Explanatory Notes

 
Financial Institutions Act

SECTION 1: [Financial Institutions Act, section 267] provides that the Credit Union Deposit Insurance Fund continued under this section of the Act is a trust fund.

 
Home Owner Grant Act

SECTION 2: [Home Owner Grant Act, section 1] defines "approved form" and "low- income grant supplement" for purposes of the Act.

SECTION 3: [Home Owner Grant Act, section 2] provides that specified owners, spouses and relatives who qualify as low-income individuals and who are subject to home owner grant reductions in a tax year (because their property exceeds the prescribed threshold value) may be eligible for a low-income grant supplement for that tax year, and imposes requirements in respect of such eligibility.

SECTION 4: [Home Owner Grant Act, section 7] provides that specified occupants, spouses and relatives who qualify as low-income individuals and who are subject to reductions in grant benefits in a tax year (because their property exceeds the prescribed threshold value) may be eligible for a low-income grant supplement for that tax year, and imposes requirements in respect of such eligibility.

SECTION 5: [Home Owner Grant Act, section 16] makes it an offence to supply false information to the grant administrator in respect of applications for or audits of low-income grant supplements.

SECTION 6: [Home Owner Grant Act, section 17] provides for the repayment and collection of low-income grant supplements paid to persons who, on audit, were not entitled.

SECTION 7: [Home Owner Grant Act, section 18] provides that regulations made under section 18.1, as added by this Bill, respecting a low-income grant supplement program may be made retroactive to January 1 of the year they are made.

SECTION 8: [Home Owner Grant Act, sections 18.1 and 18.2]

• authorizes regulations for the establishment of a program respecting the payment of low-income grant supplements to low-income individuals whose home owner grant, or benefit in respect of such grant, for a tax year is reduced or eliminated because their property exceeds the prescribed threshold value;
• authorizes collection and use of information to determine and audit qualifications and eligibility for a low-income grant supplement for a tax year;
• provides for forms approved by the minister for purposes of the Act.

 
Hotel Room Tax Act

SECTION 9: [Hotel Room Tax Act, sections 12 and 13] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 10: [Hotel Room Tax Act, section 17] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

 
Land Tax Deferment Act

SECTION 11: [Land Tax Deferment Act, section 5] lowers from 60 to 55 years of age the minimum age at which a person, other than a surviving spouse or a disabled person, is eligible to defer property taxes.

 
Motor Fuel Tax Act

SECTION 12: [Motor Fuel Tax Act, sections 26 and 27] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 13: [Motor Fuel Tax Act, sections 42, 43 and 44] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

 
Ports Property Tax Act

SECTION 14: [Ports Property Tax Act, section 2] allows Crown land that becomes taxable because it is held or occupied by a party other than the Crown to be immediately eligible for the ports property tax rate caps if the property is designated under section 2 of the Act.

 
Property Transfer Tax Act

SECTION 15: [Property Transfer Tax Act, section 4]

• adds reference to a new section to which definitions under section 4 apply, as a consequence of the addition of section 4.1 to the Act by this Bill;
• amends the definition of "eligible security" by adding a meaning in relation to transfers to first time home buyers from Habitat for Humanity;
• adds a definition of "Habitat for Humanity";
• increases the qualifying value for purposes of the first time home buyers' exemption under the Act and applies the same qualifying value in all regions of British Columbia.

SECTION 16: [Property Transfer Tax Act, section 4.1] for the purposes of the first time home buyers' exemption, deems the fair market value of property transferred to a first time home buyer by Habitat for Humanity to be the lesser of its fair market value, determined in accordance with the definition in section 1 of the Act, and the principal amount secured by a first mortgage from the home buyer in favour of Habitat for Humanity.

SECTION 17: [Property Transfer Tax Act, section 8] is amended as a consequence of the amendment by this Bill to the definition of "qualifying value" in the Act.

SECTION 18: [Property Transfer Tax Act, section 37.1] empowers the minister to make regulations designating corporations operating in British Columbia for the purposes of the definition of "Habitat for Humanity".

 
Public Service Benefit Plan Act

SECTION 19: [Public Service Benefit Plan Act, section 6] provides that the Long Term Disability Fund continued under section 6 of the Act is a trust fund, and makes a consequential amendment to subsection (5).

 
Social Service Tax Act

SECTION 20: [Social Service Tax Act, section 1]

• amends the definition of "purchase price" to subtract from the purchase price of a motor vehicle an amount accepted by the seller from the manufacturer as price or on account of the price;
• amends the definition of "vendor" consequential to section 92.2 of the Act added by this Bill.

SECTION 21: [Social Service Tax Act, section 5] changes a reference from 6 years to 4 years in a provision addressing the continuing liability to pay tax under the Act.

SECTION 22: [Social Service Tax Act, section 9] amends the provision dealing with change of use consequential to sections 20.2 and 78 (1.2) of the Act added by this Bill.

SECTION 23: [Social Service Tax Act, sections 14 and 24] changes the tax-remittance period from a period ending 15 days after a specified day to a period ending 23 days after that specified day.

SECTION 24 [Social Service Tax Act, section 19] is consequential to section 9 (1.3) of the Act added by this Bill.

SECTION 25: [Social Service Tax Act, section 20.2] requires a person to pay tax on tangible personal property that was purchased exempt from tax under section 78 (1) or (1.2) but then, under an agreement, is supplied with a person to operate it.

SECTION 26: [Social Service Tax Act, section 49] changes the tax-remittance period from a period ending on the 15th day of the month following a specified month to a period ending on the 23rd day of the month following that specified month.

SECTION 27: [Social Service Tax Act, section 71] amends the exemption for medicaments to include medicaments provided as part of a promotional distribution.

SECTION 28: [Social Service Tax Act, section 73] amends the exemption for grain, mill and other agricultural feeds and seeds to clarify that they are exempt only if they are purchased to be used and are used for an agricultural purpose.

SECTION 29: [Social Service Tax Act, section 76] is consequential to section 92.2 of the Act added by this Bill.

SECTION 30: [Social Service Tax Act, section 78] adds a subsection to the Act to provide an exemption for tangible personal property purchased solely for the purposes of leasing the property to other persons and occasionally supplying the property with a person to operate it.

SECTION 31: [Social Service Tax Act, sections 80 and 82] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 32: [Social Service Tax Act, section 88.2] adds a section to the Act authorizing the commissioner to pay, on application, a refund of tax paid on medical equipment purchased with charity funds of eligible charities.

SECTION 33: [Social Service Tax Act, section 92.2] adds a section

• allowing certain persons to make sales of qualifying tangible personal property without obtaining a registration certificate under section 92 of the Act,
• requiring those persons, if they do not obtain a registration certificate under section 92 of the Act, to pay tax under the Act on qualifying tangible personal property they acquire for resale, and
• allowing a person to purchase qualifying tangible personal property from those persons without paying tax under the Act.

SECTION 34: [Social Service Tax Act, section 93] is consequential to section 92.2 of the Act added by this Bill.

SECTION 35: [Social Service Tax Act, section 115] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

SECTION 36: [Social Service Tax Act, section 116] changes the tax-payable period from a period ending 15 days after a specified day to a period ending 23 days after that specified day.

SECTION 37: [Social Service Tax Act, section 116] changes the estimate period from a period ending 6 years after a specified date to a period ending 4 years after that specified date.

SECTION 38: [Social Service Tax Act, section 138] amends the provision of the Act authorizing the making of regulations, consequential to the addition of section 88.2 to the Act made by this Bill.

SECTION 39: [Social Service Tax Act, section 138] is consequential to section 92.2 of the Act added by this Bill.

 
Special Accounts Appropriation and Control Act

SECTION 40: [Special Accounts Appropriation and Control Act, sections 9.3 and 9.4]

• by the proposed section 9.3, establishes the Housing Endowment Funds special account for the purposes of providing support to innovative housing initiatives;
• by the proposed section 9.4, establishes the Children's Education Fund special account for the purposes of providing future financial assistance to students.

 
Tobacco Tax Act

SECTION 41: [Tobacco Tax Act, sections 19 and 20] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 42: [Tobacco Tax Act, section 22] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

 
Transportation Act

SECTION 43: [Transportation Act, section 40] removes the cap on borrowings by the BC Transportation Financing Authority.

SECTION 44: [Transportation Act, section 79] removes a cross reference to section 87 (2) (e) of the Act.

SECTION 45: [Transportation Act, section 87] removes regulation-making authority in relation to section 40 of the Act.

SECTION 46: [Application] clarifies the application of amendments made by particular sections of this Bill.

SECTION 47: [Transitional -- Property Transfer Tax Act] establishes rules for the transition to the amendments made by this Bill.

SECTION 48: [Transitional -- Social Service Tax Act] authorizes regulations under section 138 (1) (r.2) of the Act to be made retroactive to February 21, 2007 if made before April 1, 2007.

BILL 2 – 2007
BUDGET MEASURES IMPLEMENTATION ACT, 2007

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

 
Financial Institutions Act

1 Section 267 of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended by adding the following subsection:

(1.1) The deposit insurance corporation must hold the fund in trust for the purposes of administering and operating the fund in accordance with this Part.

 
Home Owner Grant Act

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

"approved form" means the form approved by the minister under section 18.2 (1) [minister may approve forms] for the purposes of the section in which it appears;

"low-income grant supplement" means a supplement that may be paid to qualifying low-income individuals under a program established under section 18.1; .

3 Section 2 is amended by adding the following subsections:

(8) Subject to section 18.1, the regulations and subsections (9) and (10) of this section, if the owner of an eligible residence is entitled under this section to receive a Schedule 2 grant in respect of that property for a tax year, or the spouse or relative of a deceased owner is entitled under this section to receive a Schedule 2 grant for a tax year, but subsection (3) (a) or (b) [property exceeds threshold amount] operates to reduce or eliminate the amount of that grant, the owner or spouse or relative, as the case may be, may be eligible for a low-income grant supplement up to the amount of the grant reduction for that tax year.

(9) In subsection (8), "Schedule 2 grant" means a grant in the amount set out in Schedule 2.

(10) An owner, spouse or relative described in subsection (8) must

(a) qualify under the regulations as a low-income individual for the tax year referred to in that subsection,

(b) apply to the grant administrator in the approved form for that tax year and in accordance with the regulations,

(c) supply the grant administrator with any information or documentary evidence that the grant administrator considers necessary in order to determine eligibility for the low-income grant supplement for the tax year in respect of which the application is made, and

(d) satisfy all other conditions of eligibility established under this Act and the regulations for the low-income grant supplement.

