2019 Budget tax changes

On February 19, 2019, the government announced proposed changes to the provincial tax laws.

Read a summary explanation of all the tax changes in the Budget and fiscal plan.

Changes were introduced for:

• Sales taxes
• Income taxes
• Natural resource taxes

Learn more about the following tax changes using the sources below.

Sales taxes

Provincial sales tax

Effective on Royal Assent, the Provincial Sales Tax Act is amended to authorize a principal and agent to jointly designate a single party to be responsible for tax collection, reporting and remittance obligations when a principal uses an agent to make a sale or lease, or when a billing agent is used to collect payments.

The Provincial Sales Tax Act is also amended to clarify:

• Effective retroactive to April 1, 2013, the tax treatment of vehicles brought into B.C. to be immediately licensed as multi-jurisdictional vehicles
• Effective on a date to be specified by regulation, refunds for motor vehicles returned to manufacturers
• Effective on royal assent, suspensions and cancellations of collector registrations
• Effective on royal assent, conditions for small seller eligibility
• Effective retroactive to April 1, 2013, the obligation to pay tax when an exemption is not documented
• Effective on royal assent, the timing of tax payments by promotional distributors
• Effective on royal assent, procedures regarding unspent municipal and regional district tax revenues held by dissolving societies

Motor fuel tax

Effective July 1, 2019, the Motor Fuel Tax Act is amended to enable the TransLink service region to increase its motor fuel tax rates on clear gasoline and clear diesel from the current rate of 17 cents per litre to a maximum of 18.5 cents per litre.

The Motor Fuel Tax Act is also amended to clarify:

• Effective retroactive to January 1, 2018, refunds of motor fuel tax security related to sales of relabeled fuel
• Effective retroactive to February 20, 2015, allowance for motor fuel tax collectors
• Effective on royal assent, appeal rights

Carbon tax

Effective on Royal Assent, a penalty is introduced for persons who sell natural gas at the retail level in B.C. but are not registered as natural gas retail dealers.

Income taxes

Tax credits

B.C. child opportunity benefit replacing the B.C. early childhood tax benefit effective October 1, 2020.

• B.C. Child opportunity benefit
• B.C. Early childhood tax benefit

B.C. mining flow-through share tax credit extended.

• B.C. Mining flow-through share income tax credit

Climate action tax credit increased.

• Climate action tax credit

Farmers’ food donation tax credit extended.

• Farmers' food donation personal tax credit
• Farmers' food donation corporate tax credit

Mining exploration tax credit made permanent.

• Mining exploration tax credit for personal income tax
• Mining exploration tax credit for corporate income tax

Shipbuilding and ship repair industry tax credit extended.

• Shipbuilding and ship repair industry tax credit

Venture capital tax credit enhanced.

• Venture capital tax credit
• Small business venture capital tax credit

Training tax credits extended.

• Training tax credits for employers
• Training tax credits for apprentices

Natural resource taxes

Mineral tax

The new mine allowance is extended for one year to the end of 2020.

Historical budget information

• 2018 Budget tax changes
• September 2017 Budget tax changes
• February 2017 Budget tax changes
• 2016 Budget tax changes