| Copyright (c) Queen's Printer, Victoria, British Columbia, Canada |
IMPORTANT INFORMATION |
1 In this Act:
"12 month period", in relation to tangible personal property, means for the purposes of section 12 (2) and 14 (1) (a)
(a) the period beginning on the date the property is first brought or sent into, or is delivered in, British Columbia during any year and ending on the day before the first anniversary of that date, and
(b) if the property is in British Columbia for a continuous period that is longer than the period referred to in paragraph (a), the period beginning on the day after the immediately previous 12 month period and ending on the day before the first anniversary of that date;
"apparatus", for the purposes of the definition of "fixture", means a complex machine or device designed to accomplish a specific purpose and consisting of an integrated assembly of parts each having a definite function;
"assessment" includes reassessment;
"catalyst" means a substance that produces or modifies a chemical reaction and that, at the end of the reaction, is unchanged;
"collector" means a person who has collected taxes under this Act;
"commissioner" means the person appointed by the Lieutenant Governor in Council to administer this Act;
"conveyance" does not include a vehicle;
"dedicated telecommunication service" means the right, whether exercised or not, to send from British Columbia or receive in British Columbia one or more telecommunications by using a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of the purchaser of the service;
"dedicated telecommunication system" means a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of a person as a result of that person having purchased the right to send from British Columbia or receive in British Columbia one or more telecommunications by that circuit, communications channel, partial communications channel or other means of sending or receiving a telecommunication;
"direct agent" means a substance that produces or modifies a chemical reaction and that is consumed in the chemical reaction to the point of destruction or dissipation or uselessness for any other purpose;
"entry date", in relation to any tangible personal property, means the date on which the person liable to pay the tax on the property first brings or sends the property into, or receives delivery of the property in, British Columbia;
"fair market value" means
(a) in relation to tangible personal property, other than rights or services deemed to be tangible personal property under section 39, 45, 52, 60 or 65, the price at which the legal and beneficial interest in the tangible personal property would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market, and
(b) in relation to a parking right or service, including a service under Division 4, 5, 6 or 7 of Part 2, the price at which the right or service would be provided by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market,
and must be determined in a manner that includes any charges, costs or expenses referred to in paragraph (a) (i) or (ii) of the definition of "purchase price", and for the purposes of section 11 (4.1), must be determined in a manner that also includes any costs or expenses referred to in paragraph (a) (ii) of the definition of "purchase price" that were incurred by the person who provided the gift;
"fixture" means machinery, equipment or apparatus that is
(a) a fixture at common law, and
(b) used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or in the provision of a service;
"interjurisdictional commercial purposes" means, in relation to a vehicle, use of the vehicle in British Columbia while the vehicle is engaged in interprovincial or international trade for the commercial carriage of passengers or goods;
"lease" means an agreement under which a person is given a right to use tangible personal property, but does not include
(a) a lease of tangible personal property if, as part of the agreement between the parties, the person supplying the tangible personal property supplies a person to operate it, or
(b) the leasing of furnishings if
(i) the furnishings are leased under an agreement to lease a house, apartment or other residential accommodation, and
(ii) the rent payments under the lease are not divided into separate amounts for the accommodation and the furnishings;
"lease price" means the total consideration paid by the lessee to the person granting a lease for each rental period under the lease for the right to use the leased property, and includes
(a) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a licence fee or royalty fee,
(b) any payment or consideration, in addition to those made for rental periods, by a lessee to a person granting a lease for the right to use the leased property, including a down payment,
(c) any payment or consideration, including a membership fee, that is in addition to payments or consideration for rental periods, a substantial benefit of which is a reduction in the lease price of tangible personal property,
(d) any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made by the lessee of the leased property,
(e) if the property is leased outside British Columbia and subsequently brought, sent into or received in British Columbia for use in British Columbia, the charges to the lessee for customs, excise, transportation, service and other similar costs incurred by the lessee before the lessee uses the leased property in British Columbia, and
(f) in respect of a transaction that is in part a lease of tangible personal property under which a person (in this paragraph referred to as "the exhibitor") is given the right or authority to exhibit a motion picture to others, the total consideration that
(i) is paid by the exhibitor to the person with whom the exhibitor entered into the transaction, and
(ii) is not otherwise included in this definition;
"legal services" means
(a) services that come within the meaning of the practice of law under the Legal Profession Act,
(b) services described in section 18 of the Notaries Act, and
(c) legally related services prescribed as legal services,
but does not include services provided by a person to that person's employer in the course of employment;
"lessee" means a person who leases tangible personal property
(a) for the person's own use in British Columbia,
(b) for use in British Columbia by another person at the first person's expense, or
(c) on behalf of, or as the agent for, a principal who desires to lease the property for use in British Columbia by that principal or another person at the principal's expense;
"lessor" means a person who, in the ordinary course of the person's business in British Columbia, leases tangible personal property to a lessee in British Columbia;
"liquor" means liquor as defined in the Liquor Distribution Act;
"magazines" means printed and bound publications in a magazine format
(a) that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and
(b) where at least 10% of the content, determined in accordance with the regulations and in accordance with section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,
but does not include a prescribed type of publication;
"manufactured home" means
(a) a mobile home manufactured to Canadian Standards Association Standard Z240,
(b) any other mobile home that is similar in design and construction to a mobile home constructed to Canadian Standards Association Standard Z240,
(c) a modular home manufactured to Canadian Standards Association Standard A277, or
(d) any other modular home built to a standard required by the National Building Code of Canada and qualifying for Canada Mortgage and Housing Corporation financing,
if the unit or each module is in all essential features completely constructed prior to delivery from the factory;
"mineral" means metal ore and every natural substance that can be mined and that
(a) occurs in fragments or particles lying on, above or adjacent to the bedrock source from which it is derived, and is commonly described as talus,
(b) is in the place or position in which it was originally formed or deposited, or
(c) is loose, fragmentary or broken rock or float that, by decomposition or erosion of rock, is found in wash, loose earth, gravel or sand,
and includes tailings, building and construction stone, marble, shale, clay, sand and gravel, but does not include petroleum, natural gas, volcanic ash, earth, soil, marl or peat;
"mistake of law" includes any mistake that is not solely a mistake of fact;
"motor vehicle" means motor vehicle as defined in the Motor Vehicle Act;
"multijurisdictional vehicle" means a vehicle in respect of which tax is payable under section 29 (1);
"newspapers" means printed and unbound publications in a newspaper format
(a) that are published at regular intervals each year, and
