Tax Interpretation Manual: Motor Fuel Tax Act - Sections 1 to 14

Section 1 – Definitions

MFT - SEC.1/Alcohol Based Fuel/Int.

Alcohol Based Fuel

REPEALED

Interpretation (Revised: 2011/03, 2015/04)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 repealed the definition of "alcohol based fuel".

Before January 1, 2010, an alcohol based fuel, which was defined as a fuel that was at least 85% ethanol or methanol or a combination of them, was exempt from motor fuel tax.

The exemption for ethanol ended as a consequential amendment to implementation of the 5 percent renewable fuel standard under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, S.B.C. 2008, c. 16 ("GSR (RLCFR)"), which came into force January 1, 2010. The exemption was ended to protect revenue and support the province's goal to encourage the sale of environmentally friendly fuels by mandating a minimum sales percentage of renewable gasoline in the province.

MFT - SEC.1/Alternative Motor Fuel/Int.

Alternative Motor Fuel

References:

Act: Section 1 “gasoline”, “motive fuel”; Section 10.1; Section 71

MFTR: Part 3.1; Section 51.1; Section 51.2

Bulletin MFT-CT 005

Interpretation (Issued: 2000/07; Revised 2009/04, 2015/04)

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 added a definition of "alternative motor fuel" to facilitate development of a new policy to encourage development and use of environmentally friendly alternative fuels (see MFTA/Sec. 10.1/Int.). The definition authorizes prescribing by regulation those fuels which will qualify for preferential tax treatment as alternative fuels (See MFTR/Sec. 51.1/Int.).

MFT - SEC.1/Analyst/Int.

Analyst

References:

Act: Section 66

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of “analyst”. An analyst is a person designated by the director as an analyst under subsection 66(1) [analyst and certificate of analysis].

MFT - SEC.1/Assessment/Int.

Assessment

References:

Act: Section 1 “assessment”, “tax”; Section 42; Section 43; Section 44; Section 46; Section 46.1; Section 48; Section 48.1; Section 50; Section 52; Section 67; Section 71

Interpretation (Issued: 2015/04)

Effective June 2, 1992, Bill 31, Finance and Corporate Relations Statutes Amendment Act, 1992 added a definition for “assessment”. The definition of assessment provides that an assessment includes a reassessment. This is the standard definition of assessment used in the consumption tax statutes. The definition provides the ministry with a clear legislative basis for issuing an adjusted assessment when new information is received that shows that the actual tax liability is greater than or less than the amount originally assessed.

MFT - SEC.1/Aviation Fuel/Int.

Aviation Fuel

References:

Act: Section 1 “fuel”; Section 8

Bulletin MFT-CT 005

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

Effective April 1, 1992, the definition of “aviation fuel” was amended for the following reasons:

• to distinguish aviation fuel from jet fuel, which was taxed at a higher rate under section 8 of the Act prior to August 1, 2001.
• to clarify that only fuel specifically produced for use in a non-turbine powered aircraft, and actually used in such an aircraft, qualifies for the aviation fuel rate. This means that regular unleaded gasoline (mogas) used in light aircraft does not qualify as aviation fuel because it is not specifically produced for use in aircraft.

Aviation fuel is fuel produced specifically for use in an aircraft that is not propelled by a turbine, and is used as fuel for the engine that propels the aircraft.

MFT - SEC.1/Biodiesel Fuel/Int.

Biodiesel Fuel

References:

Act: Section 1 “renewable diesel fuel”

MFTR: Section 1

Bulletin MFT-CT 005

Interpretation (Issued: 2011/03; Revised: 2014/12, 2015/04)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 added a definition of “biodiesel fuel” to the Act. Biodiesel fuel means a fuel that is made up of mono-alkyl esters of long chain fatty acids derived from plant or animal matter.

Effective January 1, 2010, the exemption from motor fuel tax for biodiesel fuel is ended. The exemption was ended as a consequential amendment to the implementation of the 5 percent renewable fuel standard under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, S.B.C. 2008, c.16 (“GSR (RLCRF)”), which came into force January 1, 2010.

Before January 1, 2010, biodiesel fuel was defined in section 51.11 of the Regulations and was exempt from tax as a category 3 alternative motor fuel. With the addition of the definition of “biodiesel fuel” to the Act, biodiesel became subject to the tax at the same rate as diesel.

MFT - SEC.1/Board Member/Int.

Board Member

References:

Act: Section 20.2; Section 45.1; Section 45.2; Section 46.1

Interpretation (Issued: 2015/04)

Effective May 13, 2004, Bill 34, Provincial Revenue Statutes Amendment Act, 2004 added a definition of “board member” to the Act.

This defined term is used to support the provisions for board member's liability under section 45.1 [board member’s liability], section 45.2 [deemed board member] and section 46.1 [assessment against board member].

MFT - SEC.1/Buy/Int.

Buy

References:

Act: Section 1 “buy”, “fuel”; Section 1.1; Section 16.4; Section 16.6; Section 21; Section 33; Section 34; Section 39; Section 40; Section 40.1; Section 49.1

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added the definition of “buy” as a consequential amendment to the Act. The definition clarifies that buying fuel is not limited to purchases involving monetary consideration but includes obtaining fuel by barter or exchange.

MFT - SEC.1/Calendar Quarter/Int.

Calendar Quarter

References:

Act: Section 4; Section 10; Section 10.1

Interpretation (Revised: 2015/04)

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act (No. 2), 1995 added a definition of calendar quarter for the purposes of the International Fuel Tax Agreement (IFTA) program. This definition specifies the quarterly remittance periods for interprovincial and international carriers registered under IFTA. This amendment was brought into force by B.C. Reg. 550/95 on January 1, 1996, the date BC became a member of IFTA.

MFT - SEC.1/Carrier/Int.

Carrier

References:

Act: Section 1 Section 16; Section 18; Section 19; Section 71

MFTR: Section 1; Part 3; Section 16; Section 17; Section 19; Section 22; Section 24; Section 26; Section 27; Section 45

Bulletin MFT-CT 008

Interpretation (Revised: 2015/04)

Effective January 1, 1996, Bill 24, Miscellaneous Statues Amendment Act, (No.2), 1995 added this definition for the purposes of the International Fuel Tax Agreement (IFTA) program. This amendment was brought into force by B.C. Reg. 550/95 on January 1, 1996, the date BC became a member of IFTA.

A carrier is a person who owns or operates one or more motor vehicles interjurisdictionally for the commercial transportation of goods and passengers (for example, trucking companies and passenger bus operators). This definition is required to identify persons subject to the licensing and permit provisions of IFTA.

MFT - SEC.1/Carrier Decal/Int.

Carrier Decal

References:

Act: Section 1 “International Fuel Tax Agreement”; Section 16; Section 19; Section 71

MFTR: Section 1 “IFTA decal”

Bulletin MFT-CT 008

Interpretation (Revised: 2015/04)

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act, (No. 2), 1995 added this definition for the purposes of the International Fuel Tax Agreement (IFTA) program. This amendment was brought into force by B.C. Reg. 550/95 on January 1, 1996, the date BC became a member of IFTA.

A carrier decal is a decal issued to BC-based carriers by the director under subsection 19(6) [issue of licences and decals to carriers], or a decal issued by another jurisdiction under the provisions of IFTA. Carriers are required to place decals on the door panels of their vehicles as evidence that they are properly licensed for travel within British Columbia.

MFT - SEC.1/Carrier Licence/Int.

Carrier Licence

References:

Act: Section 1 “International Fuel Tax Agreement”, “licensed carrier”; Section 16; Section 19; Section 71

MFTR: Section 1 “IFTA licence”

Bulletin MFT-CT 008

Interpretation (Revised: 2015/04)

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act, (No. 2), 1995 added this definition for the purposes of the International Fuel Tax Agreement (IFTA) program. This amendment was brought into force by B.C. Reg. 550/95 on January 1, 1996, the date BC became a member of IFTA.

A carrier licence is a licence issued to BC-based carriers by the director under subsection 19(1) [issue of licences and decals to carriers], or a licence issued by another jurisdiction under the provisions of IFTA.

MFT - SEC.1/Collector/Int.

Collector

References:

Act: Section 1 “collector”, “deputy collector”, “refiner collector”, “security”, “vendor”; Section 12; Section 20; Section 20.11; Section 21; Section 28; Section 29; Section 30; Section 33; Section 34; Section 34.01; Section 35; Section 35.1; Section 38; Section 39; Section 40; Section 40.1; Section 45; Section 50; Section 53; Section 67; Section 71

Bulletin MFT-CT 001

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 amended the definition of collector as a consequential amendment to the Act. The definition clarifies who is a collector under the Act. A collector is a vendor appointed as a collector under section 28 [appointment of vendors as collectors]. For more information on collector appointments, see MFTA/SEC.28/Int.

For an overview of the security scheme, including the role of the collector, see MFTA/Sec. 34/Int. For an explanation of collectors’ obligations to remit security, see MFTA/Sec. 38/Int.

MFT - SEC.1/Coloured Fuel/Int.

Coloured Fuel

References:

Act: Section 1 “fuel”, “methanol based fuel”, “propane”; Section 14; Section 15

Bulletin MFT-CT 003

Interpretation (Revised: 2011/03, 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed the definition of "coloured fuel" and replaced it with a new definition. The changes reflect the addition of propane to the Act as consequence of the reintroduction of the PST.

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 repealed subsection (c) of the definition of coloured fuel:

(c) alcohol based fuel that is used for a purpose for which coloured fuel is authorized to be used under section 15;

And replaced it with a new subsection (c):

(c) the following fuels if used for a purpose for which coloured fuel is authorized to be used under section 15:

(i) methanol based fuel, or

(ii) fuel of which at least 85% is ethanol;

Because alcohol based fuels cannot be coloured, the purpose of subsection (c) is to allow for the benefits of the coloured fuel provisions for such fuels.

Effective April 1, 1997, the definition of coloured fuel was amended to remove the reference to liquefied petroleum gas (propane). This amendment was consequential to the expiry of the exemption for propane purchased to propel a motor vehicle on April 1, 1997. Effective June 1, 1997, all uses of propane were subject to tax under the Social Service Tax Act.

Effective April 1, 1992, the definition of coloured fuel was amended to add reference to "alcohol based fuel" consequential to alcohol based fuel being made exempt from tax when purchased to propel a motor vehicle.

Including alcohol based fuel in the definition of coloured fuel ensured that it was subject to the coloured fuel tax rate when used for any of the purposes for which coloured fuel was authorized under the Act. However, because alcohol based fuels were exempt from tax when used in motor vehicles, the coloured tax rate only applied where such fuel was used in stationary or portable engines.

Effective April 1, 1987, the definition of coloured fuel was amended to remove the reference to natural gas.

Coloured fuel means:

(a) Fuel, other than propane, coloured in accordance with section 14 and the regulations, and

(b) The following fuels if they are used for a purpose for which coloured fuel is authorized to be used under section 15:

(i) methanol based fuel, or

(ii) fuel of which at least 85% is ethanol;

MFT - SEC.1/Commercial Motor Vehicle/Int.

Commercial Motor Vehicle

References:

Act: Section 15

Bulletin MFT-CT 003

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of commercial motor vehicle. The definition is for the purposes of paragraph 15(1)(h) [ prohibition against authorized purchase or use of coloured fuel]. Commercial motor vehicle means vehicle as defined in the Commercial Transport Act.

MFT - SEC.1/Deputy Collector/Int.

Deputy Collector

References:

Act: Section 1 “collector”, “deputy collector”, “person”, “security”, “wholesale dealer”; Section 20.11; Section 21; Section 33; Section 34; Section 34.01; Section 35; Section 35.1; Section 39; Section 40; Section 40.1; Section 50; Section 71

Bulletin MFT-CT 001

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added the definition of deputy collector as a consequential amendment to the Act. The definition clarifies who is a deputy collector. To be deemed to have been appointed as a deputy collector under section 33 [deputy collectors], a person must have been a wholesale dealer and have bought fuel from a collector or deputy collector (see MFTA/Sec. 33/Int.).

For an overview of the security scheme, including the role of the deputy collector, see MFTA/Sec. 34/Int. For an explanation of deputy collectors’ obligations to remit security, see MFTA/Sec. 39/Int.

MFT - SEC.1/Diesel Fuel/Int.

Diesel Fuel

References:

Act: Section 1 “renewable diesel fuel”, “marine diesel fuel”, “motive fuel”

MFTR: Section 51.1

Bulletin MFT-CT 005

Interpretation (Issued: 2011/03; Revised 2015/04)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 added the definition of “diesel fuel” to the Act. Diesel fuel is defined inclusively to include both renewable diesel fuel and ethanol when blended with diesel fuel or renewable diesel fuel.

Ethanol and renewable diesel fuel are no longer exempt from tax under the Act. Tax applies to ethanol and renewable diesel fuel at the same rate as the fuel with which it is blended. Tax will apply to 100 percent ethanol at the same rate as clear gasoline and to 100 percent renewable diesel fuel at the same rate a motive fuel (clear diesel). Renewable diesel fuel includes both biodiesel and hydrogenated derived renewable diesel fuel.

This amendment is the result of the implementation of the 5 percent renewable fuel standard under the Greenhouse Gas Reduction (Renewable and Low carbon Fuel Requirements) Act, S.B.C. 2008, c. 16 (“GSR (RLCFR)”), which came into force January 1, 2010.

The definition of diesel fuel includes renewable fuels that were previously exempt from tax as part of the province’s policy of encouraging the use of renewable fuels. Through the GSR (RLCFR), the province maintained its goal to encourage the sale of environmentally friendly fuels, but changed the incentive mechanism from a tax exemption to a mandatory sales percentage of renewable fuels sold in the province.

MFT - SEC.1/Director/Int.

Director

References:

Act: Section 60.1

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of “director”. Director is defined to mean a person appointed by the Minister of Finance to administer the Act. This is the same definition for director used in the Carbon Tax Act. The director is appointed under section 60.1.

Under section 61, the director may, in writing, delegate any of her powers or duties under the Act.

MFT - SEC.1/Family Farm/Int.-

Family Farm

REPEALED

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

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 repealed the definition of "family farm" as a result of the Family Farm Truck Emblem program being eliminated.

Prior to February 20, 2008, the definition of family farm established the criteria for qualification as a family farm. This was necessary because persons operating family farms enjoy benefits under the legislation, such as authorization to use lower taxed coloured fuels in the operation of vehicles on highways.

In 1985, family farm was defined as a farm operated by an individual or by a corporation whose sole activity was the operation of the land as a farm if at least 75 percent of the share capital was beneficially owned by an individual actively engaged in operating the lands as a farm. By administration, a "family farm" could include a corporation whose stakeholders were family members (father, husband, mother, wife, son, daughter, brother, sister) who collectively owned at least 75 percent of the shares.

As part of the Budget 2004 process, it was determined that this definition was restrictive and did not reflect how the structure of family farms has changed over time. For instance, because of the requirement for the shares of a single corporation to be owned by the family members, the definition did not include farms that were owned by multi-level corporations or related corporations where at least 75 percent of the end shareholders were direct family members actively engaged in farming where each of the corporation's sole activity was farming. This type of structure had been established for estate planning purposes.

Effective February 18, 2004, Bill 6, Taxation Statutes Amendment Act, 2004 amended the definition of "family farm" to include farms operated by individuals that were family members as defined in MFTR section 1 and included corporations if:

a) The sole activity of the corporation was the operation of the land as a farm;

b) 75 percent of the corporation was controlled by family members; and

c) each family member was actively engaged in operating the land as a farm.

R.1 Non-Profit Societies as Family Farms (Issued: 2005/08, Revised: 2009/04; 2015/04)

A non-profit society may have been considered analogous to a corporation, and as long as the conditions specified in paragraph (b)(iii) of the definition of "family farm" were satisfied, could have qualified for a family farm emblem on the same basis as a corporation. To qualify, the society would have to have as its sole activity the operation of land as a farm, members representing at least 75 percent of the interest in the society (where membership interest included the right to vote for directors of the society) must have been individuals who were family members as prescribed in MFTR subsection 1(3), and each of those individuals representing the 75 percent interest must have been actively engaged in operating the land as a farm.

MFT - SEC.1/Family Farm Truck/Int.

Family Farm Truck

REPEALED

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

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008, repealed the definition of "family farm truck" with the elimination of the Family Farm Truck Emblem program.

Prior to February 20, 2008, family farm truck meant a farm vehicle as defined in the Commercial Transport Regulations that was used in the operation of a family farm.

MFT - SEC.1/Family Farm Truck Emblem/Int.

Family Farm Truck Emblem

REPEALED

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

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 repealed the definition of family farm truck emblem with the elimination of the Family Farm Truck Emblem program. The family farm truck emblem meant a certificate issued by the director under the regulations (See MFTR/Sec. 1(3)/Int.)

Effective February 20, 2008, B.C. Reg. 97/2008 repealed MFTR subsections 1(3) and (4) and MFTR sections 14 and 15 as these provisions related to the family farm truck emblem program.

MFT - SEC.1/Farm/Int.

Farm

References:

Act: Section 1 “farm truck”, “farmer”; Section 15

Bulletin MFT-CT 003

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

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 repealed the definition of "family farm" and added the definition of "farm" as a result of the Family Farm Truck Emblem program being eliminated. "Farm" means land that is classified as a farm under the Assessment Act.

MFT - SEC.1/Farm Truck/Int.

Farm Truck

References:

Act: Section 1 “farm”, “farmer”; Section 15

Bulletin MFT-CT 003

Interpretation (Issued: 2015/04)

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 repealed the definition of "family farm truck" and added the definition of "farm truck" as a result of the Family Farm Truck Emblem program being eliminated. Farm truck means a farm vehicle, as defined in the Commercial Transport Regulations, that is licensed as a farm vehicle under the Commercial Transport Act.

MFT - SEC.1/Farmer/Int.

Farmer

References:

Act: Section 1 “farm”, “farm truck”; Section 15

Bulletin MFT-CT 003

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

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 amended the definition of farmer to mean a person who operates a farm. Prior to February 20, 2008, the definition of farmer was a person who operates a farm on land classified as a farm under the Assessment Act.

MFT - SEC.1/Fuel/Int.

Fuel

References:

Bulletin MFT-CT 001; Bulletin MFT-CT 005

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended the definition of “fuel” by adding a new subsection (c). The new subsection adds “propane for any use.” The changes reflect the addition of propane to the Act as a consequence of the reintroduction of the PST.

The definition of “fuel” in the Act is narrower than the definition of fuel in the Carbon Tax Act. While motor fuel tax is a tax on substances for use in an internal combustion engine, the carbon tax is broader, applying to all fossil fuels.

MFT - SEC.1/Gasoline/Int.

Gasoline

References:

Act: Section 1 “alternative motor fuel”, “aviation fuel”, “coloured fuel”, “jet fuel”, “methanol based fuel”, “locomotive fuel”, “marine bunker fuel”, “natural gas”, “marine diesel fuel”, “motive fuel”, “propane”; Section 4; Section 12.1; Section 13; Section 16

MFTR: Section 6; Section 24.1; Section 51.1

Bulletin MFT-CT 005

Interpretation (Revised: 2011/03, 2014/08, 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended the definition of “gasoline” by removing the words “liquefied petroleum gas” and replacing with “propane.” The two are synonyms for the same substance.

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 amended the definition of “gasoline” by striking out “alcohol based fuel” and substituting “methanol based fuel.” This amendment is a result of implementation of the 5 percent renewable fuel standard under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, S.B.C. 2008, c 16 (“GSR (RLCFR)”), which came into force January 1, 2010.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000, amended the definition of gasoline, consequential to establishing separate tax treatment for alternative motor fuels (see MFT Sec. 10/Int). The amendment excludes alternative motor fuels from the definition of gasoline so that it is not captured under the taxing provision for gasoline.

Effective April 1, 1993 (Bill 4, 1993), “leaded gasoline” was removed from the definition of gasoline, consequential to the federal government’s 1990 ban on the use of leaded gasoline in automotive engines (Canadian Environment Protection Act, Gasoline Regulation SOR-90-247).

Effective April 1, 1992, the definition of gasoline was amended to exclude:

• alcohol-based fuel, consequential to alcohol-based fuels being made exempt when purchased to propel a motor vehicle;
• jet fuel, consequential to it being taxed at a different rate than aviation fuel;
• liquefied petroleum gas, to clarify that it was exempt; and
• gasohol, consequential to the exemption for gasohol being removed (Bill 8, Motor Fuel Tax Amendment Act, 1992). The reduced rate for gasohol was repealed because a plant had not been established, and an exemption for 85% alchohol based fuel was introduced (see MFT/sec.3.1/Int.).

Effective April 1, 1987, the definition of “gasoline” was amended to exclude: gasohol, leaded gasoline and natural gas, consequential to leaded and unleaded gasoline being taxed at different rates and the separation of natural gas from the coloured gasoline tax rate.

The Motor Fuel Tax Amendment Act, 1987 established a reduced tax rate for gasohol of 2¢ lower than the tax rate for gasoline, to be in effect for a 5 year period. Gasohol is a blend of 90% gasoline and 10% ethanol.

The provision was to be enacted if a facility was established in the province to distil ethanol from surplus grain or other vegetable matter.

Gasoline means fuel that is not methanol based fuel, alternative motor fuel, aviation fuel, coloured fuel, jet fuel, propane, locomotive fuel, marine bunker fuel, natural gas, marine diesel fuel or motive fuel.

The taxing provision for clear gasoline is provided under section 4 [tax on gasoline] of the Act.

MFT - SEC.1/Heating Oil/Int.

Heating Oil

References:

Act: Part 3.1

Bulletin MFT-CT 003

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed the definition of "heating oil" and replaced it with a new definition. The new definition was added as a consequence of the reintroduction of the PST for the purposes of determining when a substance is taxed under the motor fuel tax as motive fuel and when it is taxed under the PST as heating oil.

Heating oil means a light fuel oil marketed or sold for use in a furnace, boiler or open flame burner.

MFT - SEC.1/Highway/Int.-R.1

Highway

References:

Act: Section 1 “highway project area”; Section 15

Bulletin MFT-CT 003

Interpretation (Revised: 2005/01, 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of highway. The definition is provided for the purpose of subsection 15(1) [prohibition against unauthorized purchase or use of coloured fuel] of Act in relation to the use and purchase of coloured fuel.

R.1 Resource Roads (Issued: 2015/04)

In subsection 15(1), the words “on other than a highway” are used to describe the location where the use of coloured fuel is permitted for various types of motor vehicles. The definition of “highway” in the Act is dependent on the Motor Vehicle Act, the Transportation Act, the Industrial Roads Act, Petroleum and Natural Gas Act and the Forest Act.

Under the Motor Vehicle Act, the definition of highway includes:

(a) every highway within the meaning of the Transportation Act,

(b) every road, street, lane or right of way designed or intended for or used by the general public for the passage of vehicles, and

(c) every private place or passageway to which the public, for the purpose of the parking or servicing of vehicles, has access or is invited,

but does not include an industrial road;

“Industrial roads”, excluded from the definition of “highway”, include industrial roads as defined in the Industrial Roads Act and include forest service roads as defined in the Forest Act and land designated as a development road under subsection 139(1) of the Petroleum and Natural Gas Act. Consequently, these resource roads are considered “off-highway” for the purposes of the Act.

MFT - SEC.1/Highway Project Area/Int.

Highway Project Area

References:

Act: Section 1 “highway”; Section 15

Bulletin MFT-CT 003

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of “highway project area”. A definition of highway project area is provided for the purpose of paragraph 15(1)(g) [prohibition against unauthorized purchase or use of coloured fuel] of the Act.

A highway project area means:

• any area designated as a work area in the call for tender or in a contract awarded by the provincial government or by any municipality for the construction, reconstruction or repair of a highway (see MFTA/Sec.1 “highway”/Int.);
• any area actually under construction, reconstruction or repair by the provincial government or by any municipality; but does not include grading, snow ploughing or other maintenance work done outside a highway project area.

MFT - SEC.1/Hydrogenated-Derived Renewable Diesel Fuel/Int.

Hydrogenated-Derived Renewable Diesel Fuel

References:

Act: Section 1 “renewable diesel fuel”

Interpretation (Issued: 2011/03; Revised 2015/04)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No.2), 2009 added the definition of “hydrogenated derived renewable diesel fuel” to the Act. Hydrogenated-derived renewable diesel fuel means a fuel that is both made from plant or animal matter using a hydrogenation process and suitable for use in a diesel engine as defined in section 1(1) of Schedule 1 of the Carbon Tax Act.

This amendment is a result of implementation of the 5 percent renewable fuel standard under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, S.B.C. 2008, c.16 (“GSR(RLCFR)”), which came into force January 1, 2010.

Hydrogenated-derived diesel fuel is subject to MFT. Through the definitions of “renewable diesel fuel” and “diesel fuel”, it is defined to be diesel fuel.

Tax applies to renewable diesel fuel at the same rate as the fuel with which it is blended. Tax will apply to 100 percent renewable diesel fuel at the same rate as motive fuel (clear diesel). Renewable diesel fuel includes both biodiesel and hydrogenated-derived renewable diesel fuel.

Previously, the province encouraged the use of biofuels through an exemption from MFT. Through the GSR (RLCFR) the province maintained its goal to encourage the sale of renewable fuels, but moved from an exemption to a mandatory sales percentage of renewable fuels sold in the province.

MFT - SEC.1/IFTA Commercial Vehicle/Int.

IFTA Commercial Vehicle

References:

Act: Section 1 “motive fuel user permit”; Section 2; Section 16; Section 61; Section 71

MFTR: Section 1; 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: 2015/04)

Effective May 31, 2007, Bill 19, Small Business and Revenue Statutes Amendment Act, 2007 added a definition of “IFTA commercial vehicle” as having a meaning prescribed in the regulation. For more information see MFTR/Sec. 1 “IFTA commercial vehicle”/Int.

MFT - SEC.1/Industrial Machine/Int.

