| SUMMARY OF REVENUE MEASURES |
| |
|
Revenue Effects |
| |
Effective Date |
1998/99 |
Fully
Implemented
Impact |
| |
($ millions) |
| Income Tax Act |
- The British Columbia personal income tax rate is decreased to 49.5
per cent from 50.5 per cent effective January 1, 1999
|
January 1, 1999 |
(25) |
(110) |
- The British Columbia personal income tax surtax is decreased to 19
per cent from 26 per cent of British Columbia income tax in excess of $8,660
effective January 1, 1999
|
January 1, 1999 |
(12) |
(42) |
- The British Columbia corporate income tax small business rate is decreased
to 8.5 per cent from 9 per cent effective January 1, 1999 and to 8 per
cent effective January 1, 2000
|
January 1, 1999 |
(3) |
(20) |
- Refundable corporate income tax credit provided for Film Incentive
BC
|
April 1, 1998 |
(7) |
(15) |
| Corporation Capital Tax Act |
- Exemption threshold increased to $2.5 million from $1.5 million of
net paid-up capital effective January 1, 1999, to $3.5 million effective
January 1, 2000 and to $5 million effective January 1, 2001
|
January 1, 1999 |
(5) |
(46) |
- High-rate threshold for financial institutions increased to $1 billion
from $750 million of net paid-up capital effective April 1, 1998
|
April 1, 1998 |
* |
* |
| School Act |
- Average gross residential school taxes are maintained at 1997 levels;
rates will vary by school district. Non-residential school property tax
rates are unchanged from 1997
|
1998 tax year |
* |
* |
| Taxation (Rural Area) Act |
- Average gross residential taxes are maintained at 1997 levels by reducing
the residential tax rate. Non-residential rural area property tax rates
are unchanged from 1997
|
1998 tax year |
* |
* |
| Home Owner Grant Act |
- Home owner grant reduction threshold unchanged
|
1998 tax year |
* |
* |
| Social Service Tax Act |
- Exemptions provided for "1-800" and equivalent telephone
service, software source code, and tangible personal property incorporated
into copies of prototypes for testing purposes
|
May 1, 1998 and
March 31, 1998 |
(7) |
(7) |
- List of items that can be purchased exempt by bona fide farmers
is expanded
|
March 31, 1998 |
* |
* |
| Motor Fuel Tax Act |
- Exemption provided for coloured fuel used by bona fide farmers
|
June 1, 1998 |
(3) |
(3) |
- Tax rate on jet fuel used for international flights is reduced to 3
cents per litre from 4 cents per litre effective April 1, 1998 and to 2
cents per litre effective April 1, 1999
|
April 1, 1998 |
(6) |
(11) |
| Tobacco Tax Act |
- The tax rate imposed on tobacco sticks is increased to the cigarette
equivalent
|
March 31, 1998 |
5 |
5 |
- The maximum tax paid on cigars is increased to $5.00 from $2.50
|
March 31, 1998 |
* |
* |
| Insurance Premium Tax Act |
|
|
|
- Taxing authority is consolidated under the Insurance Premium Tax
Act and the 1 per cent tax under the Fire Services Act is repealed
|
April 1, 1998 |
4 |
4 |
International Financial Business
(Tax Refund) Act |
- International financial institutions are required to be members of
the IFC Society of Vancouver, allowing IFC Vancouver to increase self-funding
|
April 1, 1998 |
* |
* |
- Captive insurance companies and export financing companies are allowed
access to the refund
|
April 1, 1998 |
* |
* |
| Medicare Protection Act |
- Medical Services Plan premium assistance enhanced
|
July 1, 1998 |
(7) |
(9) |
| Other Revenue |
- Various fees and licences adjusted
|
various |
14 |
17 |
| Total |
(52) |
(237) |
| * denotes measures that have no or minimal revenue
impacts. |
