Tax Interpretation Manual: Motor Fuel Tax Act - Regulations

Last updated on November 21, 2024

Section 1 – Interpretation

MFTR - SEC.1(1)/Act/Int.

(1) Act

Interpretation (Issued: 2015/04)

Effective December 31, 1985, B.C. Reg. 414/85 provides a definition of “Act” for the purposes of the regulation. “Act” is defined as the Motor Fuel Tax Act.

MFTR - SEC.1(1)/Annual Period/Int.

(1) Annual Period

References:

Act: Section 1 “director”

MFTR: Section 1.21

Interpretation (Issued: 2017/05; Revised: 2023/10)

Effective February 23, 2022, B.C. Reg. 186/2022 amends both the Motor Fuel Tax Regulation and the Carbon Tax Regulation to allow the director to set annual periods for each tax administratively, outside of regulatory amendments.

The MFTR “annual period” was previously defined as July 1 to June 30, which aligned with carbon tax rate changes that took place on July 1. However, beginning in 2018 carbon tax rate changes have occurred on April 1 due to federal requirements, which created two carbon tax rate periods during each annual period (July 1 to May 31, and April 1 to June 30). Consequently, businesses that would have otherwise qualified for annual filing had to file carbon tax returns quarterly.

The new definition provides that the annual period is set by the director under MFTR section 1.21. The director may set an annual reporting period that matches tax rate periods (April to March), and through similar amendments to the CTR can set the same annual period for both taxes. This will allow businesses that qualify for annual filing to file once per year instead of quarterly.

Effective August 1, 2016, B.C. Reg. 180/2016 added a definition of "annual period" for the purpose of specifying a reporting period for annual tax filers.

MFTR - SEC.1(1)/Base Jurisdiction/Int.

(1) Base Jurisdiction

References:

MFTR: Section 1; Section 16

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective January 1, 1996, B.C. Reg. 188/95 added the definition of “base jurisdiction” under MFTR section 1. Base jurisdiction in relation to a carrier, means the jurisdiction:

(a) in which the carrier’s IFTA commercial vehicles are registered,

(b) from which control of the operation of those vehicles is exercised,

(d) within which at least some of those vehicles travel.

The definition was added consequential to BC’s participation in the International Fuel Tax Agreement.

MFTR - SEC.1(1)/Dye/Int.

(1) Dye

References:

MFTR: Section 6; Section 7; Section 8; Section 9; Section 10

Bulletin MFT-CT 003

Interpretation (Issued: 2015/05)

Effective January 28, 2000, by B.C. Reg. 26/2000, the definition of "dye" is changed to mean FOM-BAG-NS.

Effective April 21, 1995, B.C. Reg. 188/95 replaced the existing definition of "dye" with "FOM BB" dye. This change was made to accommodate the use of a new fuel dye, FOM BB, which replaced the dye previously used, TEF Red 10. This amendment also deleted references to Automate Blue Dye, which had not been used for six years prior to this amendment.

MFTR - SEC.1(1)/Flight/Int.

(1) Flight

References:

MFTR: Section 1 “international air service”; Section 2.4; Section 4.4

Bulletin MFT 009

Interpretation (Issued: 2015/05)

Effective April 1, 2012, B.C. Reg. 26/2012 added the definition of "flight" for the purposes of the MFTR section 2.4 exemption and the MFTR section 4.4 refund, both of which apply to qualifying purchases of jet fuel.

"Flight" means a trip between the takeoff and landing of an aircraft, whether or not the trip is a portion of a longer route; it includes taxiing before taking off, taking off, landing and taxiing after landing.

MFTR - SEC.1(1)/IFTA/Int.

(1) IFTA

References:

MFTR: Section 1 “IFTA decal”, “IFTA jurisdiction”, “IFTA licence”, “IFTA licensee”; Section 17; Section 18; Section 19; Section 23; Section 24.1; Section 26

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added the definition of “IFTA” under MFTR section 1 consequential to BC’s participation in the International Fuel Tax Agreement. IFTA means the International Fuel Tax Agreement.

MFTR - SEC.1(1)/IFTA Decal/Int.

(1) IFTA Decal

References:

Act: Section 1 “carrier”, “carrier decal”

MFTR: Section 1 “IFTA”; Section 17; Section 18; Section 19; Section 20; Section 21; Section 26

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added a definition of “IFTA decal” under MFTR section 1 consequential to BC’s participation in the International Fuel Tax Agreement (IFTA). IFTA decal “means a carrier decal issued to a carrier who is registered and licensed in accordance with IFTA”.

MFTR - SEC.1(1)/IFTA Jurisdiction/Int.

(1) IFTA Jurisdiction

References:

MFTR: Section 1 “IFTA”; Section 16; Section 19; Section 24; Section 24.1; Section 25; Section 26; Section 27

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added the definition of “IFTA jurisdiction” under MFTR section 1 consequential to BC's participation in the International Fuel Tax Agreement (IFTA). IFTA jurisdiction “means a jurisdiction that is a member of IFTA”.

MFTR - SEC.1(1)/IFTA Licence /Int.

(1) IFTA Licence

References:

Act: Section 1 “carrier”, “carrier licence”

MFTR: Section 1 “IFTA”; Section 16; Section 17; Section 18; Section 19; Section 20; Section 21; Section 22; Section 23; Section 24; Section 24.1; Section 25; Section 26; Section 27; Section 45

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added the definition of “IFTA licence” under MFTR section 1 consequential to BC’s participation in the International Fuel Tax Agreement (IFTA). IFTA licence means a carrier licence issued to a carrier who is registered and licensed in accordance with IFTA.

MFTR - SEC.1(1)/IFTA Licensee/Int.

(1) IFTA Licensee

References:

MFTR: Section 1 “IFTA”, “IFTA licence”; Section 21; Section 22; Section 23; Section 24; Section 24.1; Section 25; Section 26; Section 27

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added the definition “IFTA licensee” consequential to BC’s participation in the International Fuel Tax Agreement (IFTA).

IFTA licensee means a holder of an IFTA license.

MFTR - SEC.1(1)/International Air Service/Int.

(1) International Air Service

References:

MFTR: Section 1.1; Section 2.01

Bulletin MFT 009

Interpretation (Issued: 2015/05)

Effective April 1, 2012, B.C. Reg. 26/2012 added the definition of "international air service”.

"International air service" means a person who:

a) owns or operates a commercial air service that provides, to members of the public for a fee:

i. International air transportation of passengers, goods or both; or

ii. International air services other than the transportation of passengers, goods or both; and

b) does not have flights that connect a location in British Columbia with any other location in Canada in any commercial air service.

MFTR - SEC.1(1)/Recreational Vehicle/Int.

(1) Recreational Vehicle

References:

MFTR: Section 1 “IFTA commercial vehicle”; Section 46

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added the definition of “recreational vehicle” under MFTR section 1. The definition was added consequential to BC’s participation in the International Fuel Tax Agreement (IFTA).

Recreational vehicle means a vehicle that is used solely for personal pleasure by an individual and includes, without limitation, any of the following vehicles when so used:

(a) motor homes;

(b) pickup trucks with attached campers;

Recreational vehicles are excluded from the definition of an IFTA commercial vehicle (see MFTR/ MFTR - SEC.1 “IFTA commercial vehicle /Int). Consequently, recreational vehicles are excluded from participating in IFTA.

MFTR - SEC.1(1)/Spouse/Int.

(1) Spouse

References:

Act: Section 1 “person with disabilities”

MFTR: Section 4.6

Interpretation (Issued: 2023/10)

Effective December 7, 2016, B.C. Reg. 294/2016 adds a definition of spouse to MFTR section 1 for the purposes of MFTR section 4.6 [refund — spouse of person with disabilities].

A spouse means either a person who is married to another person, or a person who is living with another person in a marriage-like relationship and has done so for a continuous period of at least two years.

MFTR - SEC.1(2)/Alternative Motor Fuel/Int.

(2) Alternative Motor Fuel

References:

Act: Section 1 “fuel”

MFTR: Section 1 “alternative motor fuel”, “renewable diesel fuel”; Part 3.1 – Alternative Motor Fuels

Bulletin MFT-CT 005

Interpretation (Issued: 2015/05)

Effective January 1, 2010, B.C. Reg. 307/2009 amended the definition of alternative motor fuel to exclude renewable diesel fuel, ethanol and fuel that contains both renewable diesel fuel or ethanol.

Effective January 1, 2010, ethanol and biodiesel are no longer exempt from tax under the Act as a result of the coming into force of the renewable fuel standard

under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act. Motor fuel tax applies to ethanol and renewable diesel fuel at the same rate as the fuel with which it is blended. Motor fuel tax applies to 100% ethanol at the same rate as clear gasoline, and to 100% renewable diesel fuel at the same rate as motive fuel (clear diesel). Renewable diesel fuel includes both biodiesel and hydrogenated derived renewable diesel fuel.

Effective January 1, 2001, B.C. Reg. 371/2000 added a definition of alternative motor fuel to MFTR subsection 1(2) of the regulation.

“Alternative motor fuel” is defined as a Category 1 alternative motor fuel, a Category 2 alternative motor fuel or a Category 3 alternative motor fuel, within the meaning of Part 3.1 – Alternative Motor Fuels of the regulation, but does not include renewable diesel fuel, ethanol or fuel that contains renewal diesel fuel or ethanol.

For more information on alternative motor fuels, see:

MFTA/ MFTR - SEC.10.1/Int (section of the Act that imposes tax on alternative motor fuels);
MFTR/ MFTR - SEC.51.1/Int (definition of alternative motor fuel and other terms); and
MFTR/ MFTR - SEC.51.2/Int (section of the regulation that identifies the tax rate or exempt status for alternative motor fuels).

MFTR - SEC.1(2)/IFTA Commercial Vehicle/Int.

(2) IFTA Commercial Vehicle

References:

Act: Section 1 “IFTA commercial vehicle”, “motor fuel user permit”, “motor vehicle”; Section 2; Section 16; Section 61; Section 71

MFTR: Section 1 “base jurisdiction”; Section 16; Section 18; Section 19; Section 21; Section 24; Section 40; Section 40.1; Section 40.2; Section 40.3; Section 41; Section 42; Section 43

Bulletin MFT-CT 008

Interpretation (Issued: 2015/05)

Effective June 21, 2007, B.C. Reg. 217/2007 renames the regulatory definition of "commercial motor vehicle" as "IFTA commercial vehicle". This amendment ensures the two types of motor vehicles are clearly and separately identified within the Act so that businesses will not be confused about the legislative requirements and authorizations for each type of vehicle.

The change means that per MFTR section 16, vehicles meeting the "IFTA commercial vehicle" definition, must either:

register with IFTA and remit taxes on a quarterly basis based on the amount of motive fuel consumed in the province; or
obtain a motive fuel user permit when entering BC and either:
- pay tax on total volume of fuel it imports in its supply tanks; or
- pay tax based on the estimated distance the vehicle will travel in the province.

IFTA commercial vehicle means a motor vehicle that is used interprovincially or internationally for the commercial carriage of passengers or goods and that

(a) has 2 axles and either a gross vehicle weight or registered gross vehicle weight exceeding 11 800 kg,

(b) has 3 or more axles regardless of weight, or

but does not include a recreational vehicle.”

A commercial motor vehicle that does not meet the IFTA definition (e.g. a 2 axle vehicle less than 11,800 gross vehicle weight), with respect to motor fuel tax, is not required to purchase a Motive Fuel User Permit upon entry into BC. However, if the amount of fuel in the supply tank is greater than 182 litres, subsection 2(2) of the Act applies.

Prior to June 21, 2007, the Motor Fuel Tax Act and Regulations each had a separate definition of "commercial motor vehicle". The definition in section 1 of the Act was expansive and included any type of commercial vehicle including pick-up trucks. The definition in MFTR section 1 was limited to IFTA eligible commercial vehicles (e.g., 3 or more axles or gross/registered gross vehicle weight greater than 11,800 kg). Each definition served a different purpose. The definition under the Act was used to authorize the eligible uses of coloured fuel off-highway and refunds, while the definition under the regulations was used for interjurisdictional travel purposes. This created confusion regarding the issuing of Motive Fuel User Permits to interjurisdictional vehicles, including pick-up trucks, upon entry into British Columbia.

MFTR - SEC.1(3) - (4)/Int.

(3) – (4)

REPEALED

Interpretation (Issued: 2004/08; Revised: 2009/04, 2015/04)

Effective May 20, 2008, by B.C. Reg. 97/2008, MFTR subsections 1(3) and 1(4) are repealed. Before this amendment, a family farm truck had to have a family farm truck emblem to be authorized to use colored fuel. The colored fuel exemption was expanded such that an emblem is no longer required, and the family farm truck emblem program was terminated. Consequently, definition sections relevant only to the family farm truck emblem program were repealed.

Effective February 18, 2004, MRTR subsections 1(3) and 1(4) were introduced. These subsections prescribed information related to the definition of a "family farm" in the Act.

Subsection 1(3) prescribed family members that qualified as direct family members. These were:

the person's spouse, child, grandchild, great grandchild, parent, grandparent, great grandparent or sibling;
the spouse of a person's child, grandchild, great grandchild, or sibling; and
the child, parent, grandparent, great grandparent or sibling of the person's spouse.

Subsection 1(4) prescribed what qualified as controlling the voting shares of a farm corporation. Voting shares were controlled if the individuals, by virtue of owning shares in the corporation or in related corporations, were able to direct how the shares are voted.

Section 1.1 – Registered Consumer Certificate

MFTR - SEC.1.1/Int.

References:

Act: Section 1 "coloured fuel", "director", “jet fuel”, "locomotive", “person”, “registered consumer certificate”; Section 37

MFTR: Section 1 “international air service”

Bulletin MFT-CT 004

Interpretation (Issued: 2009/04; Revised: 2016/01)

Effective July 1, 2015, B.C. Reg. 79/2015 amended MFTR section 1.1 by adding a new subsection. MFTR subsection 1.1(2.1) prescribes coloured fuel for the purpose of operating a locomotive as a subcategory of a type of fuel in accordance with subsection 37(2) of the Act. This provides the director with the authority to limit the application of a registered consumer certificate to coloured fuel used to operate a locomotive.

Effective April 1, 2012, B.C. Reg. 26/2012 repealed and replaced MFTR subsection 1.1(2) and added MFTR subsection 1.1(3). The amendments were made for the purposes of the exemption and refund for jet fuel.

Effective July 1, 2008, B.C. Reg 168/2008 added a definition of "interjurisdictional rail service" to the regulation and provided that the director may issue a registered consumer certificate under section 37 [issue of registered consumer certificate] of the Act to such a service.

Subsection 1.1(1) provides that, in this section, "interjurisdictional rail service" means a person who owns or operates a commercial rail service that offers interprovincial or international rail transportation of passengers, goods or both to members of the public for a fee.

Subsection 1.1(2) provides that, subject to subsection 1.1(3), the director may issue a registered consumer certificate under section 37 of the Act to an interjurisdictional rail service or an international air service. For more information on registered consumer certificates, see MFTA/ MFTR - SEC.37/Int.

Subsection 1.1(3) provides that the director may issue a registered consumer certificate to an international air service only if the international air service holds a licence issued by the Canadian Transportation Agency and, if required by Transport Canada, an operating certificate issued by Transport Canada for each type of aircraft owned or operated by the international air service.

Section 1.2 – Cancellation Of Appointments And Certificates

MFTR - SEC.1.2/Int.

References:

Act: Section 1 “collector”, “registered consumer”, “registered consumer certificate”; Section 28; Section 30; Section 37; Section 37.1

Interpretation (Issued: 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR section 1.2 by replacing references to the “Motor Fuel Tax Act” with “the Act.”

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 1.2. This section provides that if a collector holds an appointment under section 28 [appointment of vendors as collectors] of the Act as section 28 read before July 1, 2008 or if a registered consumer holds aregistered consumer certificate under section 37 [issue of registered consumer certificate] of the Act as section 37 read before July 1, 2008, the director must cancel the collector’s appointment or the registered consumer’s certificate.

Subsection 1.2(1) provides that if a collector holds an appointment under section 28 or section 32 [exemption of collector and appointment – repealed] of the Act, as those sections read immediately before July 1, 2008, the director must cancel the collector's appointment as provided in section 30 [suspension or cancellation of collector’s appointment] of the Act.

Subsection 1.2(2) provides that if a registered consumer holds a registered consumer certificate under section 37 of the Act, as that section read immediately before July 1, 2008, the director must cancel the registered consumer's certificate as provided in section 37.1 [suspension or cancellation of registered consumer certificate] of the Act.

Section 1.21 – Payments And Returns – Annual Period

MFTR - SEC.1.21/Int.

References:

Act: Section 1 “director”

MFTR: Section 1 “annual period”; Part 1; Part 3.2

Interpretation (Issued: 2023/10)

Effective February 23, 2022, B.C. Reg. 186/2022 adds MFTR section 1.21, which provides that the director must set an annual period for the purposes of MFTR Parts 1 [General] and 3.2 [Exempt Fuel Retailers Program]. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

MFTR subsection 1.21(2) allows the director to create an interim filing period whenever a new annual period begins less than 12 months after the old period ends, and to deem the interim period to be an annual period for filing purposes.

Section 1.3 - Payments And Returns - Collectors

MFTR - SEC.1.3/Int.

References:

Act: Section 1 "collector", "director", "security", "tax"; Section 35; Section 38

MFTR: Section 1 "annual period"

Bulletin MFT-CT 001

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.3(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.3(4)(a). Collectors permitted to file annual returns under MFTR subsection 1.3(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period, instead of requiring it to run from July 1 to June 30. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.3. The content of the regulation was previously found in the repealed MFTR section 2. The section prescribes the due dates for collectors to deliver returns and to pay or remit the amount of tax collected or security payable under subsections 35(1) [remittance of tax] or 38(1) [security from collector] of the Act.

Section 1.4 - Payments and Returns - Deputy Collectors and Retail Dealers

MFTR - SEC.1.4 /Int.

References:

Act: Section 1 "deputy collector", "director", "retail dealer", "security", "tax"; Section 34

MFTR: Section 1 "annual period"

Bulletin MFT-CT 001

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.4(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.4(4)(a). Deputy collectors or retail dealers permitted to file annual returns under MFTR subsection 1.4(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.4. The content of the regulation was previously found in the repealed MFTR section 2.04. The section prescribes the due dates for deputy collectors and retail dealers to deliver returns and to remit tax payable under subsection 34(7) [duties of retail dealers, deputy collectors and collectors] of the Act. This includes quarterly and annual reporting periods.

Section 1.4 works with subsection 34(7) of the Act. Under the Act, a party in the tax remittance and collection scheme must remit the tax collected up the chain on the demand of the person who sells them the fuel.

Subsection 34(7) states that if a person has sold fuel to a deputy collector or retail dealer without demanding the remittance of tax, then the deputy collector or retail dealer must remit the tax in the prescribed manner.

Section 1.5 - Payments and Returns - Amounts Collected As If Tax

MFTR - SEC.1.5/Int.

References:

Act: Section 1 "director", "tax"; Section 35.1

MFTR: Section 1 "annual period"

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.5(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.5(4)(a). A person permitted to file annual returns under MFTR subsection 1.5(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.5. The section prescribes the due dates for a person to deliver returns and to remit an amount collected as if it were tax under subsection 35.1(1) [collections] of the Act.

Section 1.6 - Payments and Returns - Fuel Sold to Retail Dealers By Persons Other Than Collectors

MFTR - SEC.1.6 /Int.

References:

Act: Section 1 "collector", "deputy collector", "retail dealer", "tax"; Section 35.1

Interpretation (Issued: 2017/05; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR section 1.6 to clarify that the director specifies how the return must be delivered to the director (e.g. by mail, online, etc.).

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.6. The section prescribes a due date of on or before the 15th of the month for a person to deliver a return and to remit money received in respect of tax payable on fuel under subsection 35.1(1.1) [collections] of the Act in the previous month.

Section 1.7 - Payments And Returns - Amounts Received As Security Or As If Security

MFTR - SEC.1.7/Int.

References:

Act: Section 1 "calendar quarter", "collector", "director", "deputy collector", "security"; Section 35.1

MFTR: Section 1 "annual period"

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.7(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.7(4)(a). A person permitted to file annual returns under MFTR subsection 1.7(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.7. The section prescribes due dates for a person to deliver returns and to remit an amount under subsection 35.1(1.2) [collections] of the Act. Subsection 35.1(1.2) of the Act provides that if a person who sells fuel receives security or an amount as if it were security that exceeds the amount of security they paid, the person must remit the excess amount to government.

Section 1.8 - Payments And Returns - Fuel Used By Registered Consumers

MFTR - SEC.1.8/Int.

References:

Act: Section 1 "calendar quarter", "collector", “director”, "deputy collector", "director", “registered consumer”, "security"; Section 35.1

MFTR: Section 1 “annual period”

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.8(1), (2), (4) and (5) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.8(5)(a). A registered consumer permitted to file annual returns under MFTR subsection 1.8(3) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.8. The section prescribes the due dates for registered consumers to deliver returns and to remit an amount of tax payable on fuel under the various use tax provisions of the Act. The remittance provision was previously found in the repealed MFTR subsections 2.01(2) and 2.01(3).

Section 1.9 - Payments And Returns - Transfer Of Marine Diesel Fuel, Locomotive Fuel, Jet Fuel Or Aviation Fuel

MFTR - SEC.1.9/Int.

References:

Act: Section 1 "calendar quarter", “director”, "tax"; Section 6, Section 7, Section 8

MFTR: Section 1 “annual period”

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.9(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.9(4)(a). A person permitted to file annual returns under MFTR subsection 1.9(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.9. The section prescribes the due dates for persons to deliver returns and to pay an amount of tax payable under subsections 6(3) [tax on marine diesel fuel and locomotive fuel], 7(3) [tax on jet fuel], and 8(3) [tax on aviation fuel] for transfers of fuel. The remittance provision was previously found in the repealed MFTR section 2.02.

Section 1.10 - Payments And Returns - Fuel Imported By Ship

MFTR - SEC.1.10/Int.

References:

Act: Section 1 "calendar quarter", “director”, "tax"; Section 1.1; Section 4; Section 5; Section 6; Section 7; Section 8; Section 10; Section 10.1; Section 10.3; Section 12.1; Section 13

MFTR: Section 1 “annual period”

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.10(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.10(4)(a). A person permitted to file annual returns under MFTR subsection 1.10(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.10. The section prescribes the due dates for persons to deliver returns and pay the amount of tax payable under the Act for fuel imported by ship under certain circumstances as outlined under section 1.1 [fuel imported by ship] of the Act. The remittance provision was previously found in the repealed MFTR section 2.021.

Section 1.11 - Payments And Returns - Fuel Used For New Purpose

MFTR - SEC.1.11/Int.

References:

Act: Section 1 "calendar quarter", “director”, "tax"; Section 6; Section 13.2

MFTR: Section 1 “annual period”

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.11(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.11(4)(a). A person permitted to file annual returns under MFTR subsection 1.11(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.11. The section prescribes the due dates for persons to deliver returns and pay the amount of tax payable under subsections 6(4) [tax on marine diesel and locomotive fuel] or 13.2(1) [tax if fuel used for new purpose] of the Act. The remittance provisions were previously found in the repealed MFTR section 2.01.

Section 1.12 - Payments And Returns - Fuel Used For Unauthorized Purpose

MFTR - SEC.1.12/Int.

