Report E -- Table E2 -- Economic Development and Business Assistance Programs

Report E: TAX EXPENDITURES

TABLE E2
ECONOMIC DEVELOPMENT AND BUSINESS ASSISTANCE PROGRAMS

TAX EXPENDITURE

1998/99
Estimated Cost

PROVINCIAL SALES TAX

($ millions)

Commissions paid to retailers and hotel operators

Exemptions for the following items:

Livestock for human consumption and agricultural feed, seed and fertilizer

Exempt purchases by farmers, fishers and aquaculturists

Magnetite for processing coal, eligible exploration equipment and drill bits for mineral exploration and production

FUEL TAX

Tax exemption for international flights carrying cargo

Tax exemption for family farm trucks (on road)

PERSONAL INCOME TAX

Venture capital tax credit

Employee venture capital tax credit

CORPORATION INCOME TAX

Provincial Measures

Film and video tax credit

Production services tax credit

International financial business tax refund¹

Two-year corporate income tax holiday for small business

Federal Measures²

Earned depletion

Allowable business investment losses

CORPORATION CAPITAL TAX

Exemption for family farm and cooperative corporations

Two-year tax holiday for eligible British Columbia investment expenditures

SCHOOL AND RURAL AREA PROPERTY TAXATION³

School tax assessment reduction on current values for farm buildings and farm land, and residences in the agricultural land reserve

Assessment of farm land at farm use values⁴

Assessment exemption of $10,000 for industrial and business properties

Overnight tourist accommodation assessment relief

Managed forest land classification

OTHER TAXES

Oil and gas royalty holiday

1	Includes employee income tax refunds.
2	The provincial revenue loss estimates for federal measures are based on estimates of the federal losses contained in Government of Canada: Tax Expenditures, 1998. The federal estimates are based on 1998 estimated incomes. British Columbia corporate income tax expenditures are estimated by applying British Columbia's share of corporate taxable income to the federal estimates, and then applying the relevant tax rates. Certain tax expenditure items have been excluded where no data were available. (Prior to 1997, federal tax expenditure reports did not include projections; previous estimates of provincial revenue losses were based on historical federal estimates.)
3	Estimates are for the 1998 calendar year and include only school and rural area property taxes levied by the province.
4	Currently, the values of farm land and residential land in the Agricultural Land Reserve are reduced by 50 per cent for school tax purposes. The $84 million estimate assumes that farmland would be assessed at 100 per cent of market value.