(b) where at least 20% of the content, determined in accordance with the regulations and in accordance with section 72 (2), is composed of editorials, news and articles of local or common interest, other than advertising and promotional content,
but does not include a prescribed type of publication or advertising material known as flyers, or advertising circulars, even if the flyers or advertising circulars are sold or given away as part of the newspaper;
"park", in respect of a motor vehicle, does not include storage if the motor vehicle is stored for a period of more than 28 consecutive days;
"parking period" means, in respect of a parking right, the period for which the parking right is purchased;
"parking right" means the right to park a motor vehicle at a parking site for any period of time;
"parking site" means any location in British Columbia at which a motor vehicle may, for a price or other consideration, be parked for any period of time;
"passenger vehicle" means a motor vehicle designed primarily as a means of transport for individuals and includes vehicles prescribed as passenger vehicles;
"periodicals" means printed and bound publications in a periodical format
(a) that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and
(b) where at least 10% of the content, determined in accordance with the regulations, and in accordance with section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,
but does not include a prescribed type of publication;
"person" includes the government and a municipality;
"promotional distribution" means the provision by a person to another person of tangible personal property that is provided for one or more of the following purposes:
(a) to describe, promote or encourage the purchase, consumption or use of tangible personal property, services or real property;
(b) to furnish or distribute to a person a catalogue, directory, listing or compilation of persons, places, prices, services, commodities or places of business in respect of the purchase, consumption or use of tangible personal property, services or real property;
(c) a purpose, function or use prescribed by the Lieutenant Governor in Council as a promotional distribution;
"promotional distributor" means a person who provides, by way of promotional distribution to another person, tangible personal property the purchase price of which
(a) exceeds the amount of the payment specifically made for the tangible personal property by the person to whom it is provided, or
(b) is not specifically charged to and required to be paid by the person to whom that tangible personal property is provided;
"prototype" means the first full-scale functional form of a new type or a new construction of tangible personal property, but does not include software or prescribed tangible personal property;
"purchase price" means the following:
(a) in relation to tangible personal property, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by the seller or person from whom the property passes as price or on account of the price of the tangible personal property covered by the sale, and includes
(i) any charges for
(A) transportation of the tangible personal property sold, or
(B) interest, finance, service, customs and excise charges in relation to the tangible personal property sold
that are incurred at or before the time that title to the tangible personal property covered by the sale passes under that sale, whether or not those charges are shown separately on the invoice recording the sale or in the seller's books, but does not include interest charges on a conditional sale contract if the amount of those charges is segregated on the invoice or bill of sale or is billed separately to the purchaser, and is payable over the term of the contract,
(ii) if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside British Columbia and subsequently brought or sent into or received in British Columbia for use or consumption in British Columbia, the costs and expenses
(A) of and to the user for materials, labour and other manufacturing and processing costs and expenses, and
(B) for service, customs, excise, transportation and other costs and expenses
incurred by the user before the use of the tangible personal property in British Columbia,
(iii) in relation to the purchase of ready-mixed concrete that is to be delivered by or on behalf of the vendor to the place where the purchaser intends to use it, the total consideration that is payable by the purchaser to have the ready-mixed concrete delivered to that place, and
(iv) any charge, including a royalty or licence fee, relating to the use of the tangible personal property, or to the use of knowledge required to use the tangible personal property, whether incurred before or after the time that title to the tangible personal property covered by the sale passes under that sale;
(a.1) in relation to a motor vehicle, means the purchase price under paragraph (a) less any portion of that price that the seller accepts from the manufacturer of the motor vehicle as price or on account of the price of the motor vehicle covered by the sale;
(b) in relation to legal services, means
(i) the fees and charges, other than those prescribed as excluded, and
(ii) the prescribed disbursements
that are billed or otherwise charged to a purchaser for or in relation to the legal services;
(c) in relation to a parking right, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a parking right as price or on account of the price of the parking right;
(d) in relation to a taxable service, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a taxable service as price or on account of the price of the taxable service;
(e) in relation to a telecommunication service, means the total consideration paid by the purchaser for the provision of the service and for each period in respect of which an invoice for or in relation to the service is issued, and includes
(i) sign-up charges,
(ii) access charges,
(iii) airtime charges,
(iv) usage charges,
(v) service charges, and
(vi) the following charges for telecommunications provided as part of the service:
(A) in the case of a dedicated telecommunication service, all such charges;
(B) in the case of any other telecommunication service, all such charges in respect of each telecommunication that meets at least 2 of the following criteria:
(I) the telecommunication originates in British Columbia;
(II) the telecommunication is received in British Columbia;
(III) the charge for the telecommunication is invoiced with respect to a transmitter that is ordinarily situated in British Columbia;
(f) in relation to prescribed tangible personal property that is sold for a single price with tangible personal property or services that, under this Act, are not subject to tax or are exempt from tax, means the total consideration that is accepted by the seller for all the tangible personal property or services sold for the single price;
(f.1) in relation to tangible personal property, other than tangible personal property that is prescribed for the purposes of paragraph (f), that is subject to tax and is sold for a single price with tangible personal property or a service that, under this Act, is not subject to tax or is exempt from tax, means,
(i) if the fair market value of the taxable tangible personal property is more than 90% of the single price and the single price is less than the prescribed amount, the total consideration that is accepted by the seller for all the tangible personal property or services sold for the single price, or
(ii) in any other case, the fair market value of the taxable tangible personal property included in the single price;
"purchaser" means
(a) a person who acquires tangible personal property at a sale in British Columbia
(i) for the person's own consumption or use,
(ii) for consumption or use by another person at the expense of the person acquiring the property, or
(iii) on behalf of or as agent for a principal, if the property is for consumption or use by the principal or by another person at the expense of that principal,
(b) a promotional distributor that does not come within paragraph (a), to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for it by the person to whom that property is provided,
(c) a person who agrees to pay or is otherwise obliged to pay consideration for legal services
(i) provided to the person for the person's own benefit or use,
(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or
(iii) provided to the person on behalf of or as agent for a principal, if the legal services are for the benefit or use of the principal or another person at the expense of that principal,
(d) a person who agrees to pay or is otherwise obliged to pay consideration for a parking right
(i) provided to the person for the person's own benefit or use,
(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or
(iii) provided to the person on behalf of or as agent for a principal, if the parking right is for the benefit or use of the principal or another person at the expense of that principal,