References:

Act: Section 1 "calendar quarter", “director”, "tax"; Section 15; Section 16.7

MFTR: Section 1 “annual period”

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.12(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.12(4)(a). A person permitted to file annual returns under MFTR subsection 1.12(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.12. The section prescribes the due dates for persons to deliver returns and pay the amount of tax payable under subsections 15(3) [prohibition against unauthorized purchase of use of coloured fuel] or 16.7(5) [unauthorized uses of heating oil and non-motor fuel oil] of the Act. The remittance provisions were previously found in the repealed MFTR subsections 2.01(1) and 2.01(2).

Section 1.13 - Payments And Returns - Fuel Used Within British Columbia

MFTR - SEC.1.13/Int.

References:

Act: Section 1 "calendar quarter", “director”, "tax"; Section 4; Section 5; Section 6; Section 7; Section 8; Section 10; Section 10.1; Section 10.3

MFTR: Section 1 “annual period”

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.13(1), (2), (4) and (5) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.13(5)(a). A person permitted to file annual returns under MFTR subsection 1.13(3) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.13. The section prescribes the due dates for persons to deliver returns and pay the amount of tax payable under of the Act with respect to fuel used in BC. The remittance provision was previously found in the repealed MFTR section 2.01.

Section 1.14 - Payments And Returns - Natural Gas Used In Stationary Internal Combustion Engine

MFTR - SEC.1.14/Int.

References:

Act: Section 1 "calendar quarter", “director”, "tax"; Section 9; Section 9.1

MFTR: Section 1 “annual period”

Interpretation (Issued: 2017/05; Revised: 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsections 1.14(1), (3) and (4) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 1.14(4)(a). A person permitted to file annual returns under MFTR subsection 1.14(2) must deliver the return to the director by the last day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.14. The section prescribes the due dates for persons to deliver returns and pay the amount of tax payable under sections 9 [tax on natural gas] and 9.1 [tax paid under Provincial Sales Tax Act on natural gas used in stationary internal combustion engine] of the Act with respect to natural gas used in a stationary internal combustion engine in BC. The contents of this provision were previously found in the repealed MFTR section 2.022.

Section 1.15 - Payments And Returns - Payment Of Refund Of Security

MFTR - SEC.1.15/Int.

References:

Act: Section 1 "annual period", "calendar quarter", "tax"; Section 20.11; Section 20.12

Interpretation (Issued: 2017/05; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR section 1.15 to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective August 1, 2016, B.C. Reg.180/2016 added MFTR section 1.15. The section prescribes a due date for vendors, wholesale dealers or retail dealers to deliver returns and pay an amount received as referred to in subsections 20.11(5) or (6) [refund of security] or 20.12(6) [refund of security on coloured fuel for deputy collectors and retail dealers]. The contents of this provision were previously found in the repealed MFTR section 2.03.

Section 2 – Collectors

MFTR - SEC.2/Int.

REPEALED

References:

Act: Section 1 “collector”, “security”, “tax”; Section 35; Section 38

Bulletin MFT-CT 001

Interpretation (Issued: 2009/04; Revised: 2017/05)

Effective August 1, 2016, B.C. Reg.180/2016 repealed MFTR section 2. The content of the section is now found in MFTR section 1.3 [payments and returns - collectors].

Effective July 1, 2008, B.C Reg. 168/2008 repealed and replaced MFTR section 2. MFTR section 2 was amended to provide additional detail on the frequency and deadlines for paying security or remitting tax for collectors.

Section 2.01 – Returns – Tax On Use

MFTR - SEC.2.01/Int.

REPEALED

References:

Act: Section 1 “fuel”, “heating oil”, "natural gas", “non-motor fuel oil”, “person”, “registered consumer“, “tax”; Section 4; Section 5; Section 6; Section 7; Section 8; Section 9; Section 10; Section 10.1; Section 13; Section 15; Section 16.7

MFTR: Section 1 “international air service”; "Section 2.022"; Section 5.01

Interpretation (Issued: 2009/04; Revised: 2017/05)

Effective August 1, 2016, B.C. Reg.180/2016 repealed MFTR section 2.01. The content of the section is now found in MFTR sections 1.8 [payments and returns - fuel used by registered consumers], 1.11 [payments and returns- fuel used for new purpose], 1.12 [payments and returns-fuel used for unauthorized purpose], and 1.13 [payments and returns - fuel used within British Columbia].

Effective July 1, 2015, B.C. Reg. 79/2015 amended MFTR section 2.01 by removing references to subsection 9(2) and subsection 9.1(3) of the Act. These amendments are consequential to amendments to the Act and regulations that changed the due date for natural gas self-assessor returns from the 15th to the last day of the month following the month the natural gas is used. All of the requirements for returns and tax payments by natural gas self-assessor are now found under MFTR section 2.022.

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR section 2.01. MFTR subsection 2.01(1) was repealed and replaced and a new MFTR subsection 2.01(1.1) was added. MFTR subsection 2.01(1) provided that a person who was required to pay tax on fuel under one of the listed sections must, at the time the tax was payable under the relevant provision, deliver to the director a return in a form specified by the director.

The MFTR subsection 2.01(1.1) provided that a person who was required to pay tax on heating oil or non-motor fuel oil under section 16.7 [unauthorized uses of heating oil and non-motor fuel oil] of the Act must have, at the time the tax was payable under that section, delivered to the director a return in a form specified by the director.

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 2.01 to the regulation to identify when tax was payable for a person or a registered consumer, based on the type of fuel.

Section 2.02 – Returns – Tax On Transfer Of Fuel

MFTR - SEC.2.02/Int.

REPEALED

References:

Act: Section 1 “aviation fuel”, “jet fuel”, “locomotive fuel”, “marine diesel fuel”, “person”, “tax”; Section 6; Section 7; Section 8

Interpretation (Issued: 2009/04; Revised: 2017/05)

Effective August 1, 2016, B.C. Reg. 180/2016 repealed MFTR section 2.02. The content of the section is now found in MFTR section 1.9 [payments and returns - transfer of marine diesel fuel, locomotive fuel, jet fuel or aviation fuel].

Effective May 1, 2012, B.C. Reg. 142/2012 repealed and replaced MFTR section 2.02. MFTR section 2.02 required delivery of a return in the form specified by the director at the same time that tax was payable.

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 2.02 to the regulation. The section provided that a person who was required to pay tax on the transfer of marine diesel fuel, locomotive fuel, jet fuel or aviation fuel under the Act must have delivered to the director a return on or before the 15th day of the month following the month during which the fuel was transferred.

Section 2.021 – Returns – Tax On Imported Fuel

MFTR - SEC.2.021/Int.

REPEALED

References:

Act: Section 1 “fuel”, “person”, “tax”; Section 4; Section 5; Section 6; Section 7; Section 8; Section 10; Section 10.1; Section 10.3; Section 12.1; Section 13

Interpretation (Issued: 2014/08; Revised: 2017/05)

Effective August 1, 2016, B.C. Reg. 180/2016 repealed MFTR section 2.021. The content of the section is now found in section MFTR section 1.10 [payments and returns - fuel imported by ship].

Effective May 1, 2012, B.C. Reg. 142/2012 added MFTR section 2.021. The section required the delivery of a return in the form specified by the director at the same time that tax was payable under the relevant section.

Section 2.022 - Payment Of Tax - Use Of Natural Gas In Stationary Internal Combustion Engine

MFTR - SEC.2.03/Int.

REPEALED

References:

Act: Section 1 "director", "internal combustion engine", "month", "natural gas", "tax"; Section 9; Section 9.1

Bulletin MFT-CT 006

Interpretation (Issued: 2016/01; Revised: 2017/05)

Effective August 1, 2016, B.C. Reg. 180/2016 repealed MFTR section 2.022. The content of the section is now found in MFTR section 1.14.

Effective July 1, 2015, B.C. Reg. 79/2015 added MFTR section 2.022 to prescribed the return date for natural gas self-assessors and to provide sufficient legislative authority with respect to reporting periods.

Along with amendments to section 9 [tax on natural gas] and section 9.1 [tax paid under Provincial Sales Tax Act on natural gas used in stationary internal combustion engine] of the Act, the addition of MFTR subsection 2.022(1) changed the date for natural gas self-assessors to provide a return to the director and pay the amount of tax payable from the 15th of the month to the last day of the month following the month in which the natural gas is used.

MFTR subsections 2.022(2) through (5) provided the director with the authority to allow natural gas self-assessors to remit on a quarterly or annual basis and to file nil returns when they did not use any natural gas during a reporting period. These provisions provided the legislative authority for existing administrative practice.

Section 2.03 – Section 20.11 (5) And (6) Of The Act

MFTR - SEC.2.03/Int.

REPEALED

References:

Act: Section 1 "deputy collector", “person”, “retail dealer”, “security”, “vendor”, “wholesale dealer”; Section 20.11; Section 20.12

Interpretation (Issued: 2009/04; Revised: 2017/05)

Effective August 1, 2016, B.C. Reg. 180/2016 repealed MFTR section 2.03. The content of the section is now found in MFTR section 1.15 [payments and returns-payment of refund of security].

Effective July 1, 2015, B.C. Reg. 79/2015 amended MFTR section 2.03 by adding references to subsection 20.12(6) of the Act. These amendments were consequential to the addition of section 20.12 of the Act that provided for a specific refund of security to deputy collectors and retail dealers who buy clear fuel, colour it and then sell the coloured fuel in accordance with the Act.

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 2.03.

Section 2.04 – Deputy Collectors And Retail Dealers

MFTR - SEC.2.04/Int.

REPEALED

References:

Act: Section 1 “deputy collector”, “retail dealer”, “security”, “tax”; Section 34

Bulletin MFT-CT 001

Interpretation (Issued: 2009/04; Revised 2017/05)

Effective August 1, 2016, B.C. Reg. 180/2016 repealed MFTR section 2.04. The content of the section is now found under MFTR section 1.15 [payments and returns-payment of refund of security].

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 2.04.

Section 2.04 provided that a deputy collector or retail dealer referred to in subsection 34(7) [duties of retail dealers, deputy collectors and collectors] of the Act must have, on or before the 15th day of each month in respect of tax collected in the previous month,

a) delivered to the director a return in a form specified by the director, and

b) remitted with the return referred to in paragraph (a) the amount of tax collected for that previous month.

Section 2.1 – Tax On Propane

MFTR - SEC.2.1/Int.

REPEALED

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective July 1, 2010, B.C. Reg. 216/2011 repealed MFTR section 2.1 as a result of the introduction of the Harmonized Sales Tax.

Effective January 1, 2001, B.C. Reg. 371/2000 added MFTR section 2.1.

Under subsection 2.1(1), a retail dealer was not allowed to sell propane to a purchaser unless the retail dealer held a valid registration certificate issued under the Social Service Tax Act.

Under subsection 2.1(2), a retail dealer who sold propane to a purchaser was required to collect tax imposed by the Motor Fuel Tax Act and remit it to the minister at the same time and in the same manner prescribed for tax collected under the Social Service Tax Act.

This amendment simplified the collection and remittance of tax collected on propane. Retailers continued to be registered as vendors under the Social Service Tax Act and the retailers still collected tax on propane; however they remitted the tax using their social service tax returns. The only change for propane retailers was the rate of tax they applied to propane. The change imposed no additional paper work or other administrative burdens on the retailer.

When completing their social service tax returns, retailers were not required to separate tax collected on propane from social service tax collected on other sales or leases. However, retailers were required to record taxable and exempt propane sales separately.

Section 2.3 – Exemption For Marine Gas Oil

MFTR - SEC.2.3/Int.

References:

Act: Section 1.1; Section 13.2

Interpretation (Issued: 2004/09; Revised: 2014/08, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subsection 2.3(2) by adding the phrase "tax imposed under" before "section 13.2 of the Act." The additional words were added to make the subsection consistent with more modern language used in the Provincial Sales Tax Act.

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR subsection 2.3(2). The new subsection provides that marine gas oil that is purchased for use in a marine gas turbine that propels a commercial passenger or cargo carrying ship is exempt from tax under the Act, other than tax imposed under section 13.2 [tax if fuel used for new purpose] of the Act.

Effective May 1, 2012, B.C. Reg. 142/2012 amended MFTR section 2.3 by adding subsection 2.3(4). The new subsection is for the purposes of section 1.1 [fuel imported by ship] of the Act for imported fuel. The record keeping requirements under MFTR subsection 2.3(3) do not apply in respect of the sale of marine gas oil to which paragraphs 1.1 (2)(a) to (c) of the Act apply.

Effective February 19, 2003, (B.C. Reg. 132/2003) marine gas oil is exempt from tax if it is purchased for use, and is used, in a marine gas turbine that propels a commercial passenger or cargo carrying ship. For purposes of this exemption, “marine gas oil” means marine diesel fuel that is suitable for use in a marine gas turbine engine.

Subsection 2.3(1) provides a definition of “marine gas oil”.

Subsection 2.3(2) exempts marine gas oil, other than tax imposed under section 13.2 of the Act, that is purchased for use in a marine gas turbine that propels a commercial passenger or cargo carrying ship.

Under subsection 2.3(3), subject to subsection 2.3(4), a seller who sells marine gas oil without collecting the tax must keep a record of the name of the purchaser, the name of the ship in which the marine gas oil is to be used, and the quantity of marine gas oil purchased. This record must be kept at the seller's principal place of business in the province.

Subsection 2.3(4) provides that the record keeping requirements under subsection 2.3(3) do not apply in respect of the sale of marine gas oil to which paragraphs 1.1 (2)(a) to (c) of the Act apply.

Section 2.4 – Exemption For Jet Fuel Used In International Flights

MFTR - SEC.2.4/Int.

References:

MFTA: Section 7

MFTR: Section 1 “flight”

Interpretation (Issued: 2014/08; Revised 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR section 2.4 by substituting the words "tax under section" with "tax imposed under section" to make the wording consistent with that of the Provincial Sales Tax Act.

Effective April 1, 2012, B.C. Reg. 26/2012 added MFTR section 2.4, which exempts jet fuel purchased for use in a qualifying international “flight” from motor fuel tax imposed under subsection 7(2) [tax on jet fuel] of the Act.

This exemption was enacted to support the Vancouver International Airport's growth plans by eliminating motor fuel tax from the cost of international flights.

See MFTR section 4.4 [refund — jet fuel used in international flights] for the refund provision related to this exemption.

Section 3 – Allowance for Collectors

MFTR - SEC.3/Int.-R.1

References:

Act: Section 1 “collector”

Interpretation (Issued: 2015/05; Revised: 2017/09; Revised: 2021/02)

Effective February 20, 2015, B.C. Reg. 131/2019 repealed and replaced section 3 of the MFTR to reflect amendments made to section 36 of the MFTA. The change came into force retroactively, effective February 20, 2015.

Effective August 1, 2016, B.C. Reg. 180/2016 amended MFTR subsection 3(1) to change a legislative reference as a result of renumbering MFTR section 2 to MFTR section 1.3 [payments and returns - collectors] .

Effective March 31, 1987, B.C. Reg. 91/87 added subsection (2) to MFTR section 3. The subsection implements a limitation of $10,000 per annum in respect of commission allowed to collectors of motor fuel tax paid after April 1, 1987.

Subsection 3(1) provides the amount of allowance that the collectors may retain from the security payable under section 36 of the Act. See MFTR/Sec. 3/R.1 for current and historical rates.

Subsection 3(2) provides that the allowance retained by a collector must not exceed $10 000 for the period beginning on April 1 of any year and ending on March 31 of the following year.

R.1 History of Allowance Rates

Prior to December 2, 1985, allowance rates were specified under the Gasoline Tax Act, the Gasoline (Coloured) Tax Act and the Motive Fuel Use Tax Act.

History of Commission Rates
Effective Dates	Amount
Dec. 2, 1985 to March 31, 1987	0.022¢ for each litre of fuel other than natural gas
Dec. 2, 1985 to March 31, 1987	0.022¢ for every 810.32 litres of natural gas
Payments Made by Collectors from April 1, 1987 to Present	0.022¢ for each litre of fuel other than natural gas to a maximum allowable allowance of $10,000 per annum (April 1 to March 31 of the following year)
Payments Made by Collectors from April 1, 1987 to Present	0.022¢ for every 810.32 litres of natural gas to a maximum allowable allowance of $10,000 per annum (April 1 to March 31 of the following year)

Section 3.1 – Refund Or Deduction For Bad Debts

REG.3.1/Int.

References:

MFTA: Section 21

Interpretation (Revised: 2016/01, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsection 3.1(2) to clarify that the director specifies how the required information or documents must be submitted to the director (e.g. by mail, online, etc.).

Effective June 9, 2015, by B.C. Reg. 102/2015, MFTR section 3.1 is repealed and replaced by the current section. The new section contains formulae to be used with section 21 of the Act. Subsection 3.1(1) provides a formula for calculating the "specified amount" that may be deducted under subsection 21(3) or refunded under subsection 21(5) of the Act. Subsection 3.1(3) provides a formula for calculating the amount to be added to a collector's remittance, in accordance with subsection 21(6) of the Act, in the event that the collector recovers all or a portion of the bad debt. Subsection 3.1(4) provides a formula for calculating the amount to be repaid to government, in accordance with subsection 21(7) of the Act, if a seller (other than a collector) recovers all or a portion of the bad debt.

The new section is consistent with similar provisions in other consumption tax regulations.

Effective July 1, 2008, by B.C. Reg. 168/2008, MFTR section 3.1 was repealed and replaced. The new section is substantively the same as the repealed one, but legislative references and language were updated. References to "wholesale dealer" were replaced with references to "deputy collector".

Effective March 31, 1998, the formula used by sellers to calculate bad debt refunds was amended to specify that for the purposes of claiming the refund:

Unpaid interest charges may not be included in the amount written off as uncollectible; and
Any payments received from the customer must be applied to the transaction price, not to any interest charges.

It is the ministry’s policy that a payment received from a customer is applied first to the oldest outstanding amount.

Effective March 23, 1994, BC Reg 196/94 amended MFTR 3.1 to provide the formula and procedures for claiming the proportional refund for bad debts written off as uncollectible, which is provided for in section 21 [refund or deduction for bad debts] of the Act.

Section 4 – Stationary Engine

MFTR - SEC.4/Int.-R.7

References:

Act: Section 1 “coloured fuel”, “commercial motor vehicle”, “motor vehicle”; Section 4; Section 10; Section 12.1; Section 13

Bulletin MFT-CT 003; Bulletin MFT 013

Interpretation (Revised: 2008/02, 2014/08, 2015/07)

Effective January 1, 2014, B.C. Reg. 246/2013 amended subsections 4(1) and 4(2) of MFTR section 4. The amendments were made to make the language consistent with other refund provisions.

Effective February 22, 2006, B.C. Reg. 29/2006 expanded MFTR section 4 to provide a refund where a motor vehicle has one engine in which clear fuel is used to perform the following prescribed functions while the vehicle is stationary:

Rotating the drum on a ready mixed concrete truck and pumping ready mixed concrete;
Pumping or dispensing liquids or other material to or from a commercial motor vehicle which does not include a hydraulic cylinder or a hydraulic arm other than on a logging truck;
Operating a mobile crane;
Operating a hydraulic arm mounted on a logging truck;
Operating a drilling unit that is operated by a power take-off unit; or
Operating temperature control equipment to preserve goods in an insulated cargo box on a commercial motor vehicle.

The refund is limited to the difference between the tax paid on the amount of clear fuel consumed, and the tax that would be due on the same amount of coloured fuel.

All functions that previously qualified for a refund prior to February 22, 2006, still qualify for a refund.

Subsection 4(1) provides the director with the authority to refund any additional taxes payable within the South Coast British Columbia transportation service region.

Subsection 4(2) provides the director with the authority to refund any additional taxes payable within the Victoria regional transit service area under section 12.1, or to the British Columbia Transportation Financing Authority under section 13 of the Act.

Prior to February 22, 2006, refunds under MFTR section 4 were limited to situations where a motor vehicle had one engine in which clear fuel was used to perform the following prescribed functions while the vehicle was stationary:

Rotating the drum on a ready mixed concrete truck, and pumping ready mixed concrete;
Pumping dry cement;
Pumping flyash (effective March 18, 1994, B.C. Reg. 78/94 added flyash to this list because it is used as a substitute for dry cement in the industry);
Pumping petroleum products;
Operating a mobile crane;
Operating an auger or similar equipment to dispense animal feed from a truck (effective March 31, 1999, B.C. Reg. 94/99); or
Operating a hydraulic arm mounted on a logging truck (effective May 1, 1996, B.C. Reg. 119/96).

R.1 Ready Mix Cement Trucks and Pumper Trucks (Revised: 2007/07, 2015/04)

MFTR paragraph 4(1)(a) provides director with the authority to provide refunds for tax paid on fuel consumed in engines used for "rotating the drum on a ready mixed concrete truck and pumping ready mixed concrete." Although this phrase can be read to mean that the truck with the rotating drum must also pump the concrete, the branch interprets it as also applying to two separate trucks. As a result, tax paid on clear fuel used in the ready mix truck to rotate the drum and in the concrete pumper truck to pump the concrete is eligible for the refund.

The refund is limited to the difference between the tax paid on the amount of clear fuel consumed, and the tax that would be due on the same amount of coloured fuel.

R.2 Fuel Consumption Rates for Pumping Dry Cement or Flyash

Historically, the branch used a consumption rate of 1.17761 litres per metric tonne of dry cement or flyash pumped for determining the amount of fuel eligible for refund. However, a review of actual consumption rates revealed that 1.17761 litres/tonne was too high. Therefore, this consumption rate no longer applies after June 30, 1996.

Effective July 1, 1996, a consumption rate of .25 litres of fuel per tonne of dry cement or flyash is used to determine the amount of fuel eligible for the refund. The new rate applies to fuel purchased on or after July 1, 1996. This rate was established in consultation with the British Columbia Ready-Mixed Concrete Association.

Refund claims for more than that amount must comply with the following requirements.

Applicants must provide documentation showing volumes pumped at the most common delivery sites.
Tests must be performed to establish actual consumption at those sites for a number of representative vehicles. For these tests, the supply tank of the vehicle must be topped-up at the delivery site before and after pumping-off. The branch should be contacted prior to conducting any fuel testing to ensure that the testing methods and procedures are acceptable.

R.3 Definition of Mobile Crane (Revised: 2007/07, 2015/07)

MFTR paragraph 4(1)(c) provides a refund of the difference in tax between clear and coloured fuel when the fuel is used in the operation of a mobile crane while the vehicle is stationary.

Vehicles which meet the Insurance Corporation of British Columbia's (ICBC) definition of a crane and which can properly be licensed by ICBC as a crane generally qualify. To be licensed as a crane, the vehicle has to be designed and used primarily for lifting or hoisting objects and not designed or used for transporting goods or equipment. Any highway use must be incidental to the vehicle's designed purpose.

Mobile cranes do not include vehicles with lifting or hoisting devices and which are also designed or used to carry or haul freight or cargo. Accordingly, neither trucks nor truck tractors with the capability of towing a cargo-carrying trailer, qualify as mobile cranes. Please note that some very large mobile cranes use a small dolly trailer to support the end of the crane during transport. Because these trailers are not cargo-carrying, their use does not bar the crane from the exemption.

Hydraulic arms (e.g., those which fold and/or articulate) do not qualify as mobile cranes.

The following are examples of vehicles that qualify as mobile cranes.

A crane mounted on the back of a flat deck truck (provided that the truck is not designed and cannot be used to carry cargo or tow a cargo -carrying trailer), and which is powered by the truck's engine, qualifies as a mobile crane.

A crane mounted from overhead tracks.

Service rigs used in the oil and gas industry with a primary function of lifting or dropping objects in and out of wells.

R.4 Pumping Ready-Mixed Concrete

Clear fuel consumed in the engine of a stationary motor vehicle with a rotating drum that pumps ready-mixed concrete is eligible for refund of the difference between the clear and coloured fuel tax rates when the clear fuel is consumed during the following activities.

warming up - if the drum is rotating
waiting to load - if the drum is rotating
loading - if the drum is rotating
waiting at the jobsite - if the drum is rotating
pumping ready-mixed concrete
washing - if the drum is rotating

No refund is available for fuel consumed travelling to and from the jobsite, even if the drum is rotating at the time.

Prior to July 1, 1997, the branch used a consumption rate of 25% of all fuel consumed in the engine of a concrete pumper truck to determine the amount of fuel eligible for refund.

For refund claims submitted on or after July 1, 1997, the consumption rate used by the branch to determine the percentage of fuel eligible for refund was increased to 50%. It was determined that 50% was a more appropriate rate after consultations with industry members. Therefore, applicants may apply for a refund of the difference between the clear and coloured fuel tax paid for 50% of all fuel consumed in the engine of a concrete pumper truck.

Refund claims for more than that amount must comply with the following requirements.

Additional documentation must be provided which indicates the average time spent on each eligible and ineligible activity, as obtained from trip records.
Job/trip sheets must be analyzed for a minimum of one of every four months to establish average times per activity.
The refund should be calculated using the average times and relative consumption factors established by the industry and the branch for each type of activity.
If a claimant uses different relative consumption factors than those established by the branch, it will be necessary to conduct adequate testing to justify these factors. The branch should be contacted prior to conducting any fuel testing to ensure that the testing methods and procedures are acceptable.
Because of potential changes in efficiency and changes in the nature of the work performed, each refund claim must be supported with the above information.

R.5 Vehicles with Multiple Engines (Revised: 2015/07)

Section 4 of the MFTR provides for a refund to a person who satisfies the director that the person paid motor fuel tax on clear gasoline or clear motive fuel “used for the operation of the engine of a motor vehicle while the vehicle is stationary” for one of the purposes prescribed under paragraphs 4(1)(a) to (f). The refund equals the difference between the tax the person paid on the fuel and tax that would have been payable on the fuel had it been coloured fuel; it puts a qualifying claimant in the same position, in terms of net motor fuel tax paid, as the user of coloured fuel in a stationary engine.

MFTR 4 requires the director to pay a refund if the director is satisfied that the claimant has paid tax under an applicable section of the Act on fuel that is used for the operation of the engine of a motor vehicle while the vehicle is stationary. The claimed litres must be consumed “while the vehicle is stationary” – i.e., while operating effectively as a stationary engine, not as a motor vehicle. This wording is necessary because two of the purposes prescribed under MFTR paragraphs 4(1)(a) to (f) do not preclude driving the vehicle instead of using it only as a stationary engine: (a) rotating the drum on a ready mixed concrete truck, and (f) operating temperature control equipment to preserve goods in an insulated cargo box on a commercial motor vehicle.

Whenever a motor vehicle is stationary and consumes fuel only to operate an engine for a purpose prescribed under MFTR paragraphs 4(1)(a) to (f), and not to drive the vehicle, the vehicle effectively operates as a qualifying stationary engine, not as a motor vehicle. This is the case even if the vehicle has more than one engine – e.g., one to drive the vehicle and one to operate a qualifying device for a qualifying purpose. A motor vehicle that operates as a stationary engine for a prescribed purpose meets the basic test of MFTR section 4.

This interpretation applies only in a case where the motor vehicle uses only one fuel tank to supply all of its engines. If a person would like to pay motor fuel tax at the coloured fuel rate when purchasing fuel for use in a motor vehicle that has one tank to feed the drivetrain engine and a separate tank to feed another engine, the person must buy coloured fuel for use in the separate tank. There is no provision in the Act or the MFTR that provides for a refund in a situation where a claimant who was authorized under section 15 to purchase and use coloured fuel used clear fuel instead.

R.6 Refund for Augering Animal Feed (Revised: 2007/07; 2015/07)

MFTR section 4 provides for a refund for the difference between the clear and coloured fuel tax rates when clear fuel is used for operating the main power unit of a motor vehicle, while the vehicle is stationary, to operate an auger or similar piece of equipment to dispense animal feed. To assess the refund request, branch staff must acquire the following documentation from the claimant:

Fuel purchase summary for the period.
Fuel purchase invoices to support the summary.
Completed refund application (FIN 159), including type of truck(s) and whether there is a separate fuel tank for the PTO.
Summary of the amounts and types of animal feed dispensed. The summary may vary depending on the controls, systems and procedures that the business employs (e.g., by week, by month, by customer, by feed type).
The results of any fuel consumption testing the claimant may have conducted.

R.7 Waterwell Drilling Units (Revised 2009/04, 2015/07)

Waterwell drilling units are motor vehicles that generally employ their main engine for powering a drill by way of a power take-off unit. Some of the older or larger units, however, may have a separate engine for the drill.

There is no authority for the consumption of coloured fuel in licensed waterwell drilling units for the purpose of propelling the vehicle on or off a public highway.

Coloured fuel may not be carried in a supply tank connected to the engine of any motor vehicle which also has connected to it a supply tank containing clear fuel. This means that to take advantage of the lower rate of tax when drilling, the coloured fuel supply line of a waterwell drilling unit with two supply tanks must be disconnected when the vehicle is in motion and not engaged in drilling. An alternative is the installation of a separate tank and engine to power the drill which could then contain coloured fuel permanently.

Prior to February 22, 2006, MFTR section 4 did not provide for refunds for vehicles using clear fuel in a single engine when the vehicle was stationary and the engine was used to operate a drilling unit that was operated by a power take-off unit. Therefore, there was no refund available for tax on clear fuel consumed by waterwell drilling units while drilling.

Effective February 22, 2006, OIC 93/2006 amended MFTR section 4 to expand the refund provisions for clear fuel used in stationary engines (see MFTR/ MFTR - SEC.4/Int.). This expanded refund provision applies to a waterwell drilling unit with a single engine when the vehicle is stationary and the engine is used to operate a drilling unit that is operated by a power take-off unit. The refund is limited to the difference between the tax paid on the amount of clear fuel consumed, and the tax that would have been due on the same amount of coloured fuel.

Section 4.1 - Refund - International Cargo Flight

MFTR - SEC. 4.1/Int.

REPEALED

Interpretation (Revised: 2009/04, 2014/02, 2015/05)

Effective April 1, 2012, B.C. Reg. 26/2012 repealed this section.

Effective July 1, 2008, B.C. Reg. 168/2008 amended MFTR subsection 4.1(2) by striking "National Transportation Agency" wherever it occurred and substituting "Canadian Transportation Agency".

Effective July 9, 1993, B.C. Reg. 227/93 added MFTR section 4.1, which provided for a refund of tax paid on jet fuel purchased after July 9, 1993 for use in an international cargo flight if all of the following criteria were met:

The person claiming a refund under this section held a licence issued by the National Transportation Agency and an operating certificate issued by Transport Canada for operation of an international commercial all-cargo freighter air service using the aircraft that consumed the fuel;
The aircraft's landing in BC was part of a route that:
Began or ended outside of North America;
Was flown by the aircraft on a chartered or scheduled basis; and
Was authorized by the National Transportation Agency and Transport Canada;
The aircraft did not carry any fare-paying passengers; and
The aircraft did not offload any cargo in North America, other than cargo that was loaded outside of North America.

Air carriers had to pay MFT on their fuel purchases and then apply to the branch for a refund of the tax.

This refund was intended to help increase business and jobs in BC by attracting further air freighter traffic to and from the Vancouver International Airport. Flights carrying cargo to and from destinations outside North America were eligible for the refund; those carrying cargo within North America, or fare-paying passengers, were not.

Section 4.2 - Refund - International Cargo Flight

MFTR - SEC.4.2/Int.

REPEALED

Interpretation (Revised: 2009/04, 2015/05)

Effective August 1, 2001, MFTR section 4.2 was repealed by B.C. Reg. 181/2001, s.1. The tax rate paid on domestic jet fuel was lowered to match the tax rate on international jet fuel, eliminating the rate difference and the need for this section. See MFTA/ MFTR - SEC. 7/Int. for information on current jet fuel tax rates.

Effective April 1, 1999, the tax rate on jet fuel used on eligible international flights was reduced to $0.02/litre from $0.03/litre.

Effective April 1, 1998, the tax rate on jet fuel used on eligible international flights was reduced to $0.03/litre from $0.04/litre. The reduction was intended to help promote the Vancouver International Airport as a major North American gateway to the Pacific Rim.

Effective July 1, 1994, B.C. Reg. 197/94 added MFTR section 4.2, which provided for a reduction, from $0.05/litre to $0.04/litre, in the motor fuel tax rate for jet fuel used in international flights.

The reduction was intended to help promote the Vancouver International Airport as a major North American gateway to the Pacific Rim. The reduction applied to foreign and Canadian air carriers operating commercial passenger flights beginning or ending outside Canada, and to cargo flights carrying operations beginning or ending outside Canada.

Qualifying foreign air carriers were entitled to pay motor fuel tax at the rate of $0.04/litre; Canadian carriers were required to pay tax of $0.05/litre and apply for a $0.01/litre refund.

Section 4.3 - Refund - International Mixed Cargo And Passenger Flights

MFTR - SEC.4.3/Int.-R.2

REPEALED

Interpretation (Revised: 2009/04, 2014/02, 2015/05)

Effective April 1, 2012, this section is repealed by B.C. Reg. 26/2012, s.5. Under regulation section 4.5, this section continues to apply, as it read immediately before April 1, 2012, in respect of qualifying jet fuel that was used before April 1, 2012.

Effective July 1, 2008, by B.C. Reg. 168/2008, MFTR subsection 4.3(2) is amended by striking out "National Transportation Agency" wherever it occurs and substituting "Canadian Transportation Agency".

Effective July 1, 1994, B.C. Reg. 197/94 added MFTR section 4.3.

Section 4.3 allowed a person who paid motor fuel tax on jet fuel to claim a refund of the tax when all the following conditions were met:

a) The person held a licence issued by the Canadian Transportation Agency and an operating certificate issued by Transport Canada authorizing the person to operate an international commercial air service using the aircraft that consumed the jet fuel;

b) The aircraft's landing in BC was part of a route that:

i. Began or ended outside North America;

ii. Was flown by that aircraft on a chartered or scheduled basis; and

iii. Was authorized by the Canadian Transportation Agency and Transport Canada;

c) The aircraft, while on the route referred to in paragraph b), transported both:

i. Passengers by whom, or for whom, a fare was paid; and

ii. Cargo for which shipping charges were charged to the shipper; and

d) The aircraft, while traveling on the route referred to in paragraph b), did not offload any passengers or cargo in North America, other than passengers who boarded the aircraft, or cargo that was loaded onto the aircraft, outside North America.

If the person met the above criteria, paid tax on jet fuel under subsection 7(1) [tax on jet fuel] of the Act, and applied for a refund, the director was required to pay a refund according to the following formula:

R = T x (CW ÷ TPA)

Where:

R is the amount of the refund to which the person was entitled;
T is the tax paid by the person on the purchase less the amount of any tax that was, or was eligible to be, refunded to the person under regulation subsection 4.2(4);
CW is the cargo weight on the aircraft at the time that it departed from the location at which the purchase was made to travel the route referred to in (b), above; and
TPA is the total payload on the aircraft at the time that it departed from the location at which the purchase was made to travel the route referred to in (b), above.

R.1 Non-scheduled flights (Revised: 2015/05)

Fuel used in an unscheduled maintenance flight did not qualify for the refund. Only fuel used on regularly scheduled or chartered flight qualifies for the refund.

R.2 When interest payable (Revised: 2015/05)

Interest payable on a refund claim depends on whether the overpayment occurred because of an error (Category -1 interest) or because the applicant had to pay the tax then do something to qualify for the refund (Category 2 interest). Category 1 interest is calculated from the date of the overpayment. Category 2 interest is calculated from the date the branch receives sufficient information to approve the refund. A 60-day grace period applies to both types of interest.

Because flight operators determine ratios of cargo weight to total payload after paying the tax, refunds of tax allowed under this section are eligible for type-2 interest; the interest is calculated from the time that the claim is received or when the branch receives sufficient information to approve the refund, taking into account the 60-day grace period.

Section 4.4 - Jet Fuel Used In International Flights

MFTR - SEC.4.4/Int.-R.1

References:

MFTR: Section 1 "flight", "international air service"; Section 4.5

Interpretation (Issued: 2014/02; Revised 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013, amended MFTR section 4.4 by replacing the phrase "an amount has been paid as tax" with "a person has paid tax", and the phrase "must, on application, pay to the applicant, from the consolidated revenue fund," with "must pay the person".

Effective April 1, 2012, B.C. Reg. 26/2012 added MFTR section 4.4. The section provides a refund of tax paid on jet fuel under certain circumstances. The refund has a corresponding exemption in regulation section 2.4 [exemption for jet fuel used in international flights]. The refund was intended to support the Vancouver International Airport's growth plans by introducing legislation to eliminate the jet fuel tax for international flights.

R.1 Jet fuel that was used in a flight (Issued: 2015/05)

Because “flight” includes taxiing to and from the terminal and taking off and landing down the runway, “jet fuel that was used in a flight” includes all fuel loaded onto the airplane at the BC origin or destination - i.e., a claimant does not have to exclude litres not used while flying.

Section 4.5 – Transition – Refunds For Jet Fuel Used In International Flights

MFTR - SEC.4.5/Int.

References:

MFTR: Section 4.1; Section 4.3; Section 4.4

Interpretation (Issued: 2014/02; Revised: 2015/05)

Effective April 1, 2012, B.C. Reg. 26/2012 added MFTR section 4.5, which is a transitional rule for applying MFTR section 4.4 [refund — jet fuel used in international flights], if the jet fuel was used on or after April 1, 2012, and for applying repealed MFTR sections 4.1 and 4.3.

Section 4.6 - Refund - Spouse Of Person With Disabilities

MFTR - SEC. 4.6/Int.

Interpretation (Issued: 2019/03)

Section 23 of the Act provides for a refund of tax paid by a person with disabilities for fuel purchased in British Columbia for use in a motor vehicle owned or leased by the person with disabilities. This refund provision does not extend to spouses who purchase fuel. In the past, section 23 has required the ministry to disallow refund claims in certain circumstances where evidence submitted to support a claim indicated that a spouse was the actual purchaser of fuel.

Section 4.6 of the Regulation as of December 6, 2016 now allows a refund to a spouse of a person with disabilities who purchases fuel for use in a motor vehicle owned or leased by the person with disabilities. The definition of "spouse" in section 1 of the Regulation means persons who are married or living in a marriage-like relationship for a period of at least 2 continuous years. A spouse must also be 16 years of age to qualify for the refund. This refund is still subject to the general refund limitation period of 4 years since the date tax was paid.

Section 4.6(3) limits any spousal refund to no more than $500 per calendar year. Refunds already paid to the person with disabilities are included in calculating the $500 spousal limit.

However, if a spouse has already received a refund, the person with disabilities subsequently applies for a refund, and the person with disabilities' claim would exceed the $500 joint limit (but not their $500 personal limit in section 23(1) of the Act), then the Act requires the ministry to still pay the full refund claim to the person with disabilities. In this situation, the ministry is authorized to issue an assessment to the spouse to recover the refund paid to the spouse over the joint $500 limit.

Section 4.6(4) provides rules in cases where a person with disabilities has more than one spouse who purchased fuel in a calendar year. In this scenario, the spouses must file a joint claim and may prorate the refund claim between them. If the spouses do not prorate their claim on the application form, the director is authorized to determine the prorated shares.

Spouses may not prorate to one particular spouse a refund of more tax than that spouse actually paid in a calendar year. For example, if in a single calendar year Spouse A pays $200 in tax and Spouse B pays $400 in tax, the spouses cannot prorate the claim to have Spouse A eligible for a refund of more than $200.

Section 4.6(5) extends the rule in section 23(2) of the Act to provide that a spousal refund is only payable on one motor vehicle owned or leased by a person with disabilities in a particular calendar year.

Section 5 – Records Of Vendors, Wholesale Dealers And Retail Dealers

MFTR - SEC.5/Int.

References:

Act: Section 1 “retail dealer”, “vendor”, “wholesale dealer”

MFTR: Section 5.01; Section 5.02; Section 5.03

Interpretation (Issued: 2009/04; Revised: 2015/05, 2024/08)

Effective April 1, 2020, B.C. Reg. 12/2020 amends MFTR section 5 to remove the requirement that the records must be kept at the person's principal office or principal place of business in British Columbia.

Effective July 1, 2008, B.C. Reg. 168/2008 repealed and replaced MFTR section 5.

The previous provision required a vendor or wholesale dealer, who refined or sold fuel, to keep records of purchases, inventories and sales of specific fuels. MFTR sections 5.01 through 5.03 are added to the regulations to detail record keeping and invoice provision requirements.

Section 5 requires a person who is a vendor, wholesale dealer or retail dealer, to keep, at the person’s principal office or principal place of business in BC, records of inventories maintained by the person and records of each importation, manufacture, purchase and sale of fuel made by the person.

Section 5.01 – Records Of Taxpayers

MFTR - SEC.5.01/Int.

References:

Act: Section 6; Section 7; Section 8; Section 16.7

MFTR: Section 1.12

Interpretation (Issued: 2009/04: Revised: 2017/05, 2024/08)

Effective April 1, 2020, B.C. Reg. 12/2020 amends MFTR subsections 5.01(1) and (2) to remove the requirement that the records must be kept at the person's principal office or principal place of business in British Columbia.

Effective August 1, 2016, B.C. Reg. 180/2016 amended MFTR section 5.01 to update legislative references as a result of renumbering legislative sections with regard to the recording keeping obligation for heating oil and non-motor fuel oil.

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR section 5.01 by adding subsection 5.01(2). The new subsection creates a recording keeping obligation regarding heating oil and non-motor fuel oil.

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 5.01.

Section 5.011 – Declaration Under Section 16.6 Of Act

MFTR - SEC.5.011/Int.

References:

Act: Section 16.6

Interpretation (Issued: 2014/08; Revised: 2015/05, 2024/08)

Effective April 1, 2020, B.C. Reg. 12/2020 amends MFTR section 5.011 to remove the requirement that the declaration must be kept at the person's principal office or principal place of business in British Columbia.

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 5.011. The new section provides that a person who is required to obtain a declaration under section 16.6 [declaration must be obtained on sale of non- motor fuel oil] of the Act must keep the declaration at the person's principal office or place of business in British Columbia.

Section 5.02 – Retention Of Records

MFTR - SEC.5.02/Int.

References:

Act: Section 50; Section 51

Interpretation (Issued: 2009/04; Revised 2011/03, 2015/05, 2024/08)

Effective April 1, 2020, B.C. Reg. 12/2020 amends MFTR subsection 5.02(1) to remove the requirement that the retained records must be kept in British Columbia.

Effective September 2, 2009, B.C. Reg. 262/2009 amended MFTR subsection 5.02(3) to incorporate references to MFTR section 51.92 [appeals].

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 5.02.

Under MFTR section 5.02, a person must retain in BC records required for the purposes of the Act or regulation for a period of 5 years from the date the record is created. However, the person may make a written application to the director to destroy a record, and the director may permit such destruction, before the end of the 5 year period.

The exception to this rule is an appeal under sections 50 [appeal to minister] or 51[appeal to court] of the Act or an appeal under MFTR 51.92. If a record might be necessary for such an appeal, the person must retain the records until the appeals are exhausted.

Section 5.03 – Provision Of Invoices

MFTR - SEC.5.03/Int.

References:

Act: Section 1 “coloured fuel”, “farmer”, “registered consumer”, “retail dealer”, “vendor”, “wholesale dealer”; Section 1.1; Section 15

MFTR: Section 5.1; Section 15.14

Interpretation (Issued: 2009/04; Revised: 2014/08, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended subsection (1) by replacing the phrase "a person who sells" with "A person, other than a retail dealer referred to in subsection (3.1) or (3.2) or section 15.14(3), who sells." Subsections (3.1) and (3.2) were also added. These provisions set out invoice requirements for colored fuel sold to a farmer.

Effective May 1, 2012, B.C. Reg. 142/2012 added subsection 5.03(1.1). The provision requires that if a person sells fuel to which paragraphs 1.1(2)(a) to (c) [fuel imported by ship] of Act apply, then they must provide the buyer an invoice at the time of sale.

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 5.03. It details the requirements to provide an invoice.

Subsection 5.03(1) provides that a seller from a bulk storage facility, cardlock or terminal rack (other than a retail dealer referred to in subsections 5.03(3.1) or 5.03(3.2) or subsection 15.4(3) [persons selling propane to farmers and qualifying persons]) must provide an invoice to the buyer at the time of sale or within a reasonable time thereafter.

Subsection 5.03(1.1) provides that a person who sells fuel in a sale in which paragraphs 1.1(2) (a) to (c) [fuel imported by ship] of the Act apply must provide the buyer an invoice at the time of sale.

Subsection 5.03(2) provides that a vendor or wholesale dealer (other than one selling from a bulk storage facility, cardlock or terminal rack) selling to a person for resale must provide an invoice to the buyer at the time of sale.

Subsection 5.03(3) provides that a person (other than one selling from a bulk storage facility, cardlock or terminal rack) selling fuel to a registered consumer must provide an invoice to the registered consumer at the time of sale.

Subsection 5.03(3.1) provides that a retail dealer who sells coloured fuel to a farmer must provide an invoice to the farmer at the time of sale or within a reasonable time thereafter. The invoice, in addition to the information required under MFTR section 5.1 [content of invoices], must specify whether tax was included in the sale.

Subsection 5.03(3.2) provides that a retail dealer who sells more than 45 litres of coloured fuel to a person must provide an invoice to the person buying the fuel at the time of sale or within a reasonable time thereafter.

On request of the buyer, a seller must provide an invoice to the buyer (subsection 5.03(4)). This subsection does not apply if the seller is otherwise required to provide an invoice (subsection 5.03(5)).

Section 5.1 – Content Of Invoices

MFTR - SEC.5.1/Int.

References:

Act: Section 1 “coloured fuel”, “fuel”

MFTR: Section 5.03

Bulletin MFT-CT 001

Interpretation (Issued: 2009/04; Revised: 2014/08, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 repealed and replaced MFTR section 5.1.

Effective July 1, 2008, BC Reg 168/2008 repealed and replaced MFTR section 5.1.

Before July 1, 2008, MFTR section 5.1 set the record keeping requirements for registered consumers.

Section 5.1 requires that an invoice required to be provided under the regulation must:

specify the date of the sale,
specify the name and address of the person selling the fuel,
specify the name and address of the person to whom the fuel is sold,
specify the quantity of each type or subcategory of a type of fuel sold,
specify the rate of tax for each type or subcategory of a type of fuel sold, and
if the fuel sold is coloured:
- specify the price of the coloured fuel per unit of sale,
- designate the coloured fuel sold as "Marked Fuel."

