2018 British Columbia Budget - Provincial Sales Tax Measures

Insights
| 2/22/2018

Exemption Expanded to all types of Avalanche Airbag Backpacks

Effective April 1, 2018, the exemption for avalanche airbag backpacks is expanded to include all avalanche airbag backpacks.

Online Accommodation Platforms Enabled to Register as Collectors

Effective on a date to be specified by regulation, online accommodation platforms are enabled to register as collectors, and to collect and remit PST and the municipal and regional district tax on accommodation.

Use of Municipal and Regional District Revenues for Affordable Housing Initiatives Allowed

Effective on a date to be specified by regulation, municipal and regional district tax revenue collected by municipalities, regional districts and eligible entities, such as tourism-focused non-profits, can be used to fund affordable housing initiatives. Currently, funds can only be used for tourism marketing, programs and projects.

Software Provided in Optional As-Needed Maintenance Agreements Clarified as Taxable

Retroactive to April 1, 2013, the legislation is amended to clarify that software provided in optional as-needed maintenance agreements is taxable.

Luxury Surtax Rates on Passenger Vehicles Over $125,000 Increased

Effective April 1, 2018, passenger vehicles valued at $125,000 or more are subject to higher PST rates as follows:

  • Valued at $125,000 to $149,999.99 – rate increased from 10% (12% for private sales or gifts) to 15%
  • Valued at $150,000 and above – rate increased from 10% (12% for private sales or gifts) to 20%

The rate applies to both new and used passenger vehicles.