Industrial Machine

References:

Act: Section 15

MFTR: Section 15.1

Bulletin MFT-CT 003

Interpretation (Issued: 2015/04)

Effective March 20, 1987, a definition of industrial machines was included in the Act. This permits the following machines to use coloured fuel at job sites and on the highway to and from job sites under paragraphs 15(1)(c) and 15(1)(k) [prohibition against unauthorized purchase or use of coloured fuel]:

• forklifts, front end loaders, lumber carriers, or
• a motor vehicle or class of motor vehicle that, by regulation, is designated as an industrial machine (see MFTR/Sec. 15.1/Int).

MFT - SEC.1/Internal Combustion Engine/Int.

Internal Combustion Engine

References:

Act: Section 1 “fuel”, “locomotive fuel”, “marine bunker fuel”, “marine diesel fuel”, “non-motor fuel oil”; Section 9; Section 9.1; Section 16.7

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of an internal combustion engine. It includes a turbine engine, when that engine generates power through the use of fuel.

MFT - SEC.1/International Fuel Tax Agreement/Int.

International Fuel Tax Agreement

References:

Act: Section 1 “carrier decal”, “carrier licence”; Section 17; Section 18; Section 19; Section 71

MFTR: Section 1; Section 16; Section 17; Section 18 ; Section 19

Bulletin MFT-CT 008

Interpretation (Issued: 2014/12; Revised: 2015/04)

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act, (No. 2), 1995 added this definition for the purposes of the International Fuel Tax Agreement (IFTA) program. This amendment was brought into force by B.C. Reg. 550/95 on January 1, 1996, the date BC became a member of IFTA.

IFTA is defined as an agreement entered into by the minister under authority of section 17 of the Act. IFTA is a multi-jurisdictional agreement establishing a single uniform system for administering and collecting fuel taxes from interjurisdictional commercial carriers of passengers or goods. All Canadian provinces and all 48 of the contiguous United States are members of IFTA. Yukon, Northwest Territories, Nunavut and Alaska are not members of IFTA.

Under IFTA, carriers are only required to register in their base jurisdiction. They receive credentials allowing travel in all other IFTA jurisdictions, and are only required to file one quarterly fuel tax return and payment to their base jurisdiction. The base jurisdictions collect the tax on behalf of other IFTA jurisdictions and forward funds for net fuel taxes to each jurisdiction in which the carrier travelled.

Prior to the introduction of IFTA, carriers were required to file separate tax returns for each jurisdiction in which they travelled. IFTA benefits inter-jurisdictional truckers by reducing the complexity of complying with the various tax requirements of the jurisdictions in which carriers travel. IFTA also benefits the province by reducing the administrative costs of ensuring compliance by out-of-province carriers with British Columbia’s tax requirements.

MFT - SEC.1/Jet Fuel/Int.

Jet Fuel

References:

Act: Section 1 “fuel”; Section 7

Bulletin MFT-CT 003

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

Effective April 1, 1992, jet fuel is defined as fuel produced for and consumed in an aircraft propelled by a turbine. Jet fuel was distinguished from regular aircraft fuel for the purpose of establishing a higher rate of tax on jet fuel prior to August 1, 2001.

Jet fuel means fuel that is:

• produced specifically for use in an aircraft that is propelled by a turbine, and
• used in an aircraft as fuel for the turbine that propels the aircraft.

MFT - SEC.1/Licensed Carrier/Int.

Licensed Carrier

References:

Act: Section 1 “carrier licence”; Section 4; Section 10; Section 10.1; Section 16; Section 18; Section 19; Section 53; Section 71

Interpretation (Revised: 2015/04)

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act, (No. 2), 1995 added a definition of licensed carrier for the purposes of the International Fuel Tax Agreement (IFTA) program. This amendment was brought into force by B.C. Reg. 550/95 on January 1, 1996, the date BC became a member of IFTA.

A licenced carrier means a person who holds an IFTA carrier licence issued by the director or a by another IFTA jurisdiction. This definition was necessary because separate tax payment and remittance provisions are established under the Act for licensed carriers to accommodate the requirements of IFTA.

MFT - SEC.1/Light Fuel Oil/Int.

Light Fuel Oil

References:

Act: Section 1 “heating oil”, “non-motor fuel oil”; Section 10

MFTR: Section 6

Bulletin MFT-CT 005

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Amendments Act, 2013 added a definition for “light fuel oil” which has the same meaning as in section 1(1) of Schedule 1 of the Carbon Tax Act. The definition was added as part of the return to the PST.

MFT - SEC.1/Litre/Int.

Litre

References:

Act: Section 1 “propane”

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended the definition of "litre" by repealing the old paragraph (b) and replacing it with a new version. The current paragraph (b) states that a "litre" with respect to propane sold by weight is 0.5 kg. This change was made as a result of the addition of propane as a taxable fuel to the Act as part of the return to the PST.

MFT - SEC.1/Locomotive Fuel/Int.

Locomotive Fuel

References:

Act: Section 1 “fuel”, ‘propane”; Section 6; Section 43

Interpretation (Issued: 2009/04; Revised: 2011/03, 2014/08, 2015/04, 2024/08)

Effective Nov 2, 2017, Bill 2, Budget Measures Implementation Act, 2017 amended the definition of locomotive fuel to explicitly exclude natural gas. In the absence of this change, tax would have been applicable to natural gas at a rate of 3 cents per litre (as a gas at standard reference conditions) when used as in an internal combustion engine in any rolling stock or other vehicle when run on rails.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended the definition of locomotive fuel to explicitly exclude propane. This change was made as a consequence of the addition of propane to the Motor Fuel Tax Act as part of the return to the PST.

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 amended the definition of locomotive fuel by removing the exclusion of biodiesel fuel. This amendment was a result of implementation of the 5 percent renewable fuel standard under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, S.B.C. 2008, c. 16 ("GSR (RLCFR)"), which came into force January 1, 2010.

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 amended the definition of locomotive fuel to exclude biodiesel fuel. Prior to February 20, 2008, locomotive fuel meant any fuel for use in an internal combustion engine in any rolling stock or other vehicle run on rails.

Locomotive fuel means fuel, other than propane, for use in an internal combustion engine in any rolling stock or other vehicle when run on rails.

MFT - SEC.1/Manufacture/Int.

Manufacture

References:

Act: Section 1 “fuel”, “manufacture”; Section 16.7; Section 38; Section 41

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of manufacture. The definition of manufacture includes, but is not limited to, the production, refining or compounding of fuel. This definition is the same definition used in the Carbon Tax Act.

The definition of “manufacture” in Part 5 of the Provincial Sales Tax Exemption and Refund Regulation does not mirror the definition in the Act as the contexts in which the term is used in the two Acts are different. The term is defined in relation to a specific exemption in the Provincial Sales Tax Exemption and Refund Regulation regarding the purchase of machinery or equipment, and is defined under the Motor Fuel Tax Act for the purpose of classifying production inputs, other than machinery and equipment.

MFT - SEC.1/Marine Bunker Fuel/Int.

Marine Bunker Fuel

References:

Act: Section 1 “marine diesel”, “ship”; Section 11

Interpretation (Issued: 2000/07; Revised: 2015/04)

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 amended the definitions of marine bunker fuel and marine diesel fuel to clarify that any fuel sold as marine diesel is subject to the tax rate imposed on marine diesel. For more information see MFTA/Sec. 11/Int.

Marine bunker fuel means:

(a) bunker oil, or

(b) a combination of fuels including bunker oil

that is used in a ship as fuel for an internal combustion engine, but does not include marine diesel fuel.

MFT - SEC.1/Marine Diesel Fuel/Int.

Marine Diesel Fuel

References:

Act: Section 1 “diesel fuel”, “marine bunker fuel”, “ship”; Section 6

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

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 amended the definition of marine diesel fuel to remove the reference to biodiesel fuel.

Effective February 22, 2006, the definition of marine diesel fuel was amended to clarify that it included 100 percent biodiesel fuel when used in ships.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 amended the definitions of marine bunker fuel and marine diesel fuel to clarify that any fuel sold as marine diesel is subject to the tax rate imposed on marine diesel.

Marine diesel is subject to tax at 3 cents/litre. Prior to August 1, 2001, marine bunker fuel was subject to tax on 7 percent of the purchase price, which resulted in a lower tax rate than on marine diesel. Both fuels may be a blend of fuels that include diesel, but differ in terms of viscosity level. Under the previous legislation, marine bunker meant bunker oil, or a blend of fuels including diesel, with a viscosity level of 10 centistokes or more. Marine diesel was diesel fuel, or a blend of fuels including diesel fuel, with a viscosity level of less than 10 centistokes.

Due to changes in industry standards, marine diesel may now have a viscosity level of up to 10.4 centistokes. This created a loophole that allowed marine bunker fuel to be blended and sold as marine diesel, but taxed at the lower marine bunker rate. The result was tax revenue leakage and competitive inequities for fuel suppliers applying the tax in accordance with the intent of the Act. The amendment closed this loophole by establishing that any fuel sold as marine diesel is marine diesel and therefore subject to tax at the marine diesel rate.

The definition of marine diesel was amended effective March 21, 1986, to include diesel fuel of any viscosity level or diesel fuel blended with other fuels having a combined viscosity level of lower than 10 centistokes. This amendment was introduced to close the loophole in the Act discussed under MFTA/Sec. 11/Int.

Prior to March 21, 1985, marine diesel was defined as "diesel fuel for use in a ship as fuel for an internal combustion engine."

Marine diesel fuel means:

(a) diesel fuel, or

(b) a combination of fuels including diesel fuel

that is used in a ship as fuel for an internal combustion engine, and has a viscosity of

(c) lower than 10 centistokes when measured at a temperature of 50°C, or

(d) 10 centistokes or higher when measured at a temperature of 50°C, but is sold as diesel fuel.

MFT - SEC.1/Methanol Based Fuel/Int.

Methanol Based Fuel

References:

Act: Section 1 “coloured fuel”, “gasoline”; Section 3.1

MFTR: Section 51.2

Bulletin MFT-CT 005

Interpretation (Issued: 2011/03; Revised: 2015/04)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 added the definition of “methanol based fuel” to the Act, and is defined to mean:

a fuel that is at least 85 percent methanol.

The definition of “methanol based fuel” is added as a result of the repeal of the definition of “alcohol based fuel.”

MFT - SEC.1/Mineral/Int.

Mineral

References:

Act: Section 15

MFTR: Section 15.2

Interpretation (Issued: 2015/04)

Effective April 1, 1992, the definition of mineral was amended by removing dolomite from the exclusion clause. This brings dolomite within the definition of mineral, allowing dolomite mining industries to use lower-taxed coloured fuel in vehicles prescribed in MFTR subsection 15.2(2) for the purposes of paragraph 15(1)(e) [prohibition against unauthorized purchase or use of coloured fuel] of the Act, provided that the dolomite is not being mined for building or construction stone.

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of mineral. This defined term is used to support the provision for paragraph 15(1)(e).

MFT - SEC.1/Mistake Of Law/Int.

Mistake Of Law

REPEALED

Interpretation (Issued: 2015/04)

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 repealed the definition of "mistake of law" as a consequential amendment to the Act. This concept was removed from all of the consumption tax statutes.

Effective June 5, 1992, Bill 69, Taxation Statutes Amendment Act, 1992 added the definition of "mistake of law" to clarify that a mistake of law includes a mistake of mixed law and fact. This was done in a response to a 1992 Court of Appeal decision concerning Jim Pattison Industries (on a social service tax issue) in which the court introduced a new category of error - a mistake of mixed fact and law. The amendment preserved the original intent of the mistake of law provisions. Parallel amendments were made to the Social Service Tax Act and the Hotel Room Tax Act at the same time.

MFT - SEC.1/Month/Int.

Month

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of "month", which means a calendar month.

This definition ensures that the Interpretation Act definition of month (i.e., a period calculated from a day in one month to a day numerically corresponding to that day in the following month, less one day) is not applicable for the purposes of the Act.

MFT - SEC.1/Motive Fuel/Int.

Motive Fuel

References:

Act: Section 1 “gasoline”, “diesel fuel”, “locomotive fuel”, “alternative motor fuel”, “motive fuel user permit”; Section 5; Section 10; Section 12.1; Section 13; Part 3; Section 16; Section 16.8; Section 24; Section 53; Section 71

MFTR: Section 16; Section 24.1; Division 3; Section 40; Section 40.1; Section 40.3; Section 42; Section 50

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

Effective July 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended the definition of motive fuel by replacing the reference to "fuel that is taxable under section 5" with a reference to coloured fuel. This amendment was considered necessary because of the addition of section 5.1 [tax on coloured fuel if declaration to obtained] under which coloured fuel could also be subject to tax. The amended definition is also consistent with other definitions under the Act, referring to a type of fuel directly and not the taxation provision for a type of fuel.

Effective February 20, 2008, Bill 2, Budget Implementation Measures Act, 2008 amended the definition of motive fuel to remove the reference to biodiesel and added a reference to locomotive fuel, specifying it is excluded from the definition.

Motive fuel means diesel fuel, or a combination of fuels including diesel fuel, for use in propelling a motor vehicle, but does not include alternative motor fuel, locomotive fuel or fuel that is taxable under section 5 [tax on coloured fuel].

Effective February 21, 2007, OIC 085/2007 designated biodiesel as a category 3 alternative motor fuel. As such, the exemption for biodiesel was expanded to include the biodiesel portion of all blends of biodiesel and diesel, as well as pure biodiesel (B100). Because the definition of “motive fuel” specifically excludes alternative motor fuels, neither B100 nor the biodiesel portion of any blend of biodiesel and diesel was subject to tax as “motive fuel” prior to January 1, 2010. Effective January 1, 2010, biodiesel was no longer exempt from tax under Act. See MFTA/Sec. 1 “renewable diesel”/Int. and MFTA Sec. 1 “diesel”/Int.

Effective February 22, 2006, the definition of “motive fuel” was amended to clarify that it included100 percent biodiesel fuel for use in propelling motor vehicles. The biodiesel portion of a blend containing 5 percent to 50 percent biodiesel remained exempt as an alternative motor fuel when used in motor vehicles.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000, amended the definition of motive fuel (diesel) consequential to establishing separate tax treatment for alternative motor fuels. The amendment excluded alternative motor fuels so that it is not captured under the taxing provision for motive fuel. Alternative fuels are subject to tax imposed under section 10.1 [tax on alternative motor fuel] of the Act.

MFT - SEC.1/Motive Fuel User Permit/Int.

Motive Fuel User Permit

References:

Act: Section 1 “IFTA commercial vehicle”, “motive fuel”; Section 16; Section 71

MFTR: Division 3; Section 40; Section 41; Section 43; Section 45

Bulletin MFT-CT 008

Interpretation (Issued: 2015/04)

Effective May 31, 2007, Bill 19, Small Business and Revenue Statues Amendment Act, 2007 amended the definition of “motive fuel user permit” to change the reference from "commercial motor vehicle" to "IFTA commercial vehicle", which is the type of commercial vehicle covered by the International Fuel Tax Agreement.

MFT - SEC.1/Motor Vehicle/Int.

Motor Vehicle

References:

Act: Section 1 “carrier”, “industrial machine”, “motive fuel”, “tractor”; Section 2; Section 15; Section 19; Section 23; Section 24; Section 41; Section 49; Section 71

MFTR: Section 1 “IFTA commercial vehicle”; Section 4; Section 10; Section 15.2; Section 15.12; Section 15.13; Section 50; Section 51.1 “Category 1 alternative motor fuel”, “Category 2 alternative motor fuel”, “Category 3 alternative motor fuel”

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of “motor vehicle”. Motor vehicle means a vehicle that is designed to be self-propelled on land.

MFT - SEC.1/Natural Gas/Int.

Natural Gas

References:

Act: Section 1 “mineral”; Section 1.1 “imported fuel”; Section 3.1; Section 9; Section 9.1; Section 15; Section 28

MFTR: Section 3; Section 51.2

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of “natural gas”. Natural gas includes compressed natural gas.

R.1 Motor Fuel Tax on Compressed Natural Gas and Liquefied Natural Gas for Use in an Internal Combustion Engine (Issued: 2015/04)

Natural gas (including compressed natural gas (CNG) and liquefied natural gas (LNG)) meets the definition of fuel when used to power an internal combustion engine. CNG and LNG meet the definition of a Category 1 alternative motor fuel when used to power motor vehicles, and are exempt from motor fuel tax.

MFT - SEC.1/Non-Motor Fuel Oil/Int.

Non-Motor Fuel Oil

References:

Act: Section 16.2; Section 16.3; Section 16.5; Section 16.6; Section 16.7; Section 16.8

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added a new definition for "non-motor fuel oil." Non-motor fuel oil is light fuel oil marketed or sold for a used other than:

(a) for generating power by means of an internal combustion engine, or

(b) for use in a furnace, boiler or open burner.

The definition was added as a consequence of the reintroduction of the PST and is used in determining if a substance is taxed under the PST or MFT.

MFT - SEC.1/Person/Int.

Person

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of person. The definition of person includes, but is not limited to, the government of Canada.

Note that under Section 125 of the Constitution Act, 1867 (Canada), Canada and each province are not subject to tax imposed by the other level of government on its lands or property. As a result, the constitutional position is that Canada cannot tax the lands or property of a province and vice versa.

This position has been altered by agreement. Within limits, Canada has agreed to pay taxes imposed by British Columbia on taxpayers as if Canada were legally required to do so, and vice versa.

The current agreement between Canada and British Columbia is the Reciprocal Taxation Agreement (Canada – Province of British Columbia) (RTA) made under section 32 of the Federal-Provincial Fiscal Arrangements Act (FPFAA). This agreement became effective July 1, 2010 and ends, if not terminated by either party, December 31, 2015.

Under the RTA, Canada and its agents agree to pay the motor fuel tax. Canada agrees to pay a “provincial tax or fee” in accordance with provincial law, as if that law were applicable to it. By reference to subsection 31(1) of the FPFAA, the definition in section 1 of the RTA of “provincial tax or fee” includes the motor fuel tax.

MFT - SEC.1/Person With Disabilities /Int.

Person with Disabilities

References:

Act: Section 23 "Person with disabilities

Bulletin MFT 002; Bulletin MFT 004

Interpretation (Revised: 2008/08; 2015/04; 2021/11)

Under section 23 of the Act, a fuel tax refund is available to persons with certain disabilities (see MFTA/Sec 23/Int. for a history of the refund). The definition of “person with disabilities” sets out the eligibility requirements for a person to qualify for the fuel tax refund. Prior to March 31, 1997, the Act included a definition of "handicapped person" to specify who was eligible for the refund.

Effective April 20, 2021, Bill 4, Budget Measures Implementation Act, 2021 expanded the definition of person with disabilities to include persons who live on First Nations land that is reserve land and receive (or would receive but for having reached 65 years of age) disability assistance or a supplement from Indigenous Services Canada. This amendment was introduced to ensure that the refund eligibility extends to a person who qualifies for the federal on-reserve program, which uses substantially the same eligibility criteria as those established under BC’s Employment and Assistance for Persons with Disabilities Act, and is intended to be nearly identical to the provincial program.

Paragraph (b) of the definition was amended to clarify that a person who receives 100% disability pension through service as a member of his Majesty’s forces, is eligible for the fuel tax refund, whether or not they served in a war.

Effective August 1, 2012, Bill 10, Nurse Practitioners Statutes Amendment Act, 2011 amended the definition of persons with disabilities to add nurse practitioners as health professionals who may certify persons as suffering from disabilities listed in the definition of “person with disabilities”. This amendment was brought into force effective August 1, 2012 by B.C. Reg. 121/2012.

Effective February 20, 2008, Bill 2, Budget Measures Implementation Act, 2008 expanded the definition of persons with disabilities to include a person certified by a medical practitioner as having a permanent mental disability to the extent that it would be hazardous for the person to use public transportation.

Effective March 31, 1997, Bill 15, Disability Benefits Program Act, 1996 amended the Act to replace all references to "handicapped persons" with "persons with disabilities". This amendment was brought into force effective March 31, 1997 by B.C. Reg. 39/97.

Effective August 1, 1991, the definition of handicapped person was amended to extend eligibility to a person whose permanent sight impairment disqualifies them from holding a driver's licence.

Effective March 21, 1986, the definition of handicapped person was expanded to include persons who have been certified by a medical practitioner as suffering from a permanent impairment of locomotion to the extent that it would be hazardous for the person to use public transportation. This amendment was introduced to ensure that eligibility for the refund extends to a person who, as a result of their handicap, must use their own vehicle for transportation.

R.1 Functional Loss of Limb (Revised: 2001/05; 2015/04)

A person who has suffered the functional loss of an arm is considered to have suffered a “loss of limb”. The guidelines that apply to physical loss of a limb also apply to functional loss of a limb.

R.2 Loss of a Limb (Revised: 2001/05; 2021/10)

Under the Act, individuals who have suffered a loss of limb are eligible for the refund. A limb is an arm or a leg. A loss of limb occurs when an individual suffers the loss of an arm or a leg—because of amputation, congenital absence or functional loss—at or above the wrist or ankle.

The wording of the Act does not extend eligibility to anyone who has suffered an amputation of any kind. The wording restricts eligibility to those individuals who have special transportation needs. A person can have a loss of limb which is not exactly as described above but which in fact creates the need for special transportation.

MFT - SEC.1/Propane/Int.

Propane

References:

Act: Section 1 “coloured fuel”, “fuel”, “gasoline”, “litre”, “locomotive fuel”; Section 10.3; Section 71

MFTR: Part 2.1

Bulletin MFT 014

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added a definition for propane as “includ[ing] liquefied petroleum gas that contains propane”. The new definition was required with the addition of propane to the Motor Fuel Tax Act as part of the return to the PST. Prior to April 1, 2013, propane, including liquefied petroleum gas (LPG), was not subject to motor fuel tax (see MFTA/Section 10.2/Int.).

MFT - SEC.1/Purchase Price/Int.

Purchase Price

References:

Act: Section 1 “fuel”, “person”, “purchase price”, “purchaser”

Interpretation (Issued: 2015/04)

Effective May 20, 1987, Bill 13, Finance and Corporate Relations Statutes Amendment Act, 1987 added a definition of purchase price. Purchase price means the price in money and the actual value of any other consideration accepted by the seller or person from whom fuel passes as the price or on account of the price of the fuel together with the costs of and charges for delivery of the fuel, interest, customs, excise and transportation (i.e., these costs and charges form part of the purchase price). This applies regardless of whether a single price (i.e., which includes costs and charges) is listed on an invoice or the costs and charges are listed separately on the invoice.

MFT - SEC.1/Purchaser/Int.

Purchaser

References:

Act: Section 1 “fuel”, “person”, “purchaser”, “retail dealer”, “security”, “tax”, “wholesale dealer”; Section 1.1; Section 4; Section 5; Section 6; Section 7; Section 8; Section 10; Section 10.1; Section 10.3; Section 12; Section 12.1; Section 13; Section 13.2; Section 20.11; Section 34; Section 35; Section 37; Section 38; Section 39; Section 40; Section 40.1

Bulletin MFT-CT 001

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of purchaser. For a person to be a purchaser, the person must have acquired fuel for “use”. The definition of purchaser under the Act is the same definition used in the Carbon Tax Act.

A person who buys or receives delivery of fuel outside of the province is not a purchaser.

For an overview of the security scheme and a list of the provisions that impose tax, see MFTA/Sec. 34/Int.

MFT - SEC.1/Refiner Collector/Int.

Refiner Collector

References:

Act: Section 1 “collector”, “fuel”, “person”, “refiner collector”, “security”; Section 28; Section 30; Section 38; Section 50

Interpretation (Issued: 2011/03; Revised: 2015/04)

Effective January 1, 2010, the definition of refiner collector was added to the Act.

Before July 1, 2008, there was an administrative practice of treating sales between two parties that each owned and operated a refinery as being exempt from paying security.

On July 1, 2008, the Carbon Tax Act came into force and the Motor Fuel Tax Act was amended; both acts contained new language that attempted to provide a statutory basis for the existing administrative practice.

In practice, the language was too restrictive because in order for a collector to be appointed as a refiner collector, the entity registered as the collector had to be the same legal entity that owned and operated the refinery. In reality, it is common for the collector to be a separate legal entity from the entity that owns and operates the refinery.

The Motor Fuel Tax Act and the Carbon Tax Act were amended, effective January 1, 2010, per Bill 2, Budget Measures Implementation Act (No. 2), 2009, to create a sub-class of collector called a refiner collector. A refiner collector is defined as a person who is appointed as a refiner collector under section 28 [appointment of vendors as collectors]. This amendment was made to facilitate “fuel swaps” between collectors.

There is a two part test to be appointed as a refiner collector. First, the director must consider the collector suitable. The director may consider a collector to be unsuitable if there is an indication the collector will not comply with the obligations of a refiner collector. Second, the collector, or an interrelated entity of the collector, must own and operate a crude oil refinery in Canada.

The benefit of being a refiner collector is a limited exemption from security; a refiner collector for a specific type of fuel may sell that type of fuel exempt from security to another person who is a refiner collector for that same type of fuel. For more information, see MFTA/Sec.38/Int.

MFT - SEC.1/Registered Consumer/Int.

Registered Consumer

References:

Act: Section 1 “fuel”, “person”, “registered consumer”, “registered consumer certificate”, “tax”; Section 33; Section 34; Section 37; Section 37.1; Section 50; Section 53; Section 67; Section 71

Bulletin MFT-CT 004

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 amended the definition of registered consumer as a consequential amendment to the Act. This definition clarifies that a registered consumer is a person who holds a registered consumer certificate issued under section 37 [issue of registered consumer certificate]. A registered consumer does not pay tax at the time of purchase; instead, a registered consumer self-assesses tax on fuel. For more information, see MFTA/Sec.37/Int.

MFT - SEC.1/Registered Consumer Certificate/Int.

Registered Consumer Certificate

References:

Act: Section 1 “fuel”, “person”, “registered consumer”, “registered consumer certificate”, “tax”; Section 37; Section 37.1; Section 50; Section 67

Bulletin MFT-CT 004

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added the definition of registered consumer certificate as a consequential amendment the Act. A registered consumer certificate means a registered consumer certificate issued under section 37 [issue of registered consumer certificate]. Registered consumer certificates are proof that a person is a registered consumer. For more information, see MFTA/Sec.37/Int.

MFT - SEC.1/Renewable Diesel Fuel/Int.

Renewable Diesel Fuel

References:

Act: Section 1 “biodiesel fuel”, “hydrogenated derived renewable diesel fuel”

Interpretation (Issued: 2011/03; Revised: 2015/04)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 added a definition of “renewable diesel fuel” to the Act. Renewable diesel fuel is defined to mean a fuel that is either biodiesel fuel or hydrogenated-derived renewable diesel fuel.

Tax applies to renewable diesel fuel at the same rate as the fuel with which it is blended. Tax applies to 100 percent renewable diesel fuel at the same rate as motive fuel (clear diesel). Renewable diesel fuel includes both biodiesel and hydrogenated derived renewable diesel fuel.

This is a consequential amendment to implementation of the 5 percent renewable diesel fuel standard under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, S.B.C. 2008, c. 16 (“GSR (RLCFR)”), which came into force January 1, 2010.

MFT - SEC.1/Retail Dealer/Int.

Retail Dealer

References:

Act: Section 1 “fuel”, “person”, “purchaser”, “retail dealer”, “security”; Section 1.1; Section 12; Section 20.11; Section 21; Section 34; Section 34.01; Section 35; Section 35.1; Section 38; Section 40; Section 40.1; Section 49.1; Section 50; Section 71

Bulletin MFT-CT 001

Interpretation (Issued: 2015/04)

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added a reference to section 1.1 [fuel imported by ship] in the definition of retail dealer.

A retail dealer is a person who, subject to section 1.1, within British Columbia sells fuel to a purchaser. A purchaser is the person who acquires fuel for use. Section 1.1 provides that for fuel imported by ship under specific circumstances, a seller is not considered a retail dealer, even if the imported fuel is sold to a purchaser.

For an overview of the security scheme, including the role of the retail dealer, see MFTA/Sec. 34/Int. For an explanation of retail dealers’ obligations to remit security, see MFTA/Sec. 40/Int.

MFT - SEC.1/Road Building Machine/Int.

Road Building Machine

References:

Act: Section 15

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of road building machine. The definition is provide for the purpose of paragraph 15(1)(g) [prohibition against unauthorized purchase or use of coloured fuel]. Road building machine means a road building machine as defined in the Commercial Transport Act.

MFT - SEC.1/Security/Int.

Security

References:

Act: Section 1 “fuel”, “security”, Section 20.11; Section 20.2; Section 21; Section 24.1; Section 25; Section 34; Section 34.01; Section 35.1; Section 38; Section 39; Section 40; Section 42; Section 43; Section 44; Section 45; Section 45.1; Section 46.1; Section 48; Section 50; Section 53; Section 57.1; Section 57.2; Section 64; Section 71

Bulletin MFT-CT 001

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added the definition of security as a consequential amendment to the Act. The definition clarifies that the term security includes all penalties or interest that may be added to the security payable.

For an overview of the security scheme, see MFTA/Sec.34/Int.

MFT - SEC.1/Sell/Int.

Sell

References:

Act: Section 1 “fuel”, “sell”; Section 1.1; Section 14.1; Section 16.3; Section 16.4; Section 16.5; Section 16.6; Section 20; Section 20.11; Section 21; Section 28; Section 29; Section 34; Section 34.1; Section 35.1; Section 38; Section 49.1; Section 60; Section 71

Bulletin MFT-CT 001

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added the definition of sell as a consequential amendment to the Act. The definition clarifies that the sale of fuel is not limited to transactions involving monetary consideration but also includes providing fuel by barter or exchange.

MFT - SEC.1/Ship/Int.

Ship

References:

Act: Section 1.1; Section 15

MFTR: Section 7

Interpretation (Issued: 2015/04)

Since its inception on December 31, 1985 (Bill 63 – Motor Fuel Tax Act, 1985), the Act has provided a definition of ship. The definition of ship is provided for the purposes of paragraph 15(1)(a) [prohibition against unauthorized purchase or use of coloured fuel] of the Act. A ship includes any vessel that is designed to be self propelled in or on water.

R.1 Floatplanes (Revised: 2015/04)

A floatplane is not a "ship" and is not eligible to use coloured fuel under paragraph 15(1)(a). Although a floatplane may meet the definition in the Act, it is not a ship in the common ordinary understanding of that word. This was supported by the British Columbia Supreme Court in the 1994 Vancouver Island Air decision.

MFT - SEC.1/South Coast British Columbia Transportation Authority /Int.

South Coast British Columbia Transportation Authority

References:

Act: Section 1 “South Coast British Columbia transportation service region”; Section 4; Section 10; Section 12; Section 71

Bulletin MFT-CT 005

Interpretation (Issued: 2015/04)

Effective November 30, 2007, Bill 43, Greater Vancouver Transportation Authority Amendment Act, 2007 added the definition of "South Coast British Columbia Transportation Authority" (SCBCTA) as a consequential amendment to the Act. It means the authority continued under section 2(1) of the South Coast British Columbia Transportation Authority Act. The SCBCTA is the legal name for “TransLink”.

MFT - SEC.1/South Coast British Columbia Transportation Service Region /Int.

South Coast British Columbia Transportation Service Region

References:

Act: Section 4; Section 10

Bulletin MFT-CT 001; Bulletin MFT-CT 002; Bulletin MFT-CT 005; Bulletin MFT-CT 007

Interpretation (Issued: 2015/04)

Effective November 30, 2007, Bill 43, Greater Vancouver Transportation Authority Amendment Act, 2007 added the definition of added for "South Coast British Columbia transportation service region" as a consequential amendment to the Act. It has the same meaning as "transportation service region" in the South Coast British Columbia Transportation Authority Act. See MFTA/Sec.12/R.2 for a description of the region.

MFT - SEC.1/STANDARD REFERENCE CONDITIONS/Int.

Standard Reference Conditions

References:

Act: Section 9

MFTR: Section 5.6

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

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 amends the definition of “standard reference condition” as a consequential amendment to the Act. Standard reference conditions means, in the case of:

(a) A gas, a temperature of 15°C and an atmospheric pressure of 101.325 kPa, and

(b) A liquid, a temperature of 15°C.

MFT - SEC.1/Tax/Int.

Tax

References:

Act: Section 1 “tax”

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

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaced the definition of "tax." The definition includes all penalties and interest as part of tax. The amendment adds additional amounts to the definition. Specifically, the new definition includes amounts owing by a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of a certificate provided by the director, and amounts owing by a person who distributes the proceeds, contrary to section 57.2 of the Act, from the realization of property without obtaining from the director a certificate that states that the amount that constituted a lien has been paid.

The amendment allows these amounts to be administered as if they were tax.

For example, a penalty may be imposed on amounts owing by a person who purchases fuel or an interest in a business through a bulk transaction for failure to pay the amount. If the amount was not included in the definition of "tax" a penalty could not be imposed on the amount.

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added the definition of tax as a consequential amendment to the Act. Tax includes all penalties and interest that may be added to the tax payable.

MFT - SEC.1/Tractor/Int.

Tractor

References:

Act: Section 15

Interpretation (Issued: 2000/03; Revised: 2015/04)

Effective July 29, 1999, Bill 71, Finance and Corporate Relations Statutes Amendment Act, 1999 clarifies that the type of tractors eligible to use lower-taxed coloured fuel when used off highway include farm tractors and industrial tractors that are not designed for use on a highway, such as tractors used to handle cargo at a shipping terminal.

The previous provisions authorized the use of lower taxed coloured fuel in certain vehicles, including tractors, when operated off-highway. However, the definition of tractor referenced the Commercial Transport Act. As a result of various amendments over the years, the provisions in these statutes became incompatible and could be interpreted as having the unintended result of excluding all tractors from using coloured fuel off highway.

A tractor is defined as a motor vehicle designed for use primarily as a power unit for drawing vehicles, machinery or equipment, and includes farm tractors and industrial tractors, but does not include

1. A motor vehicle designed to carry good or materials the weight or which rests entirely on the frame or the motor vehicle, or
2. A truck tractor that is designed for use on public highways, or has been modified for that use, and that is eligible for licensing as a truck tractor under the Commercial Transport Act.

R.1 Industrial Tractors (Revised: 2009/04; 2015/04)

Section 15(1) of the Act lists the purposes for which the use of coloured fuel is authorized. This list includes operating a tractor on other than a highway.

Prior to July 29, 1999, the Act provided the following definition of tractor:

A motor vehicle designed for use primarily as a power unit for drawing vehicles, machinery or equipment, but does not include

a) a motor vehicle designed to carry goods or materials the weight of which rests entirely on the frame of the motor vehicle, or

b) a truck tractor as defined in the Commercial Transport Act

The Commercial Transport Act defines a truck tractor to be:

A motor vehicle designed and used primarily for drawing other vehicles and not constructed to carry a load other than a part of the weight of the vehicle drawn and of the load of the other vehicle.

Because of the exclusion of tractors as defined under the Commercial Transport Act, the branch had historically considered that only farm type tractors were eligible for exemption.

Truck tractors were not considered eligible to use coloured fuel unless they were specifically identified under the legislation, such as logging trucks and mining trucks.

The branch reviewed this policy in 1997. The branch determined that the definition of "truck tractor" in the Commercial Transport Act was so similar to the definition in the Act that, if interpreted literally, the MFTA would seem to exclude all types of tractors from using coloured fuel. This was not the intent of the Legislature.

A historical review of the MFTA and the predecessor fuel tax statutes indicates that in 1967, the definition of tractor in the Gasoline (Coloured) Tax Act (GCTA) was amended to include industrial tractors, so that these vehicles could use coloured fuel when operated off highway. The current wording of the MFTA was established when the GCTA was consolidated with the two other fuel tax acts in 1985. There is no indication that the revised wording was intended to exclude industrial tractors or make any other tax application changes. It was therefore concluded that the intention was to include industrial tractors, not designed for highway use, in the authorization to use coloured fuel when operated off highway.

Effective July 29, 1999, the definition of tractor was amended in the Act to clarify that the type of tractors eligible to use coloured fuel when used off highway include farm tractors and industrial tractors that are not designed for use on a highway, such as tractors used to handle cargo at a shipping terminal.

Industrial (or terminal) tractors are used in stevedoring and freight handling operations and generally have a number of features which make them unsuitable for use on public highways. To qualify as an industrial tractor, the unit must have most of the following features.

• Control in the cab to raise or lower an axle. Under the regulations to the Commercial Transport Act, the presence of such a control makes it illegal for the unit to operate on a highway.
• Fifth wheel coupling mechanism that allows the trailer to be unhooked from inside the cab of the tractor. The Motor Vehicle Branch will not approve such vehicles for highway use.
• Limited or solid suspension systems.
• Low maximum speeds and gear ratios. Some units are built with low gear ratios, others are modified so that the top gears are disabled, making highway travel difficult.
• These units frequently have only single person cabs, although the exemption is not limited to such units. However, a two person cab is not a sufficient basis to disqualify a particular vehicle.
• The absence of a Transport Canada Compliance Decal. Motor Vehicle Branch advises that vehicles must have this to be licensed. For example, Ottawa and similar tractors are not built to Transport Canada safety standards and would not have such decals.

The following tractors qualify as industrial tractors based on the characteristics indicated. While the tractors listed below have been determined to be designed for use off highway and qualify as industrial tractors authorized to use coloured fuel, not all tractors made by these companies will qualify. Further, some vehicles which come off the assembly line suitable for highway use may be modified in such a way that they become unsuitable for highway use. For example, the Ford and GMC trucks listed below have been modified after manufacture, but prior to delivery, to give them lower gear ratios and hydraulic fifth wheels which allow the trailer to be raised, lowered, or unhooked from inside the cab of the tractor.

For these reasons, audit staff will not be able to rely exclusive on the make or model of a particular vehicle to determine whether it qualifies as an industrial tractor. Rather, they will have to obtain sufficient information to determine whether the units meet the following criteria. Further, as indicated below, there will have to be some flexibility in this determination as there are some variations among qualifying industrial tractors.

Ottawa- hydraulic, elevating fifth wheel controlled from inside the cabin

• trailer can be unhooked from inside the cabin
• limited suspension
• low maximum speed and gear ratios
• single person cab

Magnum- hydraulic, elevating fifth wheel controlled from inside the cabin

• trailer can be unhooked from inside the cabin
• solid rear suspension
• maximum speed 43 mph, low gear ratio
• single person cab

Capacity- hydraulic, elevating fifth wheel controlled from inside the cabin

• trailer can be unhooked from inside the cabin
• solid rear suspension
• maximum speed of 30-35 mph, low gear ratio
• single person cab

Ford F-8000 (modified)

• hydraulic, elevating fifth wheel controlled from inside the cabin
• trailer can be unhooked from inside the cabin
• modified transmission and rear end, providing lower gear ratio

GMC Brigadier (modified)

• hydraulic, elevating fifth wheel controlled from inside the cabin
• trailer can be unhooked from inside the cabin
• modified transmission and rear end, providing lower gear ratio

Whenever it is determined that a tractor not listed above meets the criteria for industrial tractor, the Consumer Taxation Programs Branch (CTPB) should be provided with the make and model of the vehicle and basis upon which it has been determined to qualify. The branch will maintain the above list of qualifying tractors as new determinations are made.

MFT - SEC.1/Vendor/Int.

Vendor

References:

Act: Section 1 “fuel”, “manufacture”, “person”, “purchaser”, “retail dealer”, “seller”, “vendor”; Section 1.1; Section 20.11; Section 28; Section 33; Section 34.01; Section 45; Section 49.1; Section 71

Bulletin MFT-CT 001

Interpretation (Issued: 2015/04)

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added a reference to section 1.1 [fuel imported by ship] in the definition of vendor.

A vendor is defined to mean a person who, subject to section 1.1, sells fuel within British Columbia for the first time after its manufacture in, or importation into, British Columbia. Section 1.1 provides that for fuel imported by ship under specific circumstances, a seller is not considered a vendor.

A vendor can be appointed as a collector under section 28 [appointment of vendors as collectors].

MFT - SEC.1/Wholsesale Dealer/Int.

Wholesale Dealer

References:

Act: Section 1 “collector”, “deputy collector”, “fuel”, “person”, “purchaser”, “security”, “wholesale dealer”; Section 12; Section 20.11; Section 33; Section 49.1; Section 71

Bulletin MFT-CT 001

Interpretation (Issued: 2015/04)

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added a reference to section 1.1 [fuel imported by ship] in the definition of wholesale dealer.

A wholesale dealer is defined as a person who, subject to section 1.1, buys fuel in British Columbia for resale to a person who is not a purchaser (a person who purchases fuel for use). Section 1.1 provides that for fuel imported by ship under specific circumstances, a buyer is not a wholesale dealer, even if the buyer buys the imported fuel for resale to a person other than a purchaser.

Under section 33 [deputy collectors], a wholesale dealer who buys fuel from a collector or deputy collector is deemed to be a deputy collector; accordingly, a wholesale dealer is brought within the security scheme and is subject to the obligations imposed on deputy collectors (see MFTA/Sec. 33/Int). For an overview of the security scheme, including the role of the deputy collector, see MFTA/Sec. 34/Int.

Section 1.1 – Fuel Imported By Ship

MFT - SEC.1.1/Int.

References:

Act: Section 1 “collector”, “fuel”, “motive fuel”, “person”, “purchaser”, “retail dealer”, “security”, “vendor”, “wholesale dealer”; Section 4; Section 5; Section 6; Section 7; Section 8; Section 10; Section 10.1; Section 10.3; Section 12.1; Section 13; Section 20; Section 20.11; Section 29; Section 38; Section 71

MFTR: Section 5.6

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

Effective March 25, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended section 1.1. Subsection (2) was amended and subsection (4) was repealed and replaced to expand section 1.1 to include sales that occur after imported fuel is released but before or at the time the fuel is removed from the ship or barge. This amended provision more accurately reflects when the first sale occurs and addressed industry concerns that the provision was inconsistent with industry practice.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 removed the reference to "propane" in the definition of "imported fuel."

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added a new section 1.1.

Subsection 1.1(1) provides definitions for "imported fuel, "release" and "shipment" for the purpose of this section.

Subsection 1.1(2) provides that subject to subsection 1.1(2) and subsection 1.1(3) and the regulations, all of the following apply to a sale of imported fuel before it is released:

• the seller is not a retail dealer even if the imported fuel is sold to a purchaser;
• the seller is not a vendor; and
• the buyer is not a wholesale dealer, even If the buyer buys the imported fuel for resale to a person other than a purchaser.

The result of the subsection is that if a seller sells imported fuel before it is released, then the seller is generally removed from the Act’s security scheme with respect to that fuel. For example, because the person will not be a vendor, they will not be a collector and thus will not be under the obligations of a collector.

Subsection 1.1(3) restricts the application of subsection 1.1(2). The subsection provides that subsection 1.1(2) does not apply to a sale of imported fuel

a) From a single shipment if

i. the imported fuel is a prescribed type of fuel or a prescribed subcategory for a type of fuel or is in a prescribed class of fuel, and

ii. the amount of the imported fuel sold in that sale from that shipment is less than the amount prescribed for that prescribed type of fuel, prescribed subcategory of a type of fuel or prescribed class of fuel, or

b) In prescribed circumstances.

Section 5.6 of the Motor Fuel Tax Regulation prescribes the class of fuel and prescribed amount of fuel for the purpose of subsection 1.1(3).

Subsection 1.1(4) limits the application of subsection 1.1(2). If subsection 1.1(2) does not apply to a sale of imported fuel, the rule cannot apply to a subsequent sale of the imported fuel. For example, A brings 3 million litres of motive fuel into British Columbia and sells it to B prior to release. C also brings 3 million liters of motive fuel into British Columbia and sells it to B prior to release. B then sells the total 6 million litres of motive fuel to D prior to release. The rules in subsection 1.1(2) do not apply to either of the sale to B from A and C because the volume is below 5 million litres (the amount prescribed by section 5.6 of the Motor Fuel Tax Regulation. Subsection 1.1(4) prevents the rules in subsection 1.1(2) from applying to the sale from B to D.

Subsection 1.1(5) provides that a person who, within British Columbia, sells imported fuel for the first time in a sale to which subsection 1.1(2) does not apply is the vendor of that fuel. For example, A sells 10 million litres of gasoline to B prior to release. The gasoline is then released and B sells the fuel to C. Under subsection 1.1(5), B is the vendor, notwithstanding they have not sold the fuel for the first time since its importation into British Columbia.

Section 1.2 – Liability Of Other Persons

MFT - SEC. 1.2/Int.

Reference:

Interpretation (Issued: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 adds section 1.2. The amendment ensures that the government can collect taxes owing from any persons who collectively purchase or use fuel and can collect security payable by more than one person in respect of fuel.

Section 2 – Application Of Act

MFT - SEC.2/Int.-R.1

References:

Act: Section 1 “motor vehicle”, “ship”

Interpretation (Issued: 2007/09; Revised: 2009/04, 2015/04)

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 amended section 2 to clarify the exemptions from tax under the Act. Subsection 2(2) is repealed.

Effective May 13, 2004, Bill 34, Provincial Revenue Statutes Amendment Act, 2004, amended subsection 2(2) to replace “gasoline” with “fuel”.

Effective July 29, 1999, Bill 71, Finance and Corporate Relations Statutes Amendment Act, 1999 clarified that fuel brought into BC in the supply tank, or a supplemental supply tank, of an aircraft or ship is exempt from motor fuel tax if the fuel is to be used in the operation of the aircraft or ship; also exempt is fuel, in a quantity up to and including 182 litres, that is brought into BC in the supply tank, or a supplemental supply tank, of a motor vehicle (other than an IFTA commercial vehicle or a locomotive) if the fuel in the supply tank or supplemental supply tank is to be used in the operation of the motor vehicle. This refers to the residual amount of fuel in the supply tanks of conveyances used by persons visiting or returning to the province.

The previous version of the provision simply stated that the Act did not apply to such fuel, which caused such fuel to be subject to PST. (Fuel was subject to tax under the Social Service Tax Act (repealed) if it was not subject to tax under the Motor Fuel Tax Act.) As a result of the explicit exemption, qualifying fuel in the supply tank, or a supplemental tank, of an aircraft, ship or (non-IFTA, non-locomotive) motor vehicle was within the purview of the Act and therefore was no longer subject to PST under the Social Service Tax Act.

Such fuel remains exempt from PST, under the Provincial Sales Tax Act, effective April 1, 2013.

R. 1 Supplement Supply Tank (Issued: 2015/04)

Loose containers, jerry cans, or tidy-tanks stored in a vehicle do not qualify for an exemption as a “supplemental tank.”

Section 3.1 – Tax On Methanol Based Fuel And Compressed Natural Gas

MFT - SEC.3.1/Int.

References:

Act: Section 1 “methanol based fuel”, “natural gas”

Bulletin MFT-CT 005

Interpretation (Revised: 2011/03, 2015/04)

Effective January 1, 2010, the term "alcohol based fuel" is replaced with the term "methanol based fuel". This restricts the scope of the alcohol based fuels deemed to be taxable under the Act (through this section) to methanol based fuel. This section also provides that compressed natural gas is taxable under the Act.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 amended section 3.1 to introduce a new tax policy for alternative motor fuels (see MFTA/Sec.10.1/Int.). The previous provision exempted alcohol-based fuels and compressed natural gas when used to propel motor vehicles. It is intended that these fuels be incorporated under the new provisions establishing preferential tax treatment for alternative motor fuels by regulation.

Effective April 1, 1997, Bill 2, Budget Measures Implementation Act, 1997 established section 3.1 to extend the exemption for alcohol-based fuels and compressed natural gas used to propel a motor vehicle, with no expiry date.

However, Bill 2 also removed all references to propane from the Motor Fuel Tax Act effective April 1, 1997. This resulted in propane used in motor vehicles, and in stationary or portable engines, becoming subject to tax under the Social Service Tax Act. To provide sellers of propane with time to make the necessary adjustments to begin collecting the tax, a two-month remission of the social service tax payable on propane used in motor vehicles was established under B.C. Reg. 105/97. As a result, the tax on propane used to propel a motor vehicle did not come into effect until June 1, 1997.

In 1992, the province extended the fuel tax exemption for propane and natural gas used to propel motor vehicles for five years, and added alcohol-based fuels used to propel a motor vehicle, under section 3 of the Act. Section 3, Taxation of Cleaner Motor Vehicle Fuels, was established to expire on March 31, 1997.

Eligible alcohol-based fuels are those that are at least 85% ethanol or methanol or a combination of both. The exemption was limited to ethanol and methanol blends of 85% or more because these fuels, unlike lower level blends which can be burned in regular engines, require substantial vehicle conversion costs. In addition, considerable investment is required to make such fuels readily available to users.

Tax at the coloured fuel rate continued to apply to alcohol-based fuels used in stationary or portable engines, or boats.

Effective April 6, 1982, the province established a fuel tax exemption for propane and natural gas used to propel motor vehicles. The exemption was intended to encourage energy conservation and diversification and to help compensate for vehicle retrofit and infrastructure costs.

For historical and current tax rates on propane and natural gas see MFTA/Sec. 10.1/R.1

Subsection 3.1(1) deems methanol based fuel and compressed natural gas to be liable to be taxed under the Act.

Section 3.11 – Tax On Heating Oil

MFT - SEC.3.11/Int.

REPEALED

Interpretation (Issued: 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed section 3.11 as a consequential amendment to the Act. With the return of the PST, Part 3.1 was added to provide for provisions concerning the colouring and selling of heating oil.

Effective July 1, 2010, Bill 9, Consumption Tax Rebate and Transition Act, 2010 added section 3.11 as a consequential amendment to the Act. Section 3.11 provided that heating oil was deemed to be taxed under the Act as motive fuel, unless it was coloured in accordance with section 14.

Section 4 – Tax On Gasoline

MFT - SEC.4(1)/Int.-R.8

(1)

References:

Act: Section 1 “gasoline”

Bulletin MFT-CT 005

Interpretation (Issued: 2014/08; Revised: 2015/07; 2023/10)

Effective July 1, 2019, Bill 5, Budget Measures Implementation Act, 2019 added subparagraph 4(1)(d)(iii). The amendment provides for the payment of an additional tax, not exceeding 1.5¢ per litre, set under section 27.12 of the South Coast British Columbia Transportation Authority Act, on gasoline purchases in the transportation service region under that Act.

Effective April 1, 2012, Bill 11, Greater Vancouver Transit Enhancement Act, 2012 repealed and replaced paragraph 4(1)(d) as a consequential amendment. The amendment provides for the payment of an additional tax, not exceeding 2¢ per litre, set under section 27.11 of the South Coast British Columbia Transportation Authority Act, on gasoline purchases in the transportation service region under that Act.

Effective November 30, 2007, Bill 43, Greater Vancouver Transportation Authority Amendment Act, 2007 added paragraph 4(1)(d) as a consequential amendment. The provision requires a purchaser of gasoline within the transportation service region under the South Coast British Columbia Transportation Authority Act to pay any tax assessed, not exceeding 3¢ per litre, under section 27.1 of that Act.

Effective November 30, 2007, Bill 43, Greater Vancouver Transportation Authority Amendment Act, 2007 renamed the Greater Vancouver Transportation Authority (TransLink), and the Greater Vancouver transportation service region, as the South Coast British Columbia Transportation Authority, and the South Coast British Columbia transportation service region, respectively.

Effective April 1, 2003, Bill 6, Budget Measures Implementation Act, 2003 amended paragraph 4(1)(a) to increase the provincial fuel tax payable on gasoline by 1.25¢ per litre. Effective April 1, 2003, the 1.25¢ per litre payable to BC Ferries Corporation on clear gasoline and clear diesel was discontinued. This portion of the tax was redirected to the province's consolidated revenue fund. Therefore, this measure did not affect the total amount of tax payable on fuel purchased, as established on March 1, 2003 by Bill 6, Budget Measures Implementation Act, 2003.