(e) a person who agrees to pay or is otherwise obliged to pay consideration for a taxable service
(i) provided to the person for the person's own benefit or use,
(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or
(iii) provided to the person on behalf of or as agent for a principal, if the taxable service is for the benefit or use of the principal or another person at the expense of that principal, and
(f) a person who agrees to pay or is otherwise obliged to pay consideration for a telecommunication service
(i) provided to the person for the person's own use,
(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or
(iii) provided to the person on behalf of or as agent for a principal, if the telecommunication service is for the benefit or use of the principal or another person at the expense of that principal;
"retail sale" means a sale to a purchaser for purposes of consumption or use and not for resale;
"sale" includes
(a) a conditional sale, a transfer of title or possession, conditional or otherwise, a sale on credit or for which the price is payable by installments, an exchange, barter or any other contract by which, at a price or other consideration, a person delivers tangible personal property to another person,
(b) a transfer of ownership of, title to or possession of tangible personal property
(i) given as security, by foreclosure or by repossession under lien note or conditional sale contract, whether voluntary or otherwise, or by order of a court, or by any other means by which security may be realized, or
(ii) in the process of winding up, liquidating or dissolving a corporation, and
(c) the provision, by way of promotional distribution, of tangible personal property,
but does not include the provision of tangible personal property that, in accordance with the regulations, is merely incidental to a contract for the provision of services that are not subject to tax under this Act;
"sale in bulk" means
(a) a sale of tangible personal property by a vendor out of the usual course of the vendor's business,
(b) a sale of substantially the entire stock of tangible personal property of a vendor, or
(c) a sale of an interest in the business of a vendor;
"short term rental vehicle" means a vehicle used, during a vehicle licence year, as prescribed by regulation;
"software" means packaged or prewritten software programs, or the right to use such programs, whether the software is delivered by electronic, disk, tape or other means, but does not include
(a) [Repealed 2006-2-21.]
(b) software that is modified in a manner that involves changes to the source code, and that is modified solely to meet the requirements of a specific person if
(i) the purchase price or lease price, as applicable, is for the software as modified, and
(ii) that purchase price or lease price is greater than double what it would have been for the software in its unmodified form, or
(c) custom software, being
(i) software programs developed solely to meet the requirements of a specific person, and
(ii) modifications to software referred to in subparagraph (i) when performed for the person for whom the software was originally developed,
unless the software is a copy of software referred to in paragraph (b) or (c), or the right to use such software, that is sold or leased to someone other than the specific person for whom the software was originally modified or developed;
"South Coast British Columbia Transportation Authority" means the authority continued under section 2 (1) of the South Coast British Columbia Transportation Authority Act;
"South Coast British Columbia transportation service region" has the same meaning as "transportation service region" in the South Coast British Columbia Transportation Authority Act;
"tangible personal property" means
(a) personal property that can be seen, weighed, measured, felt or touched, or that is in any other way perceptible to the senses, and includes natural or manufactured gas,
(b) software,
(c) electricity,
(d) fixtures, other than prescribed types of fixtures, and
(e) heat;
"tax" includes
(a) all penalties and interest that are or may be added to tax under this Act, and
(b) in the definition of "collector" and in sections 80, 81, 82 (1), 84, 91, 92, 93 (1), (1.1), (2) and (4), 94, 95, 96 (7), 99, 101 to 109, 111 to 117, 120, 123, 124, 125 and 128 to 138, except 137 (2), but not in any other provision of this Act, a levy under Division 9 of Part 2 and all penalties and interest that are or may be added to a levy under this Act;
"taxable service" means any service provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain tangible personal property, but does not include a service
(a) provided to install tangible personal property that will become real property on installation,
(b) provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain prescribed tangible personal property, or
(c) provided by a person to that person's employer in the course of employment;
"telecommunication" includes any transmission, emission or reception of signs, signals, writing, images, sound or intelligence of any nature by wire, fibre optic cable, radio, satellite or other electromagnetic or laser based system, but does not include any prescribed transmission, emission or reception or any prescribed class of transmission, emission or reception;
"telecommunication service" means the right, whether exercised or not, to send or receive one or more telecommunications by means of a transmitter that is ordinarily situated in British Columbia, and includes
(a) the sending or receiving of a telecommunication by means of a transmitter that is ordinarily situated in British Columbia, and
(b) a dedicated telecommunication service;
"trailer" means trailer as defined in the Motor Vehicle Act;
"transfer of possession" includes transactions held by the commissioner to be in place of a transfer of title, exchange or barter;
"transmitter" means a facility or instrument by which a purchaser of a telecommunication service may send or receive the telecommunications that may be sent or received under that service, and includes a telephone, facsimile machine, modem and television;
"use" includes
(a) the exercise of any right or power over tangible personal property incidental to the ownership of it other than the sale of the property,
(b) the leasing by a person of tangible personal property to another person,
(c) the storing, keeping or retaining of tangible personal property for any purpose,
(d) the provision of tangible personal property by way of promotional distribution, as well as the use of it by the person to whom the tangible personal property is provided,
(e) in the definition of "user" for the purposes of sections 9 (1) and 11 (1) (b), the employment or utilization of tangible personal property by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person, and
(e.1) the consumption, employment or utilization of tangible personal property by a business in the course of delivering a service,
except that use does not include
(f) the exercising of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of subsequently transporting it out of British Columbia for use outside British Columbia,
(g) the exercising of a right or power over or the storing, keeping or retaining of tangible personal property, other than reusable containers referred to in section 8, that was brought into British Columbia for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside British Columbia for use solely outside British Columbia,
(h) the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of being repaired and, after repair, being transported outside British Columbia for use outside British Columbia, and
(i) the storing, keeping or retaining of tangible personal property for the sole purpose of resale;
"user" means a person who utilizes in British Columbia tangible personal property
(a) for the person's own consumption or use,
(b) for the consumption or use of another person at the first person's expense, or
(c) on behalf of, or as the agent for, a principal who desires to acquire such property for the consumption or use by the principal or another person at the principal's expense,
and includes a promotional distributor to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for the tangible personal property by the person to whom the tangible personal property is provided;
"vehicle" means vehicle as defined in the Motor Vehicle Act;
"vehicle licence year" means the period beginning on a date on which a licence is issued for a vehicle and ending on the expiry date for the licence established on that licensing date;
"vendor" means a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells tangible personal property to a purchaser at a retail sale in British Columbia, but does not include a person described in section 92.2 (3).
