2013 Budget Tax Changes

On June 27, 2013, the provincial government introduced budget legislation to enact the tax changes previously announced on February 19, 2013.

All tax changes are subject to legislative and regulatory approval.

Consumer Taxes

Carbon Tax

Effective January 1, 2014, a carbon tax exemption is provided to farmers for the same coloured motor fuels (gasoline and diesel) and uses that they are currently able to purchase exempt from motor fuel tax.

Tobacco Tax

Effective October 1, 2013, the tobacco tax rates are increased to:

  • 22.3 cents per cigarette ($44.60 per carton of 200)
  • 22.3 cents per gram of loose tobacco
  • No change to the tax rate on cigars

More information will be provided in a future notice.

Income Taxes

Personal Income Tax

A new temporary tax rate and tax bracket is introduced for the 2014 and 2015 tax years of 16.8% on taxable income over $150,000.

Corporate Income Tax

The general corporate income tax rate is increased to 11%, effective April 1, 2013.

Forest Revenue Audit Program

The Forest Act is amended to provide the commissioner the ability to assess a penalty for failure to comply with information and records requests and authorizes the B.C. Supreme Court to grant an order to enforce compliance.

Property Taxes

Property Tax Deferment

The families with children property tax deferment program is expanded to include parents financially supporting children aged 18 or older if the child is enrolled in an educational institution or is disabled.

Property Transfer Tax

The exemption for transfers of farm land from a deceased’s estate in respect of a family farm or a family farm corporation is expanded.

School Tax

Average residential school property taxes for 2013, before application of the home owner grant, are increased by the previous year’s provincial inflation rate.

Non-residential school tax revenue for 2013 is increased by inflation plus new construction. The rates will be set when revised assessment roll data are available.

The provincial industrial property tax credit for light industry will be phased out over two years.