BILL 9 — 2013
BUDGET MEASURES IMPLEMENTATION ACT, 2013

Forest Act

1 Section 130 (1) (b) (ii) of the Forest Act, R.S.B.C. 1996, c. 157, is amended by striking out "section 142.51 (5)" and substituting "section 142.51 (5) or 142.61 (4)".

2 Section 142.1 (2) is amended by striking out "the date this section comes into force." and substituting "March 30, 2006."

3 Section 142.3 (3) is amended by striking out "is assessed under section 142.51 (4) or (5) or 142.61 (1) or (2)," and substituting "is assessed under section 142.42 (1), 142.51 (4) or (5) or 142.61 (1), (2) or (4),".

4 The following sections are added:

Penalty for failure to provide information

142.42 (1) If the commissioner is satisfied that a person has failed to comply with

(a) a demand notice served under section 142.31, or

(b) a request made under section 142.41 (e),

the commissioner may assess against the person, in addition to any other penalty, a penalty equal to the product obtained by multiplying $100 and the number of days during which the failure continues, to a maximum penalty of $10 000.

(2) Sections 142.7 to 142.81 apply in relation to an assessment made under subsection (1) of this section, as if an assessment made under subsection (1) of this section were an assessment made under a provision referred to in section 142.7.

(3) This section and section 142.43 apply with respect to

(a) a demand notice under section 142.31, if the demand notice is served on or after the date this section comes into force, and

(b) a request under section 142.41 (e), if the request is made on or after the date this section comes into force.

Order for compliance

142.43 (1) If the commissioner considers that a person has failed to comply with

(a) a demand notice served under section 142.31, or

(b) a request made under section 142.41 (e),

the commissioner may apply to the Supreme Court for either or both of the following:

(c) an order directing the person to comply with the demand notice or request;

(d) an order directing the directors and officers of the person to cause the person to comply with the demand notice or request.

(2) On application by the commissioner under this section, the Supreme Court may make an order it considers appropriate.

5 The heading to Division 3 of Part 11.1 is amended by striking out "Assessment" and substituting "Assessment of Stumpage".

6 Section 142.61 is amended by adding the following subsection:

(4) After assessing a penalty against a person under subsection (1) or (2), the commissioner may assess the amount of interest payable under section 130 (1) (b) on the amount assessed.

7 Sections 142.7, 142.71 and 142.81 are amended by striking out "142.61 (1) or (2)" wherever it appears and substituting "142.61 (1), (2) or (4)".

8 Section 142.9 (1) is repealed and the following substituted:

(1) If a person disputes an assessment made under section 142.42 (1), 142.51 (4) or (5) or 142.61 (1), (2) or (4), the person or the person’s agent may appeal to the revenue minister in accordance with this section.

Home Owner Grant Act

9 The Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended by adding the following section:

Waiver or cancellation of amount payable
under notice of disentitlement

17.1 (1) In this section:

"notice of disentitlement" has the same meaning as in section 17;

"notice recipient" has the same meaning as in section 17;

"principal residence requirement" means a requirement in this Act that a residence be occupied as a principal residence in order for a person to be entitled to receive a grant or supplement in respect of the residence;

"residence" means

(a) an eligible residence,

(b) an eligible apartment or eligible housing unit in an eligible building,

(c) an eligible land cooperative residence on a land cooperative, or

(d) an eligible multi dwelling leased parcel residence on a multi dwelling leased parcel.

(2) Despite the Financial Administration Act but subject to this section, the grant administrator may waive or cancel all or part of an amount payable under section 17 of this Act by a notice recipient to whom a notice of disentitlement is issued on or after January 1, 2011.

(3) The grant administrator must notify the notice recipient, in writing, of a waiver or cancellation given under subsection (2).

(4) Subject to subsection (5), the grant administrator may give a waiver or cancellation under subsection (2) only if the grant administrator is satisfied that it is fair and reasonable to do so

(a) in the circumstances set out in subsection (6), or

(b) in circumstances established by regulation.

(5) If the amount to be waived or cancelled under subsection (2) exceeds $25 000, the grant administrator may give a waiver or cancellation only with the approval of the Lieutenant Governor in Council.