2 For the purposes of this Act, any of the following is proof, in the absence of evidence to the contrary, that an individual resides in British Columbia:
(a) the receipt by the individual of a grant under section 2 of the Home Owner Grant Act;
(b) the receipt by a person of a grant in respect of the individual's residence and for the individual's benefit under section 3, 4 or 5 of the Home Owner Grant Act;
(c) the enrollment of the individual as a beneficiary under the medical services plan continued under the Medicare Protection Act.
3 The commissioner may appoint an employee of the government as a deputy commissioner and may delegate to a deputy commissioner any of the duties and powers exercisable by the commissioner under this Act.
3.1 (1) For any purpose related to the administration or enforcement of this Act or the regulations, the commissioner or a person authorized by the commissioner may, by demand notice, require from any person
(a) a return,
(b) any information or additional information,
(c) the production of any records, or
(d) a written statement.
(2) A demand notice under subsection (1)
(a) must be delivered to the person by personal service, registered mail, electronic mail or fax,
(b) must specify a reasonable time by which the person must comply with the demand notice, and
(c) in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.
(3) A person to whom a demand notice is delivered under this section must comply with the notice within the time specified in the notice.
(4) Under this Act, an affidavit by the commissioner, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish
(a) compliance by the commissioner or authorized person with this section, or
(b) default by a person on whom a demand was made under this section
must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.
4 A person who has custody of or control over information or records under this Act must not disclose the information or records to any other person except as follows:
(a) in the course of administering or enforcing this or another taxation Act;
(b) in court proceedings relating to this or another taxation Act;
(c) as provided in, or ordered under, section 39 (3), 40 (1), 99 (5) or 100 (1) of the Family Relations Act or section 8 (3) or 9 (2) of the Family Maintenance Enforcement Act;
(d) under an agreement that
(i) is between the government and another government,
(ii) relates to the administration or enforcement of taxation enactments, and
(iii) provides for the disclosure of information and records to and the exchange of similar information and records with that other government;
(e) for the purpose of compiling statistical information by the government or the government of Canada.
4.1 (1) For the purpose of taxation under this Act,
(a) the commissioner may determine the fair market value of tangible personal property
(i) that passes at a sale,
(ii) that is brought or sent into British Columbia,
(iii) that is delivered in British Columbia, or
(iv) for which there has been a change of use as described in section 9, and
(b) if the commissioner makes a determination under paragraph (a), the purchase price of the tangible personal property is as determined by the commissioner under that paragraph.
(2) For the purpose of taxation under this Act,
(a) the commissioner may determine the fair market value of a lease of tangible personal property, and
(b) if the commissioner makes a determination under paragraph (a), the lease price of the tangible personal property is as determined by the commissioner under that paragraph.
4.2 If
(a) a vendor or lessor offers to a purchaser or lessee a reduction in a purchase price or lease price, and
(b) the conditions of the reduction, if any, have been met by the purchaser or lessee,
the vendor or lessor must calculate tax by first deducting the full amount of the reduction from the purchase price or lease price and then applying the tax rate to the reduced purchase price or lease price.
Division 1 — Tax in relation to Purchase and Use
5 (1) At the time of making a purchase, the purchaser must pay to the government a tax at the applicable rate under section 6.
(2) If a person sells tangible personal property at a retail sale in British Columbia to a person who alleges that the tangible personal property is not being purchased for consumption or use, the seller must nevertheless require the other person to pay the tax, but the payment must be refunded by the commissioner on receipt of satisfactory evidence that the tax was wrongly paid.
(3) A purchaser who, after March 30, 1998, pays or is liable to pay a charge described in paragraph (a) (iv) of the definition of "purchase price" in respect of tangible personal property purchased by that purchaser must, unless the charge was included or reflected in the purchase price of the tangible personal property at the time of its purchase, pay to the government a tax in respect of the charge at the applicable rate under section 6, whether or not
(a) the purchase of the tangible personal property occurred before March 31, 1998, or
(b) more than 4 years have elapsed since the date of the purchase of the tangible personal property.
(4) The tax under subsection (3) must be calculated separately for each charge and must be paid at the earlier of
(a) the time each charge is paid, and
(b) the time each charge becomes payable.
6 (1) Subject to subsections (2), (3) and (5), the rate of the tax payable under section 5 (1) is 7% of the purchase price of the tangible personal property.
(2) Despite any other provision of this Division, the rate of the tax payable under section 5 (1) on liquor is 10% of the purchase price.
