British Columbia-> Budget 2008
British Columbia 2008 Budget - February 19, 2008
Further tax changes were announced in the October 22, 2008 Economic Plan.
See the BC Government Budget 2008 website, and Bill 2 - 2008, Budget Measures Implementation Act, 2008.
The BC 2008 budget introduced a "revenue-neutral carbon tax" which will apply to all fossil fuels beginning on July 1, 2008, subject to approval in the legislature. Detailed information on the carbon tax, including rates by fuel type, can be found on the Ministry of Small Business and Revenue Carbon Tax web page.
To help offset the carbon tax, a one-time payment of $100 will be made to each BC resident who was aged 18 or over on December 31, 2007. Parents will receive $100 for each child who was under 18 years of age at the end of 2007. Most BC residents will receive their one-time payment in June 2008. To receive the payment, individuals must file an income tax return or notify the province of their eligibility no later than August 31, 2010.
The filing of a tax return is all that is necessary to receive the climate action dividend payment, for the majority of BC residents and their dependent children. Payment will automatically be made for dependents under the age of 18 as of December 31, 2007, as long as you have filed a 2006 or 2007 tax return, and your dependents are registered for the Canada Child Tax Benefit (CCTB). For children who are not registered for the CCTB, an application form can be filled out.
Low Income Climate Action Tax Credit
Low-income individuals and families will start receiving a climate action tax credit, which will be paid together with the federal GST credit, effective July 1, 2008. The first payment will actually be made in October 2008, but will include the amount for July 2008.
The maximum annual tax credit is $100 per adult plus $30 per child, with single parent families receiving the adult amount for the first child. The maximum annual credit is reduced by 2% of net family income in excess of $30,000 for single individuals and in excess of $35,000 for families.
Personal income tax rates
The two lowest provincial personal income tax rates are being reduced for 2008, in addition to the reductions announced in the 2007 budget. The following table shows the proposed rate changes.
The marginal tax rate tables have been revised to include the above tax rate reductions for 2008.
Dividend Tax Credit (DTC) Rates
Both the regular and the enhanced dividend tax credit rates will be reduced effective January 1, 2009, to reflect the reduction in both the general and the small business corporate tax rates.
On the BC Dividend Tax Credit page we have added a table showing the revised combined federal/BC marginal tax rates for eligible dividends when the BC dividend tax credit rate reduction and personal tax rate reductions are combined with the federal reduction of the dividend gross-up, and the changes in the federal dividend tax credit rate.
Federal Tax ChangesFederal budget 2008 income tax measures affecting taxable income and certain tax credits that automatically affect provincial taxes in all provinces and territories except Québec:
Corporate Income Tax Rates
Both the small business and the general corporate income tax rates will be reduced effective July 1, 2008. The rate will be pro-rated for tax years that straddle July 1st.
Home Owner Grant
Effective for the 2008 tax year:
For more details see the Small Business and Revenue Ministry web page on Budget 2008 Property Taxes.
Property Transfer Tax for First Time Home Buyers
For details, see the Small Business and Revenue Ministry information on the First Time Home Buyers Program.
Provincial Sales Taxes (PST)
The budget announced many new exemptions and reductions of PST. See the BC PST exemptions page for more information.
All of the tax changes are subject to legislative approval.
Revised: September 26, 2018
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