Section 5.2 – Calculation Of Interest

REG. 5.2/Int.

References:

Act: Section 48; Section 48.1

Interpretation (Issued: 2009/04; Revised 2015/05)

Effective April, 20, 2000, B.C. Reg. 262/2000 adds MFTR section 5.2, which prescribes the manner in which interest is to be calculated. Interest is compounded monthly and calculated on the number of days since the last compounding of interest or (if no compounding has occurred) from the date the interest is payable under the Act.

Section 5.3 - Calculation Of Interest If Assessment Exceeds Refund

REG. 5.3/Int.

REPEALED

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective June 23, 2014, B.C. Reg. 116/2014 repealed MFTR section 5.3.

Effective July 1, 2008, B.C. Reg. 168/2008 repealed MFTR section 5.3 and replaced it with a new section 5.3. The differences between the old and new regulations were administrative, not substantive.

Subsection 5.3(1) addressed the case where a taxpayer’s assessed amount exceeded the taxpayer’s approved refund, and subsection 5.3(2) set out the calculation of interest in that case.

Section 5.4 – Calculation Of Interest If Refund Exceeds Assessment

MFTR - SEC.5.4/Int.

REPEALED

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective June 23, 2014, B.C. Reg. 116/2014 repealed MFTR section 5.4.

Effective July 1, 2008, by B.C. Reg. 168/2008, MFTR section 5.4 is amended. The amendment is administrative, not substantive.

Effective May 18, 2006, MFTR section 5.4 was enacted by B.C. Reg. 137/2006. Generally, MFTR subsection 5.4(1) defined the case in which a taxpayer was assessed and entitled to a refund and the refund exceeded the assessment. MFTR subsection 5.4(2) set out the calculation of interest in that case.

Section 5.5 – Certificate Of Lien Form

MFTR - SEC.5.5/Int.

References:

Act: Section 1 “person”; Section 57.1

Interpretation (Issued: 2015/05; Revised: 2023/10)

Effective March 11, 2021, B.C. Reg. 65/2021 repeals Form H, which contained the prescribed certificate of lien form. MFTR section 5.5 is amended to note that a certificate of lien must instead be in the form specified by the director.

Removing the form from the regulation ensures it can be updated as needed without requiring a regulatory change, so it does not fall out of date. This form is used by the director to register a lien related to tax not paid or remitted and is not used by the public.

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 5.5. The section provides that the form set out in the regulation as Form H is prescribed for the purposes of section 57.1 [lien] of the Act. This is the form the director can use to register a certificate of lien against the real property of a person, an associated corporation of the person or a related individual of the person. For more information on section 57.1, see MFTA/ MFTR - SEC.57.1/Int.

Section 5.6 – Fuel Imported By Ship – Classes Of Fuel And Amounts

MFTR - SEC.5.6/Int.

References:

Act: Section 1 “fuel”; Section 1.1

Interpretation (Issued: 2014/08; Revised: 2015/05)

Effective May 1, 2012, B.C. Reg. 142/2012 added MFTR section 5.6. The section prescribes the amount of fuel for the purposes of section 1.1 [fuel imported by ship] of the Act as follows:

The amount of fuel for the purposes of section 1.1 [fuel imported by ship] of the Act
Item	Column 1 Class of Fuel	Column 2 Prescribed Amount
1	fuels that are liquids at standard reference conditions	5 million litres
2	fuels that are gases at standard reference conditions	30 million litres

For more information on section 1.1, see MFTA/ MFTR - SEC.1.1/Int.

Section 5.61 - Information Sharing – Prescribed Enactments

MFTR - Sec.5.61/Int.

References:

Act: Section 62 “confidential information”

Interpretation (Issued: 2023/10)

Effective May 15, 2023, B.C. Reg. 121/2023 amended B.C. Reg. 97/2013 to state that for the purposes of MFTA Subsection 62(6)(m), an official may provide confidential information to any person legally entitled to it under the following statutes:

Business Number Act
Civil Forfeiture Act
Section 8 [Comptroller General] of the Financial Administration Act, which entitles the Office of the Comptroller General to access all ministries and their records

Section 5.7 – Definition

MFTR - SEC.5.7/Int.

References:

Act: Section 14

MFTR: Section 6; Section 9; Section 11

Interpretation (Issued: 2014/08; Revised: 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 5.7. The regulation provides that in MFTR sections 6, 9 and 11, "authorized person" means a person who holds an authorization to colour fuel under subsection 14(1) [authority to colour fuel] of the Act.

Section 6 – Colouring Instructions

MFTR - SEC.6/Int.

References:

Act: Section 1 “gasoline”, “light fuel oil”; Section 14

MFTR: Section 1 “dye”; Section 52

Bulletin MFT-CT 004

Interpretation (Revised: 2009/04, 2014/08, 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR section 6 by repealing and replacing paragraphs 6(1)(b) and 6(1)(c). The new subsections provide that an authorized person must make a premixed dye solution using a process acceptable to the director and use the pre-mix dye solution to colour gasoline or light fuel oil so that the gasoline or light fuel oil is coloured to concentration of 14 parts of dye per 1 million parts of gasoline or light fuel oil.

Prior to April 1, 2013, no person may have sold or offered to sell coloured fuel, unless the fuel was coloured in accordance with the following procedure:

An authorized person obtains dye from the director, or, with the approval of the director, obtains dye from an administrator of a fuel tax statute of another province;
The authorized person makes a pre-mix dye solution by mixing 3.5 kg of FOM-BAG-NS dye with 200 litres of any liquid petroleum product, and

a. If the fuel the person wants to colour is gasoline, colours the gasoline by mixing one litre of pre-mixed dye solution with 1250 litres of gasoline; or,

b. If the fuel the person wants to colour is middle distillate fuel, colours the fuel by mixing one litre of pre-mixed dye solution with 1250 litres of middle distillate fuel.

Effective January 28, 2000, by B.C. Reg. 26/2000, FOM-BAG-NS became the authorized dye for colouring fuel.

Effective April 21, 1995, FOM BB dye was approved for use under B.C. Reg. 188/95. References to Automate Blue 10 were removed, as this dye has not been used in the province since late 1988.

Effective February 1, 1991, TEF Red FF 20 was approved for dyeing fuel in British Columbia. Prior to this, only Automate Blue 10 and TEF Red 10 could be used.

TEF Red FF 20 was approved to eliminate the need for the Taylor refinery to duplicate fuel dying and storage facilities. Duplication occurred because Taylor shipped both to points in British Columbia and Alberta; in Alberta, use of TEF Red FF 20 was required.

Following the approval of TEF Red FF 20, it was announced that the Taylor refinery would close as of July 1, 1991.

Effective November 1, 1988, TEF RED 10 dye replaced AUTOMATE BLUE. The red dye was phased in beginning with dye requests received from bulk agents located on Vancouver Island and in the northern and interior regions of the province. Bulk agents in the Vancouver area continued to use AUTOMATE BLUE 10 dye until the current stock of the dye was depleted.

One of the main advantages of using TEF RED 10 was that it made it easier to identify fuels which had been coloured. The introduction of the red dye did not, however, require any changes to dyeing procedures.

Before November 1, 1988, AUTOMATE BLUE 10 DYE was used to colour fuel.

Section 7 – Mixing And Storing Of Dye

MFTR - SEC.7/Int.-R.1

References:

Act: Section 1 “fuel”; Section 14

MFTR: Section 1 “dye”; Section 5.7; Section 6

Bulletin MFT-CT 003

Interpretation (Issued: 2000/03; Revised: 2015/06)

Effective December 22, 2011, B.C. Reg. 254/2011 added MFTR paragraph 7(d) to allow for the use of truck mounted injectors indefinitely.

Effective October 27, 2005, paragraph 7(d) of the MFTR was added (B.C. Reg. 319/2005) to authorize coloured fuel sellers to dye fuel at delivery sites (e.g., customer locations), as a result of improved technology, and to be more consistent with other jurisdictions.

In conjunction with this amendment, a sunset clause was enacted to repeal this provision as of October 5, 2007. This two year period was permitted to allow the ministry to conduct a pilot program to test the functionality of the injectors in a range of weather conditions and terrains to assist the ministry in developing adequate measurement and audit controls.

In 2007, the sunset clause was extended to October 5, 2009, and in 2009 it was extended to October 5, 2011.

Effective October 5, 2011, paragraph 7(d) was repealed by B.C. Reg. 202/2009.

Effective March 31, 1999, B.C. Reg. 94/99 amended MFTR section 7 to allow the director to authorize the dyeing of fuel on board certain vessels.

This section provides that an authorized person shall not mix dye or pre-mixed dye solution with fuel or store dye or pre-mixed dye solution except at:

a refinery within the Province,
on the premises of a bulk storage plant owned or leased by the authorized person,
at the director’s discretion, on board a vessel owned or leased by the authorized person, or
By using a dye injector that is mounted on a truck.

R.1 Description of Facilities (Issued: 2020/08; Revised: 2020/09)

Section 7 of the MFTR provides a prescribed list of locations and facilities where dye and pre-mixed dye solution can be mixed with fuel and where dye and pre-mixed dye solution can be stored. The following provides the descriptions and characteristics of qualifying fuel facilities and locations.

Refinery (Paragraph 7(a))
A refinery is a facility where crude oil is refined into finished fuel products. Refineries in BC are owned and operated by collectors.

Bulk storage plant (Paragraph 7(b))
A bulk storage plant is a storage facility often owned and operated by a collector but also can be owned and/or operated by an independent deputy collector. It is generally a place with large storage tanks of fuel. Generally, these large storage tanks must be fixed (i.e., not on wheels) and hold a significant capacity of fuel (e.g.,80,000 litres of fuel).

As required by the regulations, the bulk storage must be owned or leased by an authorized person. Generally, the leasing of a bulk storage facility is expected to be longer term (e.g., greater than 48 months), as the Ministry is looking for long term control of the location by the authorized person where the dying of fuel occurs.

While the annual through-put of a bulk storage plant is expected to be more than a retail gas station, the actual volumes can vary significantly depending on fuel types (gas vs. diesel or both), geographic location (e.g., Vancouver vs. Terrace), and seasons (e.g., marina, construction activity, etc.). The average annual through-put for bulk plants is 50.0 million litres.

For the purpose of paragraph 7(b), generally bulk storage plants:

have restricted access to the site (e.g., security, gates/fencing) and unique card (i.e., not a bank debit or credit card), key or PIN issued by the fuel seller for customers to access fuel;
allow customers to purchase fuel on account (e.g., credit is extended to the customer and the customer invoiced on a regular basis, usually once per month);
sell a range of fuel types (e.g., jet, aviation gas, clear and coloured gasoline, clear and coloured diesel, kerosene);
sell the majority, if not all, of the fuel to commercial customers (e.g., retail gas stations, logging and mining companies) rather than selling to the general public for personal use; and
deliver fuel to customers by tanker truck, or have customers that will pick up fuel using tanker trucks rather than allowing customers to fill up the supply tank of individual vehicles or marine vessels.

Terminal
For the purposes of paragraph 7(b), a terminal is considered a bulk storage plant and therefore an authorized person may colour fuel at a terminal. Terminals are large fuel storage/distribution facilities supplied by pipeline, vessel, or rail. Fuel is removed in bulk (i.e., transport trucks or rail cars) for delivery/resale to bulk plants, retail service stations, cardlocks or bulk end users. Terminals in BC are owned and operated by collectors, and generally have larger fuel through-put than bulk storage plants (average of 100.0 million litres through-put per annum for terminals).

As required by the regulations, the bulk storage plant must be owned or leased by an authorized person. Generally, the leasing of a terminal is expected to be longer term (e.g., greater than 48 months), as the Ministry is looking for long term control of the location by the authorized person where the dying of fuel occurs.

Cardlock
For the purposes of paragraph 7(b), cardlocks are considered bulk storage plants and therefore an authorized person may colour fuel at a cardlock that meets the criteria below. Cardlocks are similar to a bulk storage plants but more focused on commercial sales than storage.
Generally, cardlocks:

have restricted access to fuel using a unique card, (i.e., not a bank debit or credit card) key or PIN issued by the fuel seller;
allow customers to purchase fuel on account (e.g., credit is extended by the seller to the customer and the customer invoiced on a regular basis, usually once per month);
sell a smaller range of fuel types (e.g., clear and coloured gas, clear and coloured diesel);
sell mostly to commercial customers (e.g., logging and mining companies) but may sell some fuel to the general public for personal use; and
have most, if not all, customers place fuel directly into the supply tank of vehicle, boat or into portable/smaller removable storage tanks.

As required by the regulations, the bulk storage plant must be owned or leased by an authorized person. Generally, the leasing of a cardlock is expected to be longer term (e.g., greater than 48 months), as the Ministry is looking for long term control of the location by the authorized person where the dying of fuel occurs.

Retail Gas Station
Retail gas stations are entirely focused on sales to the general public and small business owners and are not permitted to dye fuel on site.
The annual through-put of a retail gas station is expected to be in the range of 2.5 – 3.5 million litres but the actual volumes can vary significantly depending on fuel types (gas vs. diesel or both) and geographic location (e.g., Vancouver vs. Terrace).
Generally, retail gas stations:

have no restricted access to fuel (e.g., customers can purchase fuel using cash, debit card or bank issued credit card, or a credit card issued by the fuel seller);
sell a smaller range of fuel types (e.g., clear gas and clear diesel);
sell mainly to the general public for personal use, as well as some sales to commercial customers (e.g., local delivery companies, retailers, etc.); and
have all customers place fuel directly into their supply tank of vehicle, boat or into portable/smaller removable storage tanks.

For the purposes of paragraph 7(b), unless using a truck mounted dye injector, a person is not authorized to colour fuel at a retail gas station as a retail gas station is not a refinery, bulk storage plant, or vessel.

Vessel (paragraph 7(c))
For the purposes of paragraph 7(c), a vessel must be designed to deliver large volumes of fuel to customers in remote coastal communities including fishing camps, logging companies, etc.
The vessel must be owned or leased by the authorized person.

Dye Injector (paragraph 7(d))
For purposes of paragraph 7(d), the truck is generally designed to deliver large volumes (i.e., 9,000 litres or more) of fuel and must be designed to dye the clear fuel as it is pumped into the customer’s storage receptacle. Often these trucks deliver fuel to rural gas stations and industrial users who use both clear and coloured fuel (e.g. logging industry).

The truck must be owned or leased by the authorized person.

Generally, the authorization to colour fuel under paragraph 7(d) of the MFTR is not provided as a standalone authorization as the authorized person already has been approved by the Branch due to the ownership or lease of a refinery/terminal or a bulk storage plant/cardlock.

Section 8 – Property In Dye

MFTR - SEC.8/Int.

References:

Act: Section 14

MFTR: Section 1 “dye”; Section 52

Bulletin MFT-CT 003

Interpretation (Issued: 2009/04; Revised 2015/05)

Effective March 18, 1994, B.C. Reg. 78/94 amended MFTR subsection 8(2) by replacing word the “dye” with “dye and pre-mixed dye solution”.

Subsection 8(1) required that all dye obtained from the director remains the property of government until the dye is mixed with fuel by the authorized person.

Subsection 8(2) provides that when the director cancels a person authorization to colour fuel, the dye or pre-mixed dye solution is to be returned to the director or a person specified by the director.

Section 9 – Statement Of Quantity Of Dye

MFTR - SEC.9/Int.

References:

Act: Section 14

MFTR: Section 1 “dye”; Section 5.7; Section 7; Section 52

Bulletin MFT-CT 003

Interpretation (Issued: 2009/04; Revised 2015/05, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsection 9(1) to replace “the form” with “a form,” for consistency with other sections of the regulation. It also amends MFTR subsection 9(2) to clarify that the director specifies how a statement requested under this subsection can be provided (e.g. by mail, online, etc.).

Effective March 1, 2023, B.C. Reg. 57/2023 amends MFTR subsection 9(1) and adds MFTR subsection 9(2). The changes provide that authorized persons using dye must still prepare dye stock statements by the 15th day of the month following the month in which they use dye to colour fuel. However, they will only submit the statements to the ministry when they are requested by the director (e.g., for the purpose of an audit, or in other circumstances when fuel reconciliation for a given fuel seller is required).

Effective October 27, 2005, B.C. Reg. 319/2005 amended MFTR section 9 to remove the references to refinery and bulk storage plant.

Section 9 provides that on or before the 15th day of the month in which an authorized person uses dye to colour fuel, the authorized person must deliver to the director, in the form specified by the director, a statement of the quantity of dye and pre-mixed dye solution:

in stock at the beginning of the preceding month,
received from the director during the preceding month,
used in the preceding month, and
in stock at the end of the preceding month.

Section 10 – Prohibition Against Carrying Dye Or Premixed Dye Solution

MFTR - SEC.10/Int.

References:

MFTR: Section 1 “dye”; Section 7

Interpretation (Issued: 2009/04; Revised: 2015/05, 2023/10)

Effective March 11, 2021, B.C. Reg. 64/2021 amended MFTR section 10 to remove gendered language.

Section 10 prohibits a person from carrying dye or pre-mixed dye solution, either:

in a motor vehicle or other conveyance being used to transport petroleum products for sale or delivery, or
while on the person's body while the person is engaged in selling or delivering petroleum products.

Effective December 22, 2011, B.C. Reg. 254/2011 amended MFTR section 10 to add a reference to MFTR subsection 7(d) [mixing and storing of dye].

Section 10 prohibits a person from carrying dye or pre-mixed dye solution, either:

in a motor vehicle or other conveyance being used to transport petroleum products for sale or delivery, or
on his person while he is engaged in selling or delivering petroleum products.

There are two exceptions to the prohibitions:

A person authorized by the director may carry dye or pre-mixed dye solution on board a vessel owned or leased by the authorized person; (See MFTR subsection 7(c)), and
A person authorized by the director may carry dye or pre-mixed dye solution in a dye injector that is mounted on a truck (See MFTR subsection 7(d)).

Section 11 – Coloured Fuel Pumps And Containers

MFTR - SEC.11/Int.

References:

Act: Section 1 “coloured fuel”, “retail dealer”, “vendor”, “wholesale dealer”; Section 14.1

Bulletin MFT-CT 003

Interpretation (Issued: 2009/04; Revised: 2014/08, 2015/05, 2023/10)

Effective March 11, 2021, B.C. Reg. 64/2021 amended MFTR subsections 11(1) and 11(2) to remove gendered language.

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR section 11 to authorize labeling as either "MARKED" or "COLOURED."

Prior to April 1, 2013, MFTR section 11 required a vendor, wholesale dealer or retail dealer to ensure that a pump it used to dispense coloured fuel or a container in which it coloured fuel, or transported or delivered coloured fuel, was labeled as "MARKED".

Pumps and containers labeled "MARKED" or "COLOURED" may only be used for coloured fuel.

Section 12 – Invoices Of Vendor Or Wholesale Dealer

MFTR - SEC.12/Int.

REPEALED

References:

MFTR: Section 5.1

Interpretation (Issued: 2009/04; Revised: 2014/02, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 repealed MFTR section 12. The content of the regulation is now consolidated into MFTR section 5.1.

Section 13 – Invoices Of Retail Dealers

MFTR - SEC.13/Int.

REPEALED

References:

MFTR: Section 5.03; Section 5.1

Interpretation (Issued: 2009/04; Revised: 2014/02, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 repealed MFTR section 13. The content of the regulation is now consolidated into MFTR sections 5.03 and 5.1.

Section 14 – Issue Of Family Farm Emblem

MFTR - SEC.14/Int.

REPEALED

Interpretation (Issued: 2009/04; Revised: 2015/05; 2023/10)

Effective March 11, 2021, B.C. Reg. 65/2021 repeals Form A to reflect the termination of the family farm truck emblem program.

Effective May 20, 2008, B.C. Reg. 97/2008 repealed MFTR section 14. Before the amendment, the regulation provided that on application to the director by a family farm operator, the director would issue a family farm truck emblem for each family farm truck used in the operation of the family farm.

In Budget 2008, the government expanded the scope of cases in which a farmer is authorized to use coloured fuel to include all licensed farm vehicles used on the highway for the purpose of operating a farm. As a result, the family farm truck emblem program was terminated.

Section 15 – Surrender Of The Family Farm Truck Emblem

MFTR - SEC.15/Int.

REPEALED

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective May 20, 2008, B.C. Reg. 97/2008 repealed MFTR Section 15. Before the amendment, the regulation prescribed when and what to do when a family farm truck emblem ceased to be valid. The regulation was repealed because the family farm truck emblem program was terminated.

Section 15.1 – Industrial Machines

MFTR - SEC.15.1/Int.

References:

Act: Section 1 “industrial machine”; Section 15

Bulletin MFT-CT 003

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective February 1, 1991, B.C. Reg. 34/91 added MFTR paragraph 15.1(j).

Section 1 of the Act defines "industrial machine" to mean:

(a) a fork lift, front end loader, or lumber carrier; or

(d) a motor vehicle or class of motor vehicles that is designated as an industrial machine by regulation.

Section 15.1 designates the following as "industrial machines" for the purposes of sections 1 [definitions] and 15 [prohibition against unauthorized purchase or use of coloured fuel] of the Act:

(a) a bulldozer;

(b) a shovel;

(d) any machine equipped with caterpillar tracks;

(e) a crusher;

(f) an earth compactor;

(g) a grader;

(h) a grass mower;

(i) a roller;

(j) a skidder.

If a machine is listed either in section 1 of Act or MFTR section15.1, then it is an industrial machine. See MFTA/ MFTR - SEC. 15(1)(c)/Int..

Section 15.2 – Logging And Mining Industry

MFTR - SEC.15.2/Int.-R.5

References:

Act: Section 1 “motor vehicle”, Section 15

Bulletin MFT-CT 003

Interpretation (Issued: 2015/05)

Effective February 20, 2008, BC Reg 34/2008 amended MFTR paragraphs 15.2(1)(c) and 15.2(2)(b) to clarify that crew crummies are authorized to use coloured fuel for the transportation of company employees, or contractors, or agents of the company, including employees of any of them while carrying out activities in the company's logging or mineral mining operation.

Section 15.2 prescribes the types of motor vehicles for the purposes of paragraphs 15(1)(d) and 15(1)(e) [prohibition against unauthorized purchase or use of coloured fuel] of the Act.

R.1 Crew Crummies (Revised: 2009/04, 2015/05)

For the purpose of using coloured fuel under paragraphs 15(1)(d) and 15(1)(e) of the Act, a crew crummy is a motor vehicle, such as a truck, van, suburban, or crew cab, that has a seating capacity for six or more persons, which includes the driver (two or more full-width seats). In general, pick-up trucks, king cabs, or supercabs do not qualify as crew crummies because they do not have seating capacity for six or more persons.

R.2 Trucks hauling log sections (Issued: 98/12)

Before logs are loaded onto logging trucks and hauled to the mill, they often have broken or bent sections cut off. These sections are trucked to the mill and processed at a later date. Both logs and sawn-off pieces of logs become viable wood products and have a monetary value for the logging industry.

Consequently, trucks hauling either logs or sections of logs for further processing and resale qualify for the purpose of using coloured fuel under paragraph 15(1)(d) of the Act. Trucks hauling log sections or other wood debris to a landfill for disposal do not qualify.