4 Section 7 is amended by adding the following subsections:

(3) Subject to section 18.1, the regulations and subsections (4) and (5) of this section, if

(a) section 3 (4) [property exceeds threshold amount] operates to reduce or eliminate the benefit under subsection (1) of this section that would otherwise be available for a tax year to an eligible occupant who meets one or more of the requirements set out in section 3 (3) (a) to (d),

(b) section 4 (4) [property exceeds threshold amount] operates to reduce or eliminate the benefit under subsection (1) of this section that would otherwise be available for a tax year to an eligible occupant who meets one or more of the requirements set out in section 4 (3) (a) to (d), or

(c) section 5 (4) [property exceeds threshold amount] operates to reduce or eliminate the benefit under subsection (1) of this section that would otherwise be available for a tax year to an eligible occupant who meets one or more of the requirements set out in section 5 (3) (a) to (d),

then the eligible occupant or, in the case of death of the eligible occupant, the deceased occupant's relevant spouse or relative who meets the requirements of subsection (4) of this section, may be eligible for a low-income grant supplement up to the amount of the reduction in that benefit for that tax year.

(4) For the purposes of subsection (3), the deceased occupant's relevant spouse or relative must be the spouse or relative of the deceased eligible occupant who satisfies the conditions of section 3 (6) (a) and (b), 4 (6) (a) and (b) or 5 (6) (a) and (b), as the case may be, so that the property described in that section continues to be eligible for the purposes of that section.

(5) An eligible occupant, spouse or relative described in subsection (3) must

(a) qualify under the regulations as a low-income individual for the tax year referred to in that subsection,

(b) apply to the grant administrator in the approved form for that tax year and in accordance with the regulations,

(c) supply the grant administrator with any information or documentary evidence that the grant administrator considers necessary in order to determine eligibility for the low-income grant supplement for the tax year in respect of which the application is made, and

(d) satisfy all other conditions of eligibility established under this Act and the regulations for the low-income grant supplement.

5 Section 16 (1) is amended by striking out "grant under this Act" and substituting "grant or low-income grant supplement, or in supplying information in response to a direction or request under section 18.1 (4),".

6 Section 17 is amended

(a) in subsection (1) by striking out "as a grant," and substituting "as a grant or low-income grant supplement,",

(b) in subsection (1) (c) by striking out "entitlement to the grant" and substituting "entitlement to the grant or low-income grant supplement",

(c) in subsection (4) (b) by striking out "the grant administrator" and substituting "if the amount owing is in respect of a grant, the grant administrator", and

(d) in subsection (7) by striking out "If the person referred to in subsection (4) has no property" and substituting "If, in the case of a low-income grant supplement, the amount owed including interest is not paid, or, in the case of a grant, the person named in the notice of disentitlement to the grant does not have any property".

7 Section 18 (3) is amended by striking out "under subsection (2)" and substituting "under subsection (2) or section 18.1".

8 The following sections are added:

Low-income grant supplements

18.1 (1) In this section, "qualifying low-income individuals" means owners and eligible occupants, or spouses and relatives of deceased owners and eligible occupants, who are described in sections 2 (8) and 7 (3) and who qualify under the regulations as low-income individuals.

(2) Subject to this section, the Lieutenant Governor in Council may by regulation establish a program administered by a grant administrator for the payment of a low-income grant supplement to qualifying low-income individuals.

(3) Without limiting subsection (2), the Lieutenant Governor in Council may make regulations as follows:

(a) respecting applications for a low-income grant supplement and the information, authorizations and verifications that must be supplied in support of an application;

(b) establishing qualifications for low-income individuals for the purposes of sections 2 (10) and 7 (5), including, without limitation, prescribing rules for determining income for such purposes;

(c) establishing categories of low-income individuals for the purposes of paragraph (b);

(d) establishing conditions that qualifying low-income individuals must satisfy to be eligible for a low-income grant supplement and governing that eligibility;

(e) prescribing the amount of a low-income grant supplement or how the amount, or the maximum amount, is to be determined;

(f) establishing categories of qualifying low-income individuals for the purposes of paragraph (e);

(g) regulating when and how a low-income grant supplement is paid;

(h) requiring or authorizing that, in cases where a person's taxes have been deferred by an agreement under section 6 of the Land Tax Deferment Act, the amount of a low-income grant supplement be applied to reduce the amount of the taxes deferred instead of being paid to the person;

(i) eliminating eligibility for a low-income grant supplement if the amount of the supplement would be less than an amount (not greater than $25) specified by the Lieutenant Governor in Council;

(j) specifying circumstances in which a grant administrator must not accept an application for a low-income grant supplement;

(k) providing for reconsideration of and appeals from decisions of the grant administrator in respect of the program.

(4) For the purposes of determining or auditing qualifications or eligibility for a low-income grant supplement, a grant administrator may do one or more of the following:

(a) direct an applicant for or recipient of the supplement to supply the grant administrator with information or documentary evidence and to do so within the time and in the manner specified by the grant administrator;

(b) in the case of an applicant or recipient who is an eligible occupant, spouse or relative described in section 7 (3), direct the owner of the relevant eligible building, land cooperative or multi dwelling leased parcel to supply the grant administrator with information within the time and in the manner specified by the grant administrator;

(c) seek verification of any information supplied by an applicant or recipient under paragraph (a) or an owner under paragraph (b), including requesting any additional information, or make any inquiries that the grant administrator considers necessary in order to determine eligibility for or entitlement to a low-income grant supplement.

(5) A person to whom a direction is issued or a request is made under subsection (4) must comply with the direction or request.

(6) The grant administrator may reject an application for a low-income grant supplement for a tax year if the requirements of section 2 (10) or 7 (5) are not met.

(7) The provisions of section 6 [limitations] that apply in respect of grants also apply in respect of low-income grant supplements.

(8) With the prior approval of the Lieutenant Governor in Council, the minister may enter into an information-sharing agreement or arrangement with the government of Canada, or an agency of that government, for the purposes of administering and enforcing

(a) the program established under this section, and

(b) the provisions of this section and sections 2 (8) to (10) and 7 (3) to (5).

(9) If the grant administrator approves an application for a low-income grant supplement for a tax year, an amount equivalent to that supplement may be paid out of the consolidated revenue fund to the applicant by the Minister of Finance.

(10) In making regulations under this section, the Lieutenant Governor in Council may do one or more of the following:

(a) delegate a matter to a person;

(b) confer a discretion on a person;

(c) make different regulations for different categories of low-income individuals, or different categories of qualifying low-income individuals, and establish those categories.

(11) A low-income grant supplement is not available in respect of any property for the 2006 tax year or any tax year before 2006.

Minister may approve forms

18.2 (1) The minister may approve forms for the purposes of this Act.

(2) Deviations from an approved form that do not affect its substance and are not intended to mislead do not invalidate the form used.

 
Hotel Room Tax Act

9 Sections 12 (1) (b) and (2) and 13 (2) (a) of the Hotel Room Tax Act, R.S.B.C. 1996, c. 207, are amended by striking out "6 years" and substituting "4 years".

10 Section 17 (5) is amended by striking out "6 years" and substituting "4 years".

 
Land Tax Deferment Act

11 Section 5 (1) (d) (i) of the Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is repealed and the following substituted:

(i) 55 years of age or older, .

 
Motor Fuel Tax Act

12 Sections 26 (1) (b) and (2) and 27 (2) (a) of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, are amended by striking out "6 years" and substituting "4 years".

13 Sections 42 (2), 43 (3) and 44 (5) are amended by striking out "6 years" and substituting "4 years".

 
Ports Property Tax Act

14 Section 2 of the Ports Property Tax Act, S.B.C. 2004, c. 7, is amended

(a) in subsection (3) by striking out "Subject to section 6" and substituting "Subject to subsection (4) and section 6", and

(b) by adding the following subsection:

(4) If property

(a) is included on a supplementary assessment roll under section 26 (5) (a) [assessment of Crown land that becomes held or occupied by others] of the Assessment Act, and

(b) is designated under subsection (1) of this section,

the designation, regardless of when the regulation under subsection (1) comes into force, is effective under section 3 or 4 for the taxation year for which the supplementary assessment roll was prepared.

 
Property Transfer Tax Act

15 Section 4 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended

(a) by striking out "sections 5 to 12" and substituting "sections 4.1 to 12",

(b) by repealing the definition of "eligible security" and substituting the following:

"eligible security" means

(a) a mortgage or an agreement for sale that

(i) secures financing applied to a transfer effected by an eligible transaction,

(ii) is between the transferee and a person that is not

(A) a corporation, other than a public company as defined in section 1 (1) of the Business Corporations Act, of which the transferee is a shareholder or of which one or more individuals who are related persons in relation to the transferee are shareholders,

(B) a trustee on behalf of a trust of which the transferee is a beneficiary or of which one or more individuals who are related persons in relation to the transferee are beneficiaries, or

(C) a related person in relation to a transferee, and

(iii) has a term of at least one year from the registration date, or

(b) in relation to a transfer from Habitat for Humanity, a first ranking mortgage that

(i) secures financing applied to a transfer effected by an eligible transaction,

(ii) is between the transferee and Habitat for Humanity, and

(iii) has a term of at least one year from the registration date; ,

(c) by adding the following definition:

"Habitat for Humanity" means a corporation designated by regulation of the minister; , and

(d) by repealing the definition of "qualifying value" and substituting the following:

"qualifying value", in relation to a property, means $375 000; .

16 The following section is added:

Fair market value -- property transferred by Habitat for Humanity

4.1 For the purposes of sections 5, 6 and 8, the fair market value of the fee simple interest in property transferred by Habitat for Humanity to a transferee in an eligible transaction is deemed to be the lesser of

(a) the fair market value, as determined in accordance with paragraph (a) of the definition of "fair market value" in section 1 (1), and

(b) the principal amount secured by a first ranking mortgage, in favour of Habitat for Humanity, that is

(i) an eligible security, and

(ii) registered on or within 7 days of the registration date.

17 Section 8 (1) (c) is repealed and the following substituted:

(c) ensure that, in the first 12 months after the registration date, the indebtedness secured by eligible securities registered against the property is not reduced by more than the greater of

(i) $13 000, and

(ii) the amount that would reduce that indebtedness to 70% of the fair market value of the property as at the date on which the application for registration of the eligible transaction was made at the land title office.

18 The following section is added:

Regulations by the minister

37.1 The minister, for the purposes of the definition of "Habitat for Humanity" in section 4 (1), may make regulations designating a corporation, that is operating in British Columbia,.

 
Public Service Benefit Plan Act

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

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

(2) The Long Term Disability Fund is continued, is deemed to be established under this section and is to be held by the government in trust. , and

(b) in subsection (5) by striking out "this section" and substituting "subsection (1)".

 
Social Service Tax Act

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

(a) in the definition of "purchase price" by adding the following paragraph:

(a.1) in relation to a motor vehicle, means the purchase price under paragraph (a) less any portion of that price that the seller accepts from the manufacturer of the motor vehicle as price or on account of the price of the motor vehicle covered by the sale; , and

(b) in the definition of "vendor" by adding at the end ", but does not include a person described in section 92.2 (3)".

21 Section 5 (3) (b) is amended by striking out "6 years" and substituting "4 years".

22 Section 9 is amended

(a) in subsection (1.1) by adding "subsection (1.2) and" after "Subject to", and

(b) by adding the following subsections:

(1.2) Subsection (1.1) does not apply to a person who acquired tangible personal property exempt from tax under section 78 (1) if

(a) the only subsequent use of that property, other than leasing, 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.

(1.3) Subject to section 11 (3), a person who

(a) acquired, inside or outside British Columbia, tangible personal property exempt from tax under section 78 (1.2), and

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

must, at the time the property ceases to be so capitalized, pay tax on the purchase price of that property at the rate under this Act.

23 Sections 14 (1) (a), (c) and (d) and (2) and 24 (2) are amended by striking out "15 days," and substituting "23 days,".

24 Section 19 (1) is amended by adding ", (1.3)" after "section 9 (1), (1.1)".

25 The following section is added:

Tax on property occasionally supplied with operator

20.2 (1) A person, other than a person who has paid tax under section 9 (1.1) or (1.3), who

(a) purchases tangible personal property exempt from tax under section 78 (1.2), or

(b) is referred to in section 9 (1.2)

must, when the property is, under an agreement, supplied with a person to operate it, pay tax at the applicable rate under section 20 on the price at which that property would have been leased had it been leased without supplying a person to operate it.

26 Section 49 (2) is amended by striking out "15th" and substituting "23rd".

27 Section 71 (b) is repealed and the following substituted:

(b) medicaments, when

(i) sold on the prescription of a physician, dentist or veterinarian, or

(ii) provided as part of a promotional distribution by a pharmaceutical company to a physician, dentist or veterinarian; .

28 Section 73 is amended

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

(a) subject to subsection (1.1), grain, mill and other agricultural feeds and seeds that are purchased to be used and are used solely for an agricultural purpose; , and

(b) by adding the following subsection:

(1.1) The exemption in subsection (1) (a) does not apply to grain, mill and other agricultural feeds and seeds that are purchased to be used or are used to feed

(a) a bird, a product of which does not ordinarily constitute food for human consumption, or

(b) a household pet.

29 Section 76 (1) is amended by striking out "The following are exempted" and substituting "Subject to section 92.2 (4), the following are exempted".

30 Section 78 is amended

(a) by adding the following subsection:

(1.2) A person who

(a) is a purchaser of tangible personal property,

(b) purchases the tangible personal property solely for the purposes of

(i) leasing the property to other persons, and

(ii) occasionally, under an agreement, supplying the property with a person to operate it, and

(c) capitalizes the tangible personal property as lease inventory in the person's business accounting records

is exempt from tax imposed by Divisions 1 and 2 of Part 2 or by section 112.3 on that purchase. ,

(b) in subsection (2) by striking out "A purchaser who purchases" and substituting "Subject to section 92.2 (5), a purchaser who purchases", and

(c) in subsection (3) by striking out "A purchaser who purchases" and substituting "Subject to section 92.2 (5), a purchaser who purchases".

31 Sections 80 (1) (b) and (2) and 82 (3) (a) are amended by striking out "6 years" and substituting "4 years".

32 The following section is added:

Medical equipment purchased by charitable organizations

88.2 (1) In this section:

"charity funds" means the funds of an eligible charity other than funds provided directly or indirectly by

(a) a health authority, a health facility, a local authority or the government of Canada or British Columbia, or

(b) a prescribed person;

"eligible charity" means

(a) a registered charity, and

(b) a member of the British Columbia Association of Health-Care Auxiliaries, a society incorporated under the Society Act;

"health authority" means a regional health board designated under section 4 of the Health Authorities Act;

"health facility" means

(a) a hospital within the meaning of the Hospital Act, including a private hospital within the meaning of Part 2 of that Act, and

(b) a prescribed facility;

"medical equipment" does not include

(a) equipment of the types prescribed, and

(b) equipment for the prescribed uses;

"registered charity" means a registered charity as defined in section 248 (1) of the Income Tax Act (Canada).

(2) Subject to subsections (3) and (5), an eligible charity may, in respect of tax paid by it under section 5 (1), 11 or 112.3 on the purchase of medical equipment, apply for a refund of the portion of the tax that is specified under subsection (4) of this section if that medical equipment

(a) was purchased, in whole or in part, with charity funds, and

(b) is used by a health facility to treat patients or diagnose their ailments.

(3) An application under subsection (2)

(a) must include the prescribed information, certifications and documentation to substantiate, to the satisfaction of the commissioner, the applicant's eligibility for the refund and the amount of the refund payable under subsection (4), and

(b) may be made only in respect of medical equipment purchased on or after February 21, 2007.

(4) After receiving an application by an eligible charity in relation to tax paid on the purchase of medical equipment, the commissioner, if satisfied that the application complies with subsections (2), (3) and (5), must refund to the applicant out of the consolidated revenue fund a portion of the tax determined in accordance with the regulations.

(5) An eligible charity may not make more than one application under this section in a calendar year.

33 The following section is added:

Persons who are not required to be registered

92.2 (1) In this section, "qualifying tangible personal property" means tangible personal property other than

(a) motor vehicles,

(b) aircraft,

(c) vessels,

(d) liquor,

(e) parking rights, and

(f) other prescribed tangible personal property.

(2) A person, other than a person in a class of persons prescribed by regulation, who sells qualifying tangible personal property and whose gross annual sales from all qualifying tangible personal property sold is $10 000 or less is not required to obtain a registration certificate under section 92 if the person does not regularly make sales or leases of tangible personal property from an established commercial premises and does not maintain an established business premises.

(3) A person described in subsection (2) who does not obtain a registration certificate under section 92

(a) must not collect tax on sales of qualifying tangible personal property,

(b) must keep a record of all sales and leases, and

(c) must pay tax under sections 5 (1), 40 (1), 46 (1) and 53 on qualifying tangible personal property acquired for resale as if the person were a purchaser of that qualifying tangible personal property.

(4) Tangible personal property referred to in section 76 (1) (b), (c), (c.1), (h) and (j) to (l) and in prescribed sections of the regulations is not exempted from taxes imposed by sections 5 to 25 and 112.3 when purchased by a person described in subsection (3) of this section.

(5) The exemptions set out in section 78 (2) and (3) do not apply to a person described in subsection (3) of this section.

(6) Despite sections 5 (1), 40 (1), 46 (1) and 53, a person who purchases qualifying tangible personal property from a person described in subsection (3) of this section is not required to pay tax on that purchase.

34 Section 93 (1) is amended by adding ", other than a person described in section 92.2 (3)," after "Every person".

35 Section 115 (3) and (6) (b) is amended by striking out "6 years" and substituting "4 years".

36 Section 116 (3) is amended by striking out "15 days" and substituting "23 days".

37 Section 116 (4) is amended by striking out "6 years" and substituting "4 years".

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

(r.1) prescribing

(i) persons for the purposes of the definition of "charity funds" in section 88.2 (1),

(ii) facilities for the purposes of the definition of "health facility" in section 88.2 (1),

(iii) types and uses of equipment for the purposes of the definition of "medical equipment" in section 88.2 (1),

(iv) information, certifications and documentation for the purposes of section 88.2 (3), and

(v) a method for determining the amount of the refund to be paid under section 88.2 (4); .

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

(r.2) prescribing

(i) tangible personal property for the purposes of the definition of "qualifying tangible personal property" in section 92.2 (1),

(ii) classes of persons for the purposes of section 92.2 (2), and

(iii) sections of the regulations for the purposes of section 92.2 (4); .

 
Special Accounts Appropriation and Control Act

40 The Special Accounts Appropriation and Control Act, R.S.B.C. 1996, c. 436, is amended by adding the following sections:

Housing Endowment Fund special account

9.3 (1) A special account, to be known as the Housing Endowment Fund special account, is established.

(2) The special account consists of

(a) an opening balance of $250 million, effective April 1, 2007, and

(b) all earnings of the account, net of any associated investment fees and expenses, that have not been paid out under subsection (3).

(3) Despite section 21 (3) of the Financial Administration Act, the minister responsible for the administration of this section may pay out of the special account earnings of the special account, for purposes related to

(a) innovation in the provision of affordable, social or supportive housing, and

(b) innovation in housing development and management.

Children's Education Fund special account

9.4 (1) A special account, to be known as the Children's Education Fund special account, is established.

(2) The special account consists of the following:

(a) an initial balance of $41 200 000, effective April 1, 2007;

(b) in 2008 and each subsequent calendar year, effective April 1 of the year, an additional amount calculated by multiplying $1 000 by the total of

(i) the estimated number of children who will be born in British Columbia in that year, and

(ii) the estimated number of children who will be adopted in British Columbia in that year who were born outside British Columbia on or after January 1, 2007;

(c) all earnings of the special account net of any associated investment fees and expenses.

(3) The estimates required for the purposes of subsection (2) (b) are to be determined by the Minister of Finance based on information provided by the director under the Statistics Act.

(4) Despite section 21 (3) of the Financial Administration Act, the minister responsible for the administration of this section may pay amounts out of the special account for the purpose of providing financial assistance in accordance with the regulations to students born on or after January 1, 2007 who are

(a) eligible in accordance with the regulations, and

(b) enrolled in education programs that are eligible in accordance with the regulations.

(5) The Lieutenant Governor in Council may make regulations for the purposes of this section including, without limitation, regulations doing one or more of the following:

(a) prescribing eligibility requirements;

(b) prescribing how the amount of financial assistance for individual students is to be determined;

(c) providing for reconsiderations or appeals of decisions respecting eligibility;

(d) authorizing the collection of personal information from students applying for financial assistance, including information about third parties necessary to determine the eligibility of applicants;

(e) prescribing conditions on which amounts are paid, or authorizing the minister responsible for the administration of this section to establish conditions on which amounts are paid;

(f) establishing requirements for repayment to the government if conditions under paragraph (e) are not met, or if other prescribed circumstances apply;

(g) providing that payments from the special account are not subject to any process of garnishment, attachment, execution or seizure by a creditor.

 
Tobacco Tax Act

41 Sections 19 (1) (b) and (2) and 20 (2) (a) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, are amended by striking out "6 years" and substituting "4 years".

