (1) If the director is satisfied that

(a) a lessee of tangible personal property paid tax under section 39, and

(b) the tangible personal property was used outside British Columbia during a rental period,

the director must pay a refund to the lessee in accordance with subsection (2).

(2) The amount of a refund under subsection (1) in respect of a rental period under the lease is equal to the amount of tax paid under section 39 that is in respect of the lease price attributable to the rental period less the amount of tax that would have otherwise been payable under section 41 in respect of the rental period if that section had applied to the lessee in respect of the rental period.

(3) This section does not apply in respect of a lease of a motor vehicle registered for use in British Columbia under the vehicle registration legislation.

Refund on motor vehicle leased outside British Columbia

46  On termination or expiration of the lease for a motor vehicle referred to in section 40 (2), or on removal of the motor vehicle from British Columbia for registration outside British Columbia, the director may provide a refund to the lessee in the amount of the difference between the tax paid under section 40 at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under section 39, 41 or 42.

Division 4 — Tangible Personal Property Brought into British Columbia

Definition

47  In this Division, "calculation year", in relation to tangible personal property, means the following:

(a) the period beginning on the date the property is first brought or sent into, or is delivered in, British Columbia during any year and ending on the day before the first anniversary of that date;

(b) if the property is in British Columbia for a continuous period that is longer than the period referred to in paragraph (a), the period beginning on the day after the immediately preceding calculation year and ending on the day before the first anniversary of that date.

Application of this Division

48  This Division does not apply in relation to the following:

(a) tangible personal property that is subject to tax or is exempt from tax under section 37, 99 (3) or (4) or 101 (2);

(b) tangible personal property, if tax is paid under Division 5 [Property Brought into British Columbia from Outside Canada] in respect of the tangible personal property;

(c) a taxable conveyance, as defined in section 59, that is subject to tax or is exempt from tax under Division 6 [Conveyances Used Interjurisdictionally];

(d) a multijurisdictional vehicle.

(e) [Repealed 2013-1-169.]

Tax if tangible personal property brought into British Columbia for use

49  (1) Subject to subsections (2) and (3), this section applies to a person in relation to tangible personal property if

(a) the person is a BC resident who brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, other than tangible personal property that is received as a gift by that person, that is for use or consumption

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

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

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(a.1) the person is a BC resident who brings or sends into British Columbia tangible personal property that the person received as a gift and that is for use or consumption

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

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

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(b) the person is a BC resident and a person who is not a BC resident brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property that is for use or consumption

(i) by the BC resident, or

(ii) by the person who is not a BC resident, or by another person, at the BC resident's expense, or

(c) the person

(i) brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property, and

(ii) uses the tangible personal property in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia.

(2) This section does not apply to a person if

(a) any person referred to in subsection (1) has leased the tangible personal property, as lessee,

(b) the director is satisfied under section 51 (1) that the tangible personal property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use, or

(c) the person must pay tax imposed under section 51.1 in relation to the tangible personal property.

(3) This section does not apply in relation to tangible personal property that is subject to tax under section 52.

(4) A person is not required to pay tax under this section in respect of a vehicle if a person pays tax under section 50 in respect of the bringing or sending into British Columbia, or the delivery in British Columbia, of the vehicle.

(5) A person to whom this section applies must pay to the government tax at the applicable rate under subsection (6).

(6) The rate of tax payable under subsection (5) is,

(a) subject to paragraphs (b) and (c), the applicable rate under section 34 [rates of tax in relation to purchase price],

(b) subject to paragraph (c), the applicable rate under subsection (7.1) or (8) of this section if subsection (7.1) or (8) applies to the tangible personal property, and

(c) if the tangible personal property that is subject to tax under subsection (5) is brought or sent into British Columbia by a person who received the tangible personal property as a gift, the applicable rate under section 36 [rates of tax in relation to gifts].

(7) Subject to subsection (7.2), subsection (7.1) or (8) applies in relation to a motor vehicle if

(a) the person to whom this section applies purchased the motor vehicle outside British Columbia but in Canada,

(b) that person brought or sent into British Columbia, or received delivery of in British Columbia, that motor vehicle, and

(c) at the time of sale of the motor vehicle to that person, another motor vehicle is accepted by the seller as consideration on account of the price of the motor vehicle sold.

(7.1) Subject to subsections (7.2) and (8), the rate of tax payable under subsection (5) on a motor vehicle to which this subsection applies is 12% of the purchase price of the motor vehicle.

(7.2) In addition to the requirements in subsection (7), subsection (8) applies in relation to a motor vehicle if the person who must pay tax under subsection (5) on the motor vehicle, or another person referred to in subsection (1) (b),

(a) acquired the motor vehicle at a sale in Canada that is a taxable supply by a registrant under Part IX of the Excise Tax Act, or

(b) acquired the motor vehicle in prescribed circumstances.

(8) The rate of tax payable under subsection (5) on a motor vehicle to which this subsection applies is as follows:

(a) if the motor vehicle is not a passenger vehicle, at the rate of 7% of the purchase price of the motor vehicle;

(b) if the motor vehicle is a passenger vehicle, at the applicable rate as follows:

(i) 7% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is less than $55 000;

(ii) 8% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $55 000 or more but less than $56 000;

(iii) 9% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $56 000 or more but less than $57 000;

(iv) 10% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $57 000 or more.

(9) The amount of tax payable under subsection (5) by a person in relation to tangible personal property brought or sent into British Columbia is reduced by

(a) the amount of tax under this Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund under those Acts, and

(b) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(10) If a collector causes tangible personal property to be delivered in British Columbia to a person who alleges that the person is exempt under section 79 (2) or 80.5 (6) from paying tax under subsection (5) of this section, the collector must nevertheless levy and collect the tax under subsection (5) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) a declaration in a form acceptable to the director from that person.

(11) If a collector causes tangible personal property to be delivered in British Columbia to a person who alleges that the tangible personal property is being purchased for resale, the person must nevertheless pay tax under subsection (5) as if the person were a person to whom this section applies and the collector must nevertheless levy and collect the tax under subsection (5) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

(12) If a collector causes tangible personal property to be delivered in British Columbia to a person who alleges that the person is exempt under section 80.1 (2) or 80.5 (7) from paying tax under subsection (5) of this section, the collector must nevertheless levy and collect the tax under subsection (5) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number or, from that person, a declaration in a form acceptable to the director, and

(b) a declaration in a form acceptable to the director and made by the party referred to in section 80.1 (2) (c) or 80.5 (7).

Tax on registration of vehicle brought into British Columbia

50  (0.1) In this section, "travel trailer" means a vehicle designed to be

(a) pulled on a highway, and

(b) used as temporary or seasonal accommodation.

(1) This section applies if

(a) a person brought or sent into British Columbia, or received delivery of in British Columbia, a vehicle for use

(i) by the person,

(ii) by another person at the first person's expense,

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

(iv) by another person at the expense of a principal for whom the first person acts as agent, and

(b) any of the persons referred to in paragraph (a) register the vehicle under the vehicle registration legislation.

(2) Subject to subsection (3), if this section applies, the person who registers the vehicle must pay to the government tax on the vehicle,

(a) subject to paragraph (b), at the applicable rate under section 34, and

(b) if the tangible personal property that is subject to tax under this section is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift, at the applicable rate under section 36 [rates of tax in relation to gifts].

(3) A person is not required to pay tax under this section in respect of a vehicle if the person has paid tax under section 49, 51.1 or 52 in respect of the vehicle.

(4) A non-resident is exempt from tax imposed under subsection (2) if

(a) the non-resident is an individual,

(b) the tangible personal property is a travel trailer, and

(c) the travel trailer is to be used in British Columbia solely for a non-business purpose.

Tax if tangible personal property brought into British Columbia for temporary use

51  (1) Subject to subsection (2), this section applies to a person in relation to tangible personal property if

(a) section 49 would apply to the person in relation to the tangible personal property if that section were read without reference to subsection (2) (b) of that section, and

(b) the person establishes to the satisfaction of the director that the property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use.

(2) This section does not apply in respect of the following:

(a) tangible personal property that is brought or sent into, or delivered in, British Columbia for use as a part of any other tangible personal property;

(b) tangible personal property that is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift;

(c) a vehicle that is registered for use in British Columbia.

(3) Subject to subsection (6), a person to whom this section applies must pay to the government tax calculated in accordance with subsection (4) or (9).

(4) Subject to subsection (9), the tax payable under subsection (3) is equal to 1/3 of the tax that would, but for this section, be payable under section 49 by the person in relation to the tangible personal property.

(5) Except in relation to tangible personal property to which subsection (9) applies, tax must be calculated under subsection (4) separately for each calculation year during any part of which the tangible personal property is in British Columbia.

(6) A person is not liable to pay to the government, in relation to the tangible personal property, a total amount of tax under subsection (3) that is in excess of an amount equal to the amount determined in accordance with the following formula:

amount = rate - other sales tax
where
rate = the applicable rate under section 34 [rates of tax in relation to purchase price];
other sales tax = the total of the following:
(a) the tax the person has paid on the property under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act and for which the person has not obtained and is not entitled to obtain a refund under those Acts;
(b) the sales tax the person has paid on the property to another province and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate;
(c) the tax the person has paid on the property under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(7) Except in relation to tangible personal property to which subsection (9) applies, tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the property is first used in British Columbia during the calculation year in respect of which tax is payable.

(8) Subsection (9) applies to tangible personal property referred to in subsection (1) that is

(a) for use in petroleum or natural gas exploration or development, and

(b) one of the following:

(i) a cement truck;

(ii) a fracturing truck;

(iii) a vehicle on which seismic recording equipment or well logging equipment is permanently mounted.

(9) Tax payable under subsection (3) in relation to tangible personal property to which this subsection applies must be

(a) calculated in accordance with the regulations,

(b) calculated under paragraph (a) separately for each prescribed period during any part of which the tangible personal property is in British Columbia, and

(c) paid on or before the prescribed date.

(10) Despite subsections (7) and (9) (c), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if tangible personal property no longer for temporary use

51.1  (1) This section applies to a person in relation to tangible personal property if

(a) section 51 applied to the person in relation to the tangible personal property, and

(b) within 3 years after the date on which the tangible personal property is first used in British Columbia and during a calculation year in respect of which tax was payable under section 51, the person uses that property, or allows that property to be used, in British Columbia for a purpose other than for temporary use.

(2) A person to whom this section applies must pay to the government tax in an amount equal to the amount of tax under section 49 that would have otherwise been payable if that section had applied to the person in relation to the tangible personal property less the amount of tax paid by the person under section 51 in respect of the tangible personal property.

(3) If this section applies to a person in relation to tangible personal property that is prescribed for the purposes of section 25 (1), the purchase price to be used for the purposes of subsection (2) in determining the amount of tax under section 49 that would have otherwise been payable in relation to the tangible personal property is to be determined in accordance with section 25 (2) (a) (ii).

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person uses that property, or allows that property to be used, for a purpose other than for temporary use.

(5) Despite subsection (4), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if tangible personal property brought into British Columbia by non-residents

52  (1) In this section, "travel trailer" means a vehicle designed to be

(a) pulled on a highway, and

(b) used as temporary or seasonal accommodation.

(2) Subject to subsection (3), this section applies to a non-resident who brings or sends into British Columbia, or who receives delivery of in British Columbia, tangible personal property, if the tangible personal property is, for the year following its entry into British Columbia, to be used or consumed

(a) primarily in British Columbia, and

(b) primarily by one or more of the following:

(i) the non-resident;

(ii) a person for whom the non-resident acts as agent;

(iii) a person whose use or consumption of the tangible personal property is at the expense of the non-resident;

(iv) a person whose use or consumption of the tangible personal property is at the expense of a principal for whom the non-resident acts as agent.

(3) This section does not apply to a non-resident referred to in subsection (1) if

(a) the non-resident has leased, as lessee, the tangible personal property, or

(b) the non-resident must pay tax under section 50 in respect of the vehicle.

(4) A non-resident to whom this section applies must pay to the government tax at the applicable rate under section 34.

(4.1) The amount of tax payable under subsection (4) by a non-resident in relation to tangible personal property brought or sent into British Columbia is reduced by

(a) the amount of tax under this Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act that the non-resident previously paid in relation to the tangible personal property and for which the non-resident has not obtained and is not entitled to obtain a refund under those Acts, and

(b) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the non-resident previously paid in relation to the tangible personal property and for which the non-resident has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(5) A non-resident is exempt from tax imposed under subsection (4) if

(a) the non-resident is an individual,

(b) the tangible personal property is a boat or travel trailer, and

(c) the boat or travel trailer is to be used in British Columbia solely for a non-business purpose.

Exemption if less than minimum threshold use in British Columbia

53  Tangible personal property is exempt from tax imposed under section 49 or 51 if the tangible personal property is in British Columbia during a calculation year for fewer than a prescribed number of days.

Division 5 — Property Brought into British Columbia from Outside Canada

Application of this Division

54  (1) This Division applies if an agreement entered into under section 191 is in force between the government and the government of Canada or an agent of the government of Canada.

(2) This Division does not apply in relation to the following tangible personal property:

(a) tangible personal property that is subject to tax or is exempt from tax under section 63 [tax if conveyance brought into and used in British Columbia] or Division 7 [Multijurisdictional Vehicles];

(b) goods that are for commercial use;

(c) motor vehicles and trailers that are required to be registered under the Motor Vehicle Act;

(c.1) off-road vehicles that are required to be registered under the Off-Road Vehicle Act;

(d) tangible personal property that is not subject to tax under Division III of Part IX of the Excise Tax Act because the tangible personal property is a good included in section 1 or 7 of Schedule VII of that Act;

(e) prescribed tangible personal property.

Tax if property brought into British Columbia from outside Canada

55  (0.1) In this section, "taxable value", in relation to tangible personal property, means the value of the tangible personal property as determined under section 215 of the Excise Tax Act.

(1) Unless subsection (2) applies, a resident taxpayer who brings tangible personal property into British Columbia from a place outside Canada, or who sends tangible personal property, or enters into an arrangement under which tangible personal property is sent, into British Columbia from a place outside Canada, must, at the time the tangible personal property enters British Columbia,

(a) report the matter to a customs officer,

(b) supply to the customs officer all information required by the customs officer in respect of the tangible personal property, and

(c) pay to the government, by paying to the customs officer as agent of the government, tax at the applicable rate under subsections (3) to (3.4).

(2) Subject to subsection (4), a resident taxpayer must, at the time of receiving, through a postal agent, tangible personal property in British Columbia from a place outside Canada,

(a) supply to the postal agent all information required by the postal agent in respect of the tangible personal property, and

(b) pay to the government, by paying to the postal agent as agent of the government, tax at the applicable rate under subsections (3) to (3.4).

(3) Subject to subsections (3.1) to (3.4), the rate of tax payable under subsections (1) and (2) is 7% of the taxable value of the tangible personal property.

(3.1) The rate of tax payable under subsections (1) and (2) on liquor is 10% of the taxable value of the liquor.

(3.2) The rate of tax payable under subsections (1) and (2) on a manufactured mobile home is 7% of the amount equal to 50% of the taxable value of the manufactured mobile home.

(3.3) The rate of tax payable under subsections (1) and (2) on a manufactured modular home is 7% of the amount equal to 55% of the taxable value of the manufactured modular home.

(3.4) The rate of tax payable under subsections (1) and (2) on a portable building is 7% of the amount equal to 45% of the taxable value of the portable building.

(3.5) Subsections (3.2) to (3.4) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies sold with a manufactured building;

(b) repair parts purchased for a manufactured building.

(4) Subsection (2) does not apply unless there is an agreement in force between the Canada Post Corporation and the government of Canada or an agent of the government of Canada providing for the collection of tax under this Division by that corporation.

Detention of tangible personal property

56  (1) If a resident taxpayer fails or refuses to comply with section 55, a collection agent may detain the tangible personal property.

(2) Tangible personal property detained under subsection (1) must be dealt with as follows:

(a) if, within 60 days after the date of the detention, the tax that was payable in respect of the tangible personal property at the time of its detention and any expenses related to the detention are paid and the requirements of section 55 (1) (b) or (2) (a) are met, the tangible personal property must be returned to the resident taxpayer;

(b) if the tax and the expenses relating to the detention are not paid within the period referred to in paragraph (a) of this subsection or the requirements of section 55 (1) (b) or (2) (a) are not met within that period, the tangible personal property is forfeited to the government and may be disposed of as directed by the director.

Tax payable to collection agent even though exemption claimed

57  (1) If a resident taxpayer alleges that tangible personal property is exempt under Part 6 [Exemptions] or under the regulations from tax imposed under this Division, the collection agent, in the circumstances specified in the agreement entered into under section 191, may nevertheless require that the resident taxpayer pay the tax.

(2) If the collection agent requires payment of the tax under subsection (1), the resident taxpayer

(a) must pay the tax to the collection agent, and

(b) may apply to the government of Canada or an agent of the government of Canada for a refund under section 191 (6) (b) of the tax paid in respect of that tangible personal property.

Refund if property brought into British Columbia for temporary use

58  If the director is satisfied that

(a) a resident taxpayer paid tax under section 55 in relation to tangible personal property, and

(b) but for section 48 (b) [application of Division 4], the resident taxpayer would have paid tax under section 51 [tax if tangible personal property brought into British Columbia for temporary use] in relation to the tangible personal property,

the director must refund to the resident taxpayer the amount of tax paid under section 55 less the amount of tax that would have otherwise been payable under section 51.

Division 6 — Conveyances Used Interjurisdictionally

Definitions

59  In this Division:

"aircraft part" means a part of an interjurisdictional aircraft;

"conveyance part" means a part of an interjurisdictional railway rolling stock or a part of an interjurisdictional conveyance;

"eligible flights", in relation to an interjurisdictional aircraft, means flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia;

"interjurisdictional aircraft" means an aircraft used

(a) interprovincially or internationally for commercial purposes, and

(b) in eligible flights;

"interjurisdictional conveyance" means a vessel or any other conveyance, other than an interjurisdictional aircraft or interjurisdictional railway rolling stock, used in interprovincial or international trade for the commercial carriage of passengers or goods;

"interjurisdictional railway rolling stock" means railway rolling stock used interprovincially or internationally;

"taxable conveyance" means the following:

(a) an interjurisdictional aircraft;

(b) an aircraft part;

(c) interjurisdictional railway rolling stock;

(d) an interjurisdictional conveyance;

(e) a conveyance part.

Tax if conveyance purchased in British Columbia for interjurisdictional use

60  (1) This section applies to a person who

(a) purchases at a sale in British Columbia a conveyance and, from the date of purchase,

(i) in the case of an aircraft, uses the aircraft as an interjurisdictional aircraft,

(ii) in the case of railway rolling stock, uses the railway rolling stock as interjurisdictional railway rolling stock, and

(iii) in the case of a vessel or any other conveyance, other than an aircraft or railway rolling stock, uses the conveyance as an interjurisdictional conveyance, or

(b) purchases at a sale in British Columbia a part for a conveyance and, from the date of purchase, the part is to be installed in an interjurisdictional aircraft, interjurisdictional railway rolling stock or an interjurisdictional conveyance.

(2) A person to whom this section applies must pay to the government tax on the taxable conveyance in the amount determined by the following formula:

amount = 7% × purchase price ×BC usage

total usage
where
purchase price = the purchase price of the taxable conveyance;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly in the airspace over British Columbia in eligible flights during the period beginning on the date of purchase of the aircraft and ending on the third anniversary of that date;
(b)in relation to an aircraft part, the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in eligible flights during,
(i) in the case of a prescribed part, the period beginning on the date of purchase of the prescribed part and ending on the third anniversary of that date, and
(ii) in any other case, the year after the date of purchase of the part;
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the year after its date of purchase, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
(d)in relation to a conveyance part, the distance the conveyance in which the part is or is to be installed will travel, during the year after the date of purchase of the part, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during the period referred to in paragraph (a) of the description of "BC usage";
(b)in relation to an aircraft part, the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in paragraph (b) of the description of "BC usage";
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during the year after its date of purchase;
(d)in relation to a conveyance part, the total distance the conveyance in which the part is or is to be installed will travel during the year after the date of purchase of the part.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person purchased the conveyance or the part for a conveyance.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if sale and lease-back of conveyance

61  (0.1) In this section:

"BC usage" means BC usage within the meaning of section 60, 63 or 64, as applicable;

"lease ratio", in relation to a conveyance for a rental period, means the ratio of the distance of travel by the conveyance in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia during the rental period to the total distance of travel by the conveyance during that period;

"purchase ratio", in relation to a conveyance, means

(a) subject to paragraph (b), the ratio of the BC usage to the total usage that was used to determine the tax payable under section 60, 63 or 64 by a lessee, or

(b) the ratio of the BC usage to the total usage as determined in accordance with section 66 (1) (c) by the lessee;

"total usage" means total usage within the meaning of section 60, 63 or 64, as applicable.

(1) This section applies to a lessee of a conveyance if

(a) the lessee became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement,

(b) the lessee had, before the sale to the lessor, paid

(i) as purchaser of the conveyance the tax applicable under section 60, or

(ii) the tax applicable under section 63 or 64 in relation to the conveyance, and

(c) the conveyance is

(i) interjurisdictional railway rolling stock, or

(ii) an interjurisdictional conveyance.

(2) A lessee to whom this section applies must pay to the government, in respect of a rental period under the lease, tax calculated in accordance with subsection (3), if the lease ratio for the conveyance for the rental period exceeds the purchase ratio for the conveyance.

(3) Tax payable under subsection (2) must be calculated in accordance with the following formula:

tax = 7% × lease price × (lease ratio - purchase ratio)
where
lease price = the lease price of the conveyance attributable to the rental period;
lease ratio = the lease ratio for the conveyance for the rental period;
purchase ratio = the purchase ratio for the conveyance.

(4) For the purposes of the definition of "lease ratio" in subsection (0.1), the distances of travel during a rental period are whichever of the following is applicable:

(a) if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

(b) in any other case, an estimate made in accordance with section 65 of the distances to be travelled.

(5) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the rental period ends.

(6) Despite subsection (5), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if sale and lease-back of conveyance for which tax paid under former Act

61.1  (1) In this section:

"initial ratio", in relation to a conveyance, means the ratio of the distance of travel by the conveyance in British Columbia, or, if the conveyance is a vessel, in the waters of British Columbia during the first year

(a) after the date of purchase by the person who became the lessee of the conveyance if the conveyance is purchased in British Columbia, or

(b) after the entry date for the conveyance if the conveyance is not purchased in British Columbia

to the total distance of travel by the conveyance during that first year;

"lease ratio", in relation to a conveyance for a rental period, means the ratio of the distance of travel by the conveyance in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia during the rental period to the total distance of travel by the conveyance during that period.

(2) Subject to subsection (3), this section applies to a lessee of a conveyance if

(a) the lessee became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement,

(b) the lessee had, before the sale to the lessor, paid tax imposed under section 13 [calculation of tax if property is conveyance used interjurisdictionally] or 15 [tax if conveyance purchased in B.C. for interjurisdictional use] of the Social Service Tax Act in respect of the conveyance and for which the lessee has not obtained and is not entitled to obtain a refund under that Act, and

(c) the conveyance is

(i) interjurisdictional railway rolling stock, or

(ii) an interjurisdictional conveyance.

(3) This section does not apply to a lessee of a conveyance if section 61 applies to the lessee in respect of the conveyance.

(4) A lessee to whom this section applies must pay to the government, in respect of a rental period under the lease, tax calculated in accordance with subsection (5), if the lease ratio for the conveyance for the rental period exceeds the initial ratio for the conveyance.

(5) Tax payable under subsection (4) must be calculated in accordance with the following formula

tax = 7% × lease price × (lease ratio - initial ratio)
where
lease price = the lease price of the conveyance attributable to the rental period;
lease ratio = the lease ratio for the conveyance for the rental period;
initial ratio = the initial ratio for the conveyance.

(6) For the purposes of the definition of "lease ratio" in subsection (1), the distances of travel during a rental period are whichever of the following is applicable:

(a) if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

(b) in any other case, an estimate made in accordance with section 65 of the distances to be travelled.

(7) Tax payable under subsection (4) must be paid on or before the last day of the month after the month in which the rental period ends.

(8) Despite subsection (7), tax payable under subsection (4) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if leased conveyance used in British Columbia

62  (1) Subject to subsection (2), this section applies to the following:

(a) a lessee who

(i) leases, in or outside British Columbia, an aircraft, and

(ii) uses, during a rental period under the lease, the aircraft as an interjurisdictional aircraft;

(b) a lessee who

(i) leases, in or outside British Columbia, any railway rolling stock, and

(ii) uses, during a rental period under the lease, the railway rolling stock as interjurisdictional railway rolling stock;

(c) a lessee who

(i) leases, in or outside British Columbia, a vessel or other conveyance, other than railway rolling stock or an aircraft, and

(ii) uses, during a rental period under the lease, the vessel or other conveyance as an interjurisdictional conveyance.

(2) This section does not apply to a lessee of a conveyance if section 61 or 61.1 applies to the lessee in respect of the conveyance.

(3) A lessee to whom this section applies must pay to the government, in respect of the rental period referred to in subsection (1), tax calculated in accordance with the following formula:

tax = 7% × lease price ×BC usage

total usage
where
lease price = the lease price of the conveyance attributable to the rental period;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly during the rental period in the airspace over British Columbia in eligible flights;
(b)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the rental period, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during that rental period;
(b)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during that rental period.

(4) For the purpose of calculations under subsection (3), the distances of travel during a rental period are whichever of the following is applicable:

(a) if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

(b) in any other case, an estimate made in accordance with section 65 of the distances to be travelled.

(5) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the rental period ends.

(6) Despite subsection (5), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(7) A conveyance is exempt from tax imposed under this section if

(a) the conveyance was sold to the lessor by the lessee under a sale and immediate lease-back arrangement, and

(b) the lessee had, before the sale to the lessor,

(i) paid tax imposed under section 19 [tax on designated property acquired in British Columbia] or 20 [tax on designated property brought into British Columbia] of the Consumption Tax Rebate and Transition Act in respect of the conveyance and for which the person has not obtained and is not entitled to obtain a refund under that Act, or

(ii) in respect of the conveyance, paid tax imposed under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

Tax if conveyance brought into and used in British Columbia

63  (1) Subject to subsection (2), this section applies to a person in relation to a taxable conveyance if

(a) the person is a BC resident who brings or sends into British Columbia, or receives delivery of in British Columbia, the taxable conveyance and the conveyance is for use

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

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

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(b) the person is a BC resident and a person who is not a BC resident brings or sends into British Columbia, or receives delivery of in British Columbia, the taxable conveyance and the conveyance is for use

(i) by the BC resident, or

(ii) by the person who is not a BC resident, or by another person, at the BC resident's expense, or

(c) the person

(i) brings or sends into British Columbia, or receives delivery of in British Columbia, the taxable conveyance, and

(ii) uses the conveyance in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia.

(2) This section does not apply to a person if any person referred to in subsection (1) has leased the taxable conveyance, as lessee.

(3) A person to whom this section applies must pay to the government tax on the taxable conveyance in the amount determined by the following formula:

amount = 7% × purchase price ×BC usage

total usage
where
purchase price = the purchase price of the taxable conveyance;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly in the airspace over British Columbia in eligible flights during the period beginning on the entry date of the aircraft and ending on the third anniversary of that date;
(b)in relation to an aircraft part, the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in eligible flights during,
(i)in the case of a prescribed part, the period beginning on the entry date of the prescribed part and ending on the third anniversary of that date, and
(ii)in any other case, the year after the entry date of the part;
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the year after its entry date, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
(d)in relation to a conveyance part, the distance the conveyance in which the part is or is to be installed will travel, during the year after the entry date of the part, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during the period referred to in paragraph (a) of the description of "BC usage";
(b)in relation to an aircraft part, the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in paragraph (b) of the description of "BC usage";
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during the year after its entry date;
(d)in relation to a conveyance part, the total distance the conveyance in which the part is or is to be installed will travel during the year after the entry date of the part.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month that includes the entry date of the taxable conveyance.

(5) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of conveyance acquired for resale

64  (1) This section applies to a person who

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia a conveyance for resale, becomes, for any period, a user of the conveyance and, from the date on which the person becomes the user,

(i) in the case of an aircraft, uses the aircraft as an interjurisdictional aircraft,

(ii) in the case of railway rolling stock, uses the railway rolling stock as interjurisdictional railway rolling stock, and

(iii) in the case of a vessel or any other conveyance, other than an aircraft or railway rolling stock, uses the vessel or other conveyance as an interjurisdictional conveyance, or

(b) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia a part for a conveyance for resale, becomes, for any period, a user of a conveyance in which the part is installed and, from the date on which the person becomes the user,

(i) in the case of an aircraft, uses the aircraft as an interjurisdictional aircraft,

(ii) in the case of railway rolling stock, uses the railway rolling stock as interjurisdictional railway rolling stock, and

(iii) in the case of a vessel or any other conveyance, other than an aircraft or railway rolling stock, uses the vessel or other conveyance as an interjurisdictional conveyance.

(2) A person to whom this section applies must pay to the government tax on the taxable conveyance in the amount determined by the following formula:

amount = 7% × purchase price ×BC usage

total usage
where
purchase price = the purchase price of the taxable conveyance;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly in the airspace over British Columbia in eligible flights during the period beginning on the date the person becomes the user of the aircraft and ending on the third anniversary of that date;
(b)in relation to an aircraft part, the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in eligible flights during,
(i)in the case of a prescribed part, the period beginning on the date the person becomes the user of the prescribed part and ending on the third anniversary of that date, and
(ii)in any other case, the year after the date the person becomes the user of the part;
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the year after the date the person becomes the user of the conveyance, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
(d)in relation to a conveyance part, the distance the conveyance in which the part is or is to be installed will travel, during the year after the date the person becomes the user of the conveyance, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during the period referred to in paragraph (a) of the description of "BC usage";
(b)in relation to an aircraft part, the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in paragraph (b) of the description of "BC usage";
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during the year after the date the person becomes the user of the conveyance;
(d)in relation to a conveyance part, the total distance the conveyance in which the part is or is to be installed will travel during the year after the date the person becomes the user of the conveyance.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person first becomes a user of the taxable conveyance.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Estimate of hours or distance conveyance will travel

65  (1) In this section, "relevant provision" means the following:

(a) sections 60 (2), 62 (3), 63 (3) and 64 (2);

(b) the definition of "lease ratio" in section 61 (0.1);

(c) the definitions of "initial ratio" and "lease ratio" in section 61.1 (1).

(2) For the purposes of the relevant provisions, the following must be based on a reasonable estimate:

(a) the number of hours or the distance a conveyance will travel during the relevant period in the airspace over, in the waters of or in British Columbia;

(b) the total number of hours or the total distance the conveyance will travel during the period referred to in paragraph (a).

Adjustment of tax

66  (1) If, for the purposes of a relevant provision as defined in section 65 (1), an estimate is made under section 65 for a relevant period in relation to a conveyance, at the end of the period the person to whom section 60 (2), 61 (2), 61.1 (4), 62 (3), 63 (3) or 64 (2) applies must determine the following:

(a) the actual number of hours or the actual distance the conveyance travelled during the relevant period in the airspace over, in the waters of or in British Columbia;

(b) the total actual number of hours or the total actual distance the conveyance travelled during that relevant period;

(c) the amount determined by the formula in section 60 (2), 61 (3), 61.1 (5), 62 (3), 63 (3) or 64 (2), using the hours and distance determined under paragraphs (a) and (b) of this subsection instead of the estimated hours and distance.

(1.1) For the purposes of subsection (1), if a conveyance is sold within a relevant period, the relevant period in relation to the conveyance is deemed to end at the time of sale.

(2) If the amount determined under subsection (1) (c) for a relevant period exceeds the amount determined under the applicable section for the relevant period based on the reasonable estimate under section 65, the person to whom the applicable section applies must pay to the government tax equal to the amount of the excess.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the relevant period ends.

(3.1) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(4) If the director is satisfied that the amount determined under the applicable section for a relevant period based on the reasonable estimate under section 65 exceeds the amount determined under subsection (1) (c) of this section for the relevant period, the director must refund to the person to whom the applicable section applies the amount of the excess.

Refund for conveyances used interjurisdictionally

67  If the director is satisfied that

(a) a person has paid tax under section 37 [tax on purchase], 39 [tax on leases] or 49 [tax if tangible personal property brought into British Columbia for use] in respect of a conveyance or a part for a conveyance, and

(b) the person ought to have paid tax under section 60, 62 or 63, as applicable, in respect of the conveyance or part instead of paying tax under section 37, 39 or 49,

the director must refund to that person the difference between the tax paid by the person on the conveyance or part and the tax that ought to have been paid in accordance with this Division.

Division 7 — Multijurisdictional Vehicles

Definitions

68  In this Division:

"acquisition date" means,

(a) in the case of a purchased vehicle, the date on which the vehicle is purchased,

(b) in the case of a leased vehicle, the date on which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the date the recipient of the gift receives possession of the vehicle;

"acquisition year" means,

(a) in the case of a purchased vehicle, the calendar year in which the vehicle is purchased,

(b) in the case of a leased vehicle, the calendar year in which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the calendar year in which the recipient of the gift receives possession of the vehicle;

"bus" has the same meaning as in the Motor Vehicle Act;

"fleet licence year", in respect of vehicles licensed as part of a fleet to which a prorating agreement applies, means the period beginning on a fleet licensing date for the fleet vehicles and ending on the day before the anniversary of that fleet licensing date;

"prorating agreement" means an agreement made under section 10 (1) of the Commercial Transport Act;

"travel ratio", in respect of a vehicle, means the travel ratio determined in accordance with the regulations;

"vehicle" does not include a trailer;

"vehicle taxable value" means, in respect of a vehicle

(a) that is purchased for fair market value, the purchase price of the vehicle,

(b) that is a leased vehicle, the greater of the purchase price of the vehicle, as described in the lease, and the fair market value of the vehicle on the vehicle's acquisition date, or

(c) that is acquired for less than fair market value, the fair market value of the vehicle on the vehicle's acquisition date,

and includes any capital expenditure made to the vehicle within 30 days after the vehicle's acquisition date.

Tax if multijurisdictional vehicle licensed

69  (1) The following persons must pay to the government tax, in accordance with this Division, for a vehicle licence period:

(a) a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies;

(b) a person who licenses a vehicle outside British Columbia under a licence to which a prorating agreement applies and, in the vehicle licence period, brings or sends that vehicle into British Columbia.

(2) Tax payable under subsection (1) in respect of a vehicle for a vehicle licence period must be calculated in accordance with the following formula:

tax = taxable value × rate × travel ratio × travel months
where
taxable value = the vehicle taxable value;
rate = the tax rate
  (a) established under subsection (3), if the vehicle is not a bus, or
  (b) established under subsection (3.1), if the vehicle is a bus;
travel ratio = the travel ratio for the vehicle;
travel months = the number of whole and partial months in the vehicle licence period at the time that the vehicle is licensed, divided by 12.

(3) In each calendar year in which tax is payable under subsection (1), the tax rate in respect of a vehicle, other than a bus, is the rate shown opposite the applicable calendar year as follows:

Calendar Year Tax Rate
acquisition year3.294%
1st calendar year after the acquisition year2.646%
2nd calendar year after the acquisition year2.177%
3rd calendar year after the acquisition year1.838%
4th calendar year after the acquisition year1.597%
5th calendar year after the acquisition year1.577%
6th calendar year after the acquisition year1.509%
7th calendar year after the acquisition year1.486%
8th calendar year after the acquisition year1.497%
9th and subsequent calendar years after the acquisition year1.533%

(3.1) In each calendar year in which tax is payable under subsection (1), the tax rate in respect of a bus is the rate shown opposite the applicable calendar year as follows:

Calendar Year Tax Rate
acquisition year2.708%
1st calendar year after the acquisition year2.046%
2nd calendar year after the acquisition year1.559%
3rd calendar year after the acquisition year1.200%
4th calendar year after the acquisition year0.940%
5th calendar year after the acquisition year0.816%
6th calendar year after the acquisition year0.674%
7th calendar year after the acquisition year0.570%
8th calendar year after the acquisition year0.564%
9th and subsequent calendar years after the acquisition year0.506%

(4) [Repealed 2015-9-48.]

When tax under section 69 must be paid

70  (1) Tax payable under section 69 (1) for a vehicle licence period in respect of a vehicle must be paid as follows:

(a) if the vehicle is licensed in British Columbia, the tax must be paid to the government, by paying the tax to the Insurance Corporation of British Columbia, at the time that the vehicle is licensed for that vehicle licence period;

(b) in any other case, unless paid earlier under subsection (2), the tax must be paid to the government on or before the last day of the month after the month in which the vehicle first enters British Columbia in that vehicle licence period.

(2) If the vehicle in respect of which tax is payable under this Division is licensed in a prescribed jurisdiction outside British Columbia, the tax may be paid, by paying the tax to the prescribed jurisdiction, at the time that the vehicle is licensed in that jurisdiction for that vehicle licence period.

Adjustment of tax under section 69

71  (1) If a person is required to pay tax imposed under section 69 in respect of a vehicle for a vehicle licence period and the tax payable under that section is calculated using a travel ratio for the vehicle determined under section 69 (4) (a) as it read immediately before its repeal, the person must determine the following at the end of the vehicle licence period:

(a) the actual distance the vehicles in the fleet of vehicles referred to in section 69 (4) (a) as it read immediately before its repeal travelled in British Columbia during the fleet licence year;

(b) the actual total distance that the vehicles in the fleet travelled during that fleet licence year;

(c) the amount calculated by the formula in section 69 (2), using the distances determined under paragraphs (a) and (b) of this subsection instead of the estimated distance under section 69 (4) (a) as it read immediately before its repeal.

(2) If the amount determined under subsection (1) (c) for a vehicle licence period exceeds the amount determined under section 69 (2) for the vehicle licence period based on the reasonable estimates under section 69 (4) (a) as it read immediately before its repeal, the person who is required to pay tax imposed under section 69 in respect of a vehicle for a vehicle licence period must pay to the government tax equal to the amount of the excess.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the vehicle licence period ends.

(4) If the director is satisfied that the amount determined under section 69 (2) for the vehicle licence period based on the reasonable estimates under section 69 (4) (a) as it read immediately before its repeal exceeds the amount determined under subsection (1) (c) of this section for the vehicle licence period, the director must refund to the person who paid tax under section 69 the amount of the excess.

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

Tax if vehicle ceases to be multijurisdictional

72  (1) Subject to subsection (2), this section applies to a person in relation to a vehicle if

(a) the person licensed the vehicle under a licence to which a prorating agreement applies,

(b) the person paid tax under one or both of sections 69 and 71 in respect of the vehicle, and

(c) the vehicle ceases to be licensed under a licence to which a prorating agreement applies and is subsequently licensed for use solely within British Columbia.

(2) This section does not apply to a person in relation to a vehicle if

(a) the person, as lessee, leases the vehicle,

(b) the person previously licensed the vehicle for use solely within British Columbia before licensing the vehicle under a licence to which a prorating agreement applies, or

(c) the vehicle was transferred to the person under an agreement that provided that a beneficial interest in the vehicle was retained by the person who transferred the vehicle.

(d) [Repealed 2014-4-63.]

(3) A person to whom this section applies must pay to the government tax at the rate of 7% of the purchase price of the vehicle.

(4) Tax payable under subsection (3) must be paid to the government by paying the tax to the Insurance Corporation of British Columbia at the time the vehicle is licensed for use solely within British Columbia.

(5) If a person must pay tax under subsection (3), the Insurance Corporation of British Columbia must provide to the person a credit in relation to the tax paid by that person under one or both of sections 69 and 71 in respect of the vehicle.

(6) The credit to which a person is entitled under subsection (5)

(a) must be calculated in accordance with the regulations,

(b) must be applied against the tax payable under subsection (3) by the person in respect of the vehicle, and

(c) must not be provided to the person in any other manner.

Tax if transferred vehicle ceases to be multijurisdictional

72.1  (1) Subject to subsection (2), this section applies to

(a) a person in relation to a vehicle if

(i) the person transferred the vehicle under an agreement but retained a beneficial interest in the vehicle,

(ii) the vehicle was licensed by the person to whom the vehicle was transferred under subparagraph (i) under a licence to which a prorating agreement applies and that person paid tax under one or both of sections 69 and 71,

(iii) the vehicle ceases to be licensed under a licence to which a prorating agreement applies and is subsequently licensed for use solely within British Columbia, and

(iv) the person referred to in subparagraph (ii) has ceased to hold an interest in the vehicle, or

(b) a person in relation to a vehicle if

(i) the person received an interest in the vehicle under an agreement referred to in paragraph (a) (i),

(ii) the vehicle was licensed by the person under a licence to which a prorating agreement applies and that person paid tax under one or both of sections 69 and 71,

(iii) the vehicle ceases to be licensed under a licence to which a prorating agreement applies and is subsequently licensed for use solely within British Columbia, and

(iv) the person continues to hold an interest in the vehicle.

(2) This section does not apply to a person in relation to a vehicle if

(a) any person referred to in subsection (1), as lessee, leases the vehicle, or

(b) the vehicle was licensed for use solely within British Columbia

(i) before the vehicle was licensed under a licence to which a prorating agreement applies, and

(ii) during the period in which the person referred to in subsection (1) (a) (i) retained a beneficial interest in the vehicle.

(c) [Repealed 2014-4-64.]

(3) A person to whom this section applies must pay to the government tax at the rate of 7% of the purchase price of the vehicle.

(4) Tax payable under subsection (3) must be paid to the government by paying the tax to the Insurance Corporation of British Columbia at the time the vehicle is licensed for use solely within British Columbia.

(5) If a person must pay tax under subsection (3), the Insurance Corporation of British Columbia must provide to the person a credit in relation to the tax paid under one or both of sections 69 and 71 in respect of the vehicle.

(6) The credit to which a person is entitled under subsection (5)

(a) must be calculated in accordance with the regulations,

(b) must be applied against the tax payable under subsection (3) by the person in respect of the vehicle, and

(c) must not be provided to the person in any other manner.

Liability of other persons

73  If tax is payable by a person under this Division in respect of a vehicle for a vehicle licence period, any other person who had management of or the right to determine the utilization of the vehicle while it was in British Columbia during the vehicle licence period is jointly and severally liable with any other person liable for that tax.

Refund or credit of tax if fleet licensing changed

74  (0.1) In this section, "licensed" means licensed under a licence to which a prorating agreement applies.

(1) If a vehicle that is licensed by a person as part of a fleet is, before the end of the fleet licence year applicable to that fleet, licensed by the person as part of a different fleet,

(a) that person must pay to the government tax imposed under section 69 (1) in respect of the vehicle's vehicle licence period when licensed as part of the different fleet, and

(b) that person is entitled to a credit under subsection (2) or refund under subsection (3) in relation to the tax paid by that person under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence.

(1.1) Subsection (1.2) applies in relation to a vehicle if

(a) a person transferred the vehicle under an agreement but retained a beneficial interest in the vehicle,

(b) the vehicle was licensed by another person as part of a fleet,

(c) the vehicle is, before the end of the fleet licence year applicable to that fleet, licensed by the person referred to in paragraph (a) of this subsection or by a third person as part of a different fleet, and

(d) the person referred to in paragraph (a) retains a beneficial interest in the vehicle.

(1.2) If this subsection applies in relation to a vehicle, the person who licensed the vehicle as part of the different fleet referred to in subsection (1.1) (c)

(a) must pay to the government tax imposed under section 69 (1) in respect of the vehicle's vehicle licence period when licensed as part of the different fleet, and

(b) is entitled to a credit under subsection (2) or refund under subsection (3) in relation to the tax paid under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence.

(2) If the vehicle that is licensed as part of a different fleet is licensed in British Columbia, the Insurance Corporation of British Columbia must provide to the person, at the time the vehicle is licensed as part of the different fleet, a credit of a portion of the tax previously paid under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence against the amount of any tax that the person is required to pay under this Division.

(3) If the vehicle that is licensed as part of a different fleet is not licensed in British Columbia, the director may pay to the person a refund of a portion of the tax previously paid under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence.

(4) The credit to which a person is entitled under subsection (2)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

(5) A refund under subsection (3) must be calculated in accordance with the regulations.

Refund if vehicle ceases to be multijurisdictional

74.1  (1) The director must pay to a person a refund of a portion of the tax paid by the person under one or both of sections 69 and 71 in respect of a vehicle for the last vehicle licence period under a licence to which a prorating agreement applies if the director is satisfied that

(a) the person licensed the vehicle under a licence to which a prorating agreement applies,

(b) the person paid tax under one or both of sections 69 and 71 in respect of the vehicle,

(c) before the end of that vehicle licence period, the vehicle ceases to be licensed under the licence to which the prorating agreement applies,

(d) no person is entitled to a credit or refund under section 74 in respect of the vehicle, and

(e) either

(i) no tax is payable under section 72 or 72.1 in respect of the vehicle because of section 72 (2) (a) or (b) or 72.1 (2), or

(ii) on ceasing to be licensed under a licence to which a prorating agreement applies, the vehicle is licensed for use within another jurisdiction and is not licensed for use within British Columbia.

(2) A refund under subsection (1) must be calculated in accordance with the regulations.

Refund at end of vehicle licence period

74.2  (1) The director must pay to a person a refund of a portion of the tax paid by the person under one or both of sections 69 and 71 in respect of a vehicle licensed, for a vehicle licence period, under a licence to which a prorating agreement applies if, at the end of the vehicle licence period, the director is satisfied that

(a) the person licensed the vehicle under a licence to which a prorating agreement applies,

(b) the person paid tax under one or both of sections 69 and 71 in respect of the vehicle,

(c) before the end of that vehicle licence period, the vehicle ceased to be licensed under the licence to which the prorating agreement applies,

(d) the vehicle was not licensed for use solely within British Columbia subsequent to being licensed under the licence to which the prorating agreement applies, and

(e) no person is entitled to a credit or refund under section 74 in respect of the vehicle.

(2) A refund under subsection (1) must be calculated in accordance with the regulations.

Credit if tax previously paid

75  (1) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is its acquisition date, and

(b) [Repealed 2013-1-193.]

(c) the person had previously paid tax on the purchase price of the vehicle under

(i) section 37 [tax on purchase],

(ii) section 49 (5) [tax if tangible personal property brought into British Columbia for use], as that tax was calculated under section 49 (6), or

(iii) section 50 [tax on registration of vehicle brought into British Columbia].

(1.1) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is transferred to the person under an agreement but the transferor retains a beneficial interest in the vehicle,

(b) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is the transferor's acquisition date for the vehicle, and

(c) the transferor referred to in paragraph (a) had previously paid tax on the purchase price of the vehicle under

(i) section 37 [tax on purchase],

(ii) section 49 (5) [tax if tangible personal property brought into British Columbia for use], as that tax was calculated under section 49 (6), or

(iii) section 50 [tax on registration of vehicle brought into British Columbia].

(2) The credit to which a person is entitled under subsection (1) or (1.1)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

Transition — credit if tax previously paid

75.1  (1) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is its acquisition date,

(b) the person had previously

(i) paid tax in relation to the vehicle under section 5 [tax on purchase] or 11 (3) [tax if tangible personal property brought into British Columbia for use] of the Social Service Tax Act and for which the person has not obtained and is not entitled to obtain a refund under that Act,

(ii) paid tax in relation to the vehicle under section 19 [tax on designated property acquired in British Columbia], 20 [tax on designated property brought into British Columbia] or 21 [tax on registration of vehicle brought into British Columbia] of the Consumption Tax Rebate and Transition Act and for which the person has not obtained and is not entitled to obtain a refund under that Act, or

(iii) paid tax in relation to the vehicle under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act,

(c) the vehicle was purchased in British Columbia or was first brought, sent or delivered into British Columbia after March 31, 2009 but before April 1, 2013, and

(d) the vehicle is subject to tax imposed under section 69 [tax if multijurisdictional vehicle licensed] of this Act.

(2) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is transferred to the person under an agreement but the transferor retains a beneficial interest in the vehicle,

(b) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is the transferor's acquisition date for the vehicle,

(c) the transferor referred to in paragraph (a) had previously

(i) paid tax in relation to the vehicle under section 5 or 11 (3) of the Social Service Tax Act and for which the person has not obtained and is not entitled to obtain a refund under that Act,

(ii) paid tax in relation to the vehicle under section 19, 20 or 21 of the Consumption Tax Rebate and Transition Act and for which the person has not obtained and is not entitled to obtain a refund under that Act, or

(iii) paid tax in relation to the vehicle under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act,

(d) the vehicle was purchased in British Columbia or was first brought, sent or delivered into British Columbia after March 31, 2009 but before April 1, 2013, and

(e) the vehicle is subject to tax imposed under section 69 of this Act.

(3) The credit to which a person is entitled under subsection (1) or (2)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

Refund from Insurance Corporation of British Columbia authorized under regulations

75.2  If authorized by the regulations, the Insurance Corporation of British Columbia may refund all or part of an amount paid as tax under this Division.

Refund or credit for trade-in vehicles

76  (1) In this section:

"new vehicle" means the vehicle referred to in the definition of "trade-in vehicle" in respect of which tax is payable under section 69 [tax if multijurisdictional vehicle licensed];

"trade-in vehicle" means a multijurisdictional vehicle on which tax has been paid under this Division and that, before the expiration of its current vehicle licence period, is accepted at the time of sale by the seller on account of the purchase price of another multijurisdictional vehicle in respect of which tax is payable under section 69.

(2) If the new vehicle is licensed in British Columbia under a licence to which a prorating agreement applies, the Insurance Corporation of British Columbia must provide to the person licensing the new vehicle, at the time the vehicle is licensed, a credit of a portion of the tax paid under this Division on the trade-in vehicle against the amount of tax the person is required to pay under this Division in respect of the new vehicle.

(3) If the new vehicle is licensed outside British Columbia under a licence to which a prorating agreement applies, the director may provide to the person who licensed the new vehicle a refund of a portion of the tax paid on the trade-in vehicle.

(4) Subject to subsection (5), the credit under subsection (2) and the refund under subsection (3) must be limited to the tax paid under this Division that is attributable to the portion of the current vehicle licence period of the trade-in vehicle remaining after the trade-in vehicle has been traded.

(5) The credit to which a person is entitled under subsection (2)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

(6) A refund under subsection (3) must be calculated in accordance with the regulations.

Refund for replacement vehicles

77  (1) In this section, "replacement vehicle" means a vehicle that is leased to be used as a replacement for a multijurisdictional vehicle that

(a) is being repaired, and

(b) is therefore unavailable for use during part of its vehicle licence period.

(2) Subject to subsections (3) and (4), if the director is satisfied that

(a) a person has paid tax under this Division or under section 39 (1) on a replacement vehicle,

(b) tax has been paid under this Division on the multijurisdictional vehicle being repaired, and

(c) the replacement vehicle is used only

(i) in accordance with the terms of the licence that was issued for the multijurisdictional vehicle being repaired, and

(ii) for the purposes for which that multijurisdictional vehicle would be used were it not being repaired,

the director must refund to the person the tax referred to in paragraph (a).

(3) Any refund under this section is, if the refund is in respect of tax paid under section 39 (1), limited to the tax paid on lease payments for the replacement vehicle in respect of rental periods, or portions of rental periods, that are wholly within

(a) the period during which the multijurisdictional vehicle is being repaired, and

(b) the vehicle licence period of the multijurisdictional vehicle.

(4) Any refund under this section is, if the refund is in respect of tax paid under this Division, limited to the tax paid that is attributable to the portion of the replacement vehicle's vehicle licence period that is wholly within

(a) the period during which the multijurisdictional vehicle is being repaired, and

(b) the vehicle licence period of the multijurisdictional vehicle.

Refund for short term rental vehicles

78  If the director is satisfied that

(a) a person paid tax under this Division in relation to a multijurisdictional vehicle that

(i) is a short term rental vehicle, and

(ii) is leased, during a vehicle licence period, primarily to other persons who must pay tax under section 39 [tax on leases] in relation to the lease, and

(b) tax was levied and remitted as required under this Act in respect of tax payable under section 39 on the lease of the short term rental vehicle during the vehicle licence period,

the director must refund to the person the tax paid under this Division for that vehicle licence period in relation to the multijurisdictional vehicle.

Division 8 — Affixed Machinery and Improvements to Real Property

Contractor exempt from tax under section 37 or 49

79  (1) A contractor is exempt from tax imposed under section 37 [tax on purchase] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia, purchases the tangible personal property at a sale in British Columbia,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law,

(c) there is an agreement between the contractor and the person with whom the contractor has entered into the contract that

(i) specifically states that the person is liable for tax imposed under section 80, and

(ii) sets out the purchase price of the tangible personal property referred to in paragraph (a) that is subject to tax imposed under section 80, and

(d) there is written evidence of the agreement referred to in paragraph (c).

(2) A contractor is exempt from tax imposed under section 49 [tax if tangible personal property brought into British Columbia for use] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia, brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law,

(c) there is an agreement between the contractor and the person with whom the contractor has entered into the contract that

(i) specifically states that the person is liable for tax imposed under section 80, and

(ii) sets out the purchase price of the tangible personal property referred to in paragraph (a) that is subject to tax imposed under section 80, and

(d) there is written evidence of the agreement referred to in paragraph (c).

Tax on tangible personal property used to improve real property if contractor exempt

80  (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into the contract referred to in section 79 (1) (a) or (2) (a) with a contractor in relation to the tangible personal property, and

(b) the contractor is exempt under section 79 from tax imposed under section 37 [tax on purchase] or 49 [tax if tangible personal property brought into British Columbia for use] in relation to the tangible personal property.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) If tax is paid under this section in respect of tangible personal property, then no tax is payable in respect of that property under section 37 or 49.

Contractor exempt from tax under section 37 or 49 if other person would be exempt

80.1  (1) Subject to subsection (3), a contractor is exempt from tax imposed under section 37 [tax on purchase] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a written contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, purchases the tangible personal property at a sale in British Columbia,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(c) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under section 37 if the person were to purchase the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under section 37 if the First Nation individual or band were to purchase the tangible personal property.

(2) Subject to subsection (3), a contractor is exempt from tax imposed under section 49 [tax if tangible personal property brought into British Columbia for use] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a written contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(c) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under section 49 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under section 49 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property.

(3) Subsection (1) (c) (i) or (2) (c) (i) does not apply if the government of Canada has entered into an agreement with the government of British Columbia under which the government of Canada has agreed to pay tax imposed under this Act.

Refund of tax paid by contractor under Division 5

80.2  (1) The director must refund to a contractor the tax paid under Division 5 [Property Brought into British Columbia from Outside Canada] by the contractor in relation to tangible personal property if the director is satisfied that

(a) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia,

(i) brings the tangible personal property into British Columbia from a place outside Canada, or

(ii) sends the tangible personal property, or enters into an arrangement under which the tangible personal property is sent, into British Columbia from a place outside Canada,

(b) the contractor paid tax under Division 5 in relation to the tangible personal property,

(c) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law,

(d) there is an agreement between the contractor and the person with whom the contractor has entered into the contract that

(i) specifically states that the person is liable for tax imposed under section 80.3, and

(ii) sets out the purchase price of the tangible personal property referred to in paragraph (a) of this subsection that is subject to tax under section 80.3, and

(e) there is written evidence of the agreement referred to in paragraph (d).

(2) Subject to subsection (3), the director must refund to a contractor the tax paid under Division 5 [Property Brought into British Columbia from Outside Canada] by the contractor in relation to tangible personal property if the director is satisfied that

(a) the contractor, for the purposes of fulfilling a written contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property,

(i) brings the tangible personal property into British Columbia from a place outside Canada, or

(ii) sends the tangible personal property, or enters into an arrangement under which the tangible personal property is sent, into British Columbia from a place outside Canada,

(b) the contractor paid tax under Division 5 in relation to the tangible personal property,

(c) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(d) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under Division 5 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under Division 5 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property.

(3) Subsection (2) (d) (i) does not apply if the government of Canada has entered into an agreement with the government of British Columbia under which the government of Canada has agreed to pay tax imposed under this Act.

Tax on tangible personal property used to improve real property if contractor obtained refund

80.3  (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into a contract referred to in section 80.2 (1) (a) with a contractor in relation to the tangible personal property, and

(b) the contractor has obtained a refund under section 80.2 in relation to the tangible personal property.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of tangible personal property used to improve real property

80.4  (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into a contract referred to in section 80.1 (1) (a) or (2) (a), 80.2 (2) (a) or 80.5 (1) (b) with a contractor in relation to the property,

(b) the contractor was exempt under section 80.1 (1) (c) (ii) or (2) (c) (ii) or 80.5 (7) (b) or entitled to a refund under section 80.2 (2) (d) (ii) because the person would have been exempt from tax under this Act because the property was to be used for a particular purpose, and

(c) the person subsequently uses that property, or allows that property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which the property would be exempt from tax under this Act if the property were to be used for that purpose.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person first uses that property, or allows that property to be used, as referred to in subsection (1) (c).

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Transitional tax on tangible personal property used by contractor to improve real property

80.5  (1) This section applies to a contractor in relation to tangible personal property if

(a) the contractor

(i) purchased tangible personal property at a sale in British Columbia, or

(ii) brought or sent into British Columbia, or received delivery of in British Columbia, the tangible personal property, and

(b) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, uses the tangible personal property so that it ceases to be personal property at common law.

(2) A contractor to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) The amount of tax payable under subsection (2) by a contractor in relation to tangible personal property is reduced by the total of the following:

(a) the amount of tax under section 37, 49 or 55 payable or previously paid by the contractor in relation to the tangible personal property and for which the contractor has not obtained and is not entitled to obtain a refund under this Act;

(b) the amount of tax under the Social Service Tax Act previously paid by the contractor in relation to the tangible personal property and for which the contractor has not obtained and is not entitled to obtain a refund under that Act;

(c) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, previously paid by the contractor in relation to the tangible personal property and for which the contractor has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the contractor uses the tangible personal property in a manner such that the tangible personal property ceases to be personal property at common law.

(5) Despite subsection (4), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(6) A contractor is exempt from tax imposed under subsection (2) in relation to tangible personal property if

(a) there is an agreement between the contractor and the person with whom the contractor has entered into the contract referred to in subsection (1) (b) that

(i) specifically states that the person is liable for tax imposed under section 80.6, and

(ii) sets out the purchase price of the tangible personal property referred to in subsection (1) (a) that is subject to tax imposed under section 80.6,

(b) there is written evidence of the agreement referred to in paragraph (a), and

(c) for the purpose of fulfilling the contract referred to in subsection (1) (b), the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia.

(7) Subject to subsection (8), a contractor is exempt from tax imposed under subsection (2) in relation to tangible personal property if the contract referred to in subsection (1) (b) is in writing and the other party who entered into that contract with the contractor is one of the following:

(a) the government of Canada;

(b) a person who would be exempt under this Act from tax

(i) imposed under section 37 if the person were to purchase the tangible personal property, or

(ii) imposed under section 49 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(c) a First Nation individual or band that would be exempt from tax

(i) imposed under section 37 if the First Nation individual or band were to purchase the tangible personal property, or

(ii) imposed under section 49 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property.

(8) Subsection (7) (a) does not apply if the government of Canada has entered into an agreement with the government of British Columbia under which the government of Canada has agreed to pay tax imposed under this Act.

Transitional tax on tangible personal property used to improve real property

80.6  (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into a contract referred to in section 80.5 (1) (b) with a contractor,

(b) the contractor uses the tangible personal property so that it ceases to be personal property at common law, and

(c) the contractor is exempt under section 80.5 (6) from tax imposed under section 80.5 (2) in relation to the tangible personal property.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) The amount of tax payable under subsection (2) by a person in relation to tangible personal property is reduced by the total of the following:

(a) the amount of tax under section 80 payable or previously paid by the person in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund under this Act;

(b) the amount of tax under the Social Service Tax Act previously paid by the person or the contractor in relation to the tangible personal property and for which the person or the contractor has not obtained and is not entitled to obtain a refund under that Act;

(c) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, previously paid by the person or the contractor in relation to the tangible personal property and for which the person or the contractor has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the contractor uses the tangible personal property in a manner such that the tangible personal property ceases to be personal property at common law.

Repealed

80.7-80.8  [Repealed 2013-1-200.]

Division 9 — Change in Use

Tax if change in use of property acquired for resale

81  (1) If a person purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property for resale and becomes, for any period, a user of that property, the person must pay to the government tax on the purchase price of that property at the applicable rate under section 34.

(1.1) Subsection (1) does not apply to a person if, when the person becomes a user of the tangible personal property, the tangible personal property is used for a purpose for which the tangible personal property would have been exempt from tax under this Act if the tangible personal property were to be used for that purpose when the person purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia that tangible personal property.

(2) Subsection (1) does not apply to a person in respect of a taxable conveyance, as defined in section 59, if section 64 [tax if change in use of conveyance acquired for resale] applies to the person in respect of the taxable conveyance.

(3) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first becomes a user of the tangible personal property.

(4) Despite subsection (3), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if property used for new purpose

82  (1) Subject to section 87 [tax if recording exhibited], if a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under this Act because the property was to be used for a particular purpose, and

(b) subsequently uses that property, or allows that property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that property would be exempt from tax under this Act if that property were to be used for that purpose,

the person must pay to the government tax on the purchase price of that property at the applicable rate under section 34.

(2) Subsection (1) does not apply to a person in relation to tangible personal property that was exempt from tax under section 142 (1) or (2.1) [exemptions for tangible personal property intended for lease] if

(a) the only subsequent use of that property, other than leasing it, is occasionally, under an agreement, supplying the property with a person to operate it, and

(b) the tangible personal property is capitalized as lease inventory in the person's business accounting records.

(3) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses that property, or allows that property to be used, as referred to in subsection (1) (b).

(4) Despite subsection (3), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if leased property used for new purpose

82.01  (1) Subject to subsection (2) and section 87 [tax if recording exhibited], this section applies to a person in relation to tangible personal property if the person

(a) leased tangible personal property that was exempt from tax under this Act because the tangible personal property was to be used for a particular purpose, and

(b) subsequently uses that tangible personal property, or allows that tangible personal property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that tangible personal property would be exempt from tax under this Act if that tangible personal property were to be used for that purpose.

(2) This section does not apply to a person in relation to tangible personal property that was exempt from tax under section 142 (2) [exemption for tangible personal property intended for re-lease] if

(a) the only subsequent use of that tangible personal property, other than leasing it, is occasionally, under an agreement, supplying the tangible personal property with a person to operate it, and

(b) the tangible personal property is capitalized as lease inventory in the person's business accounting records.

(3) A person to whom this section applies must pay to the government, in respect of each rental period, under the lease, that includes or begins after the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), tax on the lease price of the tangible personal property at the applicable rate under section 35 [rates of tax in relation to lease price].

(4) For the purposes of subsection (3), the lease price of the tangible personal property is,

(a) in relation to the rental period that includes the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), that portion of the lease price of the tangible personal property that is attributable to that portion of the rental period that begins on that date and ends at the end of that rental period, or

(b) in relation to a rental period that begins after the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), that portion of the lease price of the tangible personal property that is attributable to that rental period.

(5) Tax payable under subsection (3) in respect of the rental period referred to in subsection (4) (a) must be paid on or before the last day of the month after the month in which the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b).

(6) Tax payable under subsection (3) in respect of a rental period referred to in subsection (4) (b) must be paid on or before the last day of the month after the month in which the rental periods ends.

(7) Despite subsections (5) and (6), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax on parts or material if property containing parts or material used for new purpose

82.1  (1) This section applies to a person in relation to tangible personal property that is a part or material if the person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the part or material exempt under a prescribed provision of the regulations from tax under this Act because the part or material is to be used in relation to tangible personal property that would be exempt from tax under this Act if the tangible personal property were to be used for a particular purpose, and

(b) subsequently uses that tangible personal property, or allows that tangible personal property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which the part or material would be exempt from tax under this Act if that tangible personal property were to be used for that purpose.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the part or material at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person first uses the tangible personal property, or allows the tangible personal property to be used, as referred to in subsection (1) (b).

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if conditions for exemption not maintained for specified period

82.2  (1) This section applies to a person in relation to tangible personal property if

(a) the person purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt under a prescribed provision of the regulations from tax under this Act,

(b) the prescribed provision of the regulations requires specified conditions to be maintained for a specified period, and

(c) those conditions are not maintained for that period.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the conditions referred to in subsection (1) are not maintained.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of vehicle, boat or aircraft exempt from tax under Consumption Tax Rebate and Transition Act

82.3  (1) In this section, "designated property" has the same meaning as in the Consumption Tax Rebate and Transition Act, as that Act read on March 31, 2013.

(2) This section applies to a person in relation to tangible personal property that is designated property if the person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the designated property in respect of which tax was not payable under the Consumption Tax Rebate and Transition Act, other than by reason of an exemption under section 26 of that Act, and

(b) subsequently uses that property, or allows that property to be used, for a purpose other than a purpose for which that property would be exempt from tax under this Act if that property were to be used for that purpose.

(3) A person to whom this section applies must pay to the government tax on the purchase price of the designated property at the applicable rate under section 34.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the person first uses the property, or allows the property to be used, as referred to in subsection (2) (b).

(5) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of property acquired for lease

83  (1) If a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under section 142 (4) or (5) [exemptions for tangible personal property intended for lease], and

(b) subsequently ceases to capitalize that property as lease inventory in the person's business accounting records,

the person must pay to the government tax on the purchase price of that property at the applicable rate under section 34.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first ceases to capitalize that property as lease inventory in the person's business accounting records.

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of resulting tangible personal property

84  (1) If a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under section 141 (1) (a) or (b), and

(b) becomes, for any period, a user of the tangible personal property to which the tangible personal property referred to in paragraph (a) of this subsection is processed, fabricated or manufactured into, attached to or incorporated into,

the person must pay to the government tax on the purchase price of the tangible personal property referred to in paragraph (a) at the applicable rate under section 34.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first becomes a user of the tangible personal property first mentioned in subsection (1) (b).

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if dealer or manufacturer changes use of motor vehicle

84.1  (1) In this section:

"dealer" means a person who is registered as a motor dealer under the Motor Dealer Act;

"eligible use" means a use referred to in paragraph (a) (ii) and (iii) of the definition of "use";

"manufacturer" means a person who makes motor vehicles but does not include a dealer.

(2) If a dealer purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia a prescribed motor vehicle for resale or for the purpose of leasing the motor vehicle to other persons and, in a month, uses that motor vehicle in British Columbia only for a prescribed use, in addition to an eligible use, the dealer must pay to the government tax calculated in accordance with the regulations.

(3) If a dealer in a month uses only for a prescribed use, in addition to an eligible use, a prescribed motor vehicle into which tangible personal property exempt from tax under section 141 (1) (a) has been processed, fabricated, manufactured or incorporated, or to which tangible personal property exempt from tax under that section has been attached, the dealer must pay to the government tax calculated in accordance with the regulations.

(4) If a manufacturer brought or sent into British Columbia, or received delivery of in British Columbia, a prescribed motor vehicle for sale or for the purpose of leasing the motor vehicle to other persons and, in a month, uses that motor vehicle in British Columbia only for a prescribed use, in addition to an eligible use, the manufacturer must pay to the government tax calculated in accordance with the regulations.

(5) If a manufacturer in a month uses only for a prescribed use, in addition to an eligible use, a prescribed motor vehicle into which tangible personal property exempt from tax under section 141 (1) (a) has been processed, fabricated, manufactured or incorporated, or to which tangible personal property exempt from tax under that section has been attached, the manufacturer must pay to the government tax calculated in accordance with the regulations.

(6) Tax payable under subsections (2) to (5) must be paid on or before the prescribed date and in the prescribed manner.

(7) A dealer or manufacturer who must pay tax under subsection (2) or (4) is exempt from tax imposed under section 81 or 82 in relation to the use of the motor vehicle that is subject to tax under this section.

(8) A dealer or manufacturer who must pay tax under subsection (3) or (5) is exempt from tax imposed under section 84 in relation to the use of the motor vehicle that is subject to tax under this section.

Tax if change in use of prototype

85  (1) If a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under section 141 (1) (d) or (e), and

(b) for any period after the testing of the prototype or copy of the prototype referred to under section 141 (1) (d) or (e),

(i) becomes the user of that prototype or copy of that prototype, or

(ii) becomes entitled to receive consideration for use of that prototype or copy of that prototype,

the person must pay to the government tax on the purchase price of that tangible personal property at the applicable rate under section 34.

(2) Subsection (1) does not apply if the only use of the prototype or copy of the prototype is for demonstration and the only consideration received for the use of that prototype or copy of that prototype does not exceed the actual cost of that demonstration.

(3) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the earliest of the following occurs:

(a) the person first becomes a user of the prototype or copy of the prototype;

(b) the consideration for use of the prototype or copy of the prototype is paid;

(c) the consideration for use of the prototype or copy of the prototype becomes due.

(4) Despite subsection (3), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of property for which refund received under taxation agreement

86  (1) If a person

(a) received a refund of tax under section 155 [refund in accordance with Nisga'a Nation Taxation Agreement] or 156 [refund in accordance with treaty first nation tax treatment agreement] in relation to tangible personal property, and

(b) subsequently uses that property, or allows that property to be used, for a purpose other than

(i) a purpose that would entitle the person to receive a refund of tax under section 155 or 156, or

(ii) another purpose for which that property would be exempt from tax under this Act if that property were to be used for that purpose,

the person must pay to the government tax on the purchase price or lease price, as the case may be, at the applicable rate under section 34 [rates of tax in relation to purchase price] or 35 [rates of tax in relation to lease price].

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses that property, or allows that property to be used, as referred to in subsection (1) (b).

Tax if recording exhibited

87  (1) A person

(a) who brought or sent into British Columbia, received delivery of in British Columbia, purchased or leased, exempt from tax under section 143 (b) (ii), tangible personal property that is a recording of a motion picture, and

(b) who exhibits the motion picture in a movie theatre or other public venue

must pay to the government tax in an amount equal to the amount of tax under this Act that would have otherwise been payable if the person had acquired the right or authority to exhibit the motion picture from a willing lessor acting in good faith in an arm's length transaction in the open market.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the motion picture is exhibited.

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if leased tangible personal property becomes part of real property

88  (1) If, during the term of a lease of tangible personal property, the tangible personal property is used so that it ceases to be personal property at common law, then

(a) the tangible personal property is deemed to be sold at a retail sale immediately before the tangible personal property ceases to be personal property,

(b) the person leasing the tangible personal property to the lessee is deemed to be the seller of the tangible personal property,

(c) the lessee must pay tax imposed under section 37 as if the lessee were a purchaser of that tangible personal property, and

(d) the purchase price of the tangible personal property is deemed to be the fair market value of the tangible personal property at the time of the sale.

(2) If a sale is deemed to have occurred under subsection (1) (a), the deemed purchaser may not claim an exemption under section 142 (1), (2) or (2.1).

(3) Tax payable under section 37 in accordance with this section must be paid on or before the last day of the month after the month in which the tangible personal property is used so that it ceases to be personal property at common law.

(4) Despite subsection (3), tax payable under section 37 in accordance with this section by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(5) Subsection (1) does not apply if the tangible personal property becomes affixed machinery when the tangible personal property is used so that it ceases to be personal property at common law.

Division 10 — Tangible Personal Property Acquired by Small Seller

Tax on acquisition of eligible tangible personal property

89  (1) A small seller who purchases, at a sale in British Columbia, eligible tangible personal property for resale must pay tax imposed under section 37 [tax on purchase] on the purchase of the eligible tangible personal property as if the small seller were a purchaser of that eligible tangible personal property.

(2) Tangible personal property referred to in sections 141 (1) (a), (b) and (c) [exemptions in relation to industry and commerce] and 143 [exemption in relation to recording of motion picture or audio production] and in prescribed provisions of the regulations is not exempt from tax imposed under this Part when that tangible personal property is purchased by a small seller who must pay tax in accordance with subsection (1) of this section.

Tax on eligible tangible personal property brought into British Columbia

90  (1) Subject to subsection (2), this section applies to a small seller who

(a) brings or sends into British Columbia, or receives delivery of in British Columbia, eligible tangible personal property for resale, and

(b) does not pay tax under section 55 in relation to the eligible tangible personal property.

(2) This section does not apply to a person in relation to eligible tangible personal property if the person is required to pay tax or is exempt from tax under section 89 in relation to the eligible tangible personal property.

(3) A small seller to whom this section applies must pay tax imposed under section 49 on the eligible tangible personal property as if the small seller were a person to whom section 49 applies in relation to that eligible tangible personal property.

(4) Tangible personal property referred to in sections 141 (1) (a), (b) and (c) [exemption in relation to industry and commerce] and 143 [exemption in relation to recording of motion picture or audio production] and in prescribed provisions of the regulations is not exempt from tax imposed under this Part when the tangible personal property is brought or sent into British Columbia by, or delivered in British Columbia to, a small seller who must pay tax in accordance with subsection (3) of this section.

Exemption in relation to eligible tangible personal property purchased from small seller

91  If a purchaser purchases eligible tangible personal property from a small seller, the purchaser is exempt from tax imposed under section 37 [tax on purchase] on that purchase.

Division 11 — Energy Products

Tax on purchase of energy product

92  (1) A purchaser who purchases an energy product at a sale in British Columbia must pay to the government, for the raising of revenue for the purposes of the Innovative Clean Energy Fund special account established by the Special Accounts Appropriation and Control Act, tax at the rate of 0.4% of the purchase price of the energy product.

(2) If a collector sells an energy product at a sale in British Columbia to a person who alleges that the energy product is being purchased for resale, the person must nevertheless pay tax under subsection (1) as if the person were a purchaser and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

Tax if energy product brought into British Columbia for use

93  (1) Subject to subsection (2), this section applies to a person in relation to an energy product if

(a) the person is a BC resident who brings or sends into British Columbia, or receives delivery of in British Columbia, an energy product for use or consumption

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

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

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(b) the person is a BC resident and a person who is not a BC resident brings or sends into British Columbia, or receives delivery of in British Columbia, an energy product for use or consumption

(i) by the BC resident, or

(ii) by the person who is not a BC resident, or by another person, at the BC resident's expense, or

(c) the person

(i) brings or sends into British Columbia, or receives delivery of in British Columbia, an energy product, and

(ii) uses the energy product in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia.

(2) This section does not apply to a person in relation to an energy product if the person is required to pay tax or is exempt from tax under section 92 in relation to the energy product.

(3) A person to whom this section applies must pay to the government, for the raising of revenue for the purposes of the Innovative Clean Energy Fund special account established by the Special Accounts Appropriation and Control Act, tax at the rate of 0.4% of the purchase price of the energy product.

(4) If a collector causes an energy product to be delivered in British Columbia to a person who alleges that the energy product is being purchased for resale, the person must nevertheless pay tax under subsection (3) as if the person were a person to whom this section applies and the collector must nevertheless levy and collect the tax under subsection (3) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

Tax under this Division is additional tax

94  Tax imposed under this Division is in addition to any other tax payable under this Part in respect of the energy product.

Exemptions in relation to energy products

95  (1) Subject to subsection (1.1), fuel, as defined in the Motor Fuel Tax Act, is exempt from tax imposed under this Division.

(1.1) The exemption under subsection (1) does not apply to propane included within the definition of "energy product".

(2) A person is exempt from paying further tax under this Division in the period beginning on April 1 in one year and ending on March 31 in the next year if

(a) the person has already paid in that period at least $100 000 in tax payable under this Division,

(b) the person provides evidence satisfactory to the director that the person has paid at least $100 000 in accordance with paragraph (a), and

(c) the person receives written confirmation from the director that the person has paid at least $100 000 in accordance with paragraph (a).

(3) If a collector sells an energy product to a person who alleges that the person is exempt under subsection (2) from paying further tax under this Division, the collector must nevertheless levy and collect the tax under this Division unless the collector obtains from that person, at or before the time the tax is payable, a copy of the written confirmation referred to in subsection (2) (c).

Refund of excess if maximum tax paid

96  If the director is satisfied that a person has paid more than the $100 000 in tax payable under this Division in the period described in section 95 (2), the director must refund that excess to the person.

Reporting requirements in relation to energy products

97  If requested by the director or if required under the regulations, a collector must report to the director the amounts of tax under this Division that were required to be collected in relation to the collector's sales of the energy product.

Division 12 — Other Taxes in Relation to Tangible Personal Property

Liquor sold under liquor permit

98  (1) If liquor is purchased for sale under a liquor permit, the holder of that permit or the agent of the holder must pay tax imposed under section 37 on the purchase of the liquor as if the holder of that permit or the agent of the holder were a purchaser of that liquor.

(2) If liquor is or is to be purchased for sale under a liquor permit, the holder of that permit or the agent of the holder must, at the time the permit is issued,

(a) declare the amount of the total proceeds expected from the sale of the liquor at the event that is the subject of the permit, and

(b) pay to the person issuing the permit an amount equal to the tax under section 37 that would be collectable under this Act based on the expected proceeds of the sales less the amount of tax payable in accordance with subsection (1) of this section.

(3) If the amount of tax payable under section 37 that is collectable by the holder of the permit exceeds the total of the amount paid by the holder of the permit under subsections (1) and (2) (b) of this section, the holder must

(a) remit to the government an amount equal to the amount of the excess, and

(b) file with the director a return at the time, in the manner and in a form specified by the director.

(4) An amount to be remitted under subsection (3) must be remitted to the government on or before the last day of the month after the month in which the liquor permit expires.

(5) If the director is satisfied that the amount of tax under section 37 collectable by the holder of the liquor permit on the actual sale of the liquor in respect of which payment was made under subsection (2) of this section is less than the amount paid under subsections (1) and (2), the director must refund to the holder an amount that

(a) is, subject to paragraph (b), equal to the amount of the difference less the amount of tax under subsection (1) for which the holder has obtained or is entitled to obtain a refund for returning liquor purchased for sale under the liquor permit, and

(b) does not exceed the amount paid under subsection (2).

Tax on acquisition of exclusive product by independent sales contractor

99  (1) An independent sales contractor who purchases an exclusive product at a sale in British Columbia from a direct seller must pay to the government tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(2) An independent sales contractor of a direct seller who purchases an exclusive product at a sale in British Columbia from another independent sales contractor of the direct seller must pay to the government tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(3) An independent sales contractor who brings or sends into British Columbia, or receives delivery of in British Columbia, an exclusive product acquired from a direct seller must pay to the government tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(4) An independent sales contractor of a direct seller who brings or sends into British Columbia, or receives delivery of in British Columbia, an exclusive product acquired from another independent sales contractor of the direct seller must pay to the government, by paying to the direct seller as agent of the government, tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(5) Subsection (3) or (4) does not apply to an independent sales contractor in relation to an exclusive product if

(a) the independent sales contractor must pay tax imposed under subsection (1) or (2) in relation to that exclusive product, or

(b) the independent sales contractor must pay tax imposed under Division 5 [Property Brought into British Columbia from Outside Canada] in relation to that exclusive product.

(6) Tangible personal property referred to in section 141 (1) (a), (b) and (c) and in prescribed provisions of the regulations is not exempt from tax imposed under this section when acquired by an independent sales contractor who must pay tax in accordance with this section.

(7) Tax payable under subsection (4) must be paid on or before the last day of the month after the month that includes the entry date of the exclusive product.

Tax on gift of vehicle, boat or aircraft given in British Columbia

100  (0.1) In this section, "charity" and "registrant" have the same meaning as in Part IX of the Excise Tax Act.

(1) If a person receives a gift of a vehicle, boat or aircraft and the gift is received in British Columbia, subject to subsections (2) and (3), the person must pay to the government tax at the applicable rate under subsection (4), (6) or (7).

(1.1) Subject to subsection (1.2), subsection (1.3) applies to a person who registers a vehicle under the vehicle registration legislation if

(a) the person received the vehicle in British Columbia as a gift on or after July 1, 2010 and before April 1, 2013, or

(b) the person received the vehicle outside British Columbia as a gift, the vehicle was brought or sent into British Columbia on or after July 1, 2010 and before April 1, 2013 and tax was not paid and is not payable under the Consumption Tax Rebate and Transition Act by that person in relation to the vehicle.

(1.2) Subsection (1.3) does not apply if any of the following apply in relation to the gift:

(a) the provision of the gift is a taxable supply under Part IX of the Excise Tax Act by a registrant;

(b) the provision of the gift is an exempt supply under Part IX of the Excise Tax Act by a registrant that is a charity;

(c) the donor who gave the gift acquired the vehicle in prescribed circumstances.

(1.3) A person to whom this subsection applies must pay to the government tax at the rate of 12% of the fair market value of the vehicle on the date the vehicle was received in British Columbia as a gift or on the entry date of the vehicle.

(2) A person is not required to pay tax under this section in respect of a vehicle, boat or aircraft if the person has paid tax in respect of the vehicle, boat or aircraft under section 49.

(3) This section does not apply in relation to a vehicle, boat or aircraft that is subject to tax or exempt from tax under Division 6 [Conveyances Used Interjurisdictionally] or 7 [Multijurisdictional Vehicles].

(4) Subject to subsections (6) and (7), the rate of tax payable under subsection (1) on a vehicle, boat or aircraft is 12% of the fair market value of the vehicle, boat or aircraft on the date the vehicle, boat or aircraft is received as a gift.

(5) Subsections (6) and (7) apply if any of the following apply in relation to the gift:

(a) the provision of the gift is a taxable supply under Part IX of the Excise Tax Act by a registrant;

(b) the provision of the gift is an exempt supply under Part IX of the Excise Tax Act by a registrant that is a charity;

(c) the donor who gave the gift acquired the vehicle, boat or aircraft in prescribed circumstances.

(6) Subject to subsection (7), the rate of tax payable under subsection (1) on a vehicle, boat or aircraft is 7% of the fair market value of the vehicle, boat or aircraft on the date the vehicle, boat or aircraft is received as a gift.

(7) The rate of tax payable under subsection (1) on a passenger vehicle is as follows:

(a) 7% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is less than $55 000;

(b) 8% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $55 000 or more but less than $56 000;

(c) 9% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $56 000 or more but less than $57 000;

(d) 10% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $57 000 or more.

Tax on reusable containers

101  (1) Subject to subsection (3), a person who purchases a reusable container at a sale in British Columbia must pay to the government tax at the rate of 7% of the purchase price of the reusable container.

(2) Subject to subsections (3) and (4), a person who brings or sends into British Columbia, or receives delivery of in British Columbia, a reusable container must pay to the government tax at the rate of 7% of the purchase price of the reusable container.

(3) Subsection (1) or (2) applies to a person in relation to the reusable container if the person intends to sell a product that is packaged or delivered in or on the reusable container and

(a) the reusable container is subject to a deposit, credit, penalty or replacement charge to encourage its return for reuse as a container,

(b) the person retains an interest in the reusable container after the sale of the product,

(c) the reusable container, or a similar reusable container, is required to be returned to the person after the sale of the product, or

(d) the product is sold in a jurisdiction where the reusable container is subject to a regulatory or contractual scheme to recover the container for reuse by the person or by other participants in the scheme.

(4) Subsection (2) does not apply to a person in relation to a reusable container if the person is required to pay tax or is exempt from tax under subsection (1) in relation to that reusable container.

Tax on leased property occasionally supplied with operator

102  (1) A person, other than a person who has paid tax under section 82 [tax if property used for new purpose] or 83 [tax if change in use of property acquired for lease], who purchases tangible personal property exempt from tax under section 142 (4), or who brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property exempt from tax under section 142 (5), must, when the property is, under an agreement, supplied with a person to operate it, pay to the government tax at the applicable rate under section 35 [rates of tax in relation to lease price] as if the price at which that property would have been leased had it been leased without supplying a person to operate it were the lease price of the tangible personal property.

(2) If

(a) a person, other than a person who has paid tax under section 82 or 83, purchases in British Columbia, brings or sends into British Columbia or receives delivery of in British Columbia tangible personal property exempt from tax under section 142 (1), (2) or (2.1),

(b) the only subsequent use of that tangible personal property, other than leasing it, is occasionally, under an agreement, supplying the property with a person to operate it, and

(c) the tangible personal property is capitalized as lease inventory in the person's business accounting records,

the person must, when the property is, under an agreement, supplied with a person to operate it, pay to the government tax at the applicable rate under section 35 as if the price at which that property would have been leased had it been leased without supplying a person to operate it were the lease price of the tangible personal property.

(3) Tax payable under subsection (1) or (2) must be paid on or before the prescribed date and in the prescribed manner.

Tax on subsequent purchase or lease after refund or credit

103  (1) In this section, "related individual" includes a sibling.

(2) If a purchaser is paid a refund or allowed a credit of tax paid under this Act in respect of tangible personal property that is returned or resold to the collector who sold it to the purchaser and that tangible personal property is subsequently purchased or leased by

(a) the purchaser,

(b) a related individual of the purchaser, or

(c) an associated corporation of the purchaser,

the person referred to in paragraph (a), (b) or (c), as the case may be, must pay to the government, in lieu of the tax payable, if any, under Division 2 or 3 of this Part in respect of that tangible personal property, tax equal to the tax that was refunded or credited to the purchaser.

(3) For the purposes of applying the other provisions of this Act in relation to a tax imposed under subsection (2),

(a) the tax is deemed to be a tax imposed under section 37,

(b) if the tangible personal property is leased, the time of entering into the lease is deemed to be the time of purchase,

(c) section 34 and Part 6 do not apply, and

(d) prescribed provisions of the regulations do not apply.

Contents | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15