R.3 Waste Rock (Issued: 2002/05, Revised: 2009/04; 2015/06)

The Motor Fuel Tax Act allows for the use of coloured fuel in trucks used by the mining industry to transport minerals other than on a highway in respect of a mineral mining operation. The definition of "mineral" in section 1 of the Act does not include "petroleum, natural gas, building and construction stone, marble, shale, clay, sand, gravel, volcanic ash, earth, soil, marl or peat."

Some confusion had arisen as a consequence of amendments to the now repealed Social Service Tax Act in July 2001 which defined mineral so as to include "building and construction stone, marble, shale, clay, sand and gravel." This definition is now included in the current Provincial Sales Tax Exemption and Refund Regulation (PSTERR).

The definitions of mineral under the MFTA and PSTERR are mutually exclusive. In each case, the definition is intended to include/exclude certain types of activities for the purpose of that particular Act.

Prior to May 19, 2006, the ministry did not consider waste rock to be a mineral as defined in the MFTA, even if waste rock contained some residual mineral content.

On May 19, 2006, a consent order (No. L052396) was issued by the Supreme Court of British Columbia in Elk Valley Coal Corporation v. H.M.T.Q (British Columbia), allowing an appeal on tax assessed on the difference between marked and clear diesel fuel used in trucks hauling waste rock. The appeal was allowed on the basis that the use of the trucks for the purposes of hauling rejected mineral rock, or waste rock, was a use of trucks to transport minerals within the meaning of paragraph 15.2(2)(a) of the MFTR.

Based on this decision, trucks used by the mining industry to haul waste rock are eligible to use coloured fuel when hauling waste rock other than on a highway.

Effective February 22, 2006, Bill 2, Budget Measures Implementation Act, 2006 amended subsection 15(1) of the Act by expanding the authorized uses of coloured fuel to include all motor vehicles not licensed to operate on a highway. This new provision eliminated most issues with respect to hauling of waste rock because most waste rock is hauled by unlicensed motor vehicles. However, based on the court decision, mining industry trucks are also eligible to haul waste rock in a vehicle that is licensed for highway use as long as the vehicle is operating off-highway.

R.4 Overburden (Issued: 2003/05)

The Motor Fuel Tax Act allows for the use of coloured fuel in trucks used by the mining industry to transport minerals other than on a highway in respect of a mineral mining operation. Mineral is defined by Section 1 of the MFTA as excluding “petroleum, natural gas, building and construction stone, marble, shale, clay, sand, gravel, volcanic ash, earth, soil, marl or peat.”

Overburden is material scraped off the surface of a mine site to get at the underlying ore that contains concentrated mineral deposits. Overburden is composed of earth, gravel, plant debris, etc., as well as a significant quantity of ore that contains mineral deposits in concentrations too low to be economically viable to recover. The overburden is disposed of as a waste product.

Trucks hauling overburden are authorized to use coloured fuel when hauling overburden because this is considered integral to the extraction of ore in the mining process.

Please note that hauling a waste product produced after the completion of the mineral extraction process is not an authorized use of coloured fuel (see R.3).

R.5 Hog Fuel and Wood Chips are not Logs or Lumber (Issued: 2009/04; Revised: 2015/06)

Section 15.2 of the MFTR prescribes which vehicles are qualified to use coloured fuel under paragraph 15(1)(d) of the Act. Section 15.2 includes two authorizations for trucks used to haul wood. First, paragraph 15.2(1)(a) provides trucks qualify "when used for hauling logs". Second, paragraph 15.2(1)(b) provides trucks qualify "when used for hauling lumber". In result, under paragraph 15(1)(d) of Act, a member of the logging industry can use coloured fuel in a truck that is used, other than on a highway, to haul "logs" or "lumber". Neither hog fuel nor wood chips are logs or lumber.

Therefore, coloured fuel cannot be used by the logging industry to haul hog fuel or wood chips. In addition, if the logging industry uses clear fuel for this purpose, then no refund of motor fuel tax for the difference between tax on coloured and clear fuel is available.

Section 15.3 – Suspension Under Section 14 Or 14.1(1) Of Act

MFTR - SEC.15.3/Int.

References:

Act: Section 14; Section 14.1; Section 16.3

Interpretation (Issued: 2014/08; Revised 2016/01)

Effective May 25, 2015, B.C. Reg. 79/2015 repealed and replaced subsection 15.3(2) to replace references to months with references to days (e.g. 90 days replaces 3 months). This amendment was made along with similar amendments in the Carbon Tax Regulation and Tobacco Tax Act Regulation to clarify the length of time that an authorization may be suspended under a relevant provision.

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR section 15.3. The new provision provides that the period for which an authorization may be suspended under subsection 14(4) [authority to colour fuel] of the Act or subsection 14(4) of the Act as it applies under subsection 14.1(1) [authority to sell coloured fuel] is:

12 months if there has been a previous suspension of the authorization or a pervious suspension or cancellation of another authorization under section 14, 14.1 or 16.3 [authority to sell coloured heating oil and coloured non-motor fuel oil].
3 months in any other case.

Effective March 18, 1994, B.C. Reg. 78/94 added section 15.3 to the regulations to prescribe the suspension periods as follows:

3 months, if there had been no previous suspension or cancellation under section 14(4).
12 months, if there had been a previous suspension or cancellation under section 14(4).

Section 15.4 – Exemption Or Refund For Farmer

MFTR - SEC.15.4/Int.- R.2

References:

Act: Section 1 “coloured fuel”, "director", “farm”, “farmer”; Section 5

MFTR: Section 15.5

Bulletin MFT-CT 003

Interpretation (Revised: 2016/01, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsection 15.4(3) to clarify that the director specifies how the refund claim must be submitted to the director (e.g. by mail, online, etc.).

It also amends paragraph 15.4(3)(e) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Farmer (FIN 458).

Effective July 1, 2015, B.C. Reg. 79/2015 amended MFTR subsection 15.4 as follows:

By replacing the language "apply to the director for a refund of the tax paid" with "may claim a refund of the tax paid on the coloured fuel" in subsection 15.4(2).
By replacing the language "Applications for refund of the tax must include the following" with "To claim a refund of tax paid in accordance with subsection (2) on coloured fuel, a farmer must submit to the director the following".
By adding a new subsection 15(4).

These changes clarify the application requirements for a farmer to obtain a refund of tax paid on coloured fuel, provide the requirements that must be met for the director to issue a refund, and ensure that the director has the necessary authority to issue the refund.

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR section 15.4 by removing the word "keylock." The word "cardlock" is broad enough to capture "keylock."

Effective April 1, 2013, B.C. Reg. 94/2013 amended MFTR section 15.4. The amendment removes phrase farmer's land and the land is classified as farm land and substitutes the phrase farmer's farm. Additionally, paragraph 15.4(3)(e) was amended to make reference to a "declaration in a form acceptable to the director."

Effective February 20, 2008, by B.C. Reg. 34/2008, MFTR section 15.4 is amended to remove the term "bona fide farmer" wherever it appears and to substitute "farmer".

Subsection 15.4(1) prescribes the situations where farmers can obtain a point-of-sale exemption for coloured fuel. It also establishes that for purchases other than those which are prescribed, farmers must pay the tax at the time of purchase and apply for a refund (Subsection 15.4(2)).

The prescribed situations where farmers are eligible for a point-of-sale exemption are when coloured fuel is:

delivered by the seller to a storage receptacle located on land classed as farm land;
purchased on account from a bulk agent; or
purchased through a keylock or cardlock system.

Subsection 15.4(3) outlines the required information for the refund application.

R.1 Purchases Subject to the Refund Procedure (Issued: 1998/12; Revised: 2009/04)

Farmers are required to pay the 3¢ per litre tax on coloured fuel at the time of purchase, and then apply to the Consumer Taxation Branch for a refund of the tax paid, when coloured fuel is:

purchased in a cash sale at a bulk agent's location; or
purchased at a retail dealer's pump.

R.2 Other Fuels (Issued: 2003/05, Revised: 2009/04, 2014/08, 2015/05)

The Act only authorizes farmers to claim an exemption or refund of the tax paid on coloured fuel. Farmers are not entitled to an exemption or refund for any other fuel. This includes clear marine diesel that may be purchased by aquaculturists who operate on land classified as farmland.

However, note that a farmer is exempt from paying tax on purchases of propane listed under MFTR section 15.12. If a farmer has paid tax on a qualifying purchase of propane, then the farmer may apply for a refund.

Section 15.5 – Persons Selling Coloured Fuel To Farmers

MFTR - SEC.15.5/Int.

References:

Act: Section 1 “coloured fuel”, “farmer”, “retail dealer”

MFTR: Section 15.4

Bulletin MFT-CT 003

Interpretation (Issued: 2009/04, Revised: 2014/08, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subsection 15.5(1) by removing the phrase "must obtain" and replacing it with "must, at or before the time of sale, obtain." Subsection 15.5(2) was repealed.

Effective April 1, 2013, B.C. Reg. 94/2013 repealed and replaced MFTR section 15.5.

Subsection 15.5(1) provides that a retail dealer who sells coloured fuel to a person claiming an exemption under MFTR subsection 15.4(1) [exemption or refund for farmer] must ensure the sale meets one of the requirements for exemption under that section and must obtain from the person:

the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issues by the BC Agriculture Council or
a declaration in a form acceptation to the director.

Prior to January 1, 2014, subsection 15.5(2) provided that a retail dealer, who sold coloured fuel to a farmer, must have issued an invoice to the farmer and specified on the invoice whether tax was included in the sale.

Subsection 15.5(3) provides that the documents referred to in subsection 15.5(1) must be retained by the retail dealer to substantiate the non-collection of tax.

Section 15.51 - Determination Of Amount In Respect Of Penalty For Unauthorized Purchase Or Use Of Coloured Fuel

MFTR - SEC.15.51/Int.

References:

Act: Section 45.3

Interpretation (Issued: 2016/01)

Effective July 1, 2015, B.C. Reg. 79/2015 added MFTR section 15.51. Section 15.51 provides a determination for the fixed monetary penalty referred in paragraph 45.3(1)(b) of the Act in respect of a contravention of section 15 of the Act.

Subsection 15.51(2) set out amounts for each contravention:

$500 for a first contravention,
$750 for a second contravention
$1000 for a subsequent contravention

Paragraph 15.51(3)(a) sets out the period of time of a year within which a second or subsequent contravention of section 15 must occur for a greater amount to apply. For example, if the Ministry of Finance discovers coloured fuel in the tank of a vehicle for the first time and issues a penalty and then within a year, that same person is found to have coloured fuel in their vehicle again, the higher penalty for the second contravention would apply.

Paragraph 15.51(3)(b) provides an override to "Coke's Rule". "Coke's Rule" is a common law rule of statutory interpretation, applicable to administrative penalties, that a more severe penalty cannot be imposed for a second or subsequent offence unless the subsequent offence occurred after the date of the convection for the first or earlier offence.

Section 15.6 – Application To Heating Oil And Non-Motor Fuel Oil

MFTR - SEC.15.6/Int.

References:

Act: Section 1 “coloured fuel”, “heating oil”, “non-motor fuel oil”; Section 14; Section 16.3

MFTR: Section 15.3

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Interpretation (Issued: 2014/08; Revised: 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section15.6. Subsection 15.6(1) applies MFTR sections 5.7 to 10 to the colouring of heating oil or non-motor fuel oil as if it were a fuel and coloured heating oil and non-motor fuel oil as if it were coloured fuel.

Subsection 15.6(2) provides MFTR section 15.3 [suspension under section 14(4) or 14.1(4) of Act] applies to the suspension of an authorization under MFTA subsection 14(4) [authority to colour fuel] as that provision applies under subsection 16.3(6) [authority to sell coloured heating oil and coloured non-motor fuel oil] of the Act.

Section 15.61 - Persons Selling Marine Diesel Fuel

MFTR - SEC.15.61/Int.

References:

Act: Section 1 "coloured fuel", "director", "marine diesel", "retail dealer", "ship"; Section 5.1

Bulletin MFT-CT 001 - Fuel Sellers

Interpretation (Issued: 2016/01)

Effective July 1, 2015, B.C. Reg. 79/2015 added MFTR section 15.61 to require that retail dealers who sell marine diesel through a cardlock or in an amount greater than 45 litres obtain a declaration from their customer.

This provision was added at the same time as section 5.1 [tax on coloured fuel if declaration not obtained] of the Act to ensure that purchasers of coloured fuel from a cardlock or in amounts greater than 45 litres must complete a declaration to buy coloured fuel at the coloured fuel rate. However, MFTR section 15.61 requires that the retail dealer obtains the declaration regardless of whether the marine diesel is clear or coloured.

Similar to section 5.1 of the Act, there is an exception from the declaration requirement for marine diesel that is transferred directly into the supply tank of a ship while the ship is on the water.

Section 15.62 - Persons Selling Locomotive Fuel

MFTR - SEC.15.62/Int.

References:

Act: Section 1 "coloured fuel", "director", "locomotive fuel", "registered consumer", "retail dealer"; Section 5.1

Bulletin MFT-CT 001 - Fuel Sellers

Interpretation (Issued: 2016/01)

Effective July 1, 2015, B.C. Reg. 79/2015 added MFTR section 15.62 to require that retail dealers who sell locomotive fuel through a cardlock or in an amount greater than 45 litres obtain a declaration from their customer.

This provision was added at the same time as section 5.1 [tax on coloured fuel if declaration not obtained] of the Act to ensure that purchasers of coloured fuel from a cardlock or in amounts greater than 45 litres must complete a declaration to buy coloured fuel at the coloured fuel rate. However, MFTR section 15.62 requires that the retail dealer obtain the declaration regardless of whether the locomotive fuel is clear or coloured.

Along with the addition of MFTR subsection 1.1(2.1), MFTR subsection 15.62(3) provides an exception from the declaration requirement for a registered consumer that is purchasing locomotive fuel.

Section 15.7 - Definitions

MFTR - SEC.15.7/Int.

References:

MFTR: Section 15.8; Section 15.9; Section 15.13; Section 15.14; Section 15.15; Section 15.17

Interpretation (Issued: 2014/08; Revised: 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.7. The new section provides a series of definitions for the purposes of the propane exemptions and refunds.

Section 15.8 - Exemption For Propane - Residential Use

MFTR - SEC.15.8/Int.

References:

Act: Section 10.3

Interpretation (Issued: 2014/08; Revised 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.8, which allows an exemption for propane purchased solely for residential use in a residential dwelling, or solely for residential use in the part of a building that is used only for residential use.

A purchase of propane for residential use that does not qualify for this exemption may qualify for a refund under MFTR section 15.15 [refund propane - residential use] if a portion of the propane is used for residential use in a residential dwelling.

Section 15.9 – Exemption For Propane - Residential And Farm Use

MFTR - SEC.15.9/Int.

References:

Act: Section 1 “farmer”; Section 10.3

MFTR: Section 15.12; Section 15.13; Section 15.14

Interpretation (Issued: 2014/08; Revised 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subparagraph 15.9(3)(b)(iii) and subparagraph (4)(b)(iii) by removing the word "keylock". The meaning of "cardlock" is well established and broad enough to include "keylock".

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.9, which exempts propane purchased by either of the following:

A “farmer”, which under section 1 of the Act means a person who operates a farm; or
A “qualifying person”, which is any person described in paragraph 1(1)(b) or 1(1)(c) of the PSTERR. “Qualifying person” does not include a person described in paragraph 1(1)(d) of the PSTERR.

To qualify for the exemption, the propane must be used only for a purpose included under subsection 15.9(2):

A farmer is exempt from paying MFT on propane purchased for both residential and farm use if the propane is only for:
Residential use in a residential dwelling; and
A use prescribed by regulation section 15.12 [exemption for propane – farmers];
A qualifying person is exempt from paying MFT on propane purchased for both residential and farm use if the propane is only for:
Residential use in a residential dwelling; and
Use solely for a farm purpose other than operating a motor vehicle or machinery (MFTR subsection 15.13(1) [exemption for propane — qualifying persons]).

This exemption applies only if the farmer’s farm, or qualifying land of the qualifying person, contains a residential dwelling, a building that contains a residential dwelling, or a storage receptacle located at and connected to a residential dwelling, and only if one of the following is the case:

The retail dealer delivers the propane to a storage receptacle located on the farmer's farm, or to a storage receptacle owned by the qualifying person;
The propane is purchased on account from a bulk agent; or
The propane is purchased through a cardlock system.

Section 15.10 - Exemption For Propane In Types Of Containers

MFTR - SEC.15.10/Int.

References:

Act: Section 10.3; Section 38; Section 39; Section 40

Interpretation (Issued: 2014/08; Revised: 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subsection 15.10(1) and subsection 15.10(2) to include the word “imposed” before “under section 10.3 of the Act.”

Effective April 1, 2013, B.C. Reg. 148/2013 amended MFTR subsection 15.10(3) by adding “a sealed, pre-filled cylinder that is designed to hold not more than 28 litres of propane”.

Effective April 1, 2013, B.C. Reg. 94/2013 added regulation section 15.10 to provide for three exemptions:

Subsection 15.10(1) exempts propane contained in sealed, prepackaged containers that hold not more than 4 litres of propane.

Subsection 15.10(2) exempts propane purchased in pre-filled or refilled cylinder that is designed to hold not more than 28 litres of propane.

Subsection 15.10(3) exempts collectors, deputy collectors and retail dealers from paying security on propane in sealed, pre-packaged containers that hold not more than 4 litres, and on propane in pre-filled cylinders that are designed to hold not more than 28 litres of propane.

Section 15.11 - Exemption For Propane Made Part Of Tangible Personal Property

MFTR - SEC.15.11/Int.

Reference:

Act: Section 10.3

MFTR: Section 52

Interpretation (Issued: 2014/08; Revised 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subsection 15.11(1) to include the word “imposed” before “under section 10.3 of the Act.”

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.11, to provide for an exemption that applies to propane purchased for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into tangible personal property for the purpose of retail sale or lease. This exemption mirrors paragraph 141(1)(a) of the Provincial Sales Tax Act (PSTA).

MFTR subsection 15.11(2) and subsection 15.11(3) limit the scope of the exemption: the propane cannot be used as a source of energy, and the purchaser cannot be a “small seller” (as defined in the PSTA) or retain an interest in the tangible personal property after its retail sale or lease.

Section 15.12 - Exemption For Propane - Farmers

MFTR - SEC.15.12/Int.

References:

Act: Section 10.3

MFTR: Section 15.9; Section 15.14; Section 15.16

Interpretation (Issued: 2014/08; Revised 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subparagraph 15.12(2)(c) by removing the word "keylock". The meaning of "cardlock" is well established and broad enough to include "keylock".

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.12, which allows a farmer to purchase propane exempt from tax if the propane is purchased for use:

a) Solely for a farm purpose other than operating a motor vehicle or machinery;

b) In machinery on a farm for a farm purpose;

c) In a tractor on other than a highway;

d) In a tractor on a highway;

i. When proceeding to or returning from a location where use of the propane in the tractor is authorizes under (c); or

ii. For the purposes of the farmer's farm;

e) In a farm truck being used by the farmer or other person in the operation of the farm; or

f) In a motor vehicle, other than a farm truck or tractor, on the farm for a farm purpose.

Subsection 15.12(2) limits the application of the exemption. The exemption applies only if:

The retail dealer delivers the propane to a storage receptacle located on the farmer's farm;
The propane is purchased on account from a bulk agent; or
The propane is purchased through a cardlock system.

If the purchase does not meet the criteria of subsection 15.12(2), the farmer must pay motor fuel tax. A farmer who pays MFT on the purchase of propane for a use listed under subsection 15.12(1) can apply to the ministry for a refund, under MFTR section 15.16 [refund for propane-farmers].

Section 15.13 - Exemption For Propane - Qualifying Persons

MFTR - SEC.15.13/Int.

Reference:

Act: Section 10.3

MFTR: Section 15.9; Section 15.14; Section 15.17

Interpretation (Issued: 2014/08; Revised 2015/04)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR paragraph 15.13(2)(c) by removing the word "keylock." The meaning of "cardlock" is well established and broad enough to include "keylock".

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.13, which provides for an exemption from motor fuel tax on propane purchased by a "qualifying person", as defined in regulation section 15.7 [definitions], if the propane is purchased for use solely for a farm purpose other than operating a motor vehicle or machinery.

Subsection 15.13(2) limits the application of the exemption. The exemption applies only if:

The retail dealer delivers the propane to a storage receptacle owned by the qualifying person;
The propane is purchased on account from a bulk agent; or
The propane is purchased through a cardlock system.

If the purchase does not meet the criteria of subsection 15.13(2), the qualifying person must pay motor fuel tax. A qualifying person who pays motor fuel tax on the purchase of propane solely for a farm purpose other than operating a motor vehicle or machinery can apply to the ministry for a refund, under regulation MFTR section 15.17 [refund for propane – qualifying persons].

Section 15.14 - Persons Selling Propane To Farmers And Qualifying Persons

MFTR - SEC.15.14/Int.

References:

MFTR: Section 5.03; Section 5.1; Section 15.9; Section 15.12; Section 15.13

Interpretation (Issued: 2014/08; Revised 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subsection 15.14(1) and MFTR subsection 15.14(2) by substituting the phrase "must obtain" with "must, at or before the time of sale, obtain”. The amendment also added two subparagraphs to MFTR subsection 15.14(3), under which a retail dealer who sells propane to a farmer or qualifying person must:

Provide an invoice to the farmer or qualifying person at the time of sale, or within a reasonable time after the time of sale; and
On the invoice, in addition to the information required under MFTR section 5.1 [content of invoices], specify whether tax was included in the sale.

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.14.

Subsection 15.14(1) provides that a retail dealer who sells propane to a person claiming an exemption under MFTR section 15.9 [exemption for propane – residential and farm use] must ensure the sale meets the requirements for the exemption and must obtain the person's name and address, and the person’s BC Agriculture Council ID card number (and its expiry date) or a declaration acceptable to the director (which currently is the FIN 458 Certificate of Exemption Farmer).

Subsection 15.14(2) provides that a retail dealer who sells propane to a person claiming an exemption under MFTR section 15.12 or MFTR section 15.13 must ensure the sale meets the requirements for the exemption and must obtain the person's name and address, and the person’s BC Agriculture Council ID card number (and its expiry date) or a declaration acceptable to the director (which currently is the FIN 458 Certificate of Exemption Farmer).

Subsection 15.14(3) provides that a retail dealer who sells propane to a farmer or a qualifying person must issue an invoice to the farmer or qualifying person (at the time of sale or within a reasonable time after the time of sale) and must specify on the invoice whether tax was included in the sale.

Section 15.15 – Refund For Propane - Residential Use

MFTR - SEC.15.15/Int.

References:

Act: Section 10.3

Interpretation (Issued: 2014/08; Revised: 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.15, which provides that if a person pays tax on propane purchased for residential use in a residential dwelling, the director must refund the amount of tax that can reasonably be attributed to the portion of the propane used for residential use in a residential dwelling.

This provision allows a refund of motor fuel tax paid on a purchase of propane that did not qualify for the exemption under MFTR section 15.8 [exemption for propane - residential use]

Section 15.16 – Refund For Propane - Farmers

MFTR - SEC.15.16/Int.

References:

Act: Section 10.3

MFTR: Section 15.12

Interpretation (Issued: 2014/08; Revised 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.16, which provides for a refund where the conditions for exemption under MFTR subsection 15.12(1) [exemption for propane - farmers] are met but the delivery requirements under MFTR subsection 15.12(2) are not.

Section 15.17 – Refund For Propane - Qualifying Persons

MFTR - SEC.15.17/Int.

Reference:

Act: Section 10.3

MFTR: Section 15.13

Interpretation (Issued: 2014/08; Revised: 2015/05)

Effective April 1, 2013, B.C. Reg. 94/2013 added MFTR section 15.17, which provides for a refund where the conditions for exemption under MFTR subsection 15.13(1) [exemption for propane - qualifying persons] are met but the delivery requirements under MFTR subsection 15.13(2) are not.

Section 16 – Requirement For IFTA Licence

MFTR - SEC.16/Int.

References:

Act: Section 1 “carrier”, “director”, “IFTA commercial vehicle”, “motive fuel”, “motive fuel user permit”

MFTR: Section 1 “base jurisdiction”, “IFTA commercial vehicle”, “IFTA jurisdiction”, “IFTA licence”; Section 17; Section 40; section 42; Section 43

Bulletin MFT-CT 008

Interpretation (Revised: 2007/09, 2015/05)

Effective January 24, 1997, B.C. Reg. 15/97 eliminated the existing motive fuel user permit system. It also renamed the “Temporary Motive Fuel User Emblems” as “Motive Fuel User Permits”. As a result, carriers must now comply with the following licensing/reporting requirements.

If the carrier’s base jurisdiction is BC, the carrier must have either an IFTA licence, or file a “Statement of Tax Due on Motive Fuel” as required under section 42 [exemption].
If the carrier’s base jurisdiction is an IFTA jurisdiction other than BC, the carrier must have an IFTA license issued by that jurisdiction or a motive fuel user permit under section 40 [issue of motive fuel user permit].
If the carrier’s base jurisdiction is not BC or another IFTA jurisdiction, the carrier must have a motive fuel user permit issued under section 40, or an IFTA license issued by BC.

Because all BC carriers are already registered under IFTA, the only carriers affected by this change were those based in Alaska, Yukon Territory, and Northwest Territories who had not previously chosen to register under IFTA in BC. There carriers were advised that the old Motive Fuel User Permit system was discontinued and that they could register under IFTA with BC, or use the new temporary Motive Fuel User Permits.

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 16 consequential to BC’s participation in the International Fuel Tax Agreement (IFTA). This section set out the requirements for interjurisdictional carriers who brought diesel fuel into the province in the tank of an IFTA eligible commercial vehicle.

Prior to January 1, 1996, before BC joined the International Fuel Tax Agreement (IFTA), interjurisdictional carriers operating regularly in BC were required to register with the province and obtain a “Motive Fuel User Permit”. Carriers entering the province on a less frequent basis had the option of obtaining a temporary permit called a “Temporary Motive Fuel User Emblem”.

Section 17 – Application for IFTA Licence

MFTR - SEC.17/Int.

References:

Act: Section 1 “carrier”, "carrier licence", “director”, “International Fuel Tax Agreement”; Section 19

MFTR: Section 1 “IFTA decal”, “IFTA licence”, Section 16; Section 18; Section 19; Form F

Bulletin MFT-CT 008

Interpretation (Revised: 2015/05; 2022/12)

Effective July 11, 2022, B.C. Reg. 167/22 repealed and replaced subsection 17(1)(a) consequential to amendments to subsection 19(3) [issue of licences and decals to carriers] of the Act. Previously, a carrier applying for a carrier licence was required to use a prescribed form, MFTR Form F [application for carrier licence]. Form F is repealed.

MFTR subsection 17(1)(a) now states that to obtain or renew an IFTA licence, a carrier must submit an application referred to in section 19 of the Act, which empowers the director to specify the form of the application. Effective September 1, 2022, the director has specified carriers must apply online through eTaxBC.

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 17 consequential to BC’s participation in the International Fuel Tax Agreement (IFTA). MFTR section 17 provides the requirements when applying for an IFTA licence.

Subsection 17(1) requires a carrier seeking to obtain or renew an IFTA licence to provide

an IFTA registration and licensing application;
an IFTA decal application;
a bond, if required by the director; and
the required fees

Subsection 17(2) provides the required fees

for new licences: a registration fee of $200 and a licence fee of $100; for a total of $300; and
for renewals: a licence fee of $100.

Section 18 – Issuance Of New IFTA Licence

MFTR - SEC.18/Int.

References:

Act: Section 1 “director”, “IFTA commercial vehicle”; Section 19

MFTR: Section 1 “IFTA”, “IFTA decal”, “IFTA commercial vehicle”, “IFTA licence”, Section 17; Section 21

Bulletin MFT-CT 008

Interpretation (Revised: 2007/09, 2015/05)

Effective January 1, 1996, B.C. Reg. 550 added MFTR section 18 consequential to BC’s participation in the International Fuel Tax Agreement (IFTA). This section requires the director to issue an IFTA licence, and 2 IFTA decals for each IFTA commercial vehicle, after receipt of the forms and fees required under MFTR section 17 [application for IFTA licence].

Section 18.1 – Terms and Conditions of IFTA Licence

MFTR - SEC.18.1/Int.

References:

Act: Section 1 “director”, “International Fuel Tax Agreement”; Section 19; Section 71

MFTR: Section 1 “IFTA”, “IFTA licence”, “IFTA licensee”

Bulletin MFT-CT 008

Interpretation (Issued: 2022/09)

Effective July 11, 2022, B.C. Reg. 167/22 added MFTR section 18.1 consequential to the repeal of subsection 71(2)(t) [power to make regulations] of the Act, which removed Cabinet’s ability to prescribe the application form for an International Fuel Tax Agreement (IFTA) licence and to set the terms and conditions of the licence.

Subsection 18.1(1) clarifies that an IFTA licensee must comply with IFTA as a condition of the IFTA licence. MFTR subsection 18.1(2) notes the director may impose additional terms and conditions on issuing or renewing an IFTA licence.

Section 19 – Renewal Of IFTA Licence

MFTR - SEC.19/Int.

References:

Act: Section 1 “carrier”, “director”, “IFTA commercial vehicle”, “tax”

MFTR: Section 1 “IFTA”, “IFTA commercial vehicle”, “IFTA decal”, “IFTA jurisdiction”, “IFTA licence”; Section 17

Bulletin MFT-CT 008

Interpretation (Revised: 2007/09, 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 19 consequential to British Columbia’s participation in the International Fuel Tax Agreement (IFTA).

Subsection 19(1) specifies that IFTA decals are effective on January 1 and expire on December 31 of the same year.

Subsection 19(2) specifies that where a carrier applies for renewal after October 1, but during the currency of an existing IFTA licence the director must renew the licence provided that:

(a) the applicant has filed all the required materials under MFTR section 17 [application for IFTA licence];

(b) the applicant has filed all necessary returns and paid all required taxes to the Province and all other IFTA jurisdictions;

Subsection 19(3) specifies that, upon renewal, the director must provide the applicant with an IFTA license and two IFTA decals for each IFTA commercial vehicle owned or operated by the carrier.

Section 20 – Lost Or Damaged Licences Or Decals

MFTR - SEC.20/Int.

References:

Act: Section 1 “director”

MFTR: Section 1 “IFTA decal”, “IFTA licence”

Bulletin MFT-CT 008

Interpretation (Revised: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 20 consequential to BC’s participation in the International Fuel Tax Agreement (IFTA). This section requires the director to issue a replacement licence and/or decals if satisfied that the originals were lost, destroyed, or illegible.

Section 21 – Display Of Licence And Decal

MFTR - SEC.21/Int.

References:

Act: Section 1 “director”, “IFTA commercial vehicle”

MFTR: Section 1 “IFTA commercial vehicle”, “IFTA decal”, “IFTA licence”, “IFTA licensee”; Section 19

Bulletin MFT-CT 008

Interpretation (Revised: 2007/09, 2015/04)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 21 consequential to British Columbia’s participation in the International Fuel Tax Agreement (IFTA).

Subsection 21(1) establishes that an IFTA licensee is required to carry a copy of the IFTA licence in the cab of each IFTA commercial vehicle that is operating under that licence, and that they must present a copy of the licence at the request of a police officer or other authorized person. This section also requires IFTA licensees to display an IFTA decal on each side of the cab of all IFTA commercial vehicles.

Subsection 21(2) requires an IFTA licensee who ceases to engage in the interjurisdictional transportation of passengers or goods to remove all IFTA decals from its vehicles, return the IFTA licence to the director, and destroy all copies of the IFTA licence.

Subsection 21(3) requires an IFTA licensee that ceases to use an IFTA eligible commercial vehicle for IFTA purposes to remove all decals from the cab of that vehicle.

Section 22 – Return Of IFTA Licence

MFTR - SEC.22/Int.

References:

Act: Section 1 “carrier”, “director”

MFTR: Section 1 “IFTA licence”, “IFTA licensee”

Bulletin MFT-CT 008

Interpretation (Revised: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 22 consequential to British Columbia's participation in the International Fuel Tax Agreement (IFTA). This section requires a licensee to return their licence to the director for amendment or as part of an application for a new IFTA licence if the legal status, name, or address of the licensee changes.

Section 23 – Tax Returns By IFTA Licensees

MFTR - SEC.23 /Int.

References:

Act: Section 1 “director”

MFTR: Section 1 “IFTA”, “IFTA licence”; Section 24; Section 24.1; Section 26

Bulletin MFT-CT 008

Interpretation (Revised: 2004/04, 2015/05, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsection 23(1) to clarify that the director specifies how a return must be sent to the director (e.g. by mail, online, etc.).

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 23 consequential to British Columbia's participation in the International Fuel Tax Agreement (IFTA).

Subsection 23(1) requires the holder of a BC IFTA licence to file a completed quarterly return, in the form specified by the director, with all the information that is required under IFTA.

Subsection 23(2) requires that each return must be provided to the director on or before the date by which that return is provided under IFTA.

Tax returns are due the last day of the month immediately following the close of the quarter for which the return is filed. Returns are therefore due on April 30 (for the Jan-Mar quarter), July 31 (for the Apr-Jun quarter), October 31 (for the Jul-Sept quarter), and January 31 (for the Oct-Dec quarter).

Section 24 – IFTA Reporting And Remittance

MFTR - SEC.24/Int.

References:

Act: Section 1 “carrier”, “tax”

MFTR: Section 1 “IFTA jurisdiction”, “IFTA licence”, “IFTA licensee”, Section 23

Bulletin MFT-CT 008

Interpretation (Revised: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 24 consequential to British Columbia’s participation in the International Fuel Tax Agreement (IFTA). This section requires licensees to calculate, on each tax return, the fuel consumed and the tax paid/due to each IFTA jurisdiction in which they operated or paid tax, including BC. Formulae for calculating the tax due are provided on the tax return forms. Licensees must submit the net tax owing for all jurisdictions, or claim a refund if the aggregate tax paid to all jurisdictions exceeds the tax due.

Subsection 24(1) requires IFTA licensees submitting a tax return under MFTR section 23 [tax returns by IFTA licensees] must calculate, for each IFTA jurisdiction:

(a) The quantity of fuel consumed by IFTA vehicles in that jurisdiction;

(b) The quantity of fuel acquired in that jurisdiction on which the tax payable for that jurisdiction has been paid, and;

(c) The tax payable to that jurisdiction for the difference between the quantity of fuel consumed in that jurisdiction and the quantity of fuel purchased on which tax has been paid.

If the quantity of fuel in paragraph (b) exceeds the quantity of fuel in paragraph (a), the carrier may claim a refund from that jurisdiction.

Subsection 24(2) provides that an IFTA licensee must remit the tax payable to the Province and any other IFTA jurisdictions included in the report, or, if the aggregate amount of tax-paid fuel exceeds the amount of fuel referred to in paragraph (1)(a), may claim a refund.

Section 24.1 – Refund – IFTA Refundable B.C. Tax

MFTR - SEC.24.1/Int.

References:

Act: Section 1 “director”, “gasoline”, “litre”, “motive fuel”

MFTR: Section 1 “IFTA”, “IFTA licence”, “IFTA jurisdiction”, “IFTA licensee”; Section 23

Bulletin MFT-CT 008

Interpretation (Revised: 2015/05)

Effective July 1, 2008, by B.C. Reg. 168/2008, MFTR section 24.1 is repealed and a new MFTR section 24.1 substituted in its place. Both the old and new section provide that an IFTA licensee who purchases more gasoline or motive fuel (diesel or diesel blends) in the province than the licensee consumes in the province may apply for a refund. The new MFTR section 24.1 requires the IFTA licensee to have filed a return under the regulations or under IFTA to receive a refund, and sets out the refund rates on gasoline and motive fuel as follows:

Refund rates on gasoline and motive fuel
Item	Column 1 Period	Column 2 Gasoline – cents per litre	Column 3 Motive fuel – cents per litre
1	Any time before July 1, 2008	14.50	15.00
2	During the year beginning July 1, 2008	16.84	17.69
3	During the year beginning July 1, 2009	18.01	19.04
4	During the year beginning July 1, 2010	19.18	20.38
5	During the year beginning July 1, 2011	20.35	21.73
6	Any time on or after July 1, 2012	21.52	23.07

Effective March 1, 2003, the refund rates for IFTA licensees under MFTR section 24 were increased to 14.5¢ per litre for clear gasoline and 15¢ per litre for clear motive fuel. This change reflected the new rates of tax on gasoline and motive fuel under section 13 [additional tax for transportation infrastructure construction] of the Act effective the same date.

Effective February 19, 1997, refunds to IFTA licensees under MFTR section 24 were made at the rate of 11¢ per litre for clear gasoline and 11.5 ¢ per litre for clear motive fuel. These refunds arise where the amount of fuel acquired in the province exceeds the amount of fuel consumed in the province. These rates apply despite the fact that, depending on the location of the purchase, tax may have been paid on the fuel under section 4 [tax on gasoline] or section 10 [tax on motive fuel] of the Act at a different rate from those set out above.

Section 24.1 was enacted on March 28, 2003, under the retroactive authority provided in Section 56 of Bill 6, Budget Measures Implementation Act, 2003.

Subsection 24.1(1) establishes the meaning of “return” in MFTR section 24.1 as a return submitted by an IFTA licensee under MFTR section 23 [tax returns by IFTA licensees] for an IFTA licensee who received its IFTA license from the director, and as a return submitted to another IFTA jurisdiction where the IFTA licensee received its license from that jurisdiction.

Subsection 24.1(2) establishes that an IFTA licensee is entitled to a refund if:

(a) The licensee files a return in accordance with IFTA; and

(b) The quantity of gasoline or motive fuel purchased in the Province by the licensee exceeds the quantity of gasoline or motive fuel consumed in the Province by the licensee

Subsection 24.1 (3) provides the method for calculating a refund.

Section 25 – Records Of Licensee

MFTR - SEC.25/Int.

References:

Act: Section 1 “director”, “tax”

MFTR: Section 1 “IFTA licence”, “IFTA licensee”

Bulletin MFT-CT 008

Interpretation (Revised: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 25 consequential to British Columbia's participation in the International Fuel Tax Agreement (IFTA).

Subsection 25(1) establishes that the holder of an IFTA licence issued by the director is required to maintain records of its operations to substantiate the information provided on tax returns.

Subsection 25(2) establishes that the records must be retained for a period of 4 years after the date on which the tax return to which those records relate was due.

Subsection 25(3) establishes that an IFTA licensee must provide access to the records in subsection 25(1) at the request of the director. The records must be provided to the director or officials from another IFTA jurisdiction, as requested.

Section 26 – Cancellation Or Suspension Of IFTA Licence

MFTR - SEC.26/Int.

References:

Act: Section 1 “director”, “tax”; Section 19

MFTR: Section 1 “IFTA”, “IFTA decal”, “IFTA jurisdiction”, “IFTA licence”, Section 23; Section 24

Bulletin MFT-CT 008

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 26 consequential to British Columbia's participation in the International Fuel Tax Agreement (IFTA).

Section 26 prescribes the circumstances in which the director must cancel or suspend an IFTA licence.

Subsection 26(1) prescribes when the director must cancel an IFTA licence on the request of the holder. The director must cancel an IFTA licence at the request of the licensee when the licensee has satisfied:

all reporting requirements under IFTA; and
all liabilities for taxes, amounts equal to taxes, and any related penalty or interest charges.

Subsection 26(2) empowers the director to suspend or cancel an IFTA licence or decals for any failure by the licensee to comply with the provisions of the Act or the regulations or, the terms of IFTA.

Subsection 26(3) requires the director to provide written notice to the licensee and all IFTA member jurisdictions if the director cancels or suspends the licensee's licence under subsection 19(4) of the Act [issue of licences and decals to carriers].

Subsection 26(4) requires an IFTA licensee whose IFTA licence is suspended or cancelled under this section to:

After receiving the notice referred to above, return to the director the IFTA licence and all unused IFTA decals, and to remove from its commercial vehicle(s) all IFTA decals and copies of the licence; and,
Retain all records pertaining to its operation under IFTA for a period of four years.

Subsection 26(5) empowers any IFTA jurisdiction to conduct a final audit of the records of a carrier whose IFTA licence has been cancelled within 4 years after the date of cancellation.

Section 27 – Reinstatement Of Licence

MFTR - SEC.27/Int.

References:

Act: Section 1 “director”

MFTR: Section 1 “IFTA jurisdiction”, “IFTA licence”, “IFTA licensee”

Bulletin MFT-CT 008

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 27 consequential to British Columbia's participation in the International Fuel Tax Agreement (IFTA).

Section 27 establishes the circumstances in which the director must reinstate a suspended or cancelled IFTA licence.

Subsection 27(1) allows the director to reinstate a suspended or cancelled IFTA licence if the licensee has:

(a) filed all required returns;

(b) remitted all outstanding liabilities due to the province or any other IFTA jurisdiction;

(d) met any other conditions imposed by the director.

Subsection 27(2) establishes that once an IFTA licensee meets all the terms and conditions imposed under subsection 27(1), the director must reinstate the carrier’s IFTA licence and promptly notify all other IFTA jurisdictions that the suspension or cancellation has been lifted.

Section 40 – Issue Of Motive Fuel User Permit

MFTR - SEC.40/Int.

References:

Act: Section 1 “director”, “IFTA commercial vehicle”, “motive fuel”, “motive fuel user permit”

MFTR: Section 1 “IFTA commercial vehicle”; Section 16; Section 40.1; Section 40.2; Section 40.3; Section 43

Bulletin MFT-CT 008

Interpretation (Revised: 2009/04, 2015/05)

Effective July 1, 2008, by B.C. Reg. 168/2008, MFTR section 40 was repealed and replaced. Both the old and new section prescribe in what cases the director must issue a motive fuel user permit and the method for calculating the amount of the permit deposit, and empower the director to estimate the number of kilometers driven by the applicant (the amount of the deposit is based on the number of kilometers to be driven).

The amendment simplifies the section by providing one method for calculating the deposit in all cases (the old section referred to methods for two cases) and setting a maximum for the deposit. MFTR section 40.1 to MFTR section 40.3 are added to detail the calculation of the deposit, an additional refund, if any, and remittance requirements, respectively.

Subsection 40(1) states that the director, on application, must issue a motive fuel user permit for an IFTA commercial vehicle to a person who both:

(a) brings motive fuel into the Province in the supply tank of an IFTA commercial vehicle, and

(b) pays a deposit that is the greater of

(i) $10, or

(ii) 7 ¢ for each kilometer the vehicle will travel in the province, as estimated

by the director, to a maximum of $140.

Subsection 40(2) empowers the director to estimate the number of kilometers the vehicle will travel in the province, based on load manifests, bills of lading, trip sheets and other documentation presented by the person.

Subsection 40(3) empowers the director to estimate the number of kilometers by a method the director considers appropriate, if the director considers the documentation provided to be inadequate.

Effective July 3, 2007, by B.C. Reg. 217/2007, MFTR section 40 was amended by striking out "a commercial motor vehicle" and replacing it with "an IFTA commercial vehicle".

Effective February 18, 2004, the fee for distance-based Motive Fuel User Permits was increased from 4.5¢ per kilometre to 7¢ per kilometre. The increase brought the effective tax rate on distance-based permits into line with the motive fuel tax rate paid by other carriers.

Under MFTR section 40 the director must have, on application, issued a temporary Motive Fuel User Permit to a person who brings motive fuel into BC in the supply tank of an IFTA eligible commercial vehicle and who pays either

if the distance the motor vehicle will travel in BC can be estimated by the director from load manifests, bills of lading, trip sheets or other documentation, a deposit equal to the greater of

$10 or
7¢ for each kilometre that the IFTA eligible commercial vehicle will travel, as estimated by the director. The director, could make an estimate by whatever method the director considers appropriate, if the documentation provided by the applicant was considered to be inadequate.

in any other case, tax at the rate payable under sections 10 (motive fuel tax), 13 (Build BC tax) and (where applicable) 12.1 (Victoria transit tax) of the Act on the amount of motive fuel brought into BC in the supply tank of an IFTA eligible commercial vehicle.

Effective January 24, 1997, B.C. Reg. 15/97 eliminated the old Motive Fuel User Permit system as the final stage in BC's change over to the IFTA method of reporting and paying taxes. Interjurisdictional commercial motor carriers based outside of BC who operated in BC were now either required to be registered under IFTA, or obtain the equivalent of the old Temporary Motive Fuel User Emblem. However, the "Temporary Motive Fuel User Emblem" was renamed as the "Motive Fuel User Permit". Therefore, "Motive Fuel User Permits" now serve the same function as the old "Temporary Motive Fuel User Emblems".

Effective January 1, 1996, BC joined the International Fuel Tax Agreement (IFTA) registration system (see MFTR section 16). IFTA largely replaced the old Motive Fuel User Permit system. Effective that date, BC-based carriers were required to be registered under IFTA, or complete a Statement of Tax Due on Motive Fuel for interjurisdictional trips. Also, most out-of-province based operators of IFTA eligible commercial vehicles who regularly operated in BC were now registered under IFTA and reported and paid tax under that system. However, because of differences in the registration periods for IFTA and the Motive Fuel User Permit system, out-of-province based carriers were allowed to continue using the old Motive Fuel User Permit system through the first year of operation of IFTA. In addition, carriers who infrequently entered the province could still obtain a Temporary Motive Fuel User Emblem during the first year of operation of IFTA.

Prior to January 1, 1996, interjurisdictional operators (based either in or outside of BC) could register with BC and obtain "Motive Fuel User Permits". This permit system provided a reporting and tax payment mechanism for carriers who brought motive fuel into the province in the supply tank of a commercial motor vehicle and operated on BC roads. Alternatively, BC-based carriers could complete a Statement of Tax Due on Motive Fuel (FIN 449) for trips made outside of the province. Out-of-province based carriers who brought motive fuel into BC in the supply tank of a commercial motor could obtain a Temporary Motive Fuel User Emblem and pay the tax or an estimate of tax in advance on fuel to be consumed in the province. A new temporary emblem and payment was required for every entry into the province.

Section 40.1 – Refund Of IFTA Commercial Vehicle Deposit

MFTR - SEC.40.1/Int.

