Source: https://www.leg.bc.ca/content/legacy/Web/38th4th/1st_read/gov45-1.htm
Timestamp: 2018-01-23 12:06:02
Document Index: 499741643

Matched Legal Cases: ['art 1', 'art 2', 'art 1', 'art 9', 'art 1', 'ART 3', 'art 3', 'art.\n34', 'art 3', 'art 4']

Bill 45 — 2008: Economic Incentive and Stabilization Statutes Amendment Act, 2008
Home > Documents and Proceedings > 4th Session, 38th Parliament > Bills > Bill 45 — 2008: Economic Incentive and Stabilization Statutes Amendment Act, 2008
BILL 45 — 2008
Part 1 — Tax Relief
SECTION 1:	[Budget Measures Implementation Act, 2008, section 37] is consequential to the amendment to section 4.1 of the Income Tax Act proposed by this Bill.
1	Section 37 of the Budget Measures Implementation Act, 2008, S.B.C. 2008, c. 10, is repealed.
SECTION 2:	[Budget Measures Implementation Act, 2008, section 126] is consequential to the repeal of section 37 of the Act proposed by this Bill.
2	Section 126 is amended by repealing item 11 of the table.
SECTION 3:	[Income Tax Act, section 4.1] reduces for the 2008 and subsequent taxation years the personal income tax rates applied to the 2 lowest taxable income ranges.
3	Section 4.1 (1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended
(a)	in paragraph (a) by striking out "5.24%" and substituting "5.06%", and
(b)	in paragraph (b) (ii) by striking out "7.98%" and substituting "7.7%".
SECTION 4:	[Income Tax Act, section 16] reduces the small business tax rate from 3.5% to 2.5% effective December 1, 2008.
4	Section 16 (1) (a) and (b), (2) (a) and (b) and (4) is amended by striking out "3.5%" and substituting "2.5%".
SECTION 5:	[Land Tax Deferment Act, section 5]
allows an owner of eligible property to request to enter an agreement with the minister to defer taxes payable in respect of that property for the 2009 and 2010 taxation years if specified requirements are met;
provides for an owner of eligible property qualifying for a subsequent deferral of taxes under a different subsection in section 5 of the Act.
5	Section 5 of the Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is amended by adding the following subsections:
(2.1)	By filing an application in accordance with section 12 and the regulations, an owner of eligible property may request the minister to enter an agreement for the purpose referred to in section 2 in respect of tax payable for the 2009 or 2010 taxation year if the following requirements are met:
(d)	the owner declares that the owner is, at the time of the application, facing financial hardship related to economic conditions;
(2.2)	Subsection (2.1) applies also to an owner of eligible property that is or that includes a manufactured home, if the owner
(7)	If an owner of eligible property has made an agreement under section 2 with the minister, the owner is not required to qualify under the same subsection in this section as the owner previously qualified under in order to be permitted a subsequent deferral of tax under the agreement.
SECTION 6:	[Land Tax Deferment Act, section 8] provides for interest on taxes deferred under section 5 (2.1) of the Act at a rate that must not exceed the prime lending rate of the principal banker to the government.
6	Section 8 is amended by adding the following subsections:
(3.1)	Despite subsections (1) and (2), in respect of interest on taxes deferred under section 5 (2.1), the interest rate is the simple interest rate prescribed by the minister.
(3.2)	The interest rate prescribed by the minister under subsection (3.1) during each successive 6 month period beginning on October 1 and April 1 in every year must not exceed a yearly rate that is the prime lending rate of the principal banker to the government on the 15th day of the fourth month immediately preceding that 6 month period.
SECTION 7:	[Land Tax Deferment Act, section 9] provides for interest on taxes deferred under section 5 (2.1) of the Act at a rate that must not exceed the prime lending rate of the principal banker to the government.
7	Section 9 is amended by adding the following subsections:
(5)	Despite subsections (1) and (2), in respect of interest on taxes deferred under section 5 (2.1), the interest rate is the simple interest rate prescribed by the minister.
(6)	The interest rate prescribed by the minister under subsection (5) during each successive 6 month period beginning on October 1 and April 1 in every year must not exceed a yearly rate that is the prime lending rate of the principal banker to the government on the 15th day of the fourth month immediately preceding that 6 month period.