42 Section 22 (3) is amended by striking out "6 years" and substituting "4 years".

 
Transportation Act

43 Section 40 of the Transportation Act, S.B.C. 2004, c. 44, is repealed.

44 Section 79 (1) (e) is amended by striking out "(e),".

45 Section 87 (2) (e) is repealed.

 
Transitional and Other Provisions

Application

46 For greater certainty, the amendments made by sections 9, 12, 31 and 41 of this Act apply with respect to all applications for refunds made on or after May 1, 2007, under the provisions amended by those sections, including applications made with respect to tax paid before May 1, 2007.

Transitional -- Property Transfer Tax Act

47 (1) The following provisions of the Property Transfer Tax Act, as amended or enacted by this Act, apply only in relation to applications for registration of eligible transactions filed at a land title office on or after February 21, 2007:

(a) the definitions of "eligible security", "Habitat for Humanity" and "qualifying value" in section 4 (1);

(b) section 4.1;

(c) section 8 (1) (c).

(2) The following provisions of the Property Transfer Tax Act continue to apply, in relation to applications for registration of eligible transactions filed at a land title office before February 21, 2007, as they read immediately before their amendment by this Act:

(a) the definitions of "eligible security" and "qualifying value" in section 4 (1);

(b) section 8 (1) (c).

(3) If made before December 31, 2007, regulations made under section 37.1 of the Property Transfer Tax Act may be made retroactive to February 21, 2007 or a later date, and if made retroactive are deemed to have come into force on the specified date.

Transitional -- Social Service Tax Act

48 If made before April 1, 2007, regulations under section 138 (1) (r.2) of the Social Service Tax Act may be made retroactive to a date on or after February 21, 2007, and if made retroactive are deemed to have come into force on the specified date.

Commencement

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

 
Explanatory Notes

 
Financial Institutions Act

SECTION 1: [Financial Institutions Act, section 267] provides that the Credit Union Deposit Insurance Fund continued under this section of the Act is a trust fund.

 
Home Owner Grant Act

SECTION 2: [Home Owner Grant Act, section 1] defines "approved form" and "low- income grant supplement" for purposes of the Act.

SECTION 3: [Home Owner Grant Act, section 2] provides that specified owners, spouses and relatives who qualify as low-income individuals and who are subject to home owner grant reductions in a tax year (because their property exceeds the prescribed threshold value) may be eligible for a low-income grant supplement for that tax year, and imposes requirements in respect of such eligibility.

SECTION 4: [Home Owner Grant Act, section 7] provides that specified occupants, spouses and relatives who qualify as low-income individuals and who are subject to reductions in grant benefits in a tax year (because their property exceeds the prescribed threshold value) may be eligible for a low-income grant supplement for that tax year, and imposes requirements in respect of such eligibility.

SECTION 5: [Home Owner Grant Act, section 16] makes it an offence to supply false information to the grant administrator in respect of applications for or audits of low-income grant supplements.

SECTION 6: [Home Owner Grant Act, section 17] provides for the repayment and collection of low-income grant supplements paid to persons who, on audit, were not entitled.

SECTION 7: [Home Owner Grant Act, section 18] provides that regulations made under section 18.1, as added by this Bill, respecting a low-income grant supplement program may be made retroactive to January 1 of the year they are made.

SECTION 8: [Home Owner Grant Act, sections 18.1 and 18.2]

• authorizes regulations for the establishment of a program respecting the payment of low-income grant supplements to low-income individuals whose home owner grant, or benefit in respect of such grant, for a tax year is reduced or eliminated because their property exceeds the prescribed threshold value;
• authorizes collection and use of information to determine and audit qualifications and eligibility for a low-income grant supplement for a tax year;
• provides for forms approved by the minister for purposes of the Act.

 
Hotel Room Tax Act

SECTION 9: [Hotel Room Tax Act, sections 12 and 13] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 10: [Hotel Room Tax Act, section 17] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

 
Land Tax Deferment Act

SECTION 11: [Land Tax Deferment Act, section 5] lowers from 60 to 55 years of age the minimum age at which a person, other than a surviving spouse or a disabled person, is eligible to defer property taxes.

 
Motor Fuel Tax Act

SECTION 12: [Motor Fuel Tax Act, sections 26 and 27] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 13: [Motor Fuel Tax Act, sections 42, 43 and 44] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

 
Ports Property Tax Act

SECTION 14: [Ports Property Tax Act, section 2] allows Crown land that becomes taxable because it is held or occupied by a party other than the Crown to be immediately eligible for the ports property tax rate caps if the property is designated under section 2 of the Act.

 
Property Transfer Tax Act

SECTION 15: [Property Transfer Tax Act, section 4]

• adds reference to a new section to which definitions under section 4 apply, as a consequence of the addition of section 4.1 to the Act by this Bill;
• amends the definition of "eligible security" by adding a meaning in relation to transfers to first time home buyers from Habitat for Humanity;
• adds a definition of "Habitat for Humanity";
• increases the qualifying value for purposes of the first time home buyers' exemption under the Act and applies the same qualifying value in all regions of British Columbia.

SECTION 16: [Property Transfer Tax Act, section 4.1] for the purposes of the first time home buyers' exemption, deems the fair market value of property transferred to a first time home buyer by Habitat for Humanity to be the lesser of its fair market value, determined in accordance with the definition in section 1 of the Act, and the principal amount secured by a first mortgage from the home buyer in favour of Habitat for Humanity.