References:

Act: Section 1 “IFTA commercial vehicle”, “motive fuel”, “tax”

MFTR: Section 1 “IFTA commercial vehicle”; Section 40; Section 40.2; Section 40.3

Bulletin MFT-CT 008

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective July 1, 2008, by B.C. Reg. 168/2008, MFTR section 40.1 is added to the regulations and entitles a person to a refund, if the person has paid a deposit under MFTR section 40 [issue of motive fuel user permit]. The refund is equal to the sum of the deposit plus tax paid on motive fuel acquired in the province less the product of 7 cents and the actual distance traveled in the province in kilometers.

Subsection 40.1(1) provides the formula for determining a refund amount.

Subsection 40.1(2) provides that a refund for a trip may not exceed the amount of the deposit paid under MFTR section 40 for that trip.

Section 40.2– Additional Refund For IFTA Commercial Vehicle

MFTR - SEC.40.2/Int.

References:

Act: Section 1 “director”, “tax”; Section 10; Section 13

MFTR: Section 40; Section 40.1

Bulletin MFT-CT 008

Interpretation (Issued: 2009/04; Revised: 2014/02, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013, repealed and replaced MFTR section 40.2. The section requires that the director provide a refund if satisfied that a person paid a deposit under MFTR section 40 for a trip, and the amount of the deposit less any refund paid under MFTR section 40.1 for the trip exceeds the tax payable under section 10(3) and section 13(3) of the Act. The director must pay a refund equal to the amount of the excess.

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 40.2.

Section 40.3 – Remittance Of Tax By IFTA Commercial Vehicle

MFTR - SEC.40.3/Int.

References:

Act: Section 1 “director”, “IFTA commercial vehicle”, “litre”, “motive fuel”, “tax”; Section 10; Section 13

MFTR: Section 1 “IFTA commercial vehicle”; Section 40; Section 40.1

Bulletin MFT-CT 008

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective May 1, 2012, B.C. Reg. 142/2012 amended MFTR section 40.3 to change the legislative reference of subsection 13(2) to subsection 13(3).

Effective July 1, 2008, B.C. Reg. 168/2008 added MFTR section 40.3. The section specifies the amount of tax that must be paid in accordance with subsection 10(3) [tax on gasoline] and subsection 13(2) [additional tax for transportation infrastructure construction] of the Act.

Section 40.3 provides that a person who pays a deposit under section 40 [issue of a motive fuel user permit] must pay to the director the amount by which:

(a) the product of the quantity of motive fuel used in British Columbia in the vehicle during the trip multiplied by 15 cents per litre;

exceeds

(b) the amount that equals the sum of the deposit paid plus the amount of tax paid by the person for motive fuel that was purchased in British Columbia during the trip for use in the vehicle, minus a refund, if any, paid under Section 40.1 [refund of IFTA commercial vehicle deposit] for the trip.

Section 41 – Duty To Produce Motive Fuel User Permit

MFTR - SEC.41/Int.

References:

Act: Section 1 “director”, “IFTA commercial vehicle”, “motive fuel user permit”

MFTR: Section 1 “IFTA commercial vehicle”

Bulletin MFT-CT 008

Interpretation (Revised: 2007/09, 2015/05)

Effective January 24, 1997, B.C. Reg. 15/97 amended this section by renaming the Temporary Motive Fuel User Emblem to “Motive Fuel User Permit” (see MFTR/ MFTR - SEC. 40/Int.). Operators must produce the Motive Fuel User Permit on the request of a peace officer or person authorized by the director.

Prior to January 24, 1997, this section required the operator of an IFTA eligible vehicle to produce, on request of a peace officer or person authorized by the director, a Temporary Motive Fuel User Emblem issued under MFTR section 40.

Section 42 – Exemption

MFTR - SEC.42/Int.

References:

Act: Section 1 “motive fuel”; Section 10; Section 13; Section 16

MFTR: Section 1 “IFTA commercial vehicle”, Section 16, Section 52

Interpretation (Revised: 2007/09; 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 42 consequential to British Columbia's participation in the International Fuel Tax Agreement (IFTA).

This section relieves a person from the requirement in subsection 16(1) [permit or licence required to bring fuel into British Columbia] of the Act to have a carrier licence and IFTA decals, or to have or obtain a Motive Fuel User Permit (see MFTR/ MFTR - SEC. 40/Int.) if the person:

a) Is resident in BC;

b) Delivers to the director, on bringing motive fuel into BC in the supply tank of an IFTA commercial vehicle, a statement of the amount of motive fuel brought into BC; and

c) Remits tax at the rate payable under section 10 [tax on motive fuel] and section 13 [additional tax for transportation infrastructure construction] of the Act on the amount of motive fuel brought into BC.

The person is required to produce a copy of the statement at the request of a peace officer or a person authorized by the director.

Section 43 - Exemption For Permit Holder

MFTR - SEC.43/Int.

Reference:

Act: Section 16

MFTR: Section 40

Interpretation (Revised: 2009/04, 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 43 consequential to BC's participation in the International Fuel Tax Agreement (IFTA).

If a person, in respect of an IFTA commercial vehicle, holds a permit issued under Division 14 of the Motor Vehicle Regulations (B.C. Reg. 26/58) and has paid to the director an amount equal to the amount of the deposit or tax that would have been payable under MFTR paragraph 40(1)(b) [issue of motive fuel user permit] had the person applied for a motive fuel user permit for the IFTA commercial vehicle, the person is exempt from the requirement under subsection 16(1) [permit or licence required to bring fuel into British Columbia] of the Act.

Section 44 - Duty Of Seller To Provide Invoice

MFTR - SEC.44/Int.

REPEALED

Interpretation (Revised: 2009/04, 2015/04)

Effective July 1, 2008, MFTR section 44 is repealed by B.C. Reg. 168/2008.

The section required a seller to provide an invoice if a buyer requested one, and to include prescribed information on the invoice. These requirements are currently prescribed by MFTR section 5.03 [provision of invoices] and MFTR section 5.1 [content of invoices].

Section 45 - Bulk Storage

MFTR - SEC.45/Int.

Reference:

Act: Section 1 “motive fuel user permit”

MFTR: Section 52

Interpretation (Revised: 2015/05, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR section 45 to replace “the form” with “a form,” for consistency with other sections of the regulation.

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 45 to require that a carrier who holds an IFTA licence and operates a bulk storage facility in BC to maintain the records described below. This amendment was consequential to BC's participation in the International Fuel Tax Agreement (IFTA), which began on January 1, 1996.

A carrier who holds a motive fuel user permit issued in BC and who operates a bulk storage facility in BC must maintain a record specifying the quantity of fuel handled each month (including the fuel in stock, received, used and sold) and whether tax was paid on the acquisition of that fuel. The carrier must also maintain documentation which supports the record.

Section 46 – Exemptions

MFTR - SEC. 46/Int.

Reference:

Act: Section 16

Interpretation (Revised: 2015/05)

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 46 consequential to BC's participation in the International Fuel Tax Agreement (IFTA).

By virtue of this section, section 16 [permit or licence required to bring fuel into British Columbia] of the Act does not apply to:

Persons operating ambulances, school buses, fire trucks, taxis or police vehicles; or

Persons operating recreational vehicles exclusively for their personal use.

Section 50 – Exemption From Tax

MFTR - SEC.50/Int.

References:

Act: Section 1 “commercial motor vehicle”, “farm”, “motive fuel”

MFTR: Section 5.02

Interpretation (Revised: 2009/04, 2015/05)

Effective January 1, 2014, B.C. Reg. 246/2013 amended MFTR subsection 50(1) by added the word “imposed” before the phase “under section 10 or 13 of the Act.”

Section 50 provides an exemption from tax for persons who bring motive fuel (diesel or diesel blends) into BC in the supply tank of a commercial motor vehicle that is registered for farm use outside of BC.

This means that any person entering the province on farm related business whose diesel powered vehicle is registered for a farm purpose in another jurisdiction is not required to obtain a temporary Motive Fuel User Permit or IFTA credentials. The purpose of this amendment is to encourage out-of-province farmers to bring their produce to BC transportation terminals and processing plants. This provision has been in effect since August 22, 1984.

A person to whom this section applies is exempt from the requirement to retain records under MFTR section 5.02 [retention of records].

Section 51 – Exemption For Visiting Forces

MFTR - SEC.51/Int.

References:

Act: Section 1 “fuel”, “tax”

Interpretation (Revised: 2009/04, 2015/05)

Effective July 1, 2008, B.C. Reg. 168/2008 repealed and replaced MFTR section 51. Previously, rather than exempting visiting forces, the section provided an exemption for "fuel purchased for use" by visiting forces.

Effective January 1, 1996, B.C. Reg. 550/95 added MFTR section 51 to provide that fuel purchased for use by a visiting force is exempt from tax.

Section 51 provides an exemption for a visiting force (as defined in section 2 of the Visiting Forces Act (Canada)) from paying tax under the Act.

Section 51.1 – Definitions

MFTR - SEC.51.1/Int.

References:

Act: Section 1 “aviation fuel”, “biodiesel fuel”, “coloured fuel”, “fuel”, “jet fuel”, “marine diesel fuel”, “propane”, “tax”; Section 10.1; Section 15; Section 22; Section 23; Section 24

MFTR: Section 1 “alternative motor fuel”; Section 4; Part 3.1 – Alternative Motor Fuels; Section 51.2

Bulletin MFT-CT 005

Interpretation (Revised: 2009/04, 2015/05; 2023/09)

Effective February 23, 2022, B.C. Reg 209/2022 amended MFTR section 51.1 by adding new subsection (d) in the definition of “category 1 alternative motor fuel”. This exempts hydrogen when used in internal combustion engine vehicles other than hydrogen that is produced by electrolysis using coal-generated electricity, unless the carbon dioxide emitted as the result of using coal to generate the electricity is captured and stored or captured and sequestered. Earlier only hydrogen used in fuel-cell vehicles was exempt.

Effective April 1, 2013, B.C. Reg. 94/2013 repealed paragraph (b) in the definition of “Category 1 alternative motor fuel” under MFTR section 51.1.

Effective January 1, 2010, B.C. Reg. 307/2009 amended MFTR section 51.1 and MFTR subsection 1(2) [interpretation] to exclude renewable diesel fuel, ethanol and fuel that contains both renewable diesel fuel or ethanol from the definition of alternative motor fuel. These amendments resulted in ethanol and biodiesel no longer being exempt from tax under the Act due to the coming into force of the renewable fuel standard under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act. Motor fuel tax applies to ethanol and renewable diesel fuel at the same rate as the fuel with which it is blended. Motor fuel tax applies to 100% ethanol at the same rate as clear gasoline, and to 100% renewable diesel fuel at the same rate as motive fuel (clear diesel). Renewable diesel fuel includes both biodiesel and hydrogenated derived renewable diesel fuel.

B.C. Reg. 307/2009 also added the following definitions to MFTR section 51.1:

“Diesel fuel” is defined as petroleum-based diesel fuel and

“Gasoline” is defined as petroleum-based gasoline.

Effective February 20, 2008, B.C. Reg. 34/2008 amended MFTR section 51.1 to expand the definition of a Category 3 alternative motor fuel to include biodiesel fuel and ethanol used as coloured fuel, marine diesel fuel, locomotive fuel, jet fuel or aviation fuel.

This expansion ensured that biodiesel and ethanol fuel classified as alternative motor fuels for all purposes are exempt from fuel tax. Previously, biodiesel and ethanol were only exempt from fuel tax when they were used in motor vehicles on a highway.

Effective February 21, 2007, B.C. Reg. 31/2007 amended the definition of biodiesel fuel. The amendment expanded the exemption for biodiesel fuel by including the biodiesel portion of all blends of biodiesel and diesel fuel as well as pure biodiesel fuel (B100). Biodiesel fuel was defined as a fuel that is mono-alkyl esters of long chain fatty acids derived from plant or animal matter.

Effective July 1, 2004, B.C. Reg. 557/2004 extended the preferential tax treatment for alternative motor fuels to include the ethanol portion of a blend of ethanol and clear gasoline or clear diesel and the biodiesel portion of a blend of biodiesel with clear diesel. MFTR section 51.3 (repealed by B.C. Reg. 31/2007 effective February 21, 2007) was amended to prescribe the tax rate per litre for the ethanol portion of a blend of ethanol and gasoline or diesel fuel, including the denaturant, if the ethanol portion is between 5 percent and 25 percent of the blend and the biodiesel portion of a blend of biodiesel if the biodiesel portion is between 5 percent and 50 percent of the volume of the blend, when used to operate a motor vehicle.

Effective February 18, 2004, B.C. Reg. 54/2004 amended MFTR section 51.1 by reducing the number of emission groups used to evaluate alternative motor fuels from six to four (particulate matter was combined with air toxics and the sulphur group was removed). In addition, the number of categories of alternative motor fuels was increased from two to three.

These amendments responded to an apparent contradiction in the alternative motor fuel framework. Following the implementation of the framework in 2000, it was determined that even though two fuels (PuriNOx and O2Diesel) had the potential to significantly reduce important air emissions, they did not technically qualify for alternative motor fuel status under the regulation.

Effective August 1, 2001, B.C. Reg. 181/2001 amended MFTR section 51.1 and added MFTR sections 51.2, 51.3, and 51.4 to establish Part 3.1 - Alternative Motor Fuels.

As alternative fuels are developed, their environmental benefits are evaluated on the basis outlined in this section. Where the benefits meet the criteria, an Order in Council is enacted to establish the tax rate for that fuel according to the rates prescribed in this section.

MFTR section 51.3 prescribed the tax rate per litre for propane, natural gas, fuel with 85 percent methanol and fuel with 85 percent ethanol, when used to operate a motor vehicle.

MFTR section 51.4 (repealed by B.C. Reg. 31/2007 effective February 21, 2007) exempted farmers from the tax imposed on propane by the Act, if the propane was purchased for a use referred to in section 15 [prohibition against unauthorized purchase or use of coloured fuel] of the Act.

Effective January 1, 2001, B.C. Reg. 371/2000 added MFTR section 51.1 to exempt alcohol-based fuel and compressed natural gas when purchased to propel a motor vehicle. These fuels were previously exempt under the Act (see MFTA/ MFTR - SEC.3.1/Int. for a history of these exemptions).

Section 51.1 provides definitions for the purposes of Part 3.1 — Alternative Motor Fuels. An alternative motor fuel is generally a fuel with lower emissions than a conventional fuel. Alternative motor fuels are either exempt from motor fuel tax or taxed at a lower rate than non-alternative motor fuels.

Section 51.1 identifies and provides a definition for three categories of alternative motor fuels:

"Category 1 alternative motor fuel" is defined as:

a) A fuel used to propel motor vehicles, that when compared to

i. gasoline, if the fuel for use in a gasoline engine or an engine that is used to propel a type of vehicle that would ordinarily be propelled by a gasoline engine, or

ii. diesel fuel, if the fuel is for use in a diesel engine or an engine that is used to propel a type of vehicle that would ordinarily be propelled by a diesel engine

is shown in tests and analyses approved by the Minister of Environment and performed by a testing agency approved by that ministry to have the potential

iii. to produce at least a 15% reduction in emissions from motor vehicle operation of at least one emission group,

iv. to produce at least a 5% reduction in emissions from motor vehicle operation of at least one other emission group, and

v. to produce no more than 5% increase in emissions from motor vehicle operation of any other emission group, or

b) (Repealed effective April 1, 2013 by B.C. Reg. 94/2013).

c) Hydrogen, when used in fuel-cell vehicles, except hydrogen that is produced by electrolysis using coal-generated electricity, unless the carbon-dioxide emitted as the result of using coal to generate the electricity is captured and stored or captured and sequestered.

"Category 2 alternative motor fuel" is defined as fuel, used to propel motor vehicles, that when compared to:

a) gasoline, if the fuel is for use in a gasoline engine or an engine that is used to propel a type of vehicle that would ordinarily be propelled by a gasoline engine, or

b) diesel fuel, if the fuel is for use in a diesel engine or an engine that is used to propel a type of vehicle that would ordinarily be propelled by a diesel engine

is shown in tests and analyses approved by the Minister of Environment and performed by a testing agency approved by that ministry to have the potential

c) to reduce greenhouse gas emissions from motor vehicle operation by at least 20 percent, and

d) to produce no increase in emissions from motor vehicle operation of any other emission group.

"Category 3 alternative motor fuel" is defined as:

(a) fuel, used to propel motor vehicles, that when compared to

i. gasoline, if the fuel is for use in a gasoline engine or an engine that is used to propel a type of vehicle that would ordinarily be propelled by a gasoline engine, or

ii. diesel fuel, if the fuel Is for use in a diesel engine or an engine that is used to propel a type of vehicle that would ordinarily be propelled by a diesel engine

is shown in tests and analyses approved by the Minister of Environment and performed by a testing agency approved by that minister to have the potential

iii. to reduce greenhouse gas emissions from motor vehicle operation by at least 35%m and

iv. to produce no increase in emissions from motor vehicle operation of any other emission group.

(b) (Repealed effective January 1, 2010 by B.C. Reg. 307/2009).

Section 51.1 also provides the definitions below:

“Diesel fuel” is defined as petroleum-based diesel fuel.

“Emission group” is defined as one of the following groups:

(a) greenhouse gases;

(b) nitrogen oxides;

(d) particulate matter and air toxics;

(e) volatile organic compounds;

(f) (Repealed effective February 18, 2004 by B.C. Reg. 54/2004)

"Gasoline" is defined as petroleum-based gasoline.

"Greenhouse gases" is defined as a combination of carbon dioxide, methane and nitrous oxide, evaluated on a life-cycle basis.

"Volatile organic compound" is defined as any organic compound other than methane that participates in atmospheric photochemical reactions.

For more information on alternative motor fuels, see

MFTA/ MFTR - SEC.10.1/Int. (section of the Act that imposes tax on alternative motor fuels);
MFTR/ MFTR - SEC.1(2)/Int. (definition of alternative motor fuel); and
MFTR/ MFTR - SEC.51.2/Int. (section of the regulation that identifies the tax rate or exempt status for alternative motor fuels).

Section 51.2 – Tax Rates and Exemptions for Specific Alternative Motor Fuels

MFTR - SEC.51.2/Int.

References:

Act: Section 1 “diesel fuel”, “fuel”, “tax”; Section 5; Section 6; Section 7; Section 8

MFTR: Section 1 “alternative motor fuel”

Bulletin MFT-CT 005

Interpretation (Issued: 2015/05; Revised 2023/06)

Effective February 23, 2023, B.C. Reg. 209/ 2022 amended column 1 row 8 of the table in MFTR section 51.2 to refer to the new paragraph (d) in the definition of “Category 1 alternative motor fuels”. A new paragraph (d) is added to the section 51.1 definition of “Category 1 alternative motor fuel" that exempts hydrogen used in internal combustion engine vehicles other than hydrogen that is produced by electrolysis using coal-generated electricity, unless the carbon dioxide emitted as the result of using coal to generate the electricity is captured and stored or captured and sequestered.

Effective April 1, 2013, B.C. Reg. 94/2013 removed propane from the table (item 7) in MFTR section 51.2, consequently ending the exemption for this fuel. Effective on the same date, propane became subject to motor fuel tax under section 10.3 [tax on propane] of the Act.

Effective July 1, 2010, B.C. Reg. 216/2010 amended the table (item 7) in MFTR subsection 51.2(1) to provide an exemption for propane under the Act. Prior to July, 2010, the tax rate for propane was 2.7 cents per litre.

Effective January 1, 2010, B.C. Reg. 307/2009 removed renewable diesel fuel, ethanol and fuel that contains both renewable diesel fuel or ethanol from the definition of alternative motor fuel in MFTR subsection 1(2) [interpretation] and MFTR section 51.1 [definitions]. Consequently, B.C. Reg. 307/2009 also removed these fuels (items 1-4) from the table in MFTR section 51.2.

Effective January 1, 2010, motor fuel tax applies to ethanol and renewable diesel fuel at the same rate as the fuel with which it is blended. Motor fuel tax applies to 100% ethanol at the same rate as clear gasoline, and to 100% renewable diesel fuel at the same rate as motive fuel (clear diesel). Renewable diesel fuel includes both biodiesel and hydrogenated derived renewable diesel fuel

Effective February 20, 2008, B.C. Reg. 34/2008 amended MFTR subsection 51.2(2). MFTR subsection 51.2(2) was amended to clarify that the tax rates and exemptions for a fuel referred to in column 1 of the table in MFTR section 51.2 do not apply to a category 1 alternative motor fuel that is subject to any of the listed provisions of the Act.

Effective February 21, 2007, B.C. Reg. 31/2007 repealed MFTR sections 51.2 and 51.3 and replaced these two sections with a new MFTR section 51.2. This resulted in the removal of the explanation of how alternative motor fuel tax rates and exemptions are calculated; however, the tax rates are still calculated using the same formula. Tax rates or exemptions for alternative motor fuels are calculated in accordance with the following chart:

Tax rates or exemptions for alternative motor fuels
Market Share	Tax Rates (Cents per litre)
	Categories 1 and 2 Alternative Motor Fuels	Category 3 Alternative Motor Fuels
Less than 3.5%	Exempt	Exempt
3.5% to less than 6.5%	3.6	2.2
6.5% to less than 10%	7.3	5.1

Historically, the following considerations were made when calculating tax rates or exemptions for alternative motor fuels:

Tax rates increase as the market share increases; however, tax rates do not decrease if the market share decreases.
Tax rates are adjusted for energy equivalency when compared to the fuel for which they are an alternative.
When required, tax rates are adjusted for market share 90 days after the data used to determine market shares is published by Statistics Canada.

Subsection 51.2(1) provides that, subject to subsection 51.2(2), the tax rate or exemption for a fuel referenced in column 1 of the following table that has qualified for the category of alternative motor fuel set out in column 2 of the table, is the rate or exemption set out in column 3 of the table:

Table
Item	Column 1 Fuel	Column 2 Category	Column 3 Tax Rate or Exemption
1-4	Repealed. [B.C. Reg. 307/2009, s. 4.]
5	Fuel with at least 85% methanol	1	Exempt
6	Natural gas	1	Exempt
7	Repealed. [B.C. Reg. 94/2013, s. 19.]
8	Hydrogen, as described in paragraph (c) of the definition of "Category 1 alternative motor fuel"	1	Exempt

Subsection 51.2(2) provides that subsection 51.2(1) does not apply to a category 1 alternative fuel that is subject to any of the following provisions of the Act:

a) section 5 [tax on coloured fuel];

b) section 6 [tax on marine diesel fuel and locomotive fuel]

c) section 7 [tax on jet fuel]

d) section 8 [tax on aviation fuel]

For more information on alternative motor fuels, see

MFTA/ MFTR - SEC.10.1/Int. (section of the Act that imposes tax on alternative motor fuels);
MFTR/ MFTR - SEC.1(2)/Int. (definition of alternative motor fuel); and
MFTR/ MFTR - SEC.51.1/Int. (definition of alternative motor fuel and other terms)

Section 51.3 – Tax Rates For Specific Alternative Motor Fuels

MFTR - SEC.51.3/Int.

REPEALED

References:

MFTR: Section 51.2

Interpretation (Issued: 2009/04; Revised: 2015/03)

Effective February 27, 2007, B.C. Reg. 31/2007 repealed MFTR section 51.3. The substance of section 51.3 is now found in section 51.2 [tax rates and exemptions for specific alternative motor fuels]. For more information, see MFTR/ MFTR - SEC.51.2/Int.

Section 51.4 – Exemption For Farmers

MFTR - SEC.51.4/Int.