The provincial tax imposed outside the Greater Vancouver transportation service region was increased from 6.5¢ per litre to 7.75¢ per litre. The provincial tax imposed inside the transportation service region was increased from 12.5¢ per litre to 13.75¢ per litre (less the applicable rate of tax payable at the time purchase under paragraph 10(1)(c)).

Effective April 1, 2002, Bill 3, Taxation Statutes Amendment Act, 2002 amended the Act to increase the tax rate for clear gasoline collected by the Greater Vancouver Transportation Authority (TransLink) in the Greater Vancouver transportation service region by 2¢ per litre to 11¢ per litre. The tax is collected by the province on behalf of TransLink.

Bill 3 amended paragraph 4(1)(b) of the Act to increase the amount payable to the province by 2¢ to 12.5¢ per litre before subtracting the amount payable to TransLink. This was required because the gasoline tax rate paid to the province by purchasers inside the Greater Vancouver transportation service region is calculated by subtracting the tax rate paid to TransLink from this formula tax rate. As such, in order to offset the TransLink tax rate increase and maintain the same gasoline tax rate paid to the province, the prescribed rate used for the calculation was increased by an amount equal to the TransLink rate increase.

After the TransLink tax rate increase, purchasers in the Greater Vancouver transportation service region will pay 11 cents per litre to TansLink and 6 cents per litre to the province. This resulted in a 2 cent per litre increase for TransLink and no increase for the province.

Bill 3 also amended:

• 4(1)(c)(ii.1) to increase the clear gasoline tax rate collected by TransLink by 2 cents to 11¢ per litre effective April 1, 2002.
• 4(1)(c)(iii) to implement the TransLink gasoline tax rate increase already scheduled and legislated for April 1, 2003 by 2 cents per litre. This was necessary to retain the future 0.5¢ per litre increase in the gasoline tax points transferred from the province to TransLink.
• 4(1)(c)(iv) to implement the TransLink gasoline tax rate increase already scheduled and legislated for April 1, 2005 by 2¢ per litre. This was required to retain the future 0.5¢ per litre increase in the gasoline tax points transferred from the province to TransLink.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 amended the Act to reduce the provincial tax on gasoline by 0.25¢ consequential to dedicating an additional 0.25¢ tax to the BC Transportation Financing Authority. This did not change the clear fuel tax rate paid by consumers.

The provincial tax imposed outside the Greater Vancouver transportation service region was reduced from 6.75¢ per litre to 6.50¢ per litre. The provincial tax imposed inside the Greater Vancouver transportation service region was reduced from 10.75¢ per litre to 10.50¢ per litre.

Effective April 1, 1999, Bill 52, Taxation Statutes Amendment Act, 1999 reduced the provincial tax rate on gasoline to correspond to the tax rate dedicated to the Greater Vancouver Transportation Authority (GVTA), the British Columbia Transportation Financing Authority, and the BC Ferry Corporation, without increasing the tax payable by the consumer. These changes did not affect the overall tax rates on gasoline in British Columbia. The amendments simply allocated portions of the tax rate to specific purposes.

Amendments to paragraph 4(1)(a) reduced the provincial tax rate on gasoline in all areas of the province, except the Greater Vancouver transportation service region, as follows.

(i) On April 1, 1999, the provincial tax rate was reduced by 1¢ per litre (from 9¢ to 8¢) to accommodate the imposition of a 1¢ per litre tax imposed under section 42 of the Taxation Statutes Amendment Act, 1999 to raise revenue for the purposes of the BC Ferry Corporation.

(ii) On June 1, 1999, the provincial tax rate was again reduced by 1¢ per litre (from 8¢ to 7¢) to accommodate a 1¢ increase (from 2¢ to 3¢) in the tax imposed under section 13 [additional tax for transportation infrastructure construction] of the Motor Fuel Tax Act for the purposes of raising revenue for the BC Transportation Financing Authority.

(iii) On October 1, 1999, the provincial tax rate was further reduced by 0.25¢ (from 7¢ to 6.75¢) to accommodate an equivalent increase, from 1¢ to 1.25¢, in the tax imposed under section 42 of the Taxation Statutes Amendment Act, 1999 to raise revenue for the purposes of the BC Ferry Corporation.

Amendments to paragraph 4(1)(b) reduced the provincial tax rate paid on gasoline in the Greater Vancouver transportation service region, as follows.

(i) On April 1, 1999, the tax rate payable on gasoline was reduced by 1¢ per litre (from 13¢ to 12¢ per litre) to accommodate the imposition of a 1¢ per litre tax imposed under section 42 of the Taxation Statutes Amendment Act, 1999 to raise revenue for the purposes of the BC Ferry Corporation. Of the total 12¢ per litre tax, 8¢ was payable to the GVTA, and 4¢ was payable to the province.

(ii) On June 1, 1999, the tax rate payable on gasoline was again reduced by 1¢ per litre (from 12¢ to 11¢) to accommodate a 1¢ increase (from 2¢ to 3¢) in the tax imposed under section 13 of the Motor Fuel Tax Act for the purposes of raising revenue for the BC Transportation Financing Authority. Of the total 11¢ per litre tax, 8¢ was payable to the GVTA, and 3¢ was payable to the province.

(iii) On October 1, 1999, the tax rate on gasoline was further reduced by 0.25¢ (from 11¢ to 10.75¢) to accommodate an equivalent increase, from 1¢ to 1.25¢, in the tax imposed under section 42 of the Taxation Statutes Amendment Act, 1999 to raise revenue for the purposes of the BC Ferry Corporation. Of the total 10.75¢ per litre tax, 8¢ was payable to the GVTA, and 2.75¢ was payable to the province.

Subsection 4(1), subject subsection 4(1.11), provides the applicable tax rates for gasoline that is purchased inside the South Coast British Columbia transportation service region, and in other areas of the province (See MFTA/Sec.12/Int. and MFTA/Sec. 12.1/Int.).

Paragraph 4(1)(a) establishes the rate of provincial motor fuel tax at 7.75¢ per litre on the purchase of gasoline outside of the South Coast British Columbia transportation service region.

Paragraph 4(1)(b) establishes the rate of provincial motor fuel tax at 13.75¢ per litre on the purchase of gasoline inside the South Coast British Columbia transportation service region less the applicable rate of tax payable at the time of purchase under paragraph 4(1)(c). The total provincial motor fuel tax for the region is 1.75¢ per litre.

Paragraph 4(1)(c) establishes the dedicated rate of motor fuel tax purchased in the South Coast British Columbia transportation service region payable to the South Coast Transportation Authority at the following rates:

(i) effective April 1, 1999, 8¢ per litre;

(ii) effective April 1, 2001, 9¢ per litre;

(ii.1) effective April 1, 2002, 11¢ per litre;

(iii) effective April 1, 2003, 11.5¢ per litre;

(iv) effective April 1, 2005, 12¢ per litre

Paragraph 4(1)(d) establishes that inside the South Coast British Columbia transportation service region, in addition to the tax payable under paragraph 4(1)(c), a purchaser must pay to the South Coast British Columbia Transportation Authority, at the time of purchase,

tax on the gasoline at the rate, not exceeding 3¢ per litre, set under section 27.1 of the South Coast British Columbia Transportation Authority Act, and

tax on the gasoline at the rate, not exceeding 2¢ per litre, set under section 27.11 of the South Coast British Columbia Transportation Authority Act.

R.1 Provincial Motor Fuel Tax Rates on Gasoline - January 2, 1924 to Present (Revised: 2003/12; 2015/07)

Provincial Motor Fuel Tax Rates on Gasoline - January 2, 1924 to Present (Revised: 2003/12; 2015/07)

Effective Dates	Rates
January 2, 1924 - March 31, 1930	3.0¢ per gallon
April 1, 1930 - April 17, 1932	5.0¢ per gallon
April 18, 1932 - March 31, 1947	7.0¢ per gallon
April 1, 1947 - February 26, 1961	10.0¢ per gallon
February 27, 1961 - February 4, 1971	13.0¢ per gallon
February 5, 1971 - February 27, 1975	15.0¢ per gallon
February 28, 1975 - March 9, 1981	17.0¢ per gallon
March 10, 1981 - September 30, 1981	5.32¢ per litre
October 1, 1981 - December 31, 1981	5.66¢ per litre
January 1, 1982 - March 31, 1982	6.13¢ per litre
April 1, 1982 - June 30, 1982	6.16¢ per litre
July 1, 1982 - September 30, 1982	6.54¢ per litre
October 1, 1982 - December 31, 1982	6.70¢ per litre
January 1, 1983 - March 31, 1983	6.42¢ per litre
April 1, 1983 - June 30, 1983	6.88¢ per litre
July 1, 1983 - September 30, 1983	6.48¢ per litre
October 1, 1983 - December 31, 1983	7.63¢ per litre
January 1, 1984 - March 31, 1984	7.61¢ per litre
April 1, 1984 - June 30, 1984	7.69¢ per litre
July 1, 1984 - September 30, 1984	7.66¢ per litre
October 1, 1984 - December 31, 1984	7.72¢ per litre
January 1, 1985 - March 31, 1985	8.01¢ per litre
April 1, 1985 - June 30, 1985	8.03¢ per litre
July 1, 1985 - September 30, 1985	8.42¢ per litre
October 1, 1985 - December 31, 1985	8.23¢ per litre
January 1, 1986 - March 31, 1986	8.64¢ per litre
April 1, 1986 - June 30, 1986	8.56¢ per litre
July 1, 1986 - September 30, 1986	6.47¢ per litre
October 1, 1986 - December 31, 1986	6.14¢ per litre
January 1, 1987 - March 31, 1987*	6.39¢ per litre
April 1, 1987 - June 30, 1987	7.09¢ per litre
July 1, 1987 - September 30, 1987	7.49¢ per litre
October 1, 1987 - December 31, 1987	7.64¢ per litre
January 1, 1988 - March 31, 1988	7.89¢ per litre

Tax Rate on Unleaded Gasoline, April 1, 1988 to August 31, 1993

Effective Dates	Rates
April 1, 1988 - June 30, 1988	7.35¢ per litre
July 1, 1988 - September 30, 1988	8.08¢ per litre
October 1, 1988 - December 31, 1988	6.96¢ per litre
January 1, 1989 - March 31, 1989	7.79¢ per litre
April 1, 1989 - June 30, 1989	7.69¢ per litre
July 1, 1989 - September 30, 1989	8.28¢ per litre
October 1, 1989 - December 31, 1989	9.01¢ per litre
January 1, 1990 - March 31, 1990	9.04¢ per litre
April 1, 1990 - June 30, 1990	9.49¢ per litre
July 1, 1990 - September 30, 1990	9.83¢ per litre
October 1, 1990 - December 31, 1990	9.93¢ per litre
January 1, 1991 - March 31, 1991	11.00¢ per litre
April 1, 1991 - June 30, 1991	10.74¢ per litre
July 1, 1991 - September 30, 1991	8.82¢ per litre
October 1, 1991 - December 31, 1991a	8.82¢ per litre
January 1, 1992 - March 31, 1992	9.76¢ per litre
April 1, 1992 - August 31, 1993b	10.00¢ per litre

^a See MFTA/Sec.4/R.6.
^b The quarterly adjustment of fuel tax rates using the indexing formula was repealed April 1, 1992.

Reminder of the Province - Tax Rate on Clear Gasoline, September 1, 1993 to present (cents per litre)^c

Effective Dates	BC Ferriesd	British Columbia Transportation Financing Authoritye	Provincial	Total Motor Fuel Tax
September 1, 1993 - March 31, 1997		1.00	10.00	11.00
April 1, 1997 - March, 31, 1999		2.00	9.00	11.00
April 1, 1999 -May 31,1999	1.00	2.00	8.00	11.00
June 1, 1999 - September 30, 1999	1.00	3.00	7.00	11.00
October 1, 1999 - March 31, 2000	1.25	3.00	6.75	11.00
April 1, 2000 - February 28, 2003	1.25	3.25	6.50	11.00
March 1, 2003 - March 31, 2003	1.25	6.75	6.50	14.50
April 1, 2003 - Present		6.75	7.75	14.50

^c For tax rates for the South Coast British Columbia Transportation Service Region, see MFTA/Sec.4/R.7. For tax rates for the Victoria Regional Transit Service Area, see MFTA/Sec.4/R.8.
^d See MFTA/Sec.13.1/Int.
^e See MFTA/Sec.13/Int.

R.2 Tax Rate on Leaded Gasoline January 2, 1924 to March 31, 1993

Tax Rate on Leaded Gasoline January 2, 1924 to March 31, 1993

Effective Dates	Rates
January 2, 1924 - March 31, 1987a	same as for unleaded gasoline - see R.1
April 1, 1987 - June 30, 1987	9.09¢ per litre
July 1, 1987 - September 30, 1987	9.49¢ per litre
October 1, 1987 - December 31, 1987	9.64¢ per litre
January 1, 1988 - March 31, 1988	9.89¢ per litre
April 1, 1988 - June 30, 1988	9.35¢ per litre
July 1, 1988 - September 30, 1988	10.08¢ per litre
October 1, 1988 - December 31, 1988	8.96¢ per litre
January 1, 1989 - March 31, 1989	9.79¢ per litre
April 1, 1989 - June 30, 1989	9.69¢ per litre
July 1, 1989 - September 30, 1989	10.28¢ per litre
October 1, 1989 - December 31, 1989	11.01¢ per litre
January 1, 1990 - March 31, 1990	11.04¢ per litre
April 1, 1990 - June 30, 1990	11.49¢ per litre
July 1, 1990 - September 30, 1990	11.83¢ per litre
October 1, 1990 - December 31, 1990	11.93¢ per litre
January 1, 1991 - March 31, 1991	13.00¢ per litre
April 1, 1991 - June 30, 1991	12.74¢ per litre
July 1, 1991 - September 30, 1991	10.82¢ per litre
October 1, 1991 - December 31, 1991b	10.82¢ per litre
January 1, 1992 - March 31, 1992	11.76¢ per litre
April 1, 1992 - March 31, 1993c	12.00¢ per litre

^a Effective April 1, 1987, the tax on leaded gasoline is 2¢ per litre higher than the unleaded gasoline tax rate (see MFTA/Sec.4/R.1).
^b See MFTA/Sec.4/R.6
^c The quarterly adjustment of fuel tax rates using the indexing formulae was repealed April 1,1992.

Effective April 1, 1993, (Bill 4, 1993), separate tax rates for leaded gasoline were removed from the Act. This is consequential to the federal government’s 1990 ban on the use of leaded gasoline in automotive engines (Canadian Environment Protection Act, Gasoline Regulation SOR-90-247).

R.3 Indexing Formula (Revised: 2015/07)

Prior to 1981, tax rates on all fuels were calculated on a cents per gallon basis.

Effective October 1, 1981, an indexing formula was introduced under the Gasoline Tax Act for the purpose of establishing the tax rate on gasoline. The formula provided that the tax rate would be equal to 20% of the retail price for gasoline which existed immediately after the budget, indexed for future inflation, less provincial and urban transit authority taxes. At the same time, tax rates for other fuels taxed under the Gasoline (Coloured) Tax Act and the Motive Fuel Use Tax Act were tied to the tax rate for gasoline established by the formula. The formula was designed to reflect the increase or decrease in the retail price of gasoline based on the Vancouver Consumer Price Index subcomponent for gasoline. Under this formula the tax rate would be reviewed every 3 months.

In 1985 a separate indexing formula was introduced under the Gasoline (Coloured) Tax Act for marked (marine) bunker fuel, based on 20% of the pre-tax selling price of marked (marine) bunker fuel, to make the tax rate on marked (marine) diesel independent of the tax rate on gasoline. A separate indexing formula was also established for coloured fuels for off highway use, based upon 7% of the pre-tax selling price of gasoline.

Effective April 1, 1988, the base for the tax rate on clear gasoline, now referred to as unleaded gasoline, was increased to 22.5% of the pre-tax selling price. This change also affected the tax rates for leaded gasoline and motive fuel.

Effective the end of the day on March 31, 1989, the indexing formula used to determine the tax rates on petroleum fuels was amended. The rate is now based upon the average selling price of gasoline in Vancouver over the most recent three month period prior to each quarterly indexing date, rather than over a one month period. This will reduce the large fluctuations in the tax rates which occurred under the former system.

Effective April 1, 1992, the indexing formulae are repealed and replaced with tax rates set by the minister through the Act.

R.4 Rebates for Off-Highway Uses of Unleaded Gasoline, January 2, 1924 to Present (Revised: 2015/07)

Rebates for Off-Highway Uses of Unleaded Gasoline, January 2, 1924 to Present (Revised: 2015/07)

Effective Dates	Rates
January 2, 1924 - March 31, 1930	3.0¢ per gallon
April 1, 1930 - September 30, 1934	5.0¢ per gallon
October 1, 1934 - March 31, 1947	6.0¢ per gallon
April 1, 1947 - March 20, 1961	9.0¢ per gallon
March 21, 1961 - March 14, 1985a	12.0¢ per gallon (2.64¢/litre)
March 15, 1985 - March 31, 1985	5.06¢ per litre
April 1, 1985 - June 30, 1985	5.22¢ per litre
July 1, 1985 - September 30, 1985	5.48¢ per litre
October 1, 1985 - December 31, 1985	5.35¢ per litre
January 1, 1986 - March 31, 1986	5.62¢ per litre
April 1, 1986 - June 30, 1986	5.57¢ per litre
July 1, 1986 - September 30, 1986	4.21¢ per litre
October 1, 1986 - December 31, 1986	4.00¢ per litre
January 1, 1987 - March 31, 1987	4.16¢ per litre
April 1, 1987 - June 30, 1987b	4.61¢ per litre
July 1, 1987 - September 30, 1987	4.87¢ per litre
October 1, 1987 - December 31, 1987	4.97¢ per litre
January 1, 1988 - March 31, 1988	5.13¢ per litre
April 1, 1988 - June 30, 1988	5.07¢ per litre
July 1, 1988 - September 30, 1988	5.57¢ per litre
October 1, 1988 - December 31, 1988	4.80¢ per litre
January 1, 1989 - March 31, 1989	5.37¢ per litre
April 1, 1989 - June 30, 1989	5.30¢ per litre
July 1, 1989 - September 30, 1989	5.71¢ per litre
October 1, 1989 - December 31, 1989	6.21¢ per litre
January 1, 1990 - March 31, 1990	6.23¢ per litre
April 1, 1990 - June 30, 1990	6.54¢ per litre
July 1, 1990 - September 30, 1990	6.77¢ per litre
October 1, 1990 - December 31, 1990	6.84¢ per litre
January 1, 1991 - March 31, 1991	7.58¢ per litre
April 1, 1991 - June 30, 1991	7.40¢ per litre
July 1, 1991 - September 30, 1991	6.08¢ per litre
October 1, 1991 - December 31, 1991c	6.08¢ per litre
January 1, 1992 - March 31, 1992	6.73¢ per litre
April 1, 1992 - August 31, 1993d	7.00¢ per litre
Sept 1, 1993 – February 28, 2003	8.00¢ per litre
March 1, 2003 – present	11.5¢ per litre

^a Effective March 15, 1985, the rebate amount was established as the full difference between the clear gasoline tax rate and the gasoline (coloured) tax rate (Bill 8, Gasoline Tax Amendment Act, 1985, section 9).
^b Effective April 1, 1987, the rebate amount is the full difference between clear unleaded gasoline tax rate and the gasoline (coloured) tax rate. 
^c See MFTA/Sec.4/R.6
^d Quarterly adjustment of fuel tax rates using the indexing formulae repealed April 1, 1992.

R.5 Rebates for Off-Highway uses of Leaded Gasoline, January 2, 1924 to March 31, 1993

Rebates for Off-Highway uses of Leaded Gasoline, January 2, 1924 to March 31, 1993

Effective Dates	Rates
January 2, 1924 - March 31, 1987a	same as for unleaded gasoline – R.3
April 1, 1987 - June 30, 1987b	6.61¢ per litre
July 1, 1987 - September 30, 1987	6.87¢ per litre
October 1, 1987 - December 31, 1987	6.97¢ per litre
January 1, 1988 - March 31, 1988	7.13¢ per litre
April 1, 1988 - June 30, 1988	7.07¢ per litre
July 1, 1988 - September 30, 1988	7.57¢ per litre
October 1, 1988 - December 31, 1988	6.80¢ per litre
January 1, 1989 - March 31, 1989	7.37¢ per litre
April 1, 1989 - June 30, 1989	7.30¢ per litre
July 1, 1989 - September 30, 1989	7.71¢ per litre
October 1, 1989 - December 31, 1989	8.21¢ per litre
January 1, 1990 - March 31, 1990	8.23¢ per litre
April 1, 1990 - June 30, 1990	8.54¢ per litre
July 1, 1990 - September 30, 1990	8.77¢ per litre
October 1, 1990 - December 1, 1990	8.84¢ per litre
January 1, 1991 - March 31, 1991	9.58¢ per litre
April 1, 1991 - June 30, 1991	9.40¢ per litre
July 1, 1991 - September 30, 1991	8.08¢ per litre
October 1, 1991 - December 31, 1991c	8.08¢ per litre
January 1, 1992 - March 31, 1992	8.73¢ per litre
April 1, 1992 - March 31, 1993d	9.00¢ per litre

^a Effective March 15, 1985, the rebate amount was established as the full difference between the clear gasoline tax rate and the gasoline (coloured) tax rate (Bill 8, Gasoline Tax Amendment Act, 1985, section 9).
^b Effective April 1, 1987, the rebate amount is the full difference between clear unleaded gasoline tax rate and the gasoline (coloured) tax rate. 
^c See MFTA/Sec.4/R.6
^d Quarterly adjustment of fuel tax rates using the indexing formulae repealed April 1, 1992.

R.6 Remission of Tax October 1, 1991 to December 31, 1991

Motor fuel tax rates were reviewed on October 1, 1991 under the indexing formulae established in the Motor Fuel Tax Act. This review resulted in a tax increase of 0.57¢ per litre. However, a policy decision was made not to increase the rates from those in effect from July 1, 1991 to September 30, 1991.

To achieve this policy, B.C. Reg. #283/91 was enacted. This regulation provides that a purchaser is entitled to a refund of the difference between the tax payable under the old rate and the tax payable under the new rate, on fuel purchased from October 1, 1991 to December 31, 1991. This refund provision applies to fuel taxed under sections 4, 5, 6, 7 and 10 of the Act.

Under the authority of the Financial Administration Act, section 19, B.C. Reg. #283/91 also provides for a remission of tax equal to the refund that would be payable. This remission is made because administering this refund would involve a burden to the public and administrative inconvenience. Therefore, the tax increase will not be collected, nor will it be refunded.

R.7 Motor Fuel Tax Rates for Clear Gasoline in the South Coast British Columbia Transportation Service Region (cents per litre) (Issued: 2015/07; Revised: 2023/10)

Motor Fuel Tax Rates for Clear Gasoline in the South Coast British Columbia Transportation Service Region (cents per litre) (Issued: 2015/07)

Effective Dates	Dedicated Taxa	British Columbia Transportation Financing Authorityb	BC Ferriesc	Provinciald	Total Motor Fuel Tax
September 1, 1993 - March 31, 1997	4.00	1.00		10.00	15.00
April 1, 1997 - March, 31, 1999	4.00	2.00		9.00	15.00
April 1, 1999 - May 31,1999	8.00	2.00	1.00	4.00	15.00
June 1, 1999 - September 30, 1999	8.00	3.00	1.00	3.00	15.00
October 1, 1999 - March 31, 2000	8.00	3.00	1.25	2.75	15.00
April 1, 2000 -March 31, 2001	8.00	3.25	1.25	2.50	15.00
April 1, 2001-March 31, 2002	9.00	3.25	1.25	1.50	15.00
April 1, 2002-February 28, 2003	11.00	3.25	1.25	1.50	17.00
March 1, 2003 - March 31, 2003	11.00	6.75	1.25	1.50	20.50
April 1, 2003 -March 31, 2005	11.50	6.75		2.25	20.50
April 1, 2005- December 31, 2009	12.00	6.75		1.75	20.50
January 1, 2010-March 31, 2012	15.00	6.75		1.75	23.50
April 1, 2012 - June 30, 2019	17.00	6.75		1.75	25.50
July 1, 2019 - present	18.50	6.75		1.75	27.00

^a For dedicated tax rates prior to September 1,1993, see MFTA/Sec. 12/R.1.
^b See MFTA/Sec. 13/Int.
^c See MFTA/Sec. 13.1/Int.
^d For provincial tax rates prior to September 1,1993, see MFTA/Sec. 4/R.1.

R.8 Motor Fuel Tax Rates for Clear Gasoline in the Victoria Regional Transit Service Area (cents per litre) (Issued: 2015/07; Revised: 2023/10)

Motor Fuel Tax Rates for Clear Gasoline in the Victoria Regional Transit Service Area (cents per litre) (Issued: 2015/07)

Effective Date	Dedicated Taxa	British Columbia Transportation Financing Authorityb	BC Ferriesc	Provinciald	Total Motor Fuel Tax
May 1, 1993-August 31, 1993	1.50			10.00	11.50
September 1, 1993 - March 31, 1997	1.50	1.00		10.00	12.50
April 1, 1997 - June 30, 1997	1.50	2.00		9.00	12.50
July 1, 1997-March 31, 1999	2.50	2.00		9.00	13.50
April 1, 1999 - May 31,1999	2.50	2.00	1.00	8.00	13.50
June 1, 1999 - September 30, 1999	2.50	3.00	1.00	7.00	13.50
October 1, 1999 - March 31, 2000	2.50	3.00	1.25	6.75	13.50
April 1, 2000 – February 28, 2003	2.50	3.25	1.25	6.50	13.50
March 1, 2003 - March 31, 2003	2.50	6.75	1.25	6.50	17.00
April 1, 2003 - March 31, 2008	2.50	6.75		7.75	17.00
April 1, 2008 - March 31, 2018	3.50	6.75		7.75	18.00
April 1, 2018 - present	5.50	6.75		7.75	20.00

^a See MFTA/Sec.12.1/Int.
^b See MFTA/Sec. 13/Int.
^c See MFTA/Sec. 13.1/Int.
^d For provincial tax rates prior to September 1, 1993, see MFTA/Sec. 4/R.1.

MFT - SEC.4(1.1)/Int.

(1.1)

Reference:

Act: Section 1 “South Coast British Columbia transportation service region”, “purchaser”

Bulletin MFT-CT 005

Interpretation (Issued: 2015/07)

Subsection 4(1.1) establishes that a purchaser who takes delivery of gasoline outside the South Coast British Columbia transportation service region is deemed to be liable to pay the lower tax rate established under paragraph 4(1)(a). A purchaser who takes delivery of gasoline inside the South Coast British Columbia transportation service region is deemed to be liable to pay the higher tax rate established under paragraphs 4(1)(b), 4(1)(c) and 4(1)(d).

For further information on the dedicated tax for the South Coast British Columbia transportation service region see MFTA/Sec.12/Int.

MFT - SEC.4(1.11) /Int.

(1.11)

Reference:

Act: Section 1.1

Interpretation (Issued: 2015/07; Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 4(1.11) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 adds subsection 4(1.11). This subsection was added for the purposes of the new rules regarding imported fuel under section 1.1 [fuel imported by ship].

Subsection 4(1.11) establishes that tax under subsection 4(1) applies in respect of a purchase of fuel imported by ship under paragraphs 1.1(2)(a) to (c).

MFT - SEC.4(1.2)-(2.1)/Int.

(1.2)-(2.1)

References:

Act: Section 1 “licensed carrier”

Bulletin MFT-CT 008

Interpretation (Issued: 2015/07)

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added subsection 4(1.3). This subsection was added for the purposes of the new rules regarding imported fuel under section 1.1 [fuel imported by ship].

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added subsection 4(1.2) and subsection 4 (2.1) as a consequential amendment to the Act. Consistent with the International Fuel Tax Agreement, subsection 4(1.2) imposes on the purchase of gasoline by licensed carriers tax at a rate equal to the carbon tax on gasoline. Under subsection 4(2.2), a licensed carrier who uses gasoline in British Columbia but is not taxed under subsection (1.2) (e.g., because they did not purchase the gasoline in British Columbia) must pay tax at a rate equal to the carbon tax on gasoline.

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act (No. 2), 1995 added subsection 4(2). This subsection requires International Fuel Tax Agreement (IFTA) carriers who purchase gasoline outside of the province to pay tax on the gas that they consume within the province. This subsection also establishes that payments must be made by the last day of the calendar month following the end of the calendar quarter. This amendment was necessary to accommodate the tax collection requirements of IFTA. This amendment was brought into force on January 1, 1996 by B.C. Reg. 550/95, the date BC became a member of IFTA.

Subsection 4(1.2) establishes that, in addition to the tax payable under subsection 4(1), a licensed carrier who purchases gasoline in British Columbia must pay tax on the gasoline at the rate indicated in Schedule 1 of the Carbon Tax Act at the time of purchase.

Subsection 4(1.3) establishes that a licensed carrier who purchases motive fuel in a sale to which paragraphs 1.1(2)(a) to (c) applies, must pay tax at the rate established under subsection 4(1.2) on that fuel on or before the last day of the month following the end of the calendar quarter in which the fuel was purchased.

Subsection 4(2) establishes that a licensed carrier who uses motive fuel in British Columbia (that was purchased in another jurisdiction), must pay tax at a rate established under under paragraph 4(1)(a) on or before the last day of the month following the calendar quarter in which the fuel was used.

Subsection 4(2.1) establishes that licensed carriers who use gasoline in British Columbia that is not otherwise taxable under subsection 4(1.2) must pay tax at the rate established in subsection 4(1.2) of the Act.

MFT - SEC.4(3)/Int.

(3)

Interpretation (Issued: 2015/07; Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 4(3) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act (No. 2) amended subsection 4(3) to clarify that operators of other commercial motor vehicles who acquire fuel outside of the province are required to pay tax on the fuel consumed in the province. This amendment was required to distinguish the different tax remittance responsibilities for IFTA carriers and other persons.

Section 5 – Tax On Coloured Fuel

MFT - SEC.5/Int.-R.2

References:

Act: Section 1 “coloured fuel”, “farmer”; Section 5.1; Section 6; Section 14; Section 15; Section 45.3

Bulletin MFT-CT 003

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

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 5(1.1) and subsection 5(2) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective July 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended section 5 by adding references to the new section 5.1 and adding a new subsection 5(2.1).

The references to section 5.1 ensure that the coloured fuel rate of 3 cents per litre is subject to the new declaration requirements under section 5.1.

The addition of subsection 5(2.1) clarifies that if tax is payable under subsection 6(3), tax is not payable under subsection 5(2). This amendment was necessary to prevent any potential overlap between the tax on the use of coloured fuel under subsection 5(2) and the tax on marine diesel fuel and locomotive fuel that is transferred into a turbine or engine of a ship or rolling stock under subsection 6(3). This was particularly important as a result of an amendment to section 15 [prohibition against unauthorized purchase or use of coloured fuel], allowing the use of coloured fuel in a locomotive.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added subsection 5(1.1). The new subsection was added for the purposes of the new rules regarding imported fuel under section 1.1 [fuel imported by ship].

R.1 Coloured Gasoline Tax Rates, June 27, 1947 to December 31, 1989

Coloured Gasoline Tax Rates, June 27, 1947 to December 31, 1989

Effective Dates	Rates
June 2, 1947 - February 4, 1971	1.0¢ per gallon
February 5, 1971 - February 27, 1975	3.0¢ per gallon
February 28, 1975 - March 9, 1981	3.0¢ per gallon
March 10, 1981 - September 30, 1981	2.68¢ per litre
October l, 1981 - December 31, 1981	3.02¢ per litre
January 1, 1982 - March 31, 1982	3.49¢ per litre
April 1, 1982 - June 30, 1982	3.52¢ per litre
July 1, 1982 - September 30 1982	3.90¢ per litre
October 1, 1982 - December 31, 1982	4.06¢ per litre
January 1, 1983 - March 31, 1983	3.78¢ per litre
April 1, 1983 - June 30, 1983	4.24¢ per litre
July 1, 1983 - September 30, 1983	3.84¢ per litre
October 1, 1983 - December 31, 1983	4.99¢ per litre
January 1, 1984 - March 31, 1984	4.97¢ per litre
April 1, 1984 - June 30, 1984	5.05¢ per litre
July 1, 1984 - September 30, 1984	5.02¢ per litre
October 1, 1984 - December 31, 1984	5.08¢ per litre
January 1, 1985 - March 14, 1985	5.37¢ per litre
March 15, 1985 - March 31, 1985	2.95¢ per litre
April 1, 1985 - June 30, 1985	2.81¢ per litre
July 1, 1985 - September 30, 1985	2.94¢ per litre
October 1, 1985 - December 31, 1985	2.88¢ per litre
January 1, 1986 - March 31, 1986	3.02¢ per litre
April 1, 1986 - June 30, 1986	2.99¢ per litre
July 1, 1986 - September 30, 1986	2.26¢ per litre
October 1, 1986 - December 31, 1986	2.14¢ per litre
January 1, 1987 - March 31, 1987	2.23¢ per litre
April 1, 1987 - June 30, 1987	2.48¢ per litre
July 1, 1987 - September 30, 1987	2.62¢ per litre
October 1, 1987 - December 31, 1987	2.67¢ per litre
January 1, 1988 - March 31, 1988	2.76¢ per litre
April 1, 1988 - June 30, 1988	2.28¢ per litre
July 1, 1988 - September 30, 1988	2.51¢ per litre
October 1, 1988 - December 31, 1988	2.16¢ per litre
January 1, 1989 - March 31, 1989	2.42¢ per litre
April 1, 1989 - June 30, 1989	2.39¢ per litre
July 1, 1989 - September 30, 1989	2.57¢ per litre
October 1, 1989 - December 31, 1989	2.80¢ per litre

Coloured Gasoline Tax Rates, January 1, 1990 to Present

Effective Dates	Rates
January 1, 1990 - March 31, 1990	2.81¢ per litre
April 1, 1990 - June 30, 1990	2.95¢ per litre
July 1, 1990 - September 30, 1990	3.06¢ per litre
October 1, 1990 - December 31, 1990	3.09¢ per litre
January 1, 1991 - March 31, 1991	3.42¢ per litre
April 1, 1991 - June 30, 1991	3.34¢ per litre
July 1, 1991 - September 30, 1991	2.74¢ per litre
October 1, 1991 - December 31, 1991a	2.74¢ per litre
January 1, 1992 - March 31, 1992	3.03¢ per litre
April 1, 1992 - Presentb	3.00¢ per litre

^a See MFTA/Sec.4/R.6
^b The quarterly adjustment of fuel tax rates using the indexing formulae was repealed April 1, 1992. 

R.2 Coloured Gasoline and Diesel Fuel Tax Rates for Farmers and Fishers with Permits, June 2, 1947 to March 14, 1985*

Coloured Gasoline and Diesel Fuel Tax Rates for Farmers and Fishers with Permits, June 2, 1947 to March 14, 1985*

Effective Dates	Rates
June 2, 1947 - February 4, 1971	11.0¢ per gallon
February 5, 1971 - April 24, 1973	3.0¢ per gallon
April 25, 1973 - March 9, 1981	Nil
March 10, 1981 - September 30, 1981	1.58¢ per litre
October 1, 1981 to December 31, 1981	1.92¢ per litre
January 1, 1982 - March 31, 1982	2.39¢ per litre
April 1, 1982 - June 30, 1982	2.42¢ per litre
July 1, 1982 - September 30, 1982	2.80¢ per litre
October 1, 1982 - December 31, 1982	2.96¢ per litre
January 1, 1983 - March 31, 1983	2.68¢ per litre
April 1, 1983 - June 30, 1983	3.14¢ per litre
July 1, 1983 - September 30, 1983	2.74¢ per litre
October 1, 1983 - December 31, 1983	3.89¢ per litre
January 1, 1984 - March 31, 1984	3.87¢ per litre
April 1, 1984 - June 30, 1984	3.95¢ per litre
July 1, 1984 - September 30, 1984	3.92¢ per litre
October 1, 1984 - December 31, 1984	3.98¢ per litre
January 1, 1985 - March 14, 1985**	4.27¢ per litre

* Effective March 15, 1985 there is no separate rate of tax for farmers and fishers.  For current tax rates, see MFTA/SEC. 5/R.1 above.
** Effective March 15, 1985 there is no separate rate of tax for farmers and fishers.  For current tax rates, see MFTA/SEC. 5/R.1 above.

Section 5 – Tax On Coloured Fuel

MFT - SEC.5(3)/Int.

(3) Farmers

References:

Act: Section 1 “coloured fuel”, “farmer”; Section 15

MFTR: Section 15.4; Section 15.5

Bulletin MFT-CT 003

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

Effective February 20, 2008, Bill 2, Budget Measures Implementation Act, 2008 amended section 5(3) by replacing bona fide farmer under the Social Service Tax Act (repealed) with farmer as defined in the Act.

Effective June 1, 1998, persons who qualify as bona fide farmers under the Social Service Tax Act were exempt from, or eligible for a refund of, the tax on purchases of coloured fuel. This exemption was announced as part of the March 30, 1998 budget. However, to allow the province and fuel suppliers time to make the necessary adjustments, this exemption did not come into effect until June 1.

Subsection 5(3) provides that a person who qualifies as a farmer may, if authorized by regulations to do so, claim an exemption from tax or a refund of tax paid under section 5.

For information on the situations where farmers can obtain a point-of-sale exemption, and the situations in which farmers must pay the tax at the time of purchase and apply for a refund, see MFTR/Sec. 15.4.

R.1 Exemption or Refund Not Limited to Farm Use (Revised: 2009/04, 2015/04)

The Act authorizes farmers to claim an exemption or refund of the tax paid on coloured fuel. It does not specify that the coloured fuel must also only be used for a farm purpose. As such, farmers are eligible for exemption or a refund where coloured fuel is used for any purpose that is authorized under section 15 [prohibition against unauthorized use of coloured fuel] of the Act.

Section 5.1 - Tax On Coloured Fuel If Declaration Not Obtained

MFT - SEC.5.1/Int.

References:

Act: Section 1 "coloured fuel", "director", "farmer", "marine diesel", "locomotive fuel", "purchaser", "retail dealer", "ship"; Section 5; Section 15; Section 22.1

MFTR: Section 15.4

Interpretation (Issued: 2016/01; Revised: 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsection 5.1(3) to replace “in a form acceptable to the director” with “in a form specified by the director,” for consistency with other sections of the Act.

Effective July 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 added section 5.1 to deter the unauthorized purchase or use of coloured fuel and to protect provincial revenue. Section 5.1 requires retail dealers who are selling coloured fuel to collect tax at the clear fuel rate unless they obtain, from the purchaser, a declaration in a form acceptable to the director.

The requirement under section 5.1 only applies to fuel that is purchased through a cardlock system or in amounts greater than 45 litres. Cardlock systems are systems that require a purchaser to have a card issued by the fuel seller to access the pump. Cardlock systems do not include pumps that may be accessed with a credit or debit card, such as a regular fuel pump that requires payment before allowing the purchaser to pump fuel.

Under subsection 5.1(2), the requirement to collect tax at the clear fuel rate does not apply in the following circumstances:

• The purchaser is a farmer - under MFTR section 15.4 [exemption or refund for farmer], farmers may buy coloured fuel exempt from tax in specified circumstances if they provide a declaration in the form acceptable to the director or their BC Farmer Identify Card.
• The coloured fuel is marine diesel or locomotive fuel - because these fuels are defined by their use, marine diesel and locomotive fuel can be clear or coloured. As a result, there is no higher rate "if that fuel were not coloured" for marine diesel or locomotive fuel.
• The coloured fuel that is transferred by the retail dealer to the supply tank of a ship that is in or on the water and will be used in the operation of the ship - the risk of such fuel being used for an unauthorized use is considered minimal.

Section 6 – Tax On Marine Diesel Fuel And Locomotive Fuel

MFT - SEC.6/Int.

References:

Act: Section 1 “locomotive fuel”, “marine diesel fuel”; Section 43

Bulletin MFT-CT 005

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

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsections 6(1.1), 6(2), 6(3), and 6(4) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added subsection 6(1.1). The subsection was added for the purposes of the new rules regarding import fuel under section 1.1 [fuel imported by ship]. Subsection 6(3) was also amended.

Effective February 20, 2008, Bill 2, Budget Measures Implementation Act, 2008, added subsection 6(4) to clarify that when locomotive fuel is used for a purpose other than in rolling stock or other vehicle when run on rails, tax is payable on the difference between the tax paid on the locomotive fuel and the tax that would have otherwise been paid.

For example, a high rail vehicle can be driven on the rails to maintain the railroad and can also be driven on the highway for other purposes. It uses locomotive fuel delivered to the railway yard. During a one month period, the vehicle consumed 500 litres of locomotive fuel while driving on the highway. Tax on locomotive fuel is 3¢ per litre and tax on diesel fuel is 15¢ per litre (i.e. outside of the South Coast British Columbia transportation service region).

The amount due is $60 (500 litres x 12¢).

Please note that if the same vehicle uses diesel fuel while operating on the highway, and subsequently runs on the rails, there is no provision for a refund on the difference between the tax paid on the diesel fuel and the tax payable on locomotive fuel.

Effective March 20, 1987, locomotive fuel was included in this section as it is taxed in the same manner as marine diesel fuel. The tax rate on locomotive fuel is the same as the tax rate for coloured fuel.

A separate provision for the taxation of marine diesel fuel from coloured fuel was established effective March 31, 1986 to ensure that tax is imposed on all such fuel transferred into the receptacle of a ship located in the province. The tax rate on marine diesel is the same as the tax rate for coloured fuel.

Section 7 – Tax On Jet Fuel

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

References:

Act: Section 7

MFTR: Section 2.4

Bulletin MFT-CT 005

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

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsections 7(1.1), 7(2) and 7(3) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added subsection 7(1.1). The subsection was added for the purposes of the new rules regarding import fuel under section 1.1[fuel imported by ship]. Subsection 7(3) was also amended.

The constitutional validity of subsection 7(3) was challenged by Canadian Airlines International and by KLM Royal Dutch Airlines. In both cases, the airlines purchased fuel from out of province suppliers and brought the fuel into BC for storage and subsequent transfer into their aircraft. Tax is imposed on this fuel because, although the purchase occurs outside the province, the transfer of the fuel into an aircraft in BC is a taxable event under subsection 7(3). In 1996, the Supreme Court of BC upheld this legislation as valid provincial taxing legislation. The court held that the subject matter of the tax (the transfer of the fuel into an aircraft in BC) has a real and substantial connection to the province, and this is not a colourable attempt to tax an out-of-province purchase. This is a direct tax properly characterized as a transaction tax. The fuel transfer transaction is not an artificial one, but rather is real and within the province's jurisdiction to tax. Similar legislation in Ontario has also been upheld by the Ontario Court of Appeal as constitutionally valid.

Effective March 23, 1994, Bill 19,Taxation Statutes Amendment Act, 1994 amended section 7 to enable the government to reduce the jet fuel tax rates for certain persons or for certain uses.

In July 1994, the province established a lower tax rate (4¢ per litre as opposed to 5¢) for jet fuel used on flights which began or ended outside Canada. This was done to help the province take advantage of the expected growth in Asia-North America travel and enhance the Vancouver International Airport as a North American Gateway to the Pacific Rim for cargo and passenger traffic.

The jet fuel rate was lowered again on April 1, 1998 and April 1, 1999 to 3¢ and 2¢ per litre respectively. The difference in tax rates between domestic and international rates ended on August 1, 2001 when the rate for domestic flights dropped to 2¢ per litre (see R.1 below for a complete history of jet fuel tax rates).

R.1 Tax Rates for Jet Fuel, January 1, 1992 to Present (Revised: 2005/07, 2015/04)

Tax Rates for Jet Fuel, January 1, 1992 to Present (Revised: 2005/07, 2015/04)

Effective Dates	Rates
April 1, 1992a - July 1, 1994	5.00¢ per litre
July 1, 1994 - March 31, 1998b	4.00¢ per litre - International 5.00¢ per litre - Domestic
April 1, 1998 - March 31, 1999c	3.00¢ per litre - International 5.00¢ per litre - Domestic
April 1, 1999 - July 31, 2001c	2.00¢ per litre - International 5.00¢ per litre - Domestic
August 1, 2001 - Presentd	2.00¢ per litre

^a Effective April 1, 1992, a separate tax rate was established for jet fuel.  Prior to this date, jet fuel was taxed at the same rate as aviation fuel (for tax rates see MFTA/Sec. 8/R.1).
^b Effective July 1, 1994, the jet fuel tax rates for flights which begin or end outside Canada was differentiated from the rate for domestic flights.  The jet fuel tax rate for international flights was set at 4.00¢ per litre while the tax rate for domestic flights remained at 5.00¢ per litre.
^c Subsequent reductions of the rate for international flights occurred April 1, 1998 and April 1, 1999.  The rates were reduced to 3.00¢ and 2.00¢ respectively.
^c Subsequent reductions of the rate for international flights occurred April 1, 1998 and April 1, 1999.  The rates were reduced to 3.00¢ and 2.00¢ respectively.
^d Effective August 1, 2001, the tax rate paid on domestic jet fuel was lowered to 2.00¢ per litre to match the existing tax rate on international jet fuel.  This ended the difference in tax rates.

Section 8 – Tax On Aviation Fuel

MFT - SEC.8/Int.-R.2

References:

Act: Section 1 “aviation fuel”

Bulletin MFT-CT 005

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

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsections 8(1.1), 8(2) and 8(3) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012, adds subsection 8(1.1). The subsection was added for the purposes of the new rules regarding import fuel under section 1.1[fuel imported by ship]. Subsection 8(3) was also amended.

R.1 Tax Rates for Aviation Fuel, January 2, 1924 to Present (Revised: 2003/05)

Tax Rates for Aviation Fuel, January 2, 1924 to Present (Revised: 2003/05)

Effective Dates	Rates
January 2, 1924 - April 17, 1932	N/A
April 18, 1932 - September 30, 1934	2.0¢ per gallon
October 1, 1934 - February 4, 1971	1.0¢ per gallon
February 5, 1971 - February 27, 1975	3.0¢ per gallon
February 28, 1975 - March 9, 1981	5.0¢ per gallon
March 10, 1981 - September 30, 1981	2.68¢ per litre
October 1, 1981 - December 31, 1981	3.02¢ per litre
January 1, 1982 - March 31, 1982	3.49¢ per litre
April 1, 1982 - June 30, 1982	3.52¢ per litre
July 1, 1982 - September 30, 1982	3.90¢ per litre
October 1, 1982 - December 31, 1982	4.06¢ per litre
January 1, 1983 - March 31, 1983	3.78¢ per litre
April 1, 1983 - June 30, 1983	4.24¢ per litre
July 1, 1983 - September 30, 1983	3.84¢ per litre
October 1, 1983 - December 31, 1983	4.99¢ per litre
January 1, 1984 - March 31, 1984	4.97¢ per litre
April 1, 1984 - June 30, 1984	5.05¢ per litre
July 1, 1984 - September 30, 1984	5.02¢ per litre
October 1, 1984 - December 31, 1984	5.08¢ per litre
January 1, 1985 - March 14, 1985	5.37¢ per litre
March 15, 1985 - March 31, 1985	2.95¢ per litre
April 1, 1985 - June 30, 1985	2.81¢ per litre
July 1, 1985 - September 30, 1985	2.94¢ per litre
October 1, 1985 - December 31, 1985	2.88¢ per litre
January 1, 1986 - March 31, 1986	3.02¢ per litre
April 1, 1986 - June 30, 1986	2.99¢ per litre
July 1, 1986 - September 30, 1986	2.26¢ per litre
October 1, 1986 - December 31, 1986	2.14¢ per litre
January 1, 1987 - March 31, 1987	2.23¢ per litre
April 1, 1987 - June 30, 1987	2.48¢ per litre
July 1, 1987 - September 30, 1987	2.62¢ per litre
October 1, 1987 - December 31, 1987	2.67¢ per litre
January 1, 1988 - March 31, 1988	2.76¢ per litre
April 1, 1988 - June 30, 198	2.28¢ per litre
July 1, 1988 - September 30, 1988	2.51¢ per litre
October 1, 1988 - December 31, 1988	2.16¢ per litre
January 1, 1989 - March 31, 1989	2.42¢ per litre
April 1, 1989 - June 30, 1989	2.39¢ per litre
July 1, 1989 - September 30, 1989	2.57¢ per litre
October 1, 1989 - December 31, 1989	2.80¢ per litre

Tax Rates for Aviation Fuel, January 1, 1990 to Present

Effective Dates	Rates
January 1, 1990 - March 31, 1990	2.81¢ per litre
April 1, 1990 - June 30, 1990	2.95¢ per litre
July 1, 1990 - September 30, 1990	3.06¢ per litre
October 1, 1990 - December 31, 1990	3.09¢ per litre
January 1, 1991 - March 31, 1991	3.42¢ per litre
April 1, 1991 - June 30, 1991	3.34¢ per litre
July 1, 1991 - September 30, 1991	2.74¢ per litre
October 1, 1991 - December 31, 1991a	2.74¢ per litre
January 1, 1992 - March 31, 1992	3.03¢ per litre
April 1, 1992 - July 31, 2001b	3.00¢ per litre
August 1, 2001 - Present	2.00¢ per litre

^a See MFTA/SEC.4/R.6
^b Effective April 1, 1992, a separate tax rate for jet fuel was established in section 7 of the Act (see MFTA/Sec. 7/Int.).  The quarterly adjustment of fuel tax rates using the indexing formula was repealed April 1, 1992. 

R.2 The Use of Unleaded Automobile Fuel as Aviation Fuel (Revised: 2009/04, 2015/04)

Effective February 27, 1991, Transport Canada approved the use of unleaded automobile fuel (mogas) in small aircraft. However, as of June 1991, mogas is not being sold as aviation fuel for use in small aircraft. The major oil companies are unwilling to re-label mogas as aviation fuel and sell it for use in small aircraft for fear of possible liability in the event of an accident.

Independent fuel brokers who want to sell mogas as aviation fuel, have proposed buying the lower priced (higher taxed) mogas from the oil companies and re-labelling it as aviation fuel themselves. They then want the branch to refund the higher taxes they paid on the mogas, and to authorize them to collect the lower aviation fuel taxes on their sales of the renamed aviation fuel. This would give the brokers a competitive edge over the oil companies because they would be selling lower priced mogas taxed at the lower aviation fuel tax.

Because there is no provision in the Act to allow for this type of refund, and because they cannot be appointed as collectors (brokers do not sell the fuel for the first time within the province) the branch is not able to accede to their request.

Effective April 1, 1992, the definition of aviation fuel was changed in the Act to clarify that fuels that are not produced specifically for use in an aircraft are not aviation fuels, and do not qualify for payment of tax at the aviation fuel rate. Therefore, mogas is not eligible to be taxed at the aviation fuel tax rate even when used in aircraft.

Section 9 – Tax On Natural Gas

MFT - SEC.9/Int.-R.2

References:

Act: Section 1 “internal combustion engine”, “natural gas”, “tax”; Section 9.1

MFTR: Section 2.022

Interpretation (Issued: 2000/08; Revised: 2016/01)

Effective July 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended subsection 9(2) by deleting the language "on or before the 15th day of the month following the month in which the natural gas is used" and replacing it was "at the prescribed time and in the prescribed manner".

This amendment moves the remittance date for tax payable on the use of natural gas from the Act to MFTR section 2.022 [payment of tax - use of natural gas in stationary internal combustion engine]. The intent of the amendment was to change the remittance date for natural gas self-assessors from the 15th of the month to the last day of the month following the month in which the natural gas is used. This makes the remittance date consistent with the remittance date for PST, enabling taxpayers to determine how natural gas will be used before the returns under each Act are due.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed and replaced subsections 9(2) to (6). The changes were a result of the reimplementation of the PST.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 repealed and replaced section 9, including the section’s tax rate provisions. See MFTA/Sec. 9(3)/Int.

Effective March 26, 1997, Bill 2, Budget Measures Implementation Act, 1997 amended this section to clarify that the tax rate applicable to natural gas used in engines to compress gas or pump oil was 1.9¢ on every 810.32 litres. The previous wording of the taxing provision created confusion because it lent itself to the interpretation that compressors on ancillary pipelines were not subject to the higher rate of tax. As a result of the amendment, the concessions for natural gas, from April 1, 1993 to March 31, 2000, were as follows:

• The tax rate on natural gas used in compressors at the wellsite (producing well) and used to pull or push gas from the well was 1.1¢ per 810.32 litres. The wellsite means within the physical vicinity of the well work area. Anywhere outside the work area would raise the tax rate to 1.9¢ per 810.32 litres as the compressor would have been used to transmit gas along the pipeline.
• The tax rate on natural gas used in compressors located within or immediately adjacent to the processing plant to move gas through the plan was 1.1¢ per 810.32 litres. Immediately adjacent to means just outside the fence in the next lot. However, if the lot was a quarter section and the compressors were at the far end, the reduced rate would not apply.
• If a person used an old wellsite for storing their gas prior to sale or processing, the tax rate on gas used in compressors that moved the gas to and from the storage wellsite was 1.9¢ per 810.32 litres.

Effective April 1, 1993, the tax rate for natural gas used or purchased for use in a stationary engine at a compressor station of a pipeline or pumping station of an oil pipeline increased from 1.1¢ on every 810.32 litres to 1.9¢. (Bill 4, Budget Measures Implementation Act, 1993).

Effective April 1, 1987, the tax rates on natural gas used in stationary engines were no longer indexed. The rates were as follows:

• 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas used or purchased for use, in a stationary engine at a compressor station of a gas pipeline or pumping station of an oil pipeline;
• 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas used, but not purchased, at locations other than a compressor station of a gas pipeline or pumping station of an oil pipeline;
• 7 percent of the purchase price of natural gas used, and purchased for use, at locations other than a compressor station of a gas pipeline or pumping station of an oil pipeline.

R.1 Converting from Gigajoules to Litres (Issued: 2003/05: Revised 2009/04, 2014/08)

Natural gas distributors remit motor fuel tax on natural gas used to operate internal combustion compression engines that move gas to market. The tax remitted is calculated according to a prescribed rate of tax per 810.32 liters of gas used.

As gas measurements are now primarily done in terms of gigajoules (GJ’s), an equivalent rate has been developed for calculating tax based on GJ’s of natural gas, as follows:

Converting GJ’s to litres:

The Ministry uses the following conversion rates:

• 1 GJ = 26.137 m3 of natural gas
• 1 m3 of natural gas = 1,000 litres of natural gas

Therefore, I GJ contains 26,137 litres of natural gas.

1 taxable unit of natural gas = 810.32 litres.

Therefore 1 GJ of natural gas contains (26,137/810.32 ) taxable units, or 32.255158 taxable units.

If the tax rate is 1.9 cents per unit, then the amount of tax on 1 GJ = 1.9 cents x 32.255158 units, or 61.28 cents per GJ.

In more general form, the formula is:

Tax = (A/B) x C xD

Where:

A is the number of litres of natural gas in a GJ (use 26, 137);

B is the number of litres of natural gas in a taxable unit (use 810.32);

C is the number of GJ of natural gas on which tax is to be assessed; and

D is the current tax rate per unit of natural gas.

R.2 What is a Gas Processing Plant (Issued: 2016/01)

Section 9 of the MFTR refers to the locations of compressors including a "gas processing plant" for the purposes of applying motor fuel tax at different rates.

A "gas processing plant" must be a plant and process natural gas. A plant is a place where an industrial or manufacturing process takes place including the land, buildings, machinery, apparatus, and fixtures employed in carrying on a trade or an industrial business. Natural gas processing requires that natural gas is subject to a series of processing activities. A plant is not an isolated piece of equipment (such as a dehydrator) operating to perform a single, discrete, function.

These processes include dehydration (removal of liquid and gaseous water), sweetening (removal of hydrogen sulfide), removal of other impurities (e.g., carbon dioxide), and the separation of natural gas liquids (NGLs), such as ethane, propane and butane, and fractionation of the NGLs.

If a facility subjects incoming natural gas to two or more processing activities (such as dehydration, removal of other impurities, sweetening and separation of NGLs), then it is considered a gas processing plant.

The compression of natural gas is not a "processing" activity. Compressing natural gas does not involve the removal of impurities and other elements from the raw gas to produce marketable natural gas, but merely increases its pressure to facilitate movement. For example, a facility that only dehydrates and compresses the gas is not a "gas processing plant".

The sweetening of natural gas for the purposes of sending it back upstream to power the compressors that bring the natural gas to the facility is not a processing activity. This is minimal sweetening that is performed on a small portion of natural gas to prevent damage to the equipment. However, sweeting of natural gas that proceeds downstream is included in the count of processing activities.

Any equipment located at the wellhead that performs a function in terms of processing the gas is not considered a "gas processing plant".

While section 90 of the Provincial Sales Tax Exemption and Refund Regulation (PSTERR) contains a definition of "processing plant" in the context of gas processing, this definition has no bearing on the meaning of "gas processing plant" for the purposes of the Act.

MFT - SEC.9(1)/Int.

(1) Marketable Gas Defined

Interpretation (Issued: 2000/08; Revised: 2015/04)

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 repealed and replaced section 9 [tax on natural gas]. Subsection 9(1) defines “marketable gas” for the purposes of applying different tax rates to natural gas used in compressors depending on whether the compressors are used to compress processed gas. Marketable gas means gas that is available for sale for direct consumption as a domestic, commercial or industrial fuel, or as an industrial raw material, or is delivered to a storage facility, whether it occurs naturally or results from processing natural gas.

MFT - SEC.9(2)/Int.

(2) When Tax Is Payable On Natural Gas

References:

Act: Section 1 “internal combustion engine”, “natural gas”, “tax”

MFTR: Section 2.022

Interpretation (Issued: 2000/08; Revised: 2014/08, 2015/04, 2015/10)

Effective July 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended subsection 9(2) by deleting the language "on or before the 15th day of the month following the month in which the natural gas is used" and replacing it was "at the prescribed time and in the prescribed manner".

This amendment moves the remittance date for tax payable on the use of natural gas from the Act to MFTR section 2.022 [payment of tax - use of natural gas in stationary internal combustion engine]. The intent of the amendment was to change the remittance date for natural gas self-assessors from the 15th of the month to the last day of the month following the month in which the natural gas is used. This makes the remittance date consistent with the remittance date for PST, enabling taxpayers to determine how natural gas will be used before the returns under each Act are due.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed and replaced subsection 9(2). The new subsection provides that a person who uses natural gas in a stationary internal combustion engine on which tax is not payable under Division 2, 4 or 5 of Part 3 of the Provincial Sales Tax Act must pay tax to the government at the rate set out under subsections 9(3), (5), or (6) on or before the 15th day of the month following the month in which the natural gas is used.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 repealed and replaced section 9 [tax on natural gas]. Subsection 9(2) established when tax was to be paid on natural gas subject to tax under section 9. If the gas was purchased, the tax was payable at the time of purchase. If the gas was acquired other than by purchase, for example, self-produced or imported, the tax was payable on the 15th day of the month following the month in which the gas was used. This was the same remittance period as provided to sellers of natural gas.

MFT - SEC.9(3)/Int.

(3) Tax Rates On Natural Gas Used In Compressors

References:

Act: Section 1 “internal combustion engine”, “natural gas”, “tax”

Bulletin MFT-CT 005

Interpretation (Issued: 2000/08; Revised: 2014/08, 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed and replaced subsection 9(3). The new subsection 9(3) provides that the rate of tax applicable under subsection 9(2) on natural gas that is used in a stationary internal combustion engine that compresses natural gas is:

• 1.9¢ per 810.32 litres (at standard reference conditions) if the compressor is located outside a gas processing plant and is used to move marketable gas from the gas processing plant to market or in or out of storage facilities;
• 1.1¢ per 810.32 litres (at standard reference conditions) if the compressor is located within a gas processing plant and is used to compress marketable gas.

The old subsection 9(3) had addressed natural gas used in a compressor to compress gas that is not marketable, transmitting waste gas, and injecting waste gas. These were moved to a new subsection 9(4).

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000, repealed and replaced section 9 [tax on natural gas], including the section’s tax rate provisions.

Paragraph 9(3)(a) established that for compressors located outside of a processing plant and used to compress marketable gas (processed gas) for distribution to consumers or storage, the tax rates remained at 1.9¢ per 810.32 litres.

Paragraph 9(3)(b) established that for compressors located inside of a processing plant and used to compress marketable gas, the tax rate remained at 1.1¢ per 810.32 litres.

Paragraph 9(3)(c) established that for compressors that were used to compress unprocessed gas, regardless of their location the tax rate would be phased out over the next two years.

• Effective April 1, 2000, the lower 1.1¢ litre rate applied to all compressors used to compress unprocessed natural gas.
• Effective April 1, 2001, the tax rate was reduced to 0.55¢ per 810.32 litres.
• Effective April 1, 2002, the natural gas used in such compressors was exempt from tax.

Paragraph 9(3)(d) exempted natural gas used in compressors to compress waste gas for the purpose of transporting the gas within, or from, a processing station to a well, and for injecting the waste gas into a depleted well for permanent disposal. This exemption is intended to encourage this more environmentally friendly means of disposing of such gas. At present, the most common method of disposal involves recovering the sulphur and venting the remaining sulphur dioxide and carbon dioxide into the atmosphere. Exempting natural gas used to operate compressors for transporting and injecting waste gas will act as an incentive to companies to dispose of waste gas in this environmentally friendly manner.

Effective March 26, 1997, Bill 2, Budget Measures Implementation Act, 1997, amended this section to clarify that the tax rate applicable to natural gas used in engines to compress gas or pump oil was 1.9¢ on every 810.32 litres. The previous wording of the taxing provision created confusion because it lent itself to the interpretation that compressors on ancillary pipelines were not subject to the higher rate of tax. As a result of the amendment, the concessions for natural gas, from April 1, 1993 to March 31, 2000, were as follows:

• The tax rate on natural gas used in compressors at the wellsite (producing well) and used to pull or push gas from the well was 1.1¢ per 810.32 litres. The wellsite means within the physical vicinity of the well work area. Anywhere outside the work area would raise the tax rate to 1.9¢ per 810.32 litres as the compressor would have been used to transmit gas along the pipeline.
• The tax rate on natural gas used in compressors located within or immediately adjacent to the processing plant to move gas through the plan was 1.1¢ per 810.32 litres. Immediately adjacent to means just outside the fence in the next lot. However, if the lot was a quarter section and the compressors were at the far end, the reduced rate would not apply.
• If a person used an old wellsite for storing their gas prior to sale or processing, the tax rate on gas used in compressors that moved the gas to and from the storage wellsite was 1.9¢ per 810.32 litres.

Effective April 1, 1987, the tax rates on natural gas used in stationary engines were no longer indexed. The rates were as follows:

• 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas used or purchased for use, in a stationary engine at a compressor station of a gas pipeline or pumping station of an oil pipeline;
• 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas used, but not purchased, at locations other than a compressor station of a gas pipeline or pumping station of an oil pipeline;
• 7 percent of the purchase price of natural gas used, and purchased for use, at locations other than a compressor station of a gas pipeline or pumping station of an oil pipeline.

MFT - SEC.9(4)/Int.

(4) Tax Rates On Natural Gas Used In Internal Combustion Engines

References:

Act: Section 1 “internal combustion engine”, “natural gas”, “tax”

Bulletin MFT-CT 005

Interpretation (Issued: 2000/08; Revised: 2014/08, 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed and replaced subsection 9(4). Subsection 9(4) provides that natural gas used in a stationary internal combustion engine that compresses natural gas is exempt from tax if the compressor:

• is used to compress gas that is not marketable gas and is located:
  • at the well head,
  • along the pipeline between a well head and a gas processing plant, or
  • within a gas processing plant.
• is used to transmit waste gas, composed primarily of hydrogen sulphide and carbon dioxide, within a gas processing plant or from a gas processing plant to a well.
• is located at a well head and is used to inject waste gas into a depleted well for permanent disposal.

Prior to the 2013 amendments, the above exemption had been part of subsection 9(3) (for the history of the exemptions see MFTA/Sec. 9(3)/Int).

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 repealed and replaced section 9 [tax on natural gas]. Prior to April 1, 2013, subsection 9(4) established the tax rate for natural gas used or purchased for use in internal combustion engines that pump oil. Where the engine was used in pumps located at the wellhead or within an oil processing plant, the tax rate was 1.1¢/810.32 litres. Where the engine was used in pumps located along pipelines that move oil from the wellhead to the oil processing plant, or from the oil processing plant to storage facilities or market, the tax rate was 1.9¢/810.32 litres.

MFT - SEC.9(5)/Int.

(5) Natural Gas Used To Pump Oil

References:

Act: Section 1 “internal combustion engine”, “natural gas”, “tax”

Bulletin MFT-CT 005

Interpretation (Issued: 2000/08; Revised: 2014/08, 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed and replaced section 9(5). Prior to the 2013 amendments, the content of subsection 9(5) had been in subsection 9(4).

Subsection 9(5) provides that the rate of tax on natural gas used in a stationary internal combustion engine that pumps oil is:

• 1.1¢ per 810.32 litres (at standard reference conditions) if the pump is located at a well head or within an oil processing plant.
• 1.9¢ per 810.32 litres (at standard reference conditions) is the pump is located along a pipeline that moves the oil from a well head to an oil processing plant, from an oil processing plant to market, or in or out of storage facilities.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 repealed and replaced section 9 [tax on natural gas]. Prior to April 1, 2013, subsection 9(5) established that when natural gas was self-produced or imported and used to operate internal combustion engines for purposes other than compressing natural gas or pumping oil, the tax rate was 1.1¢/810.32 litres.

MFT - SEC.9(6)/Int.-R.1

(6) Natural Gas Used Stationary Internal Combustion Engines

References:

Act: Section 1 “internal combustion engine”, “natural gas”, “tax”

Bulletin MFT-CT 005

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed and replaced subsection 9(6). Prior to the 2013 amendments, the content of subsection 9(6) generally had been in subsection 9(5).

Note: The content of the previous version of subsection 9(6) that was in place prior to the 2013 amendments is now effectively covered by the Provincial Sales Tax Act.

Subsection 9(6) provides that natural gas used in a stationary internal combustion engine other than as described in subsections 9(3), (4) and(5) is 1.1¢ per 810.32 litres (at standard reference conditions).

R.1 Natural Gas Acquired or Purchased for Own Use (Issued: 2014/08)

How tax applies to natural gas depends on how it was obtained and whether it was obtained for use in an internal combustion engine. The below table summarizes how the PST and MFTA apply in relation to natural gas.

How the PST and MFTA apply in relation to natural gas

Scenario	Tax Application
Natural gas that is self-manufactured/extracted (in or outside of BC) and is used in a stationary internal combustion engine in British Columbia.	Taxable under the MFTA on use in accordance with section 9 of the MFTA (note: the exemption under section 9(4) of the MFTA may apply).
Natural gas that is self-manufactured (in or outside BC) and used in an internal combustion engine in British Columbia that is not a stationary combustion engine	Exempt from MFTA if it is an alternative motor fuel. Taxable under MFTA at the locomotive fuel rate if it is for use in an internal combustion engine in rolling stock or other vehicle when run on rails. Not taxable if used in any other internal combustion engine that is NOT a stationary combustion engine.
Natural gas that is self-manufactured in BC for use other than in an internal combustion engine.	Not taxable under MFTA because the gas does not meet the definition of “fuel.” How PST applies depends on application of royalties to production gas: If the manufacturer is required to pay royalties on the natural gas, then the royalty payment is the purchase price on which PST is owing. If the manufacturer is not required to pay royalties on the natural gas, then there is no purchase price for the gas and therefore no PST is owing.
Natural gas that is self-manufactured outside BC and brought into BC for use other than in an internal combustion engine.	Not taxable under the MFTA, unless the gas is later used in a stationary internal combustion engine – If MFTA is triggered, then a refund may apply under section 9.1 of the MFTA The gas .is subject to PST under section 49 of the PSTA. PST applies on the costs and expenses for material, labour, and other manufacturing and processing costs in addition to costs and expenses for services, customs, excises and transportation.
Purchased, and at the time of purchase, it is known that it is for use in an internal combustion engine.	Not taxable at the time of purchase or on bringing in under the PSTA or MFTA. Taxable (e.g. section 9) or exempt (e.g. alternative motor fuel) when used under MFTA depending on the use. Seller must obtain a FIN 449 to substantiate that the fuel was sold for use in an internal combustion engine and no PST was collected (i.e., section 140 of the PSTA applied).
Purchased, and at the time of it is known what the use will be, or at the time of purchase it is known that it will not be used in an internal stationary combustion engine.	Subject to 7% PST and ICE tax at the time of purchase. If it is later used in a stationary internal combustion engine, they may be eligible for a refund of the difference under the MFTA (section 9.1).

Section 9.1 – Tax Paid Under The Provincial Sales Tax Act

MFT - SEC.9.1/Int.

References:

Act: Section 1 “director”, “internal combustion engine” “natural gas”, “tax”; Section 9; Section 50

Bulletin MFT-CT 005

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

Effective July 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended subsection 9.1(3) by deleting the language "on or before the 15th day of the month following the month in which the natural gas is used" and replacing it was "at the prescribed time and in the prescribed manner".

This amendment moves the remittance date for tax payable on the use of natural gas from the Act to MFTR section 2.022 [payment of tax - use of natural gas in stationary internal combustion engine]. The intent of the amendment was to change the remittance date for natural gas self-assessors from the 15th of the month to the last day of the month following the month in which the natural gas is used. This makes the remittance date consistent with the remittance date for PST, enabling taxpayers to determine how natural gas will be used before the returns under each Act are due.

Effective July 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended subsection 9.1(3) by deleting the language "on or before the 15th day of the month following the month in which the natural gas is used" and replacing it was "at the prescribed time and in the prescribed manner".

This amendment moves the remittance date for tax payable on the use of natural gas from the Act to MFTR section 2.022 [payment of tax - use of natural gas in stationary internal combustion engine]. The intent of the amendment was to change the remittance date for natural gas self-assessors from the 15th of the month to the last day of the month following the month in which the natural gas is used. This makes the remittance date consistent with the remittance date for PST, enabling taxpayers to determine how natural gas will be used before the returns under each Act are due.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added section 9.1. The new provision provides two main rules regarding PST paid on natural gas used in a stationary internal combustion engine: a refund rule and a self-assessment rule.

Under subsection 9.1(2), a refund is available if the amount of PST a person paid on natural gas exceeds the amount of motor fuel tax they would have paid under section 9 [tax on natural gas] if tax had been payable under that section.

Under subsection 9.1(3), a person must self-assess additional tax if the amount of PST a person paid on the natural gas is less than the amount of motor fuel tax they would have paid under section 9 if tax had been payable under that section.

Section 10 – Tax On Motive Fuel

MFT - SEC.10(1)/Int.-R.5

(1)

References:

Act: Section 1 “motive fuel”

Bulletin MFT-CT 005

Interpretation (Issued: 2014/08; Revised: 2015/07; 2023/10)

Effective July 1, 2019, Bill 5, Budget Measures Implementation Act, 2019 added subparagraph 10(1)(d)(iii) to the Act. The amendment provides for the payment of an additional tax, not exceeding 1.5¢ per litre, set under section 27.12 of the South Coast British Columbia Transportation Authority Act, on gasoline purchases in the transportation service region under that Act.

Effective April 1, 2012, Bill 11, Greater Vancouver Transit Enhancement Act, 2012 repealed and replaced paragraph 10(1)(d) as a consequential amendment. The amendment provides for the payment of an additional tax, not exceeding 2¢ per litre, set under section 27.11 of the South Coast British Columbia Transportation Authority Act, on gasoline purchases in the transportation service region under that Act.

Effective November 30, 2007, Bill 43, Greater Vancouver Transportation Authority Amendment Act, 2007 added paragraph 10(1)(d) as a consequential amendment. The provision requires a purchaser of gasoline within the transportation service region under the South Coast British Columbia Transportation Authority Act to pay any tax assessed, not exceeding 3¢ per litre, under section 27.1 of that Act.

Effective November 30, 2007, Bill 43, Greater Vancouver Transportation Authority Amendment Act, 2007 renamed the Greater Vancouver Transportation Authority (TransLink), and the Greater Vancouver transportation service region, as the South Coast British Columbia Transportation Authority, and the South Coast British Columbia transportation service region, respectively.

Effective April 1, 2003, Bill 6, Budget Measures Implementation Act, 2003 amended paragraphs 10(1)(a) and 10(1)(b) to increase the provincial fuel tax payable on gasoline by 1.25¢ per litre. Effective April 1, 2003, the 1.25¢ per litre payable to BC Ferries Corporation on clear gasoline and clear diesel was discontinued. This portion of the tax was redirected to the province's consolidated revenue fund. Therefore, this measure did not affect the total amount of tax payable on fuel purchased, as established on March 1, 2003 by Bill 6, Budget Measures Implementation Act, 2003.

The provincial tax imposed outside the Greater Vancouver transportation service region was increased from 7¢ per litre to 8.25¢ per litre. The provincial tax imposed inside the transportation service region was increased from 13¢ per litre to 14.25¢ per litre (less the applicable rate of tax payable at the time purchase under paragraph 10(1)(c)).

Effective April 1, 2002, Bill 3, Taxation Statutes Amendment Act, 2002 amended the Act to increase the tax rate collected by TransLink for clear motive fuel purchased in the Greater Vancouver transportation service region by 2¢ per litre to 11¢ per litre. The motive fuel tax is collected by the province on behalf of TransLink.

Bill 3 amended subsection 10(1)(b) to increase the amount payable to the province by 2¢ to 12.5¢ per litre before subtracting the amount payable to TransLink. This was required because the motive fuel tax rate paid to the province by purchasers inside the Greater Vancouver transportation service region is calculated by subtracting the tax rate paid to TransLink from this formula tax rate. As such, to offset the TransLink motive fuel tax rate increase and maintain the same rate paid to the province, this rate was be increased by an amount equal to the TransLink rate increase.

After the TransLink tax rate increase, purchasers in the Greater Vancouver transportation service region pay 11¢ per litre to TransLink and 6.5¢ per litre to the province. This resulted in a 2¢ per litre increase for TransLink and no increase for the province.

Bill 3 also amended:

• 10(1)(c)(ii.1) to increase the clear motive fuel tax rate collected by TransLink by 2¢ to 11¢ per litre effective April 1, 2002.
• 10(1)(c)(iii) to implement the TransLink motive fuel tax rate increase already scheduled and legislated for April 1, 2003, by 2¢ per litre. This was necessary to retain the future 0.5¢ per litre increase in the motive fuel tax points transferred from the province to TransLink.
• 10(1)(c)(iv) to implement the TransLink motive fuel tax rate increase already scheduled and legislated for April 1, 2005 by 2¢ per litre. This was required to retain the future 0.5¢ per litre increase in the motive fuel tax points transferred from the province to TransLink.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000, amended the Act to reduce the provincial tax on motive fuel (diesel) by 0.25¢ consequential to dedicating an additional 0.25¢ tax to the BC Transportation Financing Authority. This did not change the clear fuel tax rate paid by consumers.

The provincial tax imposed outside the Greater Vancouver transportation service region was reduced from 7.25¢ per litre to 7¢ per litre. The provincial tax imposed inside the Greater Vancouver transportation service region was reduced from 11.25¢ per litre to 11¢ per litre.

Effective April 1, 1999, Bill 52, Taxation Statutes Amendment Act, 1999 reduced the provincial tax rate on motive fuel (diesel) to correspond to the tax rate dedicated to the Greater Vancouver Transportation Authority (GVTA), the British Columbia Transportation Financing Authority, and the BC Ferry Corporation, without increasing the tax payable by the consumer. These changes did not affect the overall tax rates on motive fuel (diesel) in British Columbia. The amendments simply allocated portions of the tax rate to specific purposes.

Amendments to subsection 10(1)(a) reduced the provincial tax rate on motive fuel (diesel) in all areas of the province, except the Greater Vancouver transportation service region, as follows:

(i) On April 1, 1999, the provincial tax rate was reduced by 1¢ per litre (from 9.5¢ to 8.5¢) to accommodate the imposition of a 1¢ per litre tax imposed under section 42 of the Taxation Statutes Amendment Act, 1999 to raise revenue for the purposes of the BC Ferry Corporation.

(ii) On June 1, 1999, the provincial tax rate was again reduced by 1¢ per litre (from 8.5 ¢ to 7.5¢) to accommodate a 1¢ per litre increase (from 2¢ to 3¢) in the tax imposed under section 13 of the Motor Fuel Tax Act for the purposes of raising revenue for the BC Transportation Financing Authority.

(iii) On October 1, 1999, the provincial tax rate was further reduced by 0.25¢ (from 7.5¢ to 7.25¢) to accommodate an equivalent increase, from 1¢ to 1.25¢, in the tax imposed under section 42 of the Taxation Statutes Amendment Act, 1999, to raise revenue for the purposes of the BC Ferry Corporation.

Amendments to subsection 10(1)(b) reduced the provincial tax rate paid on motive fuel (diesel) in the Greater Vancouver transportation service region, as follows:

(i) (On April 1, 1999, the tax rate payable on motive fuel (diesel) was reduced by 1¢ per litre (from 13.5¢ to 12.5¢) to accommodate the imposition of a 1¢ per litre tax imposed under Section 42 of the Taxation Statutes Amendment Act, 1999, to raise revenue for the purposes of the BC Ferry Corporation. Of the total 12.5¢ per litre tax, 8¢ was payable to the GVTA, and 4.5¢ was payable to the province.

(ii) On June 1, 1999, the tax rate payable on motive fuel (diesel) was again reduced by 1¢ per litre (from 12.5¢ to 11.5¢) to accommodate a 1¢ per litre increase (from 2¢ to 3¢) in the tax imposed under section 13 of the Motor Fuel Tax Act for the purpose of raising revenue for the BC Transportation Financing Authority. Of the total 11.5¢ per litre tax, 8¢ was payable to the GVTA, and 3.5¢ was payable to the province.

(iii) On October 1, 1999, the tax rate on motive fuel (diesel) was further reduced by 0.25¢ (from 11.5¢ to 11.25¢) to accommodate an equivalent increase, from 1¢ to 1.25¢, in the tax imposed under section 42 of the Taxation Statutes Amendment Act, 1999 to raise revenue for the purposes of the BC Ferry Corporation. Of the total 11.25¢ per litre tax, 8¢ was payable to the GVTA, and 3.25¢ was payable to the province.

Subsection 10(1), subject subsection 10(1.11), provides the applicable tax rates for motive fuel that is purchased inside the South Coast British Columbia transportation service region, and in other areas of the province (See MFTA/Sec.12/Int. and MFTA/Sec. 12.1/Int.).

Paragraph 10(1)(a) establishes the rate of provincial motor fuel tax at 8.25¢ per litre on the purchase of gasoline outside of the South Coast British Columbia transportation service region.

Paragraph 10(1)(b) establishes the rate of provincial motor fuel tax at 14.25¢ per litre on the purchase of gasoline inside the South Coast British Columbia transportation service region less the applicable rate of tax payable at the time of purchase under paragraph 10(1)(c). The total provincial motor fuel tax for the region is 2.25¢ per litre.

Paragraph 10(1)(c) establishes the dedicated rate of motor fuel tax purchased in the South Coast British Columbia transportation service region payable to the South Coast Transportation Authority at the following rates:

(i) effective April 1, 1999, 8¢ per litre;

(ii) effective April 1, 2001, 9¢ per litre;

(ii.1) effective April 1, 2002, 11¢ per litre;

(iii) effective April 1, 2003, 11.5¢ per litre;

(iv) effective April 1, 2005, 12¢ per litre.

Paragraph 10(1)(d) establishes that inside the South Coast British Columbia transportation service region, in addition to the tax payable under paragraph 10(1)(c), a purchaser must pay to the South Coast British Columbia Transportation Authority, at the time of purchase,

• tax on the gasoline at the rate, not exceeding 3¢ per litre, set under section 27.1 of the South Coast British Columbia Transportation Authority Act, and
• tax on the gasoline at the rate, not exceeding 2¢ per litre, set under section 27.11 of the South Coast British Columbia Transportation Authority Act.

The total dedicated tax rate for the South Coast British Columbia transportation service region is 17¢ per litre.

R.1 Provincial Motive Fuel Tax Rates, July 15, 1959 to Present (Revised: 2003/12; 2015/07)

Provincial Motive Fuel Tax Rates, July 15, 1959 to Present (Revised: 2003/12; 2015/07)

Effective Dates	Rates
July 15, 1959 - March 27, 1961	12.0¢ per gallon
March 28, 1961 - February 4, 1971	15.0¢ per gallon
February 5, 1971 - February 27, 1975	17.0¢ per gallon
February 28, 1975 - March 9, 1981	19.0¢ per gallon
March 10, 1981 - September 30, 1981	5.76¢ per litre
October 1, 1981 - December 31, 1981	6.10¢ per litre
January 1, 1982 - March 31, 1982	6.57¢ per litre
April 1, 1982 - June 30, 1982	6.60¢ per litre
July 1, 1982 - September 30, 1982	6.98¢ per litre
October 1, 1982 - December 31, 1982	7.14¢ per litre
January 1, 1983 - March 31, 1983	6.86¢ per litre
April 1, 1983 - June 30, 1983	7.32¢ per litre
July 1, 1983 - September 30, 1983	6.92¢ per litre
October 1, 1983 - December 31, 1983	8.07¢ per litre
January 1, 1984 - March 31, 1984	8.05¢ per litre
April 1, 1984 - June 30, 1984	8.13¢ per litre
July 1, 1984 - September 30, 1984	8.10¢ per litre
October 1, 1984 - December 31, 1984	8.16¢ per litre
January 1, 1985 - March 31, 1985	8.45¢ per litre
April 1, 1985 - June 30, 1985	8.47¢ per litre
July 1, 1985 - September 30, 1985	8.86¢ per litre
October 1, 1985 - December 31, 1985	8.67¢ per litre
January 1, 1986 - March 31, 1986	9.08¢ per litre
April 1, 1986 - June 30, 1986	9.00¢ per litre
July 1, 1986 - September 30, 1986	6.91¢ per litre
October 1, 1986 - December 31, 1986	6.58¢ per litre
January 1, 1987 - March 31, 1987	6.83¢ per litre
April 1, 1987 - June 30, 1987	7.53¢ per litre
July 1, 1987 - September 30, 1987	7.93¢ per litre
October 1, 1987 - December 31, 1987	8.08¢ per litre
January 1, 1988 - March 31, 1988	8.33¢ per litre
April 1, 1988 - June 30, 1988	7.79¢ per litre
July 1, 1988 - September 30, 1988	8.52¢ per litre
October 1, 1988 - December 31, 1988	7.40¢ per litre
January 1, 1989 - March 31, 1989	8.23¢ per litre
April 1, 1989 - June 30, 1989	8.13¢ per litre
July 1, 1989 - September 30, 1989	8.72¢ per litre
October 1, 1989 - December 31, 1989	9.45¢ per litre

Motive Fuel Tax Rates, January 1, 1990 to present

Effective Dates	Rates
January 1, 1990 - March 31, 1990	9.48¢ per litre
April 1, 1990 - June 30, 1990	9.93¢ per litre
July 1, 1990 - September 30, 1990	10.27¢ per litre
October 1, 1990 - December 31, 1990	10.37¢ per litre
January 1, 1991 - March 31, 1991	11.44¢ per litre
April 1, 1991 - June 30, 1991	11.18¢ per litre
July 1, 1991 - September 30, 1991	9.26¢ per litre
October 1, 1991 - December 31, 1991a	9.26¢ per litre
January 1, 1992 - March 31, 1992	10.20¢ per litre
April 1, 1992 - August 31, 1993b	10.50¢ per litre

^a See MFTA/Sec.4/R.6
^b The quarterly adjustment of fuel tax rates using the indexing formulae was repealed April 1, 1992.

Reminder of the Province - Tax Rates on Motive Fuel, September 1, 1993 to present (cents per litre)^c

Effective Dates	BC Ferriesd	British Columbia Transportation Financing Authoritye	Provincial	Total Motor Fuel Tax
September 1, 1993 - March 31, 1997		1.00	10.50	11.50
April 1, 1997 - March 31, 1999		2.00	9.50	11.50
April 1, 1999 - May 31, 1999	1.00	2.00	8.50	11.50
June 1, 1999 - September 30, 1999	1.00	3.00	7.50	11.50
October 1, 1999 - March 31, 2000	1.25	3.00	7.25	11.50
April 1, 2000 - February 28, 2003	1.25	3.25	7.00	11.50
March 1, 2003 - March 31, 2003	1.25	6.75	7.00	15.00
April 1, 2003 - Present		6.75	8.25	15.00

^c For tax rates for the South Coast British Columbia Transportation Service Region, see MFTA/Sec.10/R.4. For tax rates for the Victoria Regional Transit Service Area, see MFTA/Sec.10/R.5.
^d See MFTA/Sec.13.1/Int.
^e See MFTA/Sec.13/Int.

R.2 Rebates for Off-Highway Uses of Diesel, January 2, 1924 to present (Revised: 2015/07)

Rebates for Off-Highway Uses of Diesel, January 2, 1924 to present (Revised: 2015/07)

Effective Dates	Rates
January 2, 1924 - March 31, 1930	3.0¢ per gallon
April 1, 1930 - September 30, 1934	5.0¢ per gallon
October 1, 1934 - March 31, 1946	6.0¢ per gallon
April 1, 1947 - March 20, 1961	9.0¢ per gallon
March 21, 1961 - February 4, 1981	2.64¢ per litre
February 5, 1981 - March 14, 1985	3.08¢ per litre
March 15, 1985 - March 31, 1985a	5.50¢ per litre
April 1, 1985 - June 30, 1985	5.66¢ per litre
July 1, 1985 - September 30, 1985	5.92¢ per litre
October 1, 1985 - December 31, 1985	5.79¢ per litre
January 1, 1986 - March 31, 1986	6.06¢ per litre
April 1, 1986 - June 30, 1986	6.01¢ per litre
July 1, 1986 - September 30, 1986	4.65¢ per litre
October 1, 1986 - December 31, 1986	4.44¢ per litre
January 1, 1987 - March 31, 1987	4.60¢ per litre
April 1, 1987 - June 30, 1987	5.05¢ per litre
July 1, 1987 - September 30, 1987	5.31¢ per litre
October 1, 1987 - December 31, 1987	5.41¢ per litre
January 1, 1988 - March 31, 1988	5.57¢ per litre
April 1, 1988 - June 30, 1988	5.51¢ per litre
July 1, 1988 - September 30, 1988	6.01¢ per litre
October 1, 1988 - December 31, 1988	5.24¢ per litre
January 1, 1989 - March 31, 1989	5.81¢ per litre
April 1, 1989 - June 30, 1989	5.74¢ per litre
July 1, 1989 - September 30, 1989	6.15¢ per litre
October 1, 1989 - December 31, 1989	6.65¢ per litre
January 1, 1990 - March 31, 1990	6.67¢ per litre
April 1, 1990 - June 30, 1990	6.98¢ per litre
July 1, 1990 - September 30, 1990	7.21¢ per litre
October 1, 1990 - December 31, 1990	7.28¢ per litre
January 1, 1991 - March 31, 1991	8.02¢ per litre
April 1, 1991 - June 30, 1991	7.84¢ per litre
July 1, 1991 - September 30, 1991	6.52¢ per litre
October 1, 1991 - December 31, 1991b	6.52¢ per litre
January 1, 1992 - March 31, 1992	7.17¢ per litre
April 1, 1992 - August 31, 1993b, c	7.50¢ per litre
September 1, 1993 - March 31, 1997	8.50¢ per litre
April 1, 1997 - February 28, 2003	8.50¢ per litre
March 2003 - Present	12.00¢ per litre

^a Effective March 15, 1985, the rebate amount was established as the full difference between the diesel tax rate and the gasoline (coloured) tax rate (Reg. 2.02(1) Motive Fuel Use Tax Act).
^b See  MFTA/Sec.4/R.6
^b See  MFTA/Sec.4/R.6
^c The quarterly adjustment of fuel tax rates using the indexing formulae was repealed April 1, 1992.

R.3 Green Diesel (Revised: 2015/07)

In October 1994, the oil companies began to add a green dye to their regular sulphur diesel fuel to differentiate it from the new low sulphur diesel fuel. At that time, the dye was being added at a rate of 7 mg/L in accordance with Canadian General Standards Board requirements. However, because of the potential for interfering with the province's coloured fuel program and the potential for contaminating jet fuel dyed green, the use of green dye was discontinued effective October 31, 1995.

R.4 Motor Fuel Tax Rates for Motive Fuel in the South Coast British Columbia Transportation Service Region (cents per litre) (Issued: 2015/07; Revised: 2023/10)

Motor Fuel Tax Rates for Motive Fuel in the South Coast British Columbia Transportation Service Region (cents per litre) (Issued: 2015/07)

Effective Dates	Dedicated Taxa	British Columbia Transportation Financing Authorityb	BC Ferriesc	Provinciald	Total Motor Fuel Tax
September 1, 1993-March 31, 1997	4.00	1.00		10.50	15.50
April 1, 1997 - March, 31, 1999	4.00	2.00		9.50	15.50
April 1, 1999 - May 31,1999	8.00	2.00	1.00	4.50	15.50
June 1, 1999 - September 30, 1999	8.00	3.00	1.00	3.50	15.50
October 1, 1999 – March 31, 2000	8.00	3.00	1.25	3.25	15.50
April 1, 2000 -March 31, 2001	8.00	3.25	1.25	3.00	15.50
April 1, 2001 -March 31, 2002	9.00	3.25	1.25	2.00	15.50
April 1, 2002-February 28, 2003	11.00	3.25	1.25	2.00	17.50
March 1, 2003 - March 31, 2003	11.00	6.75	1.25	2.00	21.00
April 1, 2003 -March 31, 2005	11.50	6.75		2.75	21.00
April 1, 2005- December 31, 2009	12.00	6.75		2.25	21.00
January 1, 2010-March 31, 2012	15.00	6.75		2.25	24.00
April 1, 2012 - June 30, 2019	17.00	6.75		2.25	26.00
July 1, 2019 - present	18.50	6.75		2.25	27.50

^a For dedicated tax rates prior to September 1,1993, see MFTA/Sec. 12/R.1.
^b See MFTA/Sec. 13/Int.
^c See MFTA/Sec. 13.1/Int.
^d For provincial tax rates prior to September 1,1993, see MFTA/Sec. 10/R.1.

R.5 Motor Fuel Tax Rates for Motive Fuel in the Victoria Regional Transit Service Area (cents per litre) (Issued: 2015/07; Revised: 2023/10)

Motor Fuel Tax Rates for Motive Fuel in the Victoria Regional Transit Service Area (cents per litre) (Issued: 2015/07)

Effective Dates	Dedicated Taxa	British Columbia Transportation Financing Authorityb	BC Ferriesc	Provinciald	Total Motor Fuel Tax
May 1, 1993-August 31, 1993	1.50			10.50	12.00
September 1, 1993 - March 31, 1997	1.50	1.00		10.50	13.00
April 1, 1997 - June 30, 1997	1.50	2.00		9.50	13.00
July 1, 1997-March 31, 1999	2.50	2.00		9.50	14.00
April 1, 1999 - May 31,1999	2.50	2.00	1.00	8.50	14.00
June 1, 1999 - September 30, 1999	2.50	3.00	1.00	7.50	14.00
October 1, 1999 – March 31, 2000	2.50	3.00	1.25	7.25	14.00
April 1, 2000 - February 28, 2003	2.50	3.25	1.25	7.00	14.00
March 1, 2003 - March 31, 2003	2.50	6.75	1.25	7.00	17.50
April 1, 2003 - March 31, 2008	2.50	6.75		8.25	17.50
April 1, 2008 - March 31, 2018	3.50	6.75		8.25	18.50
April 1, 2018 - present	5.50	6.75		8.25	20.50

^a See MFTA/Sec.12.1/Int.
^b See MFTA/Sec. 13/Int.
^c See MFTA/Sec. 13.1/Int.
^d For provincial tax rates prior to May 1, 1993, see MFTA/Sec. 10/R.1.

MFT - SEC.10(1.1)/Int.

(1.1)

References:

Act: Section 1 “South Coast British Columbia transportation service region”, “purchaser”

Bulletin MFT-CT 005

Interpretation (Issued: 2015/07)

Subsection 10(1.1) establishes that a purchaser who takes delivery of motive fuel outside the South Coast British Columbia transportation service region is deemed to be liable to pay the lower tax rate established in paragraph 10(1)(a). A purchaser who takes delivery of motive fuel inside the South Coast British Columbia transportation service region is deemed to be liable to pay the higher tax rate established under paragraphs 10(1)(b), 10(1)(c) and 10(1)(d).

For further information on the dedicated tax for the South Coast British Columbia transportation service region see MFTA/Sec.12/Int.

MFT - SEC.10(1.11)/Int.

(1.11)

References:

Act: Section 1.1

Interpretation (Issued: 2015/04; Revised 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 10(1.1) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added subsection 10(1.11). The subsection was added for the purposes of the new rules regarding imported fuel under section 1.1 [fuel imported by ship].

Section 10(1.11) establishes that tax under subsection 10(1) applies in respect of a purchase of fuel imported by ship under paragraphs 1.1(2)(a) to (c).

MFT - SEC.10(1.2)-(2.1)/Int.-R.1

(1.2)-(2.1)

References:

Act: Section 1 “calendar quarter”, “motive fuel”, “licensed carrier”

Bulletin MFT-CT 005

Interpretation (Issued: 2015/07)

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added subsection 10(1.3). The subsection was added for the purposes of the new rules regarding imported fuel under section 1.1.

Effective July 1, 2008, Bill 37, Carbon Tax Act, 2008 added subsection 10(1.2) and subsection 10(2.2) as a consequential amendment to the Act. Subsection 10(1.2) imposes on the purchase of motive fuel by licensed carriers tax at a rate equal to the carbon tax on light fuel oil. Under subsection 10(2.2), a licensed carrier who uses motive fuel in British Columbia but is not taxed under subsection 10(1.2) (e.g., because they did not purchase the motive fuel in British Columbia) must pay tax at a rate equal to the carbon tax on light fuel oil.

Effective January 1, 1996, Bill 24, Miscellaneous Statutes Amendment Act (No. 2), 1995 added subsection 10(2). This subsection requires International Fuel Tax Agreement (IFTA) carriers who purchase motive fuel outside of the province to pay tax on the fuel that they consume within the province. This subsection also establishes that payments must be made by the last day of the calendar month following the end of the calendar quarter. This amendment was necessary to accommodate the tax collection requirements of IFTA. This amendment was brought into force on January 1, 1996 by B.C. Reg. 550/95, the date BC became a member of IFTA.

Section 10(1.2), subjection to subsection 10(1.3), establishes that, in addition to the tax payable under subsection 10(1), a licensed carrier who purchases motive fuel in British Columbia must pay tax on that motive fuel at the rate equal to the carbon tax on light fuel oil.

Section 10(1.3) establishes that a licensed carrier who purchases motive fuel in a sale to which paragraphs 1.1(2)(a) to (c) applies, must pay tax, at the rate established under subsection 10(1.2), on that fuel on or before the last day of the month following the end of the calendar quarter in which the fuel was purchased.

Section 10(2) establishes that a licensed carrier who uses motive fuel in British Columbia (that was purchased in another jurisdiction), must pay tax under paragraph 10(1)(a) on or before the last day of the month following the calendar quarter in which the fuel was used.

Section 10(2.1) establishes that licensed carriers who use motive fuel in British Columbia that is not otherwise taxable under subsection 10(1.2) must pay tax at the rate established in subsection 4(1.2) of the Act.

R.1 Calculation of Fuel Consumption (Revised 2015/07)

Travel through National Parks in British Columbia by interprovincial truckers is considered to be B.C. mileage for purposes of the prorate percentage and fuel consumption.

MFT - SEC.10(3)/Int.

(3)

Interpretation (Issued: 2015/07; Revised 2017/09)

Effective August, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended section 10(3) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Section 10.1 – Tax On Alternative Motor Fuel

MFT - SEC.10.1/Int.-R.1

References:

Act: Section 1 “alternative motor fuel”, “calendar quarter”, “licensed carrier”, “purchaser”, “tax”; Section 1.1; Section 4; Section 71

MFTR: Section 51.2

Bulletin MFT-CT 005

Interpretation (Issued: 2000/08; Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 10.1(1.1) and subsection 10.1(3) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 added subsection 1.1. The new subsection was added for the purposes of the new rules regarding imported fuel under section 1.1 [fuel imported by ship].

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000 added subsection 10.1, a new taxing provision for the purposes of providing preferential tax treatment of environmentally friendly fuels. The provision authorizes establishing the tax rate by regulation, provided the rate is no greater than the tax rate imposed on clear gasoline. MFTR section 51.1 sets out the tax rates and exemptions for specific alternative motor fuels.

Qualifying fuels will be exempt from tax until they capture a predetermined market share. Thereafter, tax rates will be phased-in based on market share growth and the fuels’ inherent environmental benefits. To ensure an ongoing incentive for cleaner alternative motor fuels, the maximum tax rate will remain below the clear gasoline tax rate.

See also: MFTA/Sec. 1 ”alternative motor fuel”/Int.

 MFTA/Sec.1 ”gasoline”/Int.

 MFTA/Sec. 3.1/Int.

 MFTR/Sec. 51.1/Int.

R.1 Tax Rates on Propane and Natural Gas, January 1924 - Present (Revised: 2015/04)

Tax Rates on Propane and Natural Gas, January 1924 - Present (Revised: 2015/04)

Effective Dates	Rates
January 2, 1924 - March 31, 1930	3.0¢ per gallon
April 1, 1930 - April 17, 1932	5.0¢ per gallon
April 18, 1932 - March 31, 1947	7.0¢ per gallon
April 1, 1947 - February 26, 1961	10.0¢ per gallon
February 27, 1961 - February 4, 1971	13.0¢ per gallon
February 5, 1971 - February 27, 1975	13.0¢ per gallon
February 28, 1975 - March 9, 1981	12.0¢ per gallon
March 10, 1981 - September 30, 1981	4.22¢ per litre
October 1, 1981 - December 31, 1981	4.56¢ per litre
January 1, 1982 - March 31, 1982	5.03¢ per litre
April 1, 1982 - April 5, 1982	5.06¢ per litre
April 6, 1982 - June 1, 1997	Exempt
June 1, 1997 - December 31, 2000  Natural Gas  Propane	Exempt 7 percent PSTa
January 1, 2001 – February 28, 2003  Natural Gas  Propane	Exempt 2.1¢ per litreb
March 1, 2003 - June 30, 2010  Natural Gas  Propane	Exempt 2.7¢ per litrec
July 1, 2010 – March 31, 2013  Natural Gas  Propane	Exempt Exemptd
April 1, 2013 – Present  Natural Gas  Propane	Exempt 2.7¢ per litree

^a Between June 1, 1997 and December 31, 2000, propane used to propel motor vehicles became subject to tax under the Social Service Tax Act (repealed). See MFTA/Sec. 3.1/Int.
^b Effective January 1, 2001, propane used to propel motor vehicles is subject to motor fuel tax at the rate of 2.1¢ per litre.
^c Effective March 1, 2003, propane used to propel motor vehicles is subject to motor fuel tax at the rate of 2.7¢ per litre.
^d Between July 1, 2010 and March 31, 2013, motor fuel tax did not apply to propane.
^e Effective April 1, 2013, propane became subject to motor fuel tax under section 10.3 at the rate of 2.7¢ per litre for all uses.

Section 10.2 – Transition – Tax On Propane Under Section 10.1

MFT - SEC.10.2/Int.

REPEALED

References:

Act: Section 1 “propane”, “purchaser”, “tax”; Section 10.1

MFTR: Section 2.1; Section 2.2; Section 51.2; Section 52

Bulletin MFT-CT 008

Interpretation (Issued: 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed section 10.2.

Effective April 29, 2010, Bill 9, Consumption Tax Rebate and Transition Act, 2010 added section 10.2 in respect of the tax imposed under section 10.1 [tax on alternative motor fuel].

Prior to the implementation of the Harmonized Sales Tax (HST), propane used as fuel for a motor vehicle was taxed under the Act, while propane used for all other purposes was subject to PST under the Social Service Tax Act. However, the rate of tax under both Acts was 2.7 cents per litre and retailers of propane remitted both taxes as part of their PST returns.

With implementation of the HST, propane when used as a motor fuel became exempt from motor fuel tax. This section provided the transition rules for the taxation of propane under the Act for the transition period.

Section 10.2(1) established that section 10.2 applies despite section 10.1 of the Act, or section 51.2 [tax rates and exemptions for specific alternative motor fuels of the regulations].

Section 10.2(2) established that the provisions in the regulations relating to tax imposed under section 10.1 continued to apply, as they read on April 30, 2010.

Section 10.2(3) established in what situations tax is payable by a purchaser under section 10.1.

Section 10.2(4) provided that tax was not payable by a purchaser under subsection 10.1(1) when:

• all of the consideration for the propane became due on or after May 1, 2010;
• none of the consideration for the propane was paid before May 1, 2010; and
• on or after July 1, 2010, ownership of the propane was transferred and the propane was delivered to the purchaser.

Section 10.2(5) provided a formula for the tax payable.

Section 10.2(6) established that tax was not payable under section 10.1 in respect of propane that is used in British Columbia on or after July 1, 2010.

Section 10.2(7) established which sections of the Social Service Tax Act applied for the purposes of this section.

Section 10.2(8) authorized the Lieutenant Governor in Council to repeal this section, by regulation.

Section 10.3 – Tax On Propane

MFT - SEC.10.3/Int.-R.1

References:

Act: Section 1 “litre”, “propane”, “purchaser”, “tax”; Section 1.1

Bulletin MFT-CT 005

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

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 10.3(2) and subsection 10.3(3) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added section 10.3. The new section 10.3 provides that a purchaser of propane must pay tax on the propane at the rate of 2.7¢ per litre. Section 10.3 was added as part of the return to PST. Because "fuel" is defined as including "propane" for any use, as a result, all propane is under the scheme and within the security scheme of the Act.