(6) The circumstances for the purposes of subsection (4) (a) are that

(a) the amount payable relates to a grant or supplement received, for a tax year, in respect of a residence for which a person did not meet an applicable principal residence requirement, and

(b) the grant administrator is satisfied that there is another residence in respect of which

(i) the person referred to in paragraph (a) would have met the applicable principal residence requirement, and

(ii) a grant or supplement would have been received, for the tax year, if the person who was entitled to receive the grant or supplement had applied for the grant or supplement.

(7) If an amount is payable under section 17 in respect of a notice of disentitlement issued on or after January 1, 2011 but before this section comes into force, the amount payable may be waived or cancelled under subsection (2) of this section only if the waiver or cancellation is given within one year after the date this section comes into force.

(8) If an amount is payable under section 17 in respect of a notice of disentitlement issued on or after the date this section comes into force, the amount payable may be waived or cancelled under subsection (2) of this section only if the waiver or cancellation is given within one year after the date of issue of the notice of disentitlement.

(9) If a waiver or cancellation is given under subsection (2) in respect of an amount already paid by the notice recipient, the grant administrator must refund to the notice recipient, out of the consolidated revenue fund, the waived or cancelled amount already paid by the notice recipient.

(10) Subject to subsection (11), if a refund under subsection (9) is paid to a notice recipient who is the owner of an eligible building, a land cooperative or a multi dwelling leased parcel, section 7 (1) and (2) applies in respect of the refund, as if the refund were a grant referred to in section 7 (1).

(11) Subsection (10) does not apply to the extent that,

(a) before the notice recipient was notified that the notice recipient was not entitled to a grant in respect of a residence, the notice recipient, in accordance with section 7 (1), provided the benefit of the grant to the person entitled to that benefit, and

(b) after the notice recipient was notified that the notice recipient was not entitled to the grant, the person who received the benefit of the grant did not compensate the notice recipient for the amount of the benefit.

10 Section 18 is amended

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

(h) for the purposes of section 17.1 (4) (b),

(i) establish circumstances in which the grant administrator may waive or cancel all or part of an amount payable under section 17, and

(ii) establish conditions or limits in relation to giving a waiver or cancellation in the circumstances prescribed under subparagraph (i) of this paragraph. , and

(b) by adding the following subsection:

(2.1) In making regulations under subsection (2) (h), the Lieutenant Governor in Council may do one or more of the following:

(a) delegate a matter to the grant administrator;

(b) confer a discretion on the grant administrator;

(c) make different regulations for different persons, places, things or circumstances.

Hydro and Power Authority Act

11 The Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is amended by adding the following section:

Grants to taxing treaty first nations

34.1 (1) In this section, "taxing treaty first nation" has the same meaning as in the Treaty First Nation Taxation Act.

(2) With the approval of the Lieutenant Governor in Council, the authority may make annual grants to a taxing treaty first nation with respect to the taxing treaty first nation’s treaty lands within which the authority generates, transmits or sells electric power or otherwise carries on business.

(3) The Assessment Act and the Assessment Authority Act apply to the authority for the purposes of making annual grants under subsection (2) with respect to the treaty lands of a taxing treaty first nation.

(4) Grants under subsection (2) may be made for any taxation year for which a treaty first nation is or was a taxing treaty first nation, whether the taxation year occurs before or after, or partly before or after, the date this section comes into force.

(5) Subsection (4) is retroactive to the extent necessary to give it full force and effect with respect to any taxation year in which a treaty first nation is or was a taxing treaty first nation.

Income Tax Act

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

(a) in subsection (1) (e) by striking out "if the taxable income exceeds $85 000," and substituting "if the taxable income exceeds $85 000 and does not exceed $150 000,",

(b) in subsection (1) (e) (ii) by striking out "that exceeds $85 000." and substituting "that exceeds $85 000 and does not exceed $150 000;",

(c) in subsection (1) by adding the following paragraph:

(f) if the taxable income exceeds $150 000,

(i) the highest amount that might be determined for an individual under paragraph (e) of this subsection,

plus

(ii) 16.8% of the taxable income that exceeds $150 000. , and

(d) in subsection (2) by striking out "subsection (1) (b) (i), (c) (i), (d) (i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c) or (d)," and substituting "subsection (1) (b) (i), (c) (i), (d) (i), (e) (i) and (f) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c), (d) or (e),".

13 Section 4.1 is amended

(a) in subsection (1) (e) by striking out "and does not exceed $150 000" in both places,

(b) by repealing subsection (1) (f), and

(c) in subsection (2) by striking out "subsection (1) (b) (i), (c) (i), (d) (i), (e) (i) and (f) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c), (d) or (e)," and substituting "subsection (1) (b) (i), (c) (i), (d) (i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c) or (d),".

14 Section 4.52 is amended by adding the following subsection:

(4.21) For the purpose of computing the tax payable by an individual for the 2014 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the amount of $150 000 referred to in section 4.1 (1) (e) and (f).

15 Section 4.52 (4.21) is repealed.

16 Sections 14 (2) and (3.1) (a), 16 (1) (b) and (2) (b) and 25 (2) are amended by striking out "10%" and substituting "11%".

Land Tax Deferment Act

17 Section 1 of the Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is amended by repealing the definition of "dependent child" and substituting the following:

"dependent child" means a person who is a dependent child as described in section 1.1; .

18 The following section is added:

Dependent child

1.1 (1) A person is a dependent child for the purposes of this Act if the person

(a) is dependent for financial support on an owner of eligible property, and

(b) is in a class of persons

(i) described in subsection (2), (3) or (4) of this section, or

(ii) included by regulation under section 18 (2) (h).

(2) A person who is, at any time in the calendar year in which an application is made for an agreement under section 2, under the age of 18 years is a dependent child if one of the following circumstances applies:

(a) the person lives full time with the owner in the eligible property;

(b) the person lives, under a shared parenting arrangement, at least part time with the owner in the eligible property;

(c) the person does not live with the owner in the eligible property, but the owner pays support for the person.

(3) A person who is a child or stepchild of an owner of eligible property is a dependent child if one of the following circumstances applies:

(a) the minister is satisfied that, at any time in the calendar year in which an application is made for an agreement under section 2, the person is or will be enrolled at an educational institution;

(b) the person is a person with disabilities as defined in the regulations.

(4) A person is a dependent child if

(a) an agreement was made previously under section 2 on the basis of the person being a dependent child,

(b) the owner of eligible property continues to owe an amount under the agreement, and

(c) either of the circumstances described in subsection (3) (a) or (b) applies to the person.

(5) Despite subsections (1) to (4), a person is not a dependent child if the person is within a class of persons excluded by regulation under section 18 (2) (h).

19 Section 4 is amended by adding the following subsections:

(1.2) Despite subsection (1), the agreement is not terminated under subsection (1) by reason only that a portion of the eligible property is disposed of, by the owner, to a person if

(a) the owner retains no interest in the portion disposed of,

(b) the remaining portion includes a building or a manufactured home used for residential purposes as the owner’s principal residence, and

(c) the minister considers that the amount deferred under the agreement remains adequately secured.

(1.3) If subsection (1.2) applies,

(a) the agreement made under section 2 continues, subject to this section and section 5 (5),

(b) the remaining portion is deemed to be the eligible property that is the subject of the agreement, and

(c) the minister must release the charge, as it applies to the portion disposed of, registered under section 7.

20 Section 18 (2) (h) is repealed and the following substituted:

(h) including and excluding classes of persons for the purposes of section 1.1.

Property Transfer Tax Act

21 The definition of "family farm" in section 14 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended

(a) by striking out "or" at the end of paragraph (b), and

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

(c) for the purpose of an exemption claimed under subsection (3) (c.1) or (c.2), was, immediately before the deceased’s death, owned by the deceased and used and farmed by one or more of the following:

(i) the deceased;

(ii) family members of the deceased;

(iii) a family farm corporation that, at the time of the deceased’s death, was comprised of shareholders, each of whom was one of the following:

(A) a related individual of the deceased;

(B) a sibling of the deceased;

(C) a spouse of a sibling of the deceased, or

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

Tobacco Tax Act

22 Section 2 (2) and (3) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is repealed and the following substituted:

(2) A consumer must, at the time of making a purchase of tobacco in the form of cigarettes, pay to the government a tax at the rate of 22.3¢ for each cigarette purchased.

(3) A consumer must, at the time of making a purchase of tobacco in a form other than cigars or cigarettes, pay to the government a tax at the rate of 22.3¢ for each gram of tobacco purchased.

Commencement

23 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

SECTION 1: [Forest Act, section 130] provides that interest assessed under section 142.61 (4) of the Act runs from the date that stumpage would have been due.

SECTION 2: [Forest Act, section 142.1] provides a date for ease of reading.

SECTION 3: [Forest Act, section 142.3] is consequential to the enactment by this Bill of sections 142.42 (1) and 142.61 (4) of the Act.

SECTION 4: [Forest Act, sections 142.42 and 142.43] provides that the commissioner may assess a penalty against a person who fails to provide information or records as demanded under section 142.31 of the Act or as requested under section 142.41 of the Act, and authorizes the Supreme Court to grant an order requiring a person to comply with a demand notice or request to provide information or records.

SECTION 5: [Forest Act, heading to Division 3 of Part 11.1] is consequential to the enactment by this Bill of sections 142.42 and 142.43 of the Act.

SECTION 6: [Forest Act, section 142.61] provides that the commissioner may assess interest under section 130 (1) (b) of the Act on a penalty assessed under section 142.61 (1) or (2) of the Act.

SECTION 7: [Forest Act, sections 142.7, 142.71 and 142.81] is consequential to the enactment by this Bill of section 142.61 (4) of the Act.

SECTION 8: [Forest Act, section 142.9] is consequential to the enactment by this Bill of sections 142.42 (1) and 142.61 (4) of the Act.

SECTION 9: [Home Owner Grant Act, section 17.1] provides authority for the grant administrator to waive or cancel an amount payable under section 17 by a notice recipient to whom a notice of disentitlement is issued on or after January 1, 2011, but requires the grant administrator to obtain approval of the Lieutenant Governor in Council if the amount to be waived or cancelled exceeds $25 000.

SECTION 10: [Home Owner Grant Act, section 18] adds regulation-making powers for the purposes of section 17.1 (4) (b) of the Act, as enacted by this Bill.

SECTION 11: [Hydro and Power Authority Act, section 34.1] authorizes the British Columbia Hydro and Power Authority, with the approval of the Lieutenant Governor in Council, to make a grant for a taxation year to a taxing treaty first nation.

SECTION 12: [Income Tax Act, section 4.1] establishes a personal income tax bracket for taxable income that exceeds $150 000.

SECTION 13: [Income Tax Act, section 4.1] repeals the personal income tax bracket for taxable income that exceeds $150 000.

SECTION 14: [Income Tax Act, section 4.52] is consequential to the enactment by this Bill of section 4.1 (1) (f) of the Act.

SECTION 15: [Income Tax Act, section 4.52] is consequential to the repeal by this Bill of section 4.1 (1) (f) of the Act.

SECTION 16: [Income Tax Act, sections 14, 16 and 25] increases from 10% to 11% the corporate income tax rate established by section 14 (2) of the Act.

SECTION 17: [Land Tax Deferment Act, section 1] repeals and replaces the definition of "dependent child", consequential to the enactment by this Bill of section 1.1 of the Act.

SECTION 18: [Land Tax Deferment Act, section 1.1] describes the circumstances in which a person is a dependent child for the purposes of the Act.

SECTION 19: [Land Tax Deferment Act, section 4] provides that partial disposition of eligible property does not terminate a land tax deferral agreement.

SECTION 20: [Land Tax Deferment Act, section 18] is consequential to the repeal and replacement by this Bill of the definition of "dependent child" in section 1 of the Act.

SECTION 21: [Property Transfer Tax Act, section 14] amends the definition of “family farm” by

• removing inapplicable cross-references, and
• expanding the definition to include farm land that was, immediately before the death of the deceased, owned by the deceased and used and farmed by one or more of the persons set out.

SECTION 22: [Tobacco Tax Act, section 2] increases the tax on cigarettes to 22.3¢ per cigarette and the tax on tobacco, other than cigars or cigarettes, to 22.3¢ per gram.