REPEALED

References:

Act: Section 1 “farmer”, “fuel”, “propane”, “tax”; Section 5; Section 10.2

MFTR: Section 15.9; Section 15.12; Section 15.13

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective July 1, 2010, B.C. Reg. 216/2010 repealed MFTR section 51.4 as a result of the introduction of the Harmonized Sales Tax. For more information see MFTA/ MFTR - SEC. 10.2/Int.

Effective February 27, 2007, B.C. Reg. 31/2007 added MFTR section 51.4. Prior to its repeal, section 51.4 provided that a farmer was exempt from motor fuel tax on propane that was either:

a) Purchased for any one of

a. Operating a tractor on other than a highway,

b. Operating a tractor when used on a highway by or on behalf of a farmer for the purposes of the farmer’s farm, or

c. Operating a farm truck being used by a farmer or other person in the operation of the farm, or

b) For the purpose of operating a motor vehicle or machinery on a farm, by or on behalf of a farmer for the purpose of farming.

With the reimplementation of the PST effective April 1, 2013, the substance of the repealed MFTR section 51.4 was re-introduced into the Motor Fuel Tax Act and the regulation. For more information, see MFTA/ MFTR - SEC.10.3/Int. [tax on propane], MFTR section 15.9 [exemption for propane – residential and farm use], MFTR section 15.12 [exemption for propane – farmers] and MFTR MFTR - SEC.15.13/Int. [exemption for propane – qualifying persons]

Section 51.6 – Definitions

MFTR - SEC.51.6/Int.

References:

MFTR: Part 3.2 – Exempt Fuel Retailers Program; Section 51.7

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.6. This section provides definitions for the purposes of the Exempt Fuel Retailer Program, outlined in Part 3.2 — Exempt Fuel Retailers Program of the regulation.

An "exempt fuel retailer" means a person who holds an exempt fuel retailer permit. An exempt fuel retailer is permitted to purchase certain types and subcategories of types of fuel at specified percentages exempt of tax, and sells fuel exempt of tax to qualifying purchasers.

An "exempt fuel retailer permit" means a permit issued under this Part.

An "exempt percentage" means the percentage set by the director under section 51.71. This is the percentage of fuel that an exempt fuel retailer is eligible to purchase for resale without paying security, based on the percentage of tax-exempt sales they normally make to qualifying purchasers.

A "qualifying purchaser" means a purchaser who is exempt from tax

(a) under section 87 of the Indian Act (Canada), or

(b) by virtue of an agreement between the government and a First Nation relating to former reserve land.

A "reserve" is defined as having the same meaning as in the Indian Act (Canada).

A "specified fuel" is defined as a type or subcategory of a type of fuel specified in an exempt fuel retailer permit.

For an overview of the Exempt Fuel Retailers Program, see MFTR/ MFTR - SEC.51.7/Int.

Section 51.7 – Exempt Fuel Retailer Permit

MFTR - SEC.51.7/Int.

References:

MFTR: Section 1 “fuel”, “person”, “purchaser”, “retail dealer”, “security”, “tax”; Section 51.6; Section 51.71; Section 51.9

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised: 2015/05, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR subsection 51.7(1) to clarify that the director specifies how an application must be sent to the director (e.g. by mail, online, etc.).

Effective January 1, 2009, B.C. Reg. 312/2008, added MFTR section 51.7, implementing the Exempt Fuel Retailer Program. Under the program, the director may issue an exempt fuel retailer permit to a retail dealer who is either located on reserve land, or is located on land that was formerly reserve land and on which a purchaser, by agreement between the government and a First Nation, may be a “qualifying purchaser” (defined in MFTR section 51.6 [definitions] to mean either a person who is exempt from tax under section 87 of the Indian Act (Canada) or by agreement between a First Nation and the government).

The permit allows an exempt fuel retailer to purchase a specified percentage of certain types of fuel exempt of the security otherwise payable for carbon tax and motor fuel tax, as the retailer will sell the fuel exempt of tax.

The permit is available on application, and is for a specific location. Before being issued a permit, the applicant must enter into an agreement with the director setting out matters the director considers necessary. The permit must be displayed in a prominent position at the specific location where the retail dealer sells fuel. The director may place conditions and limits on the permit.

This program replaces the existing collector appointments for retailers operating on reserve land.

Subsection 51.7(1) provides that subject to subsection 51.7(3) and on receipt of an application in the form specified by the director, the director may

a) Issue an exempt fuel retailer permit for a type or subcategory of a type of fuel to a retail dealer whom the director considers suitable and who is located on land that

a. is reserve land, or

b. was formerly reserve land and where by virtue of an agreement between the government and a First Nation, purchasers could be qualifying purchasers, and

b) make the exempt fuel retailer permit subject to any other conditions and limitations specified by the director.

Subsection 51.7(2) provides that a retail dealer who wishes to obtain an exempt fuel retailer permit must apply to the director for a permit for a specific location at which the retail dealer intends to sell the specified fuel.

Subsection 57.1(3) provides that before an applicant is issued an exempt fuel retailer permit, the applicant must enter into an agreement with the director, on behalf of the government, that sets out the duties to be performed by the retailer and any other matters the director considers necessary or advisable.

Subsection 51.7(4) provides that an exempt fuel retailer must display the exempt fuel retailer permit in a prominent position at the location at which the retailer sells the specified fuel.

Section 51.71 – Exempt Percentage Of Fuel Purchases

MFTR - SEC.51.71/Int.

References:

Act: Section 1 “fuel”, “purchaser”, “security”, “tax”; Section 40

MFTR: Section 51.6; Section 51.7; Section 51.92

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.71. MFTR section 51.71 gives the director the ability to set and change the percentage of a type of fuel or a subcategory of a type of fuel that an exempt fuel retailer may purchase without paying security.

Subsection 51.71(1) provides that the director may set a percentage for a type of fuel that may be purchased for resale by an exempt fuel retailer without paying security under section 40 [security from retail dealer] of the Act.

Subsection 51.71(2) provides that the director may set different percentages for different types or subcategories of a type of fuel or for different retailers.

Subsection 51.71(3) provides that the director may change the percentage of specified fuel with 30 days notice to the exempt fuel retailer, and may set or change the percentage of specified fuel, without advanced notice, if the exempt fuel retailer fails to comply with the Act, this regulation or the terms and conditions of the exempt fuel retailer permit or an agreement under section 51.7 [exempt fuel retailer permit].

Subsection 51.71(4) provides that the director may change the percentage of specified fuel at the request of the exempt fuel retailer, without advance notice, if the director is satisfied that the change is appropriate.

For an overview of the Exempt Fuel Retailers Program, see MFTR/ MFTR - SEC.51.7/Int.

Section 51.8 – Collection And Payment Of Security

MFTR - SEC.51.8/Int.

References:

Act: Section 1 “collector”, “deputy collector”, “fuel”, “security”, “tax”; Section 38; Section 40; Section 51.7

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.8. MFTR section 51.8 provides for exemptions from the security scheme regarding exempt fuel retailers.

Subsection 51.8(1) provides that a collector or deputy collector who sells specified fuel to an exempt fuel retailer must not collect security under section 40 [security from retailer dealer] of the Act in respect of the exempt percentage of that fuel.

Subsection 51.8(2) provides that a collector who sells specified fuel to an exempt fuel retailer is not required to pay security under section 38 [security from collector] of the Act in respect of the exempt percentage of that fuel.

Subsection 51.8(3) provides that if the director is satisfied that a deputy collector has paid security on specified fuel that was sold to an exempt fuel retailer, the director must pay the deputy collector a refund equal to the difference between the amount of security the deputy collector paid on the fuel and the amount of security or tax the deputy collector received for the fuel.

For an overview of the Exempt Fuel Retailers Program, see MFTR/ MFTR - SEC.51.7/Int.

Section 51.81 – Returns

MFTR - SEC.51.81/Int.

References:

Act: Section 1 “director”, “fuel”, “tax”

MFTR: Section 1 “annual period”; Section 51.6 “exempt fuel retailer”; Section 51.7; Section 51.9; Section 52

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised: 2017/05, 2023/10, 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends MFTR paragraphs 51.81(1)(a), (3)(a) and (4)(a) to clarify that the director specifies how the returns must be delivered to the director (e.g. by mail, online, etc.).

Effective February 23, 2022, B.C. Reg. 186/2022 amends MFTR paragraph 51.81(4)(a). An exempt fuel retailer permitted to file annual returns under MFTR subsection 51.81(2) must deliver the return to the director by the 15th day of the month following the month in which the annual period ends.

This amendment is consequential to changes that allow the director to set the annual period. For more information, see MFTR - SEC. 1(1)/Annual Period/Int.

Effective August 1, 2016, B.C. Reg. 180/2016 amended MFTR subsections 51.85(3) and (4) for greater clarity, specifically mentioning fuel purchased and sold in the reporting period. The amendment added subsection 51.85(4.1) to provide the director with the discretion to allow an exempt fuel retailer to submit supporting documentation on or before the last day of the month following the end of a reporting period instead of on or before the15th of the month.

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.81. MFTR section 51.81 identifies the frequency and deadlines for delivering returns and remitting tax for exempt fuel retailers.

For an overview of the Exempt Fuel Retailers Program, see MFTR/ MFTR - SEC.51.7/Int.

Section 51.9 – Suspension And Cancellation Of Exempt Fuel Retailer Permit

MFTR - SEC.51.9/Int.

References:

Act: Section 1 “fuel”, “person”, “purchaser”, “retail dealer”

MFTR: Section 51.7; Section 51.81; Section 51.92

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.9. MFTR section 51.9 identifies in what circumstances and for how long the director may suspend or cancel an exempt fuel retailer’s permit.

Subsection 51.9(1) provides that the director may, without giving advance notice to the exempt fuel retailer, suspend an exempt fuel retailer permit for a period of up to 60 days

a) If the director is satisfied that the exempt fuel retailer knowingly gave false information on an application for the exempt fuel retailer permit, or

b) If the exempt fuel retailer refuses or neglects to comply with

a. a provision of the Act or the regulation,

b. a condition or limitation specified by the director on the permit, or

c. a provision or an agreement referred to in section 51.7 [exempt fuel retailer permit] of the regulation.

Subsection 51.9(2) provides that if the director suspends the exempt fuel retailer permit of a person under subsection 51.9(1), the director must, as soon as reasonable possible, advise the person of the reasons for the suspension and provide the person with an opportunity to show the director why the suspension should be lifted.

Subsection 51.9(3) provides that, subject to subsection 51.9(5), the director may, by notice delivered to the exempt fuel retailer, cancel the exempt fuel retailer permit

a) if the director is satisfied that the exempt fuel retailer knowingly gave false information on an application for the exempt fuel retailer permit, or

b) if the exempt fuel retailer refuses or neglects to comply with

a. a provision of the Act or this regulation,

b. a condition or limitation specified by the director on the permit, or

c. a provision of an agreement referred to in section 51.7 [exempt fuel retailer permit] of the regulation.

Subsection 51.9(4) provides that the director must, by notice delivered to the exempt fuel retailer, cancel the exempt fuel retailer permit, if the exempt fuel retailer obtained an exempt fuel retailer permit to operate at a location on land referred to in subsection 51.7(1) and that land ceases to be land where purchasers can be a qualifying purchaser.

Subsection 51.9(5) provides that before cancelling an exempt retailer permit under subsection 51.9(3), the director must

a) give the exempt fuel retailer notice of the reasons for the proposed cancellation, and

b) provide the exempt fuel retailer with an opportunity to show the director why the permit should not be cancelled.

Subsection 51.9(6) provides that the cancellation of an exempt fuel retailer permit under subsection 51.9(4) takes effect on the later of the date that notice of it is delivered to the exempt fuel retailer and the date stated in the notice.

Subsection 51.9(7) provides that a suspension or cancellation of a permit under this section does not relieve a retail dealer from any liability.

For an overview of the Exempt Fuel Retailers Program, see MFTR/ MFTR - SEC.51.7/Int.

Section 51.91 – Automatic Suspension And Cancellation

MFTR - SEC.51.91/Int.

References:

Act: Section 1 “fuel”, “person”

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised: 2015/05)

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.91. MFTR section 51.91 provides that a suspension or cancellation of an exempt fuel retailer’s permit under the Carbon Tax Act results in the automatic suspension or cancellation of an exempt fuel retailer’s permit under the Motor Fuel Tax Act. An analogous provision exists in the Carbon Tax Act.

Subsection 51.91(1) provides that if an exempt fuel retailer permit issued to a person under the Carbon Tax Act is suspended under that Act, the exempt fuel retailer permit issued to that person under this regulation is automatically suspended without notice for the same period as the suspension under the Carbon Tax Act.

Subsection 51.91(2) provides that if an exempt fuel retailer permit issued to a person under the Carbon Tax Act is cancelled under that Act, the exempt fuel retailer permit issued to that person under this regulation is automatically cancelled without notice.

For an overview of the Exempt Fuel Retailers Program, see MFTR/ MFTR - SEC.51.7/Int.

Section 51.92 – Appeals

MFTR - SEC.51.92/Int.

References:

Act: Section 1 “fuel”, “security”; Section 51; Section 52

MFTR: Section 5.02; Section 51.71; Section 51.9

Bulletin MFT-CT 002

Interpretation (Issued: 2009/04; Revised 2011/03, 2015/05)

Effective September 2, 2009, B.C. Reg. 262/2009 amended MFTR section 51.92. Four amendments were made:

Paragraph (c) was added to MFTR subsection 51.92(1), which allows for an appeal to the Minister from a decision of the director regarding the setting or changing of a percentage of fuel under MFTR section 51.71 [exempt percentage of fuel purchases].

MFTR subsection 51.92(1.1) was added, which sets a 90 day limitation period for an appeal to the Minister, subject to MFTR subsection 51.92(1.2), and requires that an appeal be in writing.

MFTR subsection 51.92(1.2) was added as a transitional provision to provide that no appeal lies from a decision made more than 90 days before September 2, 2009, and that the 90 days begins on the date of the director’s notice of decision.

Paragraph (c) was added to MFTR subsection 51.92(4), which empowers the minister to direct the director to change the percentage of fuel an exempt fuel retailer can purchase for resale exempt of security.

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.92. This section governs when and how an appeal to the minister can be made regarding the director’s refusal to issue an exempt fuel retailer permit, the cancellation of an exempt fuel retailer permit (other than cancellation where land ceases to be land where purchasers can be qualifying purchasers) or the setting or changing of the percentage of fuel an exempt fuel retailer can purchase for resale exempt of security.

Subsection 51.92(1) provides that an appeal to the minister can be submitted regarding a decision of the director about any of the following:

a) a refusal to issue an exempt fuel retailer permit;

b) the cancellation of an exempt fuel retailer permit, other than a cancellation under section 51.9 [suspension and cancellation of exempt fuel retailer permit] of the regulation;

c) the setting or changing of the percentage of specified fuel under section 51.71 or a refusal to change that percentage.

Subsection 51.92(1.1) provides that, subject to subsection 51.92(1.2), written notice of the appeal must be provided to the minister within 90 days after the date of the director’s notice of decision.

Subsection 51.92(1.2) provides that with respect to a decision of the director made prior to September 2, 2009,

a) no appeal lies from a decision if the date on the director’s notice of decision is a date prior to 90 days before September 2, 2009, and

b) the 90 day time limit referenced to in subsection 51.92(1.1) begins on the date on the director’s notice of decision.

Subsection 51.92(2) provides that the appellant must set out in the notice of appeal a statement of all material facts and the reasons in support of the appeal.

Subsection 51.92(3) provides that on receiving the notice of appeal, the minister must

a) consider the matter,

b) subject to subsection 51.92(4), affirm, amend or change the decision, and

c) promptly notify the appellant in writing of the result of the appeal.

Subsection 51.92(4) provides that the minister may

a) affirm the decision of the director,

b) direct the director to issue an exempt fuel retailer permit to the appellant, subject to the conditions and limitations that the director specifies, or

c) direct the director to set or change the percentage of fuel specified under section 51.71, subject to the conditions and limitations that the director specifies.

Subsection 51.92(5) provides that section 51 [appeal to court] and section 52 [pending appeal not to affect tax collection] of the Act apply to appeals under this section.

Section 52 – Offences

MFTR - SEC.52/Int.

References:

Act: Section 1 “person”

MFTR: Section 1.3; Section 1.4; Section 1.5; Section 1.6; Section 1.7; Section 1.8; Section 1.9; Section 1.10; Section 1.11; Section 1.12; Section 1.13; Section 1.14, Section 1.15; Section 5; Section 5.01; Section 5.011; Section 5.02; Section 5.03; Section 5.1; Section 6; Section 7; Section 8; Section 9; Section 10; Section 11; Section 15.5; Section 15.11; Section 16; Section 21; Section 22; Section 23; Section 24; Section 25; Section 26; Section 42; Section 45; Section 51.81

Interpretation (Issued: 2009/04; Revised: 2017/05)

Effective August 1, 2016, B.C.180/2016 amended MFTR section 52 by removing sections 2, 2.01, 2.021, 2.022, 2.03, 2.04 from the list under paragraph 52(b) and adding sections 1.3, 1.4, 1.5, 1.6, 1.7, 1.8, 1.9, 1.10, 1.11, 1.12, 1.13, 1.14 and1.15 as a result of renumbering and reorganizing the tax remittance provisions in the regulation.

Effective May 25, 2015, B.C. Reg. 79/2015 amended paragraph 52(b) by replacing references to months with references to days (e.g. 90 days replaces 3 months). This amendment was made along with similar amendments in the Carbon Tax Regulation and Tobacco Tax Act Regulation to clarify the minimum and maximum length of imprisonment upon conviction for an offence.

Effective January 1, 2014, B.C. Reg. 246/2013 repealed MFTR sections 12 and 13. Consequently, these two sections were removed from MFTR section 52.

Effective April 1, 2013, B.C. Reg. 94/2013 struck out everything that appeared before paragraph (a) of MFTR section 52 and replaced it with “A person who contravenes section 2, 2.01, 2.02, 2.021, 2.03, 2.04, 5, 5.01, 5.011, 5.02, 5.03, 5.1, 6 (2), 7, 8 (2), 9, 10, 11 (3), 12, 13, 15.5, 15.11, 16, 21, 22, 23, 24, 25, 26 (4), 42 (2), 45 or 51.81 commits an offence and is liable.”

Effective May 1, 2012, B.C. Reg. 142/2012 added MFTR section 2.021 [returns – tax on imported fuel] to the regulation and added MFTR section 2.021 to the sections listed in MFTR section 52.

Effective July 1, 2010, B.C. Reg. 216/2010 repealed MFTR section 2.1. Consequently, MFTR section 2.1 was removed from MFTR section 52.

Effective January 1, 2009, B.C. Reg. 312/2008 added MFTR section 51.81 [returns] to the regulation and added MFTR section 51.81 to the sections listed in MFTR section 52.

Effective July 1, 2008, B.C. Reg. 68/2008 added MFTR section 52 which provides the fine amounts for a person who contravenes specified sections of the MFTR.

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The B.C. Public Service acknowledges the territories of First Nations around B.C. and is grateful to carry out our work on these lands. We acknowledge the rights, interests, priorities, and concerns of all Indigenous Peoples - First Nations, Métis, and Inuit - respecting and acknowledging their distinct cultures, histories, rights, laws, and governments.

More topics

Tax Interpretation Manual: Motor Fuel Tax Act - Regulations

Section 1 – Interpretation

MFTR - SEC.1(1)/Act/Int.

(1) Act

MFTR - SEC.1(1)/Annual Period/Int.

(1) Annual Period

MFTR - SEC.1(1)/Base Jurisdiction/Int.

(1) Base Jurisdiction

MFTR - SEC.1(1)/Dye/Int.

(1) Dye

MFTR - SEC.1(1)/Flight/Int.

(1) Flight

MFTR - SEC.1(1)/IFTA/Int.

(1) IFTA

MFTR - SEC.1(1)/IFTA Decal/Int.

(1) IFTA Decal

MFTR - SEC.1(1)/IFTA Jurisdiction/Int.

(1) IFTA Jurisdiction

MFTR - SEC.1(1)/IFTA Licence /Int.

(1) IFTA Licence

MFTR - SEC.1(1)/IFTA Licensee/Int.

(1) IFTA Licensee

MFTR - SEC.1(1)/International Air Service/Int.

(1) International Air Service

MFTR - SEC.1(1)/Recreational Vehicle/Int.

(1) Recreational Vehicle

MFTR - SEC.1(1)/Spouse/Int.

(1) Spouse

MFTR - SEC.1(2)/Alternative Motor Fuel/Int.

(2) Alternative Motor Fuel

MFTR - SEC.1(2)/IFTA Commercial Vehicle/Int.

(2) IFTA Commercial Vehicle

MFTR - SEC.1(3) - (4)/Int.

Section 1.1 – Registered Consumer Certificate

MFTR - SEC.1.1/Int.

Section 1.2 – Cancellation Of Appointments And Certificates

MFTR - SEC.1.2/Int.

Section 1.21 – Payments And Returns – Annual Period

MFTR - SEC.1.21/Int.

Section 1.3 - Payments And Returns - Collectors

MFTR - SEC.1.3/Int.

Section 1.4 - Payments and Returns - Deputy Collectors and Retail Dealers

MFTR - SEC.1.4 /Int.

Section 1.5 - Payments and Returns - Amounts Collected As If Tax

MFTR - SEC.1.5/Int.

Section 1.6 - Payments and Returns - Fuel Sold to Retail Dealers By Persons Other Than Collectors

MFTR - SEC.1.6 /Int.

Section 1.7 - Payments And Returns - Amounts Received As Security Or As If Security

MFTR - SEC.1.7/Int.

Section 1.8 - Payments And Returns - Fuel Used By Registered Consumers

MFTR - SEC.1.8/Int.

Section 1.9 - Payments And Returns - Transfer Of Marine Diesel Fuel, Locomotive Fuel, Jet Fuel Or Aviation Fuel

MFTR - SEC.1.9/Int.

Section 1.10 - Payments And Returns - Fuel Imported By Ship

MFTR - SEC.1.10/Int.

Section 1.11 - Payments And Returns - Fuel Used For New Purpose

MFTR - SEC.1.11/Int.

Section 1.12 - Payments And Returns - Fuel Used For Unauthorized Purpose

MFTR - SEC.1.12/Int.

Section 1.13 - Payments And Returns - Fuel Used Within British Columbia

MFTR - SEC.1.13/Int.

Section 1.14 - Payments And Returns - Natural Gas Used In Stationary Internal Combustion Engine

MFTR - SEC.1.14/Int.

Section 1.15 - Payments And Returns - Payment Of Refund Of Security

MFTR - SEC.1.15/Int.

Section 2 – Collectors

MFTR - SEC.2/Int.

Section 2.01 – Returns – Tax On Use

MFTR - SEC.2.01/Int.

Section 2.02 – Returns – Tax On Transfer Of Fuel

MFTR - SEC.2.02/Int.

Section 2.021 – Returns – Tax On Imported Fuel

MFTR - SEC.2.021/Int.

Section 2.022 - Payment Of Tax - Use Of Natural Gas In Stationary Internal Combustion Engine

MFTR - SEC.2.03/Int.

Section 2.03 – Section 20.11 (5) And (6) Of The Act

MFTR - SEC.2.03/Int.

Section 2.04 – Deputy Collectors And Retail Dealers

MFTR - SEC.2.04/Int.