British Columbia -> BC Budgets -> Budget 2017
Bill 8, the Budget Measures Implementation Act, 2017 was tabled on February 21, 2017. It passed only first reading before the BC election, which resulted in a minority government. The minority government was defeated in a confidence vote, so Bill 8 will not be passed. A 2017 Budget Update was provided on September 11th.
See the NDP platform (pdf) regarding which changes will be supported by the new government.
Effective January 1, 2018, the premium rates for those with adjusted family net income of $120,000 and less will be reduced by 50%, and the threshold for elimination of premiums is increased from $24,000 to $26,000. The NDP platform indicates that this change will be implemented.
This credit was announced previously, and is included in the budget. See above link for details.
This new non-refundable tax credit is available for the 2017 taxation year, and will have the same eligibility criteria as the federal credit. If someone is available for either the federal Volunteer Firefighter Tax Credit or the federal Search & Rescue Volunteer Tax Credit. The tax credit will be $3,000 x the lowest tax rate of 5.05%, for a credit of $151.50. See the above link for the information on the federal tax credit.
The budget proposes to reduce the BC small business corporate income tax rate from 2.5% to 2.0% effective April 1, 2017. The NDP platform supports this reduction, and indicates it will increase the general corporate tax rate from 11% to 12%, but the timing of these changes is unknown.
As a result of the reduction of the small business corporate income tax rate, the BC dividend tax credit rate for non-eligible dividends will be reduced from 2.47% of the taxable dividend to 2.18%, effective for the 2017 taxation year. The BC marginal tax rate table for 2017 has been revised to reflect this change.
The education tax credit is eliminated for the 2018 and subsequent taxation years. The federal education and textbook tax credits were eliminated effective for the 2017 and subsequent taxation years.
Sales & Tobacco Taxes
There are more tax changes in addition what we've detailed above, including changes to:
For more information see the Budget Tax Changes document.
See Budget 2017 on the Ministry of Finance website for complete budget details.
Revised: December 29, 2020
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca