September 2017 B.C. provincial budget tax changes
On September 11, 2017, the government announced proposed changes to the provincial tax laws. Some of these changes confirm changes previously announced on February 21, 2017.
Read a summary explanation of all the tax changes in the Budget and fiscal plan.
Changes were introduced for:
Learn more about the following tax changes using the sources below.
Sales taxes
Carbon tax
Carbon tax rates increased
Effective April 1, 2018, the carbon tax rates are increased by $5 per tonne of carbon dioxide equivalent emissions (CO2e) annually until rates are equal to $50 per tonne of CO2e on April 1, 2021.
More information on the requirement to take an inventory of, and pay additional security on fuel held in inventory in B.C. as of midnight on March 31, 2018 will be provided at a later date.
Provincial sales tax
Tax on electricity phased out
Effective April 1, 2019, electricity is fully exempt from provincial sales tax.
Effective on a date to be specified by regulation, the tax rate on electricity is reduced to 3.5% from 7% of the purchase price. Once the legislation receives royal assent, government intends to provide at least one month of notice before this change takes effect.
Tobacco tax
Tobacco tax rates increased
Effective on a date to be specified by regulation, the tax rate on cigarettes is increased to $49.40 from $47.80 per carton of 200 cigarettes, and the tax rate on fine-cut tobacco is increased to 24.7 cents from 23.9 cents per gram.
Once the legislation receives royal assent, government intends to provide at least one month of notice before this change takes effect.
More information on the requirement to take an inventory of, and pay additional security on, unsold tobacco products held in B.C. will be provided at a later date.
Motor fuel tax
Natural gas used as locomotive fuel exempted
Effective on a date to be specified by regulation, natural gas for use in an internal-combustion engine for any rolling stock or vehicle when run on rails is exempt from the 3 cent per litre tax on locomotive fuel.
Once the legislation receives royal assent, government intends to provide at least one month of notice before this change takes effect. The motor fuel tax exemption for natural gas used as locomotive fuel is consistent with the motor fuel tax exemptions for natural gas used in motor vehicles or used in a ship.
Income taxes
International business activity
International business activity program eliminated.
- Notice 2017-003, International Business Activity Program Budget 2017 Update (PDF)
Tax rates
Preferential tax benefit for credit unions restored.
Small business corporate income tax rate reduced.
- Tax rates and business limits
General corporate income tax rate increased.
- Tax rates and business limits
New personal income tax rate introduced.
- Personal income tax rates
Tax credits
Tax credit for volunteer firefighters and search and rescue volunteers introduced.
Child arts, child fitness and child fitness equipment tax credits eliminated after the 2017 tax year.
Dividend tax credit rate on other than eligible dividends reduced.
- Basic tax credits
Dividend tax credit rate for eligible dividends increased.
- Basic tax credits
Back to school tax credit introduced.
Book publishing tax credit extended.
- Book publishing tax credit
B.C. Mining flow-through share tax credit extended.
- B.C. Mining flow-through share tax credit
Film tax credits regional location boundary adjusted.
- Film and television tax credit
- Production services tax credit
Interactive digital media tax credit amended.
- Interactive digital media tax credit
Low income climate action tax credit payments increased.
- Low income climate action tax credit
Mining Exploration Tax Credit qualifying expenses expanded.
- Mining exploration tax credit (personal)
- Mining exploration tax credit (corporate)
Scientific research and experimental development tax credit extended.
- Scientific research and experimental development tax credit
Training tax credits extended.
- Training tax credit
- Training tax credit for employers
Property taxes
Property transfer tax
First time home buyer’s threshold increase confirmed.
- First time home buyer’s program
