Report D: REVENUE MEASURES

TOPIC BOX
SUMMARY OF REVENUE MEASURES

D1 SUMMARY OF REVENUE MEASURES


Taxpayer Impacts
Effective Date 1999/00 Fully Implemented

Income Tax Act ($ millions)
The British Columbia personal income tax surtax is decreased from 19 per cent to 15 per cent of British Columbia income tax in excess of $8,660 effective January 1, 2000 January 1, 2000 (6) (24)
The British Columbia corporate income tax small business rate is decreased from 8.5 per cent to 5.5 per cent effective July 1, 1999 July 1, 1999 (38) (63)
BC Family Bonus increased by $2 per child per month effective July 1, 19991 July 1, 1999 (8) (10)

Corporation Capital Tax Act
The existing two year holiday is extended to four years, for expenditures incurred after March 31, 1999 April 1, 1999 * (20)

School Act
Average gross residential school taxes maintained at 1998 levels; rates will vary by school district 1999 tax year * *
Tax rate for managed forest land class reduced. Other non-residential school property tax rates unchanged from 1998 1999 tax year (4) (4)

Taxation (Rural Area) Act
Average gross residential taxes are maintained at 1998 levels. Non-residential rural area property tax rates are unchanged from 1998 1999 tax year * *

Social Service Tax Act
Exemption provided for boomsticks used by the forest industry March 31, 1999 (1) (1)
Partial refund of provincial sales tax provided for eligible factory manufactured alternative fuel vehicles March 31, 1999 * *
Exemption provided for purchases of product labels to be attached to goods for sale March 31, 1999 (1) (1)
List of items that can be purchased exempt by bona fide farmers expanded March 31, 1999 (1) (1)
Collection of provincial sales tax by Revenue Canada on personal importations of taxable goods introduced September 1, 1999 3 5

Motor Fuel Tax Act
Exemption provided for ethanol used in blends of ethanol and gasoline once an ethanol plant is operating in British Columbia2 Unknown * N/A

Mineral Tax Act
Taxation of placer mining reformed January 1, 1999 * *

Other Revenue
Various fees and licences adjusted Various 15 17
Total (41) (102)

Revenue Dedicated to
BC Transportation Financing Authority
Additional one cent per litre of the clear fuel tax transferred to BC Transportation Financing Authority. No increase in overall tax rates3 June 1, 1999 * *

Revenue Dedicated to
British Columbia Ferry Corporation
Transfer of one cent per litre of clear fuel tax to British Columbia Ferry Corporation effective April 1, 1999 and 1.25 cents per litre effective October 1, 1999. No increase in overall tax rates4 April 1, 1999 and
October 1, 1999
* *

Revenue Transferred to
Greater Vancouver Transportation Authority (GVTA)
Transfer of four cents per litre of clear fuel collected in the Greater Vancouver Transportation Service Area5 April 1, 1999 * *
Transfer of provincial sales tax revenue collected on parking in the Greater Vancouver Transportation Service Area6 April 1, 1999 * *
 
* denotes measures that have no or minimal taxpayer impacts.
1  The cost shown is the total cost. In the Estimates, 64 per cent of the BC Family Bonus program cost, representing payments to families in excess of their personal income tax liabilities, is reported as an expenditure. The remaining 36 per cent is reported as a reduction in income tax revenue.
2  The cost of an exemption for 10 per cent ethanol blends if an ethanol plant were currently operating in British Columbia is estimated at $5 - $10 million annually.
3  The additional one cent per litre is expected to generate approximately $57 million annually. There is no change to the clear fuel tax rates paid by consumers.
4  The transfer is expected to generate approximately $64 million in revenue in 1999/00 and $71 million in a full year. There is no change to the clear fuel tax rates paid by consumers.
5  The four cent per litre transfer is expected to generate approximately $88 million in revenue annually. There is no change to the clear fuel tax rates paid by consumers. In addition, the former Regional Transit Levy of 4 cents per litre will also be transferred to the GVTA.
6  The sales tax revenue collected on parking is estimated to generate $10 million annually. There is no change in the sales tax paid by consumers.

 

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