SECTION 8:	[Land Tax Deferment Act, section 18] authorizes the Lieutenant Governor in Council to make regulations that
prescribe different percentages for the purposes of section 5 (5) (a) of the Act, and
prescribe requirements for the purposes of section 5 (2.1) of the Act.
8	Section 18 (2) is amended
(f)	prescribing a percentage for the purposes of section 5 (5) (a), which may be different for taxes deferred under section 5 (1) and (2.1); , and
(b)	in paragraph (g) by striking out "section 5 (1) (e)" and substituting "section 5 (1) (e), (2.1) (e)".
SECTION 9:	[School Act, section 119] requires the following to be included in the notice sent by the minister to the collector of the municipality:
the total amount of the provincial industrial property tax credits to which owners in a municipality are entitled;
the net amount of the school taxes to be raised in the municipality.
9	Section 119 (6) of the School Act, R.S.B.C. 1996, c. 412, is amended
(b.1)	the total amount of credits to which owners in that municipality are entitled under section 131.2 [provincial industrial property tax credit],
(b.2)	the net amount to be raised by school taxes under this Act in that municipality after the deduction of the amount referred to in paragraph (b.1), and .
SECTION 10:	[School Act, section 128] requires the tax notice to set out the amount of the provincial industrial property tax credit and the net amount of school taxes payable after the deduction of the provincial industrial property tax credit.
10	Section 128 (4) (b) is repealed and the following substituted:
(a.1)	the amount of any credit to which the assessed owner is entitled under section 131.2 [provincial industrial property tax credit] of this Act,
(b)	the net amount of school taxes payable by the assessed owner after deduction of
(i)	any grant to which the assessed owner may be eligible under the Home Owner Grant Act, or
(ii)	the amount of the credit referred to in paragraph (a.1) of this subsection, and .
SECTION 11:	[School Act, section 131.2] establishes a tax credit for owners of class 4 property and owners of class 5 property.
131.2	(1)	In this section:
(2)	For the 2009 and subsequent taxation years, an owner of class 4 property or class 5 property is entitled to a credit equal to 50% of the school taxes levied in the taxation year on the class 4 property or class 5 property.
SECTION 12:	[School Act, section 137] provides that section 131.2 does not apply to the assessment, levy, collection, recovery and payment of school referendum taxes.
12	Section 137 (6) is amended by striking out "other than section 124 (10)" and substituting ", other than sections 124 (10) and 131.2,".
Part 2 — Asset Protection
SECTION 13:	[Court Order Enforcement Act, section 71.3] protects from enforcement proceedings all contributions to registered plans made more than 12 months before the debt in relation to which the enforcement proceedings were initiated came due.
13	The Court Order Enforcement Act, R.S.B.C. 1996, c. 78, is amended by adding the following section:
Registered plans exempt from seizure
71.3	(1)	In this section:
"DPSP" means a deferred profit sharing plan as defined in section 147 of the federal Act;
"enforcement process" means
(a)	attachment,
(b)	garnishment,
(c)	execution,
(d)	seizure, or
(e)	any other remedy or legal process to enforce payment of a debt;
"planholder" means
(a)	with respect to a DPSP, a beneficiary under the plan,
(b)	with respect to an RRIF, an annuitant as defined in paragraph (a) of the definition of "annuitant" in section 146.3 (1) of the federal Act, and
(c)	with respect to an RRSP, an annuitant as defined in paragraph (a) of the definition of "annuitant" in section 146 (1) of the federal Act;
"registered plan" means a DPSP, an RRIF or an RRSP, whether registered before, on or after November 1, 2008;
"RRIF" means a registered retirement income fund as defined in section 146.3 of the federal Act;
"RRSP" means a registered retirement savings plan as defined in section 146 of the federal Act.
(2)	Despite any other enactment, all property in a registered plan is exempt from any enforcement process.
(a)	to property contributed to a registered plan after or within 12 months before the date on which the debt being enforced came due,
(b)	to property that has been or is being paid out of a registered plan,
(c)	to an enforcement process that is being effected in support of the enforcement of a maintenance order as defined in the Family Maintenance Enforcement Act, or
(d)	to an enforcement process initiated against a registered plan before November 1, 2008.