SECTION 17: [Property Transfer Tax Act, section 8] is amended as a consequence of the amendment by this Bill to the definition of "qualifying value" in the Act.

SECTION 18: [Property Transfer Tax Act, section 37.1] empowers the minister to make regulations designating corporations operating in British Columbia for the purposes of the definition of "Habitat for Humanity".

 
Public Service Benefit Plan Act

SECTION 19: [Public Service Benefit Plan Act, section 6] provides that the Long Term Disability Fund continued under section 6 of the Act is a trust fund, and makes a consequential amendment to subsection (5).

 
Social Service Tax Act

SECTION 20: [Social Service Tax Act, section 1]

• amends the definition of "purchase price" to subtract from the purchase price of a motor vehicle an amount accepted by the seller from the manufacturer as price or on account of the price;
• amends the definition of "vendor" consequential to section 92.2 of the Act added by this Bill.

SECTION 21: [Social Service Tax Act, section 5] changes a reference from 6 years to 4 years in a provision addressing the continuing liability to pay tax under the Act.

SECTION 22: [Social Service Tax Act, section 9] amends the provision dealing with change of use consequential to sections 20.2 and 78 (1.2) of the Act added by this Bill.

SECTION 23: [Social Service Tax Act, sections 14 and 24] changes the tax-remittance period from a period ending 15 days after a specified day to a period ending 23 days after that specified day.

SECTION 24 [Social Service Tax Act, section 19] is consequential to section 9 (1.3) of the Act added by this Bill.

SECTION 25: [Social Service Tax Act, section 20.2] requires a person to pay tax on tangible personal property that was purchased exempt from tax under section 78 (1) or (1.2) but then, under an agreement, is supplied with a person to operate it.

SECTION 26: [Social Service Tax Act, section 49] changes the tax-remittance period from a period ending on the 15th day of the month following a specified month to a period ending on the 23rd day of the month following that specified month.

SECTION 27: [Social Service Tax Act, section 71] amends the exemption for medicaments to include medicaments provided as part of a promotional distribution.

SECTION 28: [Social Service Tax Act, section 73] amends the exemption for grain, mill and other agricultural feeds and seeds to clarify that they are exempt only if they are purchased to be used and are used for an agricultural purpose.

SECTION 29: [Social Service Tax Act, section 76] is consequential to section 92.2 of the Act added by this Bill.

SECTION 30: [Social Service Tax Act, section 78] adds a subsection to the Act to provide an exemption for tangible personal property purchased solely for the purposes of leasing the property to other persons and occasionally supplying the property with a person to operate it.

SECTION 31: [Social Service Tax Act, sections 80 and 82] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 32: [Social Service Tax Act, section 88.2] adds a section to the Act authorizing the commissioner to pay, on application, a refund of tax paid on medical equipment purchased with charity funds of eligible charities.

SECTION 33: [Social Service Tax Act, section 92.2] adds a section

• allowing certain persons to make sales of qualifying tangible personal property without obtaining a registration certificate under section 92 of the Act,
• requiring those persons, if they do not obtain a registration certificate under section 92 of the Act, to pay tax under the Act on qualifying tangible personal property they acquire for resale, and
• allowing a person to purchase qualifying tangible personal property from those persons without paying tax under the Act.

SECTION 34: [Social Service Tax Act, section 93] is consequential to section 92.2 of the Act added by this Bill.

SECTION 35: [Social Service Tax Act, section 115] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

SECTION 36: [Social Service Tax Act, section 116] changes the tax-payable period from a period ending 15 days after a specified day to a period ending 23 days after that specified day.

SECTION 37: [Social Service Tax Act, section 116] changes the estimate period from a period ending 6 years after a specified date to a period ending 4 years after that specified date.

SECTION 38: [Social Service Tax Act, section 138] amends the provision of the Act authorizing the making of regulations, consequential to the addition of section 88.2 to the Act made by this Bill.

SECTION 39: [Social Service Tax Act, section 138] is consequential to section 92.2 of the Act added by this Bill.

 
Special Accounts Appropriation and Control Act

SECTION 40: [Special Accounts Appropriation and Control Act, sections 9.3 and 9.4]

• by the proposed section 9.3, establishes the Housing Endowment Funds special account for the purposes of providing support to innovative housing initiatives;
• by the proposed section 9.4, establishes the Children's Education Fund special account for the purposes of providing future financial assistance to students.

 
Tobacco Tax Act

SECTION 41: [Tobacco Tax Act, sections 19 and 20] changes the period during which applications for certain refunds may be made from a period ending 6 years after a specified day or event to a period ending 4 years after that specified day or event.

SECTION 42: [Tobacco Tax Act, section 22] changes the assessment period from a period ending 6 years after a specified day to a period ending 4 years after that specified day.

 
Transportation Act

SECTION 43: [Transportation Act, section 40] removes the cap on borrowings by the BC Transportation Financing Authority.

SECTION 44: [Transportation Act, section 79] removes a cross reference to section 87 (2) (e) of the Act.

SECTION 45: [Transportation Act, section 87] removes regulation-making authority in relation to section 40 of the Act.

SECTION 46: [Application] clarifies the application of amendments made by particular sections of this Bill.

SECTION 47: [Transitional -- Property Transfer Tax Act] establishes rules for the transition to the amendments made by this Bill.

SECTION 48: [Transitional -- Social Service Tax Act] authorizes regulations under section 138 (1) (r.2) of the Act to be made retroactive to February 21, 2007 if made before April 1, 2007.