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BC 2013 Budget

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British Columbia-> Budget 2013

British Columbia 2013 Budget - February 19, 2013

 

Medical Service Plan (MSP) Premiums

Maximum monthly premium rates will increase by 4.1% for 2014.  Premium assistance will also be enhanced to ensure those receiving assistance will not be affected by the increase.  We have published a table of the 2014 MSP rates.

Personal Tax - New Top Personal Income Tax Bracket

For 2014 and 2015 only, a new top personal income tax bracket will be introduced.  Taxable income exceeding $150,000 will be subject to a provincial personal income tax rate of 16.8%.  The top provincial personal income tax rate for 2013 is 14.7%.

Tobacco Tax

With the re-implementation of the PST, tobacco tax rates are being increased on April 1, 2013, as per the 2012 Budget.  Budget 2013 provides for further tax rate increases effective October 1, 2013.

Tax Previous
Rate
Apr 1, 2013
Rate
Oct 1, 2013
Rate
per carton of 200 cigarettes $37.00 $42.60 $44.60
per gram of fine-cut tobacco $0.185 $0.213 $0.223
cigars - tax as % of sale price       77% 90.5% 90.5%
maximum tax per cigar $6 $7 $7

BC Home Owner Grant

The threshold for the phase-out of the home owner grant is increased from $1,285,000 to $1,295,000 for the 2013 tax year (as previously announced).  For properties valued above $1,295,000, the grant is reduced by $5 for every $1,000 of assessed value (i.e., 0.5%) in excess of the threshold.

The home owner grant is only allowed for the principal residence.  Effective January 2011, the Home Owner Grant Program is amended to provide relief to homeowners who were disentitled from the grant because they incorrectly applied for a grant on a second residential property rather than on their principal residence.

Property Tax Deferment Program for Families with Children

This program allows eligible homeowners who financially support a child under age 18 to defer their property taxes.

Effective on the later of March 19, 2013 and Royal Assent, the program will be expanded to allow an eligible homeowner who financially supports a child aged 18 or over to defer taxes if the child is enrolled in an educational institution or is disabled.

Simple interest is charged on deferred taxes at the prime rate.

Currently, repayment of deferred taxes is required if a homeowner disposes of any part of the property, regardless of size.  Effective on Royal Assent, the Act is amended to allow the deferment to continue when a portion of the property is disposed of, if the homeowner:

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continues to own the portion of the property on which the principal residence is located;

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continues to meet the minimum 15% equity requirements of the program in respect of the portion of the property on which the principal residence is located; and

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retains no interest in the disposed property

Corporate Tax Rate

The general corporate income tax rate will increase to 11% from 10% effective April 1, 2013.

Carbon Tax

The carbon tax rates will not be increased.  They will be maintained at $30 per tonne of equivalent carbon dioxide.  The carbon tax base will not be expanded or broadened to include industrial process or other non-combustion emissions.

The government intends to introduce legislation this fall to provide a carbon tax exemption for farmers for the same coloured motor fuels, and uses, they are currently able to purchase exempt from motor fuel tax.

BC Training and Education Savings Grant

For children born in 2007 or later, this new grant will provide a one-time $1,200 grant towards a BC resident child's Registered Education Savings Plan (RESP) after the child turn s six years old.

No matching or additional contributions are required in order to receive the grant.  All a family needs to do is open an RESP account and apply for the grant before the child turns seven years old.

Provincial sales taxes (PST)

The return to the provincial sales tax system, as previously announced, will happen on April 1, 2013.

All of the tax changes in the 2013 Budget are subject to legislative approval.

The above does not include all provisions of the 2013 Budget.  For further information see the following on the BC Government website:

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BC 2013 Budget

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Budget Highlights (pdf)

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Budget Tax Changes

 

Revised: February 24, 2014