(3) Despite any other provision of this Division but subject to subsection (4), the rate of the tax payable under section 5 (1) on a passenger vehicle is as follows:
(a) 7% of the purchase price of the passenger vehicle, if the purchase price is less than $55 000;
(b) 8% of the purchase price of the passenger vehicle, if the purchase price is $55 000 or more but less than $56 000;
(c) 9% of the purchase price of the passenger vehicle, if the purchase price is $56 000 or more but less than $57 000;
(d) 10% of the purchase price of the passenger vehicle, if the purchase price is $57 000 or more.
(4) If a passenger vehicle qualifies under the regulations as an alternative fuel vehicle, the applicable tax rate established under subsection (3) must be determined in accordance with the regulations.
(4.1) Despite any other provision of this Division, the tax payable under sections 5 (1), 11 and 16 on a manufactured home is the rate established under subsection (1) of this section applied to the prescribed percentage of the purchase price, or if section 11(4.1) applies, the fair market value, of the manufactured home, if the manufactured home
(a) is a mobile home referred to in paragraph (a) or (b) of the definition of "manufactured home" in section 1, and
(b) is designed for, and will be used as, a family residential dwelling unit.
(4.2) Despite any other provision of this Division, the tax payable under sections 5 (1), 11 and 16 on a manufactured home is the rate established under subsection (1) of this section applied to a prescribed percentage of the purchase price, or if section 11(4.1) applies, the fair market value, of the manufactured home, if the manufactured home
(a) is a modular home referred to in paragraph (c) or (d) of the definition of "manufactured home" in section 1, and
(b) is designed for, and will be used as, a family residential dwelling unit.
(4.3) For the purpose of subsections (4.1) and (4.2), "family residential dwelling unit" does not include
(a) a recreational vehicle or a component such as a travel trailer, including a Park Model travel trailer manufactured to Canadian Standards Association Standard Z240, a tent trailer, a motor home, a slide-on camper, a chassis mounted camper or another vehicle or component of the same general classes, or
(b) a prescribed structure, vehicle or component used for a prescribed purpose.
(4.4) Subsections (4.1) and (4.2) do not apply to the following:
(a) free standing appliances, free standing furniture and draperies sold with a manufactured home;
(b) repair parts purchased for a manufactured home;
(c) taxable services provided in respect of a manufactured home.
(5) Despite any other provision of this Division, the rate of the tax payable under section 5 (1) on propane that is taxable under this Act is the rate established under the Motor Fuel Tax Act in respect of propane that is subject to tax under that Act.
7 (1) If liquor is acquired for sale under a special occasion licence, the holder of that licence or the agent of the holder must, at the time the licence is purchased,
(a) inform the authorized branch representative of the amount of the total proceeds expected from the sale of the liquor at the special occasion, and
(b) pay to that representative an amount equal to the additional tax that would be collectable under this Act based on the expected proceeds of the sales.
(2) If the amount of tax collectable on the actual sale of the liquor in respect of which payment was made under subsection (1) is less than the amount of the payment under subsection (1), the commissioner may refund the amount of the difference out of the consolidated revenue fund.
8 Without limiting sections 5 and 11 but subject to the regulations, a person who
(a) purchases, or
(b) brings or sends into British Columbia, or receives delivery of in British Columbia,
containers in which to package or deliver a product the person intends to sell must pay tax in accordance with this Division, if the containers are capable of being returned and reused.
9 (1) Subject to sections 11 (3) and 20 to 24, a person who
(a) acquired, inside or outside British Columbia, tangible personal property on which tax was not payable under this Act, other than by reason of an exemption under sections 69 to 77, and
(b) becomes, for any period, a user of that property
is deemed, at the time the person becomes a user, to be a purchaser of that property and must pay tax on the purchase price of that property at the rate in section 6 (1).
(1.1) Subject to subsection (1.2) and section 11 (3), a person who
(a) acquired, inside or outside British Columbia, tangible personal property that is exempt under this Act, and
(b) subsequently uses that property or allows that property to be used for a purpose other than that which allowed the person to acquire or use the property exempt from tax under this Act
must, at the time the property is so used, pay tax on the purchase price of that property at the rate under this Act.
(1.2) Subsection (1.1) does not apply to a person who acquired tangible personal property exempt from tax under section 78 (1) if
(a) the only subsequent use of that property, other than leasing, is occasionally, under an agreement, supplying the property with a person to operate it, and
(b) the tangible personal property is capitalized as lease inventory in the person’s business accounting records.
(1.3) Subject to section 11 (3), a person who
(a) acquired, inside or outside British Columbia, tangible personal property exempt from tax under section 78 (1.2), and
(b) subsequently ceases to capitalize that property as lease inventory in the person’s business accounting records
must, at the time the property ceases to be so capitalized, pay tax on the purchase price of that property at the rate under this Act.
(2) If a person who is a bona fide farmer, aquaculturist or commercial fisher uses or permits tangible personal property
(a) prescribed under section 73 (1) (b) or (c), or
(b) referred to in section 73 (1) (d),
to be used for a use other than that which allowed the person to obtain the property exempt from tax under these sections, at the time the property is so used, the person must pay tax on the purchase price of that property at the rate under this Act.
(3) A person
(a) who acquired tangible personal property exempt from tax under section 76 (1) (d) or (d.1), and
(b) who, for any period after the testing of the prototype or copy of that prototype referred to under section 76 (1) (d) or (d.1),
(i) becomes the user of that prototype or copy of that prototype, or
(ii) receives consideration for use of that prototype or copy of that prototype,
must pay tax on the purchase price of that tangible personal property at the rate in section 6 (1).
(3.1) If, subsequent to the acquisition or lease of tangible personal property in respect of which a person, as that term is defined in section 82.1 (1), received a refund of tax under that section, the person uses the property for a use other than that which would entitle the person to receive a refund under section 82.1, the person must, at the time the property is so used, pay tax on the purchase price or lease price, as the case may be, of that property at the rate under this Act.
(4) Subsection (3) does not apply if the only use of the prototype or copy of that prototype is for demonstration and the only consideration received for the use of that prototype or copy of that prototype does not exceed the actual cost of that demonstration.
(5) Subsection (3) does not require a person to pay tax more than once on the purchase price referred to in that subsection.