(4)	For the purposes of subsection (3) (b),
(a)	a transfer of property from a registered plan of the planholder
(i)	to another registered plan of the planholder, or
(ii)	after the death of the planholder, to the planholder's spouse or common-law partner as defined in section 248 of the federal Act who, under the terms of the registered plan, is entitled to receive that property on the planholder's death,
does not constitute a payment of that property out of a registered plan, and
(b)	if an enforcement process is pursued against property being paid out of a registered plan of a planholder, that property is deemed, for the purposes of that enforcement process and Part 1 of this Act, to be a debt due to the planholder for or with respect to the salary or wages of the planholder.
(5)	Subject to subsection (6), if a provision of this section is inconsistent or in conflict with a provision of another Act, the provision of this section prevails unless the other Act expressly provides that it, or a provision of it, applies despite this section.
(6)	Nothing in this section makes any property in a registered plan subject to an enforcement process if that property would not, but for this section, be subject to an enforcement process.
SECTION 14:	[Financial Institutions Act, section 201] amends the section
to permit the Financial Institutions Commission to delegate its powers under the referenced sections to the Superintendent of Financial Institutions, and
to establish a time limit on orders of the Superintendent under specified sections unless they are confirmed or varied by the Commission.
14	Section 201 of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended
(b)	a power or duty under Part 9, other than a power or duty under section 275, 277, 277.1 or 277.2, or , and
(8)	Unless confirmed or varied by the commission within 21 days after it is made, an order of the superintendent made under section 275 or 277 in exercise of a power delegated under this section ceases to have effect at the end of that 21-day period.
SECTION 15:	[Financial Institutions Act, section 266] removes the $100 000 limit on the guarantee of credit union deposits.
15	Section 266 (2) is amended by striking out "in an amount that does not exceed $100 000 for each prescribed separate deposit of the depositor".
SECTION 16:	[Financial Institutions Act, section 275] broadens the criteria for the supervision of a credit union by the Commission.
16	Section 275 (b) is repealed and the following substituted:
(b)	the credit union has failed to pay its liabilities, or in the opinion of the commission, will not be able to pay its liabilities as they become due and payable;
(b.1)	the assets of the credit union are not, in the opinion of the commission, sufficient to give adequate protection to the credit union's depositors and creditors;
(b.2)	the liquidity or capital of the credit union has, in the opinion of the commission, reached a level or is eroding in a manner that may detrimentally affect its depositors or creditors; .
SECTION 17:	[Financial Institutions Act, section 277] clarifies that, if an order is made under this provision dealing with part of the assets of a credit union that is under supervision, the order must at the least deal with substantially all of the assets of the credit union.
17	Section 277 (g) (ii) is repealed and the following substituted:
(ii)	the credit union to dispose of all or substantially all of its assets and liabilities to another credit union, or .
SECTION 18:	[Financial Institutions Act, sections 277.1 and 277.2]
by the proposed section 277.1, allows the Financial Institutions Commission to intervene at an early stage to address regulatory problems with a credit union, and
by the proposed section 277.2, allows the Commission to appoint persons to assist in the administration of a credit union that is subject to an order under section 277.
18	The following sections are added:
Additional circumstances in which section 277
277.1	If a credit union is not subject to the supervision of the commission, but the commission considers that
(a)	one or more of the circumstances referred to in section 275 apply to the credit union, and
(b)	supervision would not be adequate to ensure that a guarantee under section 266 would not need to be invoked,
the commission may make an order under section 277 with respect to the credit union as though that credit union were subject to the supervision of the commission.
Assistance to administrator in relation to section 277 orders
277.2	The commission may appoint one or more persons to assist the administrator in the management of a credit union that is subject to an order under section 277.
SECTION 19:	[Financial Institutions Act, section 285] removes the requirement for the Commission to delegate powers with respect to a credit union that has asked to be put under supervision.
19	Section 285 is amended
(a)	in subsection (1) by striking out everything after "the commission by order" and substituting "may delegate to the stabilization authority any of the commission's powers under section 277 (a) to (d) in relation to that credit union.", and
(2)	The commission may revoke a delegation made under subsection (1).
SECTION 20:	[Financial Institutions Act, section 289] repeals the regulation-making power made redundant by the proposed amendment to section 266 (2) of the Act and makes consequential cross reference changes.
20	Section 289 is amended
(a)	by repealing subsection (4) (l),
(b)	in subsection (4) (m) (ii) by striking out "paragraphs (k) and (l)" and substituting "paragraph (k)", and
(5)	Without limiting subsection (4) (k), a regulation under that provision may classify deposits in a credit union according to ownership, type or special characteristics.
SECTION 21:	[Law and Equity Act, section 49] provides the same rights to designated beneficiaries of holders of tax-free savings accounts as exist for designated beneficiaries of holders of retirement savings plans registered under the Income Tax Act (Canada).
21	Section 49 (1) of the Law and Equity Act, R.S.B.C. 1996, c. 253, is repealed and the following substituted:
"annuitant" means,
(a)	in relation to a registered plan referred to in paragraph (a) of the definition of "registered plan" in this section, an annuitant as defined in section 146 (1) of the Income Tax Act (Canada), or
(b)	in relation to a registered plan referred to in paragraph (b) of the definition of "registered plan" in this section, a holder as defined in section 146.2 (1) of the Income Tax Act (Canada);
"benefit payable under the registered plan", in relation to a registered plan, includes a distribution, transfer or payment of or from the registered plan;
(a)	a retirement savings plan that
(i)	was created before, or is created after, January 1, 1971, and
a TFSA within the meaning of the Income Tax Act (Canada).
SECTION 22:	[Pension Benefits Standards Act, section 63] provides that additional voluntary contributions, as that term is defined in the Pension Benefits Standards Act, are protected from execution other than in the specified situations.
22	Section 63 of the Pension Benefits Standards Act, R.S.B.C. 1996, c. 352, is amended
(a)	in subsection (1) by striking out "subsections (3) and (3.1)," and substituting "subsections (3) to (3.3),", and
(3.2)	Despite subsection (3) (a), additional voluntary contributions made before, on or after November 1, 2008 are exempt from execution, seizure or attachment unless
(a)	the additional voluntary contributions were made after or within 12 months before the date on which a debt came due and the execution, seizure or attachment is to enforce payment of that debt,
(b)	the additional voluntary contributions have been or are being withdrawn from a pension plan,
(c)	the execution, seizure or attachment is by
(i)	a notice of attachment, order of garnishment or attachment order referred to in subsection (3.1), or
(ii)	any other process to enforce a maintenance order as defined in the Family Maintenance Enforcement Act, or
(d)	the execution, seizure or attachment was initiated against the additional voluntary contributions before November 1, 2008.
(3.3)	For the purposes of subsection (3.2) (b),
(a)	if additional voluntary contributions are transferred by a person to any of that person's registered plans, within the meaning of section 71.3 of the Court Order Enforcement Act, that transfer does not constitute a withdrawal of those additional voluntary contributions from a pension plan, and
(b)	if execution, seizure or attachment is pursued against additional voluntary contributions being withdrawn from a pension plan by a member or former member, those additional voluntary contributions are deemed, for the purposes of that execution, seizure or attachment and Part 1 of the Court Order Enforcement Act, to be a debt due to the member or former member for or with respect to the salary or wages of the member or former member.
PART 3:	[Property Value Assessment] provides for the determination of the actual value of property under the Assessment Act for the purposes of the 2009 taxation year.
Part 3 — Property Value Assessment
23	Definitions in the Assessment Act apply to this Part.
Valuation of property for 2009 taxation year
"2007 value", in relation to a property, means the actual value of the property as determined under section 3;
"2008 value", in relation to a property, means the actual value of the property as determined under the Assessment Act for the 2009 taxation year as if this Part of this Act were not in force.
(2)	Despite the Assessment Act, the actual value of a property for an assessment roll for the 2009 taxation year is the lesser of
(a)	the 2007 value of the property, and
(b)	the 2008 value of the property.
(3)	This section does not apply in respect of properties to which one or more of sections 20 to 24 of the Assessment Act apply, except land that is valued under section 19 of that Act.
Determination of "2007 value"
25	(1)	For the purposes of the definition of "2007 value" in section 2, the actual value of a property is, subject to this section, the actual value of the property as determined under the Assessment Act.
(2)	Section 18 of the Assessment Act does not apply for the purposes of this section.
(3)	For the purpose of determining the actual value of the property, the valuation date is July 1, 2007.
(4)	The actual value of the property is to be determined as if on the valuation date
(a)	the property and all other properties were in the physical condition that they are in on October 31, 2008, and
(b)	the permitted use of the property and of all other properties were the same as on October 31, 2008.
(5)	Subsection (4) (a) does not apply to property referred to in section 10 (3) (b), (c) or (c.1) of the Assessment Act.
(6)	The actual value of a property referred to in section 10 (3) (b), (c) or (c.1) of the Assessment Act is to be determined as if on the valuation date the property was in the physical condition that it is in on December 31, 2008.
(7)	In applying section 19 of the Assessment Act for the purposes of this section, the reference to "on October 31 following the valuation date under section 18" in section 19 (10) of that Act is to be read as "on October 31, 2008".
26	(1)	For the purpose of applying the Depreciation of Dams, Power Plants and Substations Regulation, B.C. Reg. 395/99, in respect of the 2009 taxation year, section 2 (1) (a) (ii) of that regulation is to be read as follows:
(ii)	"age" is the number of years determined by subtracting one year from the chronological age or, if parts of an improvement have different chronological ages, the effective age of the improvement, and .
(2)	For the purpose of applying the Depreciation of Dams, Power Plants and Substations Regulation, B.C. Reg. 395/99, in respect of the 2009 taxation year, section 2 (1) (b) (ii) of that regulation is to be read as follows:
(ii)	"age" is the number of years determined by subtracting one year from the chronological age or, if parts of an improvement have different chronological ages, the effective age of the improvement.
(3)	For the purpose of applying the Depreciation of Industrial Improvements Regulation, B.C. Reg. 379/88, in respect of the 2009 taxation year, section 2 (1) (b) of that regulation is to be read as follows:
(b)	"age" is the number of years determined by subtracting one year from the chronological age or, where parts of an industrial improvement have different chronological ages, the effective age of the industrial improvement.
Designated ski hill property
27	Despite section 20.2 (2) of the Assessment Act, the actual value of a designated ski hill property for the 2009 taxation year is the actual value of that property as determined under that Act for the 2008 taxation year.
Designated port land
28	(1)	Despite section 20.3 (2) of the Assessment Act, the actual value of designated port land for the 2009 taxation year is the actual value of that land as determined under that Act for the 2008 taxation year.
(2)	Subsection (1) does not apply in respect of the designated port land referred to in items 14, 29 and 30 of the Schedule to the Port Land Valuation Regulation, B.C. Reg. 220/2007.
Valuation under section 21 of Assessment Act
29	(1)	For the purpose of applying section 21 of the Assessment Act in respect of the 2009 taxation year, the reference to "on July 1 in the year previous to the year in which the assessment roll is prepared" in paragraph (b) (i) of the definition of "average current cost" in section 21 (3) of that Act is to be read as "on July 1, 2006".
(2)	For the purpose of applying the Railway Right of Way Valuation Criteria Regulation, B.C. Reg. 326/96, in respect of the 2009 taxation year, the references to "preceding taxation year" in sections 1 (a), 2 (a) and 3 (a) of that regulation are to be read as "2007 taxation year".
30	For the purpose of applying section 24 of the Assessment Act in respect of the 2009 taxation year, the references to "in the year of cutting" in section 24 (9) (c) and (d) of that Act are to be read as "in the year before the year of cutting".
31	(1)	Despite this Part or any other enactment, the Lieutenant Governor in Council may make regulations as follows:
(a)	respecting any matter that the Lieutenant Governor in Council considers is not provided for, or is not sufficiently provided for, in this Part in respect of the 2009 taxation year;
(b)	making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of more effectively bringing this Part into operation;
(c)	making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties in bringing this Part into effect, including, without limitation, provisions making an exception to or a modification of a provision in an enactment;
(d)	resolving any errors, inconsistencies or ambiguities in this Part.
(2)	Regulations made under subsection (1) before January 1, 2010 may be made retroactive to the extent necessary to apply for the purposes of the 2009 taxation year.
Actual value of property established by
32	(1)	Despite this Part or any other enactment, the Lieutenant Governor in Council may determine, by order made on or before March 31, 2009, the actual value of a property for the 2009 taxation year if the Lieutenant Governor in Council
(a)	considers that unfairness to an owner of a property has occurred or is likely to occur in respect of the actual value of the property entered in an assessment roll for the 2009 taxation year, and
(b)	considers it to be in the public interest.
(2)	An order made under subsection (1) may be made only in respect of a property to which one or more of sections 20 to 24 of the Assessment Act apply, except land that is valued under section 19 of that Act.
(3)	An order may not be made under subsection (1) unless the Lieutenant Governor in Council has received the recommendation of the minister charged with the administration of the Assessment Act after that minister has consulted with the assessment authority.
(4)	In determining the actual value of a property under subsection (1), the Lieutenant Governor in Council may
(a)	specify the actual value of the property, or
(b)	establish rates, formulas, rules or principles for determining the actual value of the property.
(5)	An order made under subsection (1) must apportion, or provide for the apportionment of, the actual value of the property between property classes and between land and improvements for the purposes of entry on the assessment roll.
(6)	Orders made under subsection (1) may be made retroactive to the extent necessary to apply for the purposes of the 2009 taxation year.
(7)	Orders made under subsection (1) may determine actual value differently for one or more of the following:
(a)	different individual properties;
(b)	different categories of properties, as specified in the order;
(c)	different areas or categories of areas, as specified in the order;
(d)	different property classes.
(8)	If an order is made under subsection (1) in respect of a property, the assessor must assess the property on a supplementary roll or further supplementary roll for the 2009 taxation year.
(9)	Despite the Assessment Act, no complaint or appeal may be made under that Act in respect of an entry made in a supplementary roll or further supplementary roll under subsection (8).
Rule respecting application of orders
and regulations does not apply
33	Section 74 (5) of the Assessment Act does not apply to an order or a regulation made under this Part.
34	For the purpose of applying section 9 of the Assessment Act in respect of the 2009 taxation year, the reference in that section to "the requirements of this Act" is to be read as "the requirements of this Act and Part 3 of the Economic Incentive and Stabilization Statutes Amendment Act, 2008".
35	For certainty, a reference in an enactment to actual value, assessed value or any other amount determined under or in accordance with the Assessment Act includes a reference to that amount as determined under this Part for the 2009 taxation year.
Port Land Valuation Regulation
SECTION 36:	[Port Land Valuation Regulation, Schedule] designates land as port land and prescribes the actual value of the designated port land for the 2009 taxation year.
36	The Schedule to the Port Land Valuation Regulation, B.C. Reg. 220/2007, is amended
(a)	by repealing item 14 and substituting the following as indicated:
Roll Number Column 2
Taxation Year Column 3
Actual Value Column 4
Municipality Column 5
14 10-225-05575-000 2009 $10 103 974 City of
Port Moody Pacific Coast Terminals
(b)	by adding the following items as indicated:
29 08-316-010-0122-7410-0 2009 $24 471 441 District of North Vancouver Vancouver Wharves
30 08-328-11-0253-000-000 2009 $319 173 District of West Vancouver Vancouver Wharves
SECTION 37:	[Transition — application of Regulations Act] is self-explanatory.
Transition — application of Regulations Act
37	The Regulations Act does not apply to the amendments to the Port Land Valuation Regulation, B.C. Reg. 220/2007, enacted by this Act.
SECTION 38:	[Amendment to this Act] is self-explanatory.
38	Sections 23 to 34 of the Economic Incentive and Stabilization Statutes Amendment Act, 2008 are repealed.
Part 4 — Commencement
39	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:
2 Section 3 January 1, 2008
3 Section 4 December 1, 2008
4 Sections 9 to 12 January 1, 2009
5 Section 15 October 22, 2008
6 Section 20 October 22, 2008
7 Section 38 January 1, 2010
Port Land Value Regulation