10 (1) If tangible personal property, on which the purchaser has previously paid the applicable tax, is accepted at the time of sale by the seller on account of the price of the tangible personal property sold, the purchaser must pay a tax at the rate of
(a) 7% of the difference between the purchase price of the tangible personal property sold and the credit allowed for the tangible personal property accepted on account of the purchase price in trade, or
(b) if the tangible personal property sold is a passenger vehicle, at the applicable rate as follows:
(i) 7% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is less than $55 000;
(ii) 8% of that difference, if the purchase price of the passenger vehicle is $55 000 or more but less than $56 000;
(iii) 9% of that difference, if the purchase price of the passenger vehicle is $56 000 or more but less than $57 000;
(iv) 10% of that difference, if the purchase price of the passenger vehicle is $57 000 or more.
(2) Subsection (1) does not apply if the tangible personal property sold or the tangible personal property accepted on account of the property sold is a multijurisdictional vehicle.
11 (1) This section applies to a person
(a) who
(i) resides, ordinarily resides or carries on business in British Columbia or enters British Columbia with the intention of residing or carrying on business in British Columbia, and
(ii) brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, other than a multijurisdictional vehicle, for use or consumption
(A) by the person,
(B) by another person at the first person's expense,
(C) by another person for whom the first person acts as agent, or
(D) by another person at the expense of a principal for whom the first person acts as agent, or
(b) who uses in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia, tangible personal property, other than a multijurisdictional vehicle,
(i) that the person has not leased, as lessee, and
(ii) that the person brought or had sent into British Columbia or that the person received delivery of in British Columbia.
(2) For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if an employee or other representative of that person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of that person's products or services.
(2.1) For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if
(a) the property is used
(i) by another person at the first person's expense,
(ii) by another person for whom the first person acts as agent, or
(iii) by another person at the expense of a principal for whom the first person acts as agent, and
(b) the use by the other person referred to in paragraph (a) is intended to assist the business of the first person referred to in that paragraph.
(3) Unless section 112.3 (1) or (2) applies, a person to whom this section applies under subsection (1) must
(a) immediately report the matter in writing to the commissioner,
(b) supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property, and
(c) pay to the government, at the time or within the period specified in section 14, tax calculated in accordance with this section and sections 12 and 13.
(4) Subject to subsections (4.1) and (5), tax payable under subsection (3) must be calculated by multiplying the purchase price of the tangible personal property by the rate in section 6 on the entry date of the property.
(4.1) Subject to subsections (4.2) and (5), tax payable under subsection (3) with respect to tangible personal property that is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift must be calculated by multiplying the fair market value of the tangible personal property by the rate in section 6 on the entry date of the property.
(4.2) Subsection (4.1) does not apply if there is evidence satisfactory to the commissioner that
(a) the person who provided the gift did not reside or ordinarily reside in British Columbia,
(b) the person who provided the gift
(i) paid tax under this Act, or
(ii) paid a sales tax to another province or under section 165 (2) of the Excise Tax Act (Canada),
and that person is not eligible for a refund or rebate under this Act or under the law of the other jurisdiction, or
(c) the gift meets a prescribed circumstance.
(5) Subsections (4) and (4.1) do not apply to
(a) tangible personal property to which section 12 (1) to (3) or section 13 applies, or
(b) a multijurisdictional vehicle.
12 (1) This section applies to tangible personal property in relation to which tax is payable under section 11 (3), other than
(a) property described in section 13 (1), or
(b) a multijurisdictional vehicle.
(2) If the person liable to pay tax under section 11 (3) establishes to the satisfaction of the commissioner that the property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use, the tax payable on that property must be calculated in accordance with the following formula:
| Tax = (purchase price x rate) ÷ 3 |
| where | ||
| purchase price | = | the purchase price of the property; |
| rate | = | the rate in section 6 on the entry date of the property. |
(3) The tax must be calculated under subsection (2) separately for each 12 month period during any part of which the tangible personal property is in British Columbia, but the person is not liable
(a) to pay tax on the property if it is in British Columbia during that period for fewer than a prescribed number of days, or
(b) to pay to the government a total amount of tax on that property in excess of an amount equal to the amount determined in accordance with the following formula:
| Amount = (purchase price x rate) – other sales tax |
| where | ||
| purchase price | = | the purchase price of the property or, in respect of prescribed tangible personal property referred to in section 19 (1), the deemed purchase price of that property on its entry date; |
| rate | = | the rate in section 6 on the entry date of the property; |
| other sales tax | = | the retail sales tax the person has paid on the property to another province. |
(4) Subsection (1) does not apply in respect of tangible personal property that is brought or sent into, or delivered in, British Columbia for use as a part of any other tangible personal property.
13 (1) Tax payable under section 11 (3) on the following must be calculated in accordance with subsection (2):
(a) an aircraft used
(i) interprovincially or internationally for commercial purposes, and
(ii) in flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia;
(b) a part of an aircraft described in paragraph (a);
(c) any railway rolling stock used interprovincially or internationally;
(d) a vessel or any other conveyance, other than an aircraft, used in interprovincial or international trade for the commercial carriage of passengers or goods;
(e) a part of any railway rolling stock described in paragraph (c) or of a vessel or other conveyance described in paragraph (d).
(2) The formula to be used for calculating tax payable under section 11 (3) on tangible personal property to which this section applies is as follows:
| Tax = purchase price x rate x (BC usage ÷ total usage) |
| where | ||
| purchase price | = | purchase price of the tangible personal property; |
| rate | = | the rate in section 6 on the entry date of the tangible personal property; |
| BC usage | = | the applicable meaning established under subsections (3) to (7); |
| total usage | = | the applicable meaning established under subsections (3) to (7). |
(3) For an aircraft described in subsection (1) (a), the tax payable must be calculated in accordance with the formula under subsection (2) using the following:
| BC usage | = | the number of hours the aircraft will fly in the airspace over British Columbia in the flights referred to in subsection (1) (a) (ii) during the period beginning on the entry date of the aircraft and ending on the third anniversary of that date; |
| total usage | = | the total number of hours the aircraft will fly during the period referred to in the definition of "BC usage" in this subsection. |
(4) For a part described in subsection (1) (b), the tax payable under section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:
| BC usage | = | the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in the flights referred to in subsection (1) (a) (ii) during, | |
| (a) | in the case of a prescribed part, the period beginning on the entry date of the prescribed part and ending on the third anniversary of that date, and | ||
| (b) | in any other case, the 12 months after the entry date of the part; | ||
| total usage | = | the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in the definition of "BC usage" in this subsection. | |
(5) For railway rolling stock described in subsection (1) (c), or for a vessel or other conveyance described in subsection (1) (d), the tax payable under section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:
| BC usage | = | the distance the conveyance will travel, during the 12 months after its entry date, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia; |
| total usage | = | the total distance the conveyance will travel during the 12 months after its entry date. |
(6) For a part described in subsection (1) (e), the tax payable under section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:
| BC usage | = | the distance the conveyance in which the part is or is to be installed will travel, during the 12 months after the entry date of the part, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia; |
| total usage | = | the total distance the conveyance in which the part is or is to be installed will travel during the 12 months after the entry date of the part. |
(7) For the purpose of calculating under this section the tax payable under section 11 (3),
(a) the number of hours or the distance a conveyance will travel during the relevant period in the airspace over, in the waters of or in British Columbia, and
(b) the total number of hours or the total distance the conveyance will travel during the period referred to in paragraph (a)
must be based on a reasonable estimate of those hours or distances.
(8) If
(a) the actual number of hours or the actual distance a conveyance travels during the relevant period in the airspace over, in the waters of or in British Columbia, and
(b) the total actual number of hours or the total actual distance the conveyance travels during that period
results in a different ratio from the ratio based on the estimate made under subsection (7), the tax must be adjusted accordingly at the end of that period and sections 80, 81, 82 (1), 83 to 88, 115 and 117 apply.
14 (1) Tax is payable under section 11 (3) as follows:
(a) for tangible personal property described in section 12 (1), within 23 days, or other prescribed period, after the day the property is first used in British Columbia during the 12 month period in respect of which tax is payable;
(b) for tangible personal property that is described in section 13 (1) (a) or is a prescribed part described in section 13 (1) (b), in installments that are calculated in the prescribed manner and are payable at prescribed intervals over a period of 3 years;
(c) for tangible personal property that is a part described in section 13 (1) (b), other than a prescribed part, within 23 days, or other prescribed period, after the last day of the month in which the part is brought or sent into, or is delivered in, British Columbia;
(d) for tangible personal property described in section 13 (1) (c) or (d), within 23 days, or other prescribed period, after the last day of the month in which the property is brought or sent into, or is delivered in, British Columbia;
(e) in any other case, on the entry date of the tangible personal property.
(2) If more tax is required to be paid when tax calculated under section 13 (2) to (6) is adjusted under section 13 (8), the additional tax is payable within 23 days, or other prescribed period, after the date the tax is adjusted.
15 (1) This section applies to a person
(a) who purchases in British Columbia or is deemed under section 9 (1) to be a purchaser of an aircraft, vessel, railway rolling stock or other conveyance, and
(b) who, from the date of purchase or the date on which the person is deemed to be a purchaser, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.
(2) Despite any other provision of this Division, a person referred to in subsection (1) must pay, on the date of purchase in British Columbia or at the time specified in section 9 (1), tax calculated in accordance with section 13 (3) or (5).
16 (1) In this section, "non-resident" means a person who does not reside, ordinarily reside or carry on business in British Columbia and who
(a) owns real property in British Columbia, or
(b) leases, as lessee, real property in British Columbia if the term of that lease, including the cumulative total of all options and rights to extend or renew the lease, is at least 5 years.
(2) A non-resident who brings or sends tangible personal property into British Columbia, or who receives delivery of tangible personal property in British Columbia, must comply with subsection (3) if the tangible personal property is, for the 12 month period following its entry into British Columbia, to be used or consumed
(a) primarily in British Columbia, and
(b) primarily by one or more of the following:
(i) the non-resident;
(ii) a person for whom the non-resident acts as agent;
(iii) a person whose use or consumption of the tangible personal property is at the expense of the non-resident;
(iv) a person whose use or consumption of the tangible personal property is at the expense of a principal for whom the non-resident acts as agent.
(3) A non-resident to whom subsection (2) applies must
(a) immediately report the matter in writing to the commissioner,
(b) supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property, and
(c) pay to the government tax on the purchase price or lease price of the tangible personal property at the rate in section 6 or 20, as the case may be.
17.1 For the purpose of determining the amount of tax that, in relation to propane, is payable under this Act, the commissioner may establish formulas for converting measures of propane other than in litres into litres of propane.
18 (1) The tax imposed by this Act must be
(a) calculated separately on every purchase, and
(b) computed to the nearest cent, with 1/2 cent counted as 1 cent.
(2) If several items of tangible personal property are purchased on the same occasion or as part of one transaction, the total of the purchases is deemed to be one purchase for the purposes of this Act.
19 (1) If prescribed tangible personal property, other than property acquired for resale, becomes subject to tax under section 9 (1), (1.1), (1.3) or (2), 11 (3) or 31 (1), the purchase price of the property is deemed to be the greater of the following amounts:
(a) the depreciated value, determined in accordance with the regulations, of the prescribed tangible personal property on the date it becomes subject to tax under the applicable subsection;
(b) 50% of the purchase price of the prescribed tangible personal property.
(2) For the purpose of calculating under section 12 (1) the tax payable in respect of each 12 month period on prescribed tangible personal property referred to in subsection (1), the date on which that property becomes subject to tax is
(a) the first day during that period in which that property is in British Columbia, or
(b) if that property is in British Columbia for a continuous period of more than 12 months, the first day of that continuous period.
(3) If prescribed tangible personal property becomes subject to tax under section 16, the purchase price of the property is deemed to be the greater of the following amounts:
(a) the depreciated value, as determined in accordance with the regulations, of the prescribed tangible personal property at the time it is brought, sent or delivered into British Columbia;
(b) 50% of the purchase price of the prescribed tangible personal property.
Division 2 — Tax in relation to Leases
20 (1) Subject to this section and sections 20.1 and 21 (3), a lessee must pay to the government a tax as follows:
(a) if the leased property is not a passenger vehicle, at the rate of 7% of the lease price of the leased property;
(b) if the leased property is a passenger vehicle, at the applicable rate as follows:
(i) 7% of the lease price, if the tax rate value of the passenger vehicle is less than $55 000;
(ii) 8% of the lease price, if the tax rate value of the passenger vehicle is $55 000 or more but less than $56 000;
(iii) 9% of the lease price, if the tax rate value of the passenger vehicle is $56 000 or more but less than $57 000;
(iv) 10% of the lease price, if the tax rate value of the passenger vehicle is $57 000 or more.
(2) For the purposes of subsection (1) (b), the tax rate value in respect of a passenger vehicle
(a) means the fair market value of the vehicle,
(b) must be determined under paragraph (a) as at the later of
(i) March 31, 1993, and
(ii) the first date on which the vehicle is leased by the lessor, and
(c) is, for so long as the lessor remains the owner of the vehicle, the tax rate value determined for the vehicle under paragraphs (a) and (b).
(3) If a passenger vehicle qualifies under the regulations as an alternative fuel vehicle, the applicable tax rate established under subsection (1) (b) and the tax rate value under subsection (2) must be determined in accordance with the regulations.
(4) Subsection (1) does not apply to a multijurisdictional vehicle, other than a short term rental vehicle.
20.1 (1) A lessee of a motor vehicle, other than a multijurisdictional vehicle, must, at the time of registering the vehicle for use, pay tax at the applicable rate under section 6, if the vehicle is leased for a period of more than 28 days from an out of Province lessor who is not a registered lessor under the Act, or who is a registered lessor but has not confirmed collection of the tax.
(2) For the purpose of subsection (1), the reference to "purchase price" in section 6 means the fair market value on the date the motor vehicle is registered.
(3) On termination or expiration of the lease agreement for a motor vehicle referred to in subsection (1), or removal of the motor vehicle from British Columbia for registration outside of British Columbia, the lessee may claim a refund of the difference between the tax paid at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under section 20 or 21.
(4) A person who pays tax under this section is not required to pay tax under section 20 (1) or 21 (2) with respect to the same lease agreement.
20.2 A person, other than a person who has paid tax under section 9 (1.1) or (1.3), who
(a) purchases tangible personal property exempt from tax under section 78 (1.2), or
(b) is referred to in section 9 (1.2)
must, when the property is, under an agreement, supplied with a person to operate it, pay tax at the applicable rate under section 20 on the price at which that property would have been leased had it been leased without supplying a person to operate it.
21 (1) This section applies to the following:
(a) a person who
(i) resides, ordinarily resides or carries on business in British Columbia or enters British Columbia with the intention of residing or carrying on business in British Columbia, and
(ii) brings or sends into British Columbia or receives delivery in British Columbia of tangible personal property, other than a multijurisdictional vehicle, that the person has leased, as lessee;
(b) a person who uses in British Columbia in the course of the person's business, whether or not the person's business is carried on in British Columbia, tangible personal property, other than a multijurisdictional vehicle, that the person has leased, as lessee;
(c) a lessee who
(i) leases in British Columbia any railway rolling stock, and
(ii) from the date the lease is granted, uses the railway rolling stock interprovincially or internationally;
(d) a lessee who
(i) leases in British Columbia an aircraft, and
(ii) from the date the lease is granted, uses the aircraft interprovincially or internationally for commercial purposes;
(e) a lessee who
(i) leases in British Columbia a vessel or other conveyance, other than railway rolling stock or an aircraft, and
(ii) from the date the lease is granted, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.
(1.1) For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if
(a) the property is used
(i) by another person at the first person's expense,
(ii) by another person for whom the first person acts as agent, or
(iii) by another person at the expense of a principal for whom the first person acts as agent, and
(b) the use by the other person referred to in paragraph (a) is intended to assist the business of the first person referred to in that paragraph.
(2) Subject to section 20.1, a person to whom this section applies under subsection (1) (a) or (b) must
(a) immediately report the matter in writing to the commissioner,
(b) supply to the commissioner all pertinent information required by the commissioner in respect of the leased property, and
(c) pay to the government, at the time specified in section 24, tax calculated in accordance with subsections (4) to (6) of this section and section 23.
(3) Despite section 20 (1), a person to whom this section applies under subsection (1) (c) to (e) must pay tax calculated in accordance with subsections (4) to (6) of this section and section 23.
(4) The tax payable under this section must be calculated in accordance with the following formula:
| Tax = lease price x rate x (BC usage ÷ total usage) |
| where | ||
| lease price | = | lease price of the tangible personal property; |
| rate | = | the rate in section 20 (1) on the date the lease price for the applicable rental period is paid; |
| BC usage | = | the applicable meaning established under subsection (5); |
| total usage | = | the applicable meaning established under subsection (5). |
(5) The following apply for the purposes of subsection (4):
(a) in the case of an aircraft used
(i) interprovincially or internationally for commercial purposes, and
(ii) in flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia,
| BC usage | = | the number of hours the aircraft will fly in a rental period in the airspace over British Columbia in the flights referred to in subparagraph (ii); | |
| total usage | = | the total number of hours the aircraft will fly in that rental period; |
(b) in the case of a vessel used in interprovincial or international trade for the commercial carriage of passengers or goods,
| BC usage | = | the distance the vessel will travel in the waters of British Columbia in a rental period; | |
| total usage | = | the total distance the vessel will travel in that rental period; |
(c) in the case of any railway rolling stock used interprovincially or internationally,
| BC usage | = | the distance the railway rolling stock will travel in British Columbia in a rental period; | |
| total usage | = |