R.1 Tax Rates on Propane and Natural Gas, January 1924 - Present (Revised: 2015/04)

Tax Rates on Propane and Natural Gas, January 1924 - Present (Revised: 2015/04)

Effective Dates	Rates
January 2, 1924 - March 31, 1930	3.0¢ per gallon
April 1, 1930 - April 17, 1932	5.0¢ per gallon
April 18, 1932 - March 31, 1947	7.0¢ per gallon
April 1, 1947 - February 26, 1961	10.0¢ per gallon
February 27, 1961 - February 4, 1971	13.0¢ per gallon
February 5, 1971 - February 27, 1975	13.0¢ per gallon
February 28, 1975 - March 9, 1981	12.0¢ per gallon
March 10, 1981 - September 30, 1981	4.22¢ per litre
October 1, 1981 - December 31, 1981	4.56¢ per litre
January 1, 1982 - March 31, 1982	5.03¢ per litre
April 1, 1982 - April 5, 1982	5.06¢ per litre
April 6, 1982 - June 1, 1997	Exempt
June 1, 1997 - December 31, 2000  Natural Gas  Propane	Exempt 7 percent PSTa
January 1, 2001 – February 28, 2003  Natural Gas  Propane	Exempt 2.1¢ per litreb
March 1, 2003 - June 30, 2010  Natural Gas  Propane	Exempt 2.7¢ per litrec
July 1, 2010 – March 31, 2013  Natural Gas  Propane	Exempt Exemptd
April 1, 2013 – Present  Natural Gas  Propane	Exempt 2.7¢ per litree

Section 11 – Marine Bunker Fuel

MFT - SEC.11/Int.-R.1

References:

Act: Section 1 “marine bunker fuel”, “marine diesel fuel”; Section 6

Bulletin MFT-CT 005

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

Effective August 1, 2001, Bill 2, Taxation Statutes Amendment Act, 2001 repealed and replaced section 11 to provide an exemption for marine bunker fuel from tax payable under the Act.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000, amended the definitions of marine bunker fuel and marine diesel fuel to clarify that any fuel sold as marine diesel is subject to the tax rate imposed on marine diesel.

Marine diesel is subject to tax at the coloured fuel tax rate. Prior to August 1, 2001, marine bunker fuel was subject to tax on 7% of the purchase price, which resulted in a lower tax rate than on marine diesel. Both fuels may be a blend of fuels that include diesel, but differ in terms of viscosity level. Under the previous legislation, marine bunker meant bunker oil, or a blend of fuels including diesel, with a viscosity level of 10 centistokes or more. Marine diesel was diesel fuel, or a blend of fuels including diesel fuel, with a viscosity level of less than 10 centistokes.

Due to changes in industry standards, marine diesel may now have a viscosity level of up to 10.4 centistokes. This created a loophole that allowed marine bunker fuel to be blended and sold as marine diesel, but taxed at the lower marine bunker rate. The result was tax revenue leakage and competitive inequities for fuel suppliers applying the tax in accordance with the intent of the Act. The amendment closed this loophole by establishing that any fuel sold as marine diesel is marine diesel and therefore subject to tax at the marine diesel rate.

Effective April 1, 1987, the tax rate for marine bunker fuel was no longer a unit tax rate, nor indexed. The tax became 7% of the purchase price as defined under the Act.

Effective March 21, 1986, the Act was amended to close this loophole as follows:

• The definition of marine bunker fuel was amended to include blended fuels of a viscosity of 10 centistokes or more to ensure that all such fuels are subject to the tax when purchased out of province and delivered to a ship located in British Columbia.
• The definition of marine diesel fuel was amended to refer to diesel fuel and blended fuels of less than ten centistokes. At the same time, section 5 of the Act, which imposes tax on coloured fuel, was amended to remove references to marine diesel fuel and a separate provision, section 6, was established to impose tax on marine diesel.

Effective March 15, 1985, a new indexing formula was introduced to establish the tax rate of bunker fuel for marine use at 7 percent of the purchase price.

Marine bunker fuel was defined as fuel oil used in a ship for an internal combustion engine, steam engine or steam turbine. Fuel oil was defined in the regulations as bunker oil and intermediate blended fuels having a viscosity level of not less than 20 centistokes.

This definition of marine bunker fuel left common usage fuels such as diesel and blended fuels of less than 20 centistokes viscosity not subject to the tax when purchased out of province and delivered into a ship in the province. This resulted in avoidance of tax and encouraged purchases of fuels from out of province suppliers.

Effective July 8, 1983, fuel oil and marked bunker type fuels used to power a steam engine in a ship or steam turbine in a ship, became subject to a per litre tax based upon 20% of the selling price of marked bunker fuel, with a quarterly indexing formula tied to market price statistics of bunker fuels at Vancouver. As of midnight July 7, 1983, persons who took delivery of marine bunker type fuels in British Columbia, which had been acquired outside of this province, for placement into ships for purposes of powering the ship's steam engine or steam turbine, were required to pay tax of 3.54¢ per litre on all such deliveries. "Delivery" was defined to mean the physical transfer in the Province of marked bunker fuel into the receptacle which supplies the engine or turbine in a ship for which the marked bunker fuel is acquired. The agent in British Columbia for the ship was required to collect the applicable tax on all such deliveries made in this province and promptly remit the tax to the Minister of Finance and Corporate Relations.

Effective March 11, 1981, marine bunker fuel was taxed under the Gasoline (Coloured) Tax Act at a rate of 2.64¢ below the tax on clear gasoline (i.e. the same rate as marked gasoline).

Prior to March 12, 1980, marine bunker fuel burned in steam engines or steam turbines on ships was taxed under the Fuel Oil Tax Act at a rate of 1/2¢ per gallon. The Fuel Oil Tax Act was repealed March 12, 1980 and there was no tax on marine bunker fuel from that date to midnight, March 10, 1981.

R.1 Tax Rates for Marine Bunker Fuel Burned in Steam Engines or Steam Turbines in Ships (Revised: 2009/04)

Tax Rates for Marine Bunker Fuel Burned in Steam Engines or Steam Turbines in Ships (Revised: 2009/04)

Effective Dates	Tax Rate
Prior to March 12, 1980	½¢/gallon
March 12, 1980 - March 10, 1981	No Tax
March 11, 1981 - July 7, 1983	Same rate as marked gasoline
July 8, 1983 - September 30, 1983	3.54¢ per litre
October 1, 1983 - December 31, 1983	3.60¢ per litre
January 1, 1984 - March 31, 1984	3.81¢ per litre
April 1, 1984 - June 30, 1984	3.71¢ per litre
July 1, 1984 - September 30, 1984	3.84¢ per litre
October 1, 1984 - December 31, 1984	4.07¢ per litre
January 1, 1985 - March 14, 1985	4.19¢ per litre
March 15, 1985 - March 31, 1985	1.65¢ per litre
April 1, 1985 - June 30, 1985	1.66¢ per litre
July 1, 1985 - September 30, 1985	1.49¢ per litre
October 1, 1985 - December 31, 1985	1.42¢ per litre
January 1, 1986 - March 31, 1986	1.44¢ per litre
April 1, 1986 - June 30, 1986	1.27¢ per litre
July 1, 1986 - September 30, 1986	0.73¢ per litre
October 1, 1986 - December 31, 1986	0.56¢ per litre
January 1, 1987 - March 31, 1987a	0.58¢ per litre
April 1, 1987 - July 31, 2001	7% of the purchase price
August 1, 2001	No Tax

^a Prior to April 1, 1987, the tax rate on marine bunker fuel was calculated as a unit tax rate which was indexed to bunker fuel prices in the Vancouver market and adjusted quarterly. 

Section 12 - South Coast British Columbia Transportation Authority Tax Arrangements

MFT - SEC.12/Int.-R.-5

References:

Act: Section 1 “South Coast British Columbia Transportation Authority”; Section 4; Section 10

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

Effective November 30, 2007, Bill 43, Greater Vancouver Transportation Authority Amendment Act, 2007, renamed the Greater Vancouver Transportation Authority (TransLink) as the South Coast British Columbia Transportation Authority (SCBCTA), and the Greater Vancouver transportation service region as the South Coast British Columbia transportation service region (SCBCTSR).

Effective March 31, 1999, BC Transit Tax for the Vancouver Regional Transit Service Area was replaced by a Greater Vancouver Transportation Authority (TransLink) tax. The tax is collected by the province on behalf of TransLink.

Effective April 1, 1980, under the authority of the Urban Transit Authority Act, (as of September 1, 1992, the British Columbia Transit Act), clear gasoline and clear diesel purchased within the Vancouver Regional Transit Service Area is subject to an urban transit tax.

R.1 Historical Tax Rates (Revised: 2009/04, 2015/04)

Clear gasoline and clear diesel purchased in the Vancouver Regional Transit Service Area was subject to the urban transit tax at the following rates:

Urban transit tax rates on clear gasoline and clear diesel purchased in the Vancouver Regional Transit Service Area

Date	Rate
1980-04-01 to 1982-08-31	$0.0066/litre ($0.03/gal)
1982-09-01 to 1987-03-01	$0.0095/litre ($0.0432/gal)
1987-04-01 to 1988-04-14	$0.025/litre ($0.117/gal)
1988-04-15 to 1993-06-30	$0.03/litre
1993-07-01 to 1999-03-31	$0.04/litre

The TransLink dedicated motor fuel tax payable on fuel purchased within the SCBCTSR is imposed under section 4 [tax on gasoline] and section 10 [tax on motive fuel] of the Act at the following rate:

Rates

Date	Rate
1999-04-01 to 2001-03-31	$0.08/litre
2001-04-01 to 2002-03-31	$0.09/litre
2002-04-01 to 2003-03-31	$0.11/litre
2003-04-01 to 2005-03-31	$0.115/litre
2005-04-01 to 2009-12-31	$0.12/litre
2010-01-01 to 2012-03-31	$0.15/litre
2012-04-01	$0.17/litre

R.2 South Coast British Columbia Transportation Service Region (Revised: 2009/04, 2015/04)

Effective December 16, 1991: The prescribed area was expanded to include the municipalities of Maple Ridge and Pitt Meadows. As a result, it extended:

• North to and including Lion's Bay;
• West to and including Bowen Island;
• South to the international border; and
• East to include the municipalities of Langley, Maple Ridge, and Pitt Meadows.

Effective April 1, 1988: The prescribed area was expanded to include the City of Langley and the Corporation of the Township of Langley.

Effective April 1, 1980: This area extended:

• North to and including Lion's Bay;
• West to and including Bowen Island;
• South to the international border; and
• East to the Surrey/Langley municipal border running north along the Fraser and Pitt Rivers.

R.3 Application of Tax (Revised: 2009/04; 2015/04)

Under paragraph 4(1.1)(b) [tax on gasoline], paragraph 10(1.1)(b) [tax on motive fuel], or section 12.1(2) [Victoria regional transit service area tax arrangements], whichever applies, when clear gasoline or clear diesel is sold within the SCBCTSR or the Victoria Regional Transit Service Area (VRTSA), the purchaser must pay the dedicated tax.

A sale is considered to take place inside the SCBCTA or VRTSA, and the dedicated taxes apply, if title to the clear gasoline or clear diesel, including the rights and responsibilities of ownership, transfers within the SCBCTA or VRTSA.

When fuel is delivered to a bulk plant or refinery located within the SCBCTSR or the VRTSA, the plant or refinery is required to collect the dedicated tax under the following conditions:

• The fuel is destined for a retail dealer located within either transit service area;
• A purchaser takes delivery of the fuel at the plant or refinery for the purchaser’s own use; or
• The fuel is sold to a private trucking firm and the destination of the fuel is unknown.

An auditor who reviews clear diesel and gasoline sales made by a business located within the SCBCTSR or the VRTSA (especially one located near the border), or by a bulk agent or refinery located just outside of these areas, should closely examine the sales invoices to ensure that the TransLink or BC transit tax has been charged correctly.

The TransLink and BC transit taxes on diesel fuel are strictly "purchase" taxes. Therefore, no refunds will be paid to truckers for inter-transit area travel by intra or inter provincial users.

R.4 First Nations Land Located Within Transit Areas (Revised: 2009/04; 2015/04)

A First Nation reserve located within the boundaries of a transit service area is considered part of the transit service area. Therefore, the dedicated tax applies to the taxable sale of clear diesel or gasoline made on a reserve located within the SCBCTSR or the VRTSA.

Eligible first Nation purchasers are entitled to exemption from the dedicated tax when they purchase fuel on reserve land, just as they are entitled to exemption from other taxes. However, a fuel retailer located on reserve land that is within the SCBCTSR or the VRSTA must collect the dedicated tax on sales to non-First Nation purchasers.

R.5 Refunds (Revised: 2009/04; 2015/04)

If a purchaser makes use of clear diesel or gasoline for a purpose authorized under paragraphs (1)(d), (1)(e), (1)(h), or 1(j) (in respect of fuel used in a farm truck while being operated internationally) of section 15 [prohibition against unauthorized use of coloured fuel], the purchaser can apply to the ministry for a refund of the dedicated tax the purchaser paid on the diesel or gasoline under section 22 [refund where fuel used for certain purposes].

Section 12.1 - Victoria Regional Transit Service Area Tax Arrangements

MFT - SEC.12.1/Int.-R.2

References:

Act: Section 1.1; Section 4; Section 10; Section 13; Section 22; Section 37; Section 71

MFTR: Section 2.021; Section 4

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

Effective April 1, 2018, Bill 2, the Budget Measures Implementation Act, 2018 amended section 12.1(2) of the Act by increasing the tax rate on clear gasoline and clear diesel in the Victoria regional transit service area (VRTA) from 3.5¢ to 5.5¢ per litre.

Effective August, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 12.1(2.1) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012, amended subsection 12.1(2) and paragraph 12.1(3)(b) by replacing the words "from a retail dealer delivering either of those fuels" with "that is delivered." In addition, a new subsection (2.1) was added. The new subsection was added for the purposes of the new rules regarding imported fuel under section 1.1.

Effective April 1, 2008, the rate of tax imposed under subsection 12.1(2) on clear diesel and on clear gasoline purchased within the VRTA is $0.035/litre.

Effective March 31, 1998, subsection 12.1(2) is added and imposed a $0.025/litre tax on clear gasoline purchased within the VRTA.

Effective May 1, 1993, clear gasoline purchased in the VRTA is subject to the BC transit tax. The VRTA is prescribed by the regulations to the British Columbia Transit Act.

For the application of the dedicated tax in specific circumstances, see MFTA/Section 12/R.3-4.

R.1 Tax Rates (Revised: 2012/01; 2023/10)

Clear gasoline and clear diesel purchased in Victoria Regional Transit Service Area are subject to the British Columbia Transit Tax as follows:

Victoria:

Date	Rate
1993-05-01	$0.015/litre
1997-07-01	$0.025/litre
2008-04-01	$0.035/litre
2018-04-01	$0.055/litre

R.2 VRTA (Revised: 2009/04, 2015/04)

The VRTA includes the following:

• The municipalities of Victoria, Esquimalt, Oak Bay, Saanich, Central Saanich, Sidney, North Saanich, Metchosin, Colwood, View Royal, and Langford;
• The Langford Electoral Area, which, on the Malahat Drive portion of Highway 1, extends north to the Cowichan Valley Regional District boundary, located just south of Irving Creek and Okotoks Road; and
• The portion of the Sooke Electoral Area east of Tugwell Creek (which is west of the town of Sooke and flows into Orveas Bay between Otter Point and Sherringham Point) and south of the southern boundary of the Malahat Land District, encompassing the town of Sooke.

The islands within these areas, as well as Salt Spring Island and the Outer Gulf Islands, are not included in the VRTA.

Section 13 - Additional Tax For Transportation Infrastructure Construction

MFT - SEC.13/Int.-R.1

References:

Act: Section 1 “gasoline”, “motive fuel”; Section 4; Section 10; Section 12.1; Section 22; Section 37

MFTR: Section 2.01; Section 4; Section 40.2; Section 40.3; Section 42; Section 50

Interpretation (Revised: 2017/05)

The Build BC Act, 1993, established the BC Transportation Financing Authority. Funds dedicated to this authority are to be used in the construction of high priority transportation projects. As of December 31, 2004, section 13 refers to Section 34 of Transportation Act.

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 13(2) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012 repealed and replaced section 13. The tax rate payable on clear gasoline and clear diesel continued to be $0.0675/litre, the maximum rate allowable.

Effective March 1, 2003, Bill 6 Budget Measures Implementation Act, 2003 increased tax payable on clear gasoline and clear motive fuel to $0.0675/litre. The additional tax was allocated to the BC Transportation Financing Authority (BCTFA to finance the province’s transportation infrastructure).

Due to an oversight, regulations for establishing the new rates in 1999 and 2000 under the Build BC Act were not enacted. Regulations were introduced and they applied retroactively to the period June 1, 1999 through February 28, 2003. The regulations did not affect tax payable beginning March 1, 2003 on purchases of clear gasoline or clear motive fuel.

Effective April 1, 2000, Bill 3, Budget Measures Implementation Act, 2000, increased motor fuel tax paid by the Province to the BC Transportation Financing Authority. The portion of motor fuel tax allocated to the Authority was increased to $0.0325/litre. This reallocation did not change the overall amount of tax payable by consumers on their purchases of clear fuel.

Effective June 1, 1999, Bill 52, Taxation Statutes Amendment Act, 1999, increased tax payable under subsection (2) to $0.03 per litre from $0.02/litre, in the clear fuel tax dedicated to the BC Transportation Financing Authority. Tax rates on clear gasoline and clear motive fuel were reduced by $0.01/litre, eliminating any net increase in tax payable on clear gasoline or clear motive fuel.

Effective April 1, 1997, Bill 2, Budget Measures Implementation Act, 1996, B.C. Reg. 103/97, increased the Build BC tax to $0.02/litre. Tax rates on clear gasoline and clear motive fuel were reduced by $0.01/litre, eliminating any net increase in tax payable on clear gasoline or clear motive fuel.

Effective May 17, 1995, Bill 24, Miscellaneous Statutes Amendment Act, (No. 2), 1995 added subsection 13(2). This subsection required all persons who purchased clear gasoline or clear motive fuel outside of the province and operated a commercial motor vehicle within the province to pay the additional Build BC tax. This applied to IFTA and non-IFTA carriers. This was consistent with the application of the tax since the introduction of the Build BC tax in 1993.

Effective September 1, 1993 (Bill 3, 1993), subsection (1) imposed a $0.01/litre tax on clear gasoline and motive fuel purchased or used in a prescribed area, which according to the Build BC Act regulations is the entire province. The additional revenue is dedicated to the BC Transportation Financing Authority.

R.1 Refunds (Revised: 2015/04)

A person who pays tax on fuel under section 13 can claim a refund of the tax, under section 22 [Refund where fuel used for certain purposes], if the person uses the fuel for a purpose authorized under paragraphs (1)(d), (e), (h), or (j) (in respect of fuel used in a farm truck while being operated internationally) of section 15 [Prohibition against unauthorized purchase or use of coloured fuel].

A person who pays tax on fuel under section 13 can claim a refund of the tax, under section 4 [refund — stationary engine] of the Motor Fuel Tax Regulation if the fuel is one that is described in subsection (1) of that section.

Section 13.1 - Additional Tax For Bc Ferry Corporation

MFT - SEC. 13.1/Int.

REPEALED

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

Effective April 1, 2003, the $0.0125 per litre payable to BC Ferries Corporation on clear gasoline and clear diesel was discontinued. This portion of the tax was redirected to the province's consolidated revenue fund. Therefore, this measure did not affect the total amount of tax payable on fuel purchased, as established on March 1, 2003 by Bill 6, Budget Measures Implementation Act, 2003.

Effective October 1, 1999, the amendment increased the tax to $0.0125 per litre. This tax provided an additional source of secure funding for the ferry corporation. The increase was offset by an equivalent reduction in the provincial tax payable on clear fuels under sections 38 and 40 of the Taxation Statutes Amendment Act. As a result, the tax payable by consumers did not change.

Effective April 1, 1999, Bill 52, Taxation Statutes Amendment Act, 1999 amended the legislation by imposing a $0.01 per litre tax on clear fuels for the BC Ferry Corporation.

Subsection 13.1(1) established that where clear gasoline or clear diesel were purchased in the province, the tax imposed under this section is payable at the time of purchase.

Subsection 13.1(2) established that where clear gasoline or clear diesel was brought into the province for use, the tax payable was to be reported and remitted to the government at the time of the user's next tax reporting period.

Section 13.2 - Tax If Fuel Used For New Purpose

MFT - SEC.13.2/Int.

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

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 13.2(1) to provide that the due date for payment of tax and the manner of payment of tax are to be prescribed by regulation. This amendment allows for consistent regulations to be made for all remittances under the Act.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added section 13.2. The provision was necessary, given the addition of certain exemptions for propane based on use - e.g., propane purchased solely for a farm purpose.

When fuel is purchased for a particular purpose, and then subsequently used for another purpose, and the amount of tax paid on the fuel was less than the amount of tax that would have been payable if that fuel had been purchased for the purpose for which it was used, the purchaser must pay tax equal to the difference between the tax that the purchaser would have paid on that fuel if that fuel had been purchased for the purpose for which it was used and the tax paid by the purchaser.

Section 13.3 – Definitions

MFT - SEC.13.3/Int.

References:

Act: Section 14; Section 14.1

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

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added section 13.3. The provision provides a definition for "authorization" and "authorized person" for the purposes of Part 3 of the Act.

Section 14 – Authority To Colour Fuel

MFT - SEC.14/Int.

References:

Act: Section 1 “coloured fuel”; Section 15

MFTR: Section 6; Section 7; Section 8; Section 9; Section 10; Section 11; Section 15.3

Bulletin MFT-CT 003

Interpretation (Issued: 2009/04; Revised 2015/04; 2023/08)

The use of dye to identify fuels taxed at a lower rate is an important control mechanism to protect fuel tax revenues. The branch may suspend the dyeing privileges of a bulk fuel agency if it does not comply with the dyeing requirements contained in the regulations to the Act. This action is necessary to protect the integrity of the provision allowing fuel to be taxed at a lower rate.

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 14 consistent terminology for the purposes of clarifying that the general rules for giving documents apply by replacing “delivered” with “given”. Subsection 14(8) is repealed. The subsection was repealed consequential to the repeal and replacement of section 63 which provides the rules for how the director gives documents.

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended subsection 14(4) by adding paragraph (b.1).

Effective October 27, 2005, Bill 42, Provincial Revenue Statutes Amendment Act (No. 2), 2003 added subsection 14 (3.1) to establish that a person authorized to colour fuel, must use prescribed dye, dying procedures and equipment to colour the fuel.

Effective September 15, 2004, Bill 42, Provincial Revenue Statutes Amendment Act (No. 2), 2003 amended paragraph 14(4)(b) to establish that the director may suspend or cancel a persons' authorization to colour fuel if that person fails to comply with a term of condition imposed with respect to an authorization under subsection 14(1) or Section 14.1 [authority to sell coloured fuel]. Paragraph 14(4)(c) is added to establish that the director may suspend or cancel a person's authorization if that person fails to comply with a term or condition imposed under subsection 14(9).

Effective July 30, 1993, Bill 18, Motor Fuel Tax Amendment Act, 1993 clarified the provisions for authorizing persons to colour fuel and provided clear legislative authority for suspending or cancelling fuel colouring privileges where the authorized person has failed to comply with the Act.

Effective April 1, 1980, the branch enforced the Act through warning letters and a series of escalating suspensions administered by the director. The prime objective of this method of enforcement was to gain compliance without unduly restricting the operator's ability to do business.

When a fuel dyeing infraction was suspected, the inspector sent a sample of the fuel product in question for analysis by a testing facility to confirm that an infraction had occurred. Upon confirmation, a letter was sent to the bulk agency, with a copy to the oil company, specifying the infractions noted and warning them of the penalties which could be imposed. The letter asked for agency comments, explanations, and planned remedial action.

Where the agency's response satisfied branch concerns, no suspension was imposed.

However, if the agency's response was considered unsatisfactory, a letter was sent to the bulk fuel agency, with a copy to the oil company, telling them that their dyeing privileges had been suspended.

If this was the agency's first offence the suspension would be for three months. If it is their second, the suspension would be increased to a full year. If it was their third, dyeing privileges would be permanently suspended.

Dyeing privileges were suspended without court action, only after a thorough review of all the facts and circumstances as presented by branch field staff, and the agent's and oil company's response to the allegations.

Prior to April 1, 1980, if a bulk fuel agency was found to be contravening the dyeing requirements, the branch charged the agency with an offence against the Act. If the agency was convicted by the court, dyeing privileges were permanently suspended at that location.

There were several problems with this method of dealing with dyeing infractions.

The process of going to court was costly and time consuming for both parties. If convicted, the dyeing privileges were permanently suspended and the oil company was denied the opportunity to correct the situation. This could severely restrict an agency's ability to do business and, in some cases, put it out of business.

In addition, many of the prosecutions were unsuccessful. This encouraged agencies known to be violating the legislation to continue doing so.

Because of these problems, the branch changed its procedures for responding to dyeing infractions.

Subsection 14(1) allows the director to authorize a person to colour fuel and establishes that the authorization must be in writing and may be subject to terms and conditions the director considers appropriate.

Subsection 14(2) establishes that an authorized person cannot delegate or transfer the authorization to colour fuel to another person.

Subsection 14(3) establishes that only an authorized person may colour fuel.

Subsection 14(3.1) establishes a person authorized to colour fuel must use the prescribed dye, dying procedures and equipment to colour the fuel.

Subsection 14(4) establishes that the director may suspend or cancel a persons' authorization to colour fuel if that person:

• fails to comply with a requirement of the Act or regulations,
• fails to meet a condition that was imposed at the time the authorization was granted or at the time a suspension of authorization was lifted,
• fails to comply with a terms or condition relating to heating oil or non-motor fuel oil under subsections 16.2(2) or 16.3(2) or (3); or
• fails to comply with a term or condition imposed under subsection 14(9).

Suspensions are prescribed in MFTR section 15.3 as follows:

• first offence - three months,
• second offence - one year,
• third offence - the authorization is cancelled.

A suspension or cancellation of authorization may be appealed to the minister (section 50) and further, to the court (section 51).

Subsection 14(5) establishes that cancellation or suspension of a person's authority to colour fuel does not affect any other liability that person may have under the Act.

Subsection 14(6) establishes that an authorization to colour fuel cannot be cancelled until the authorized person is advised of the reasons and provided with an opportunity to show why the authorization should not be cancelled.

Also establishes that an authorization to colour fuel can be suspended without advance notice. This allows for prompt suspension where the failure to comply poses an immediate risk to revenue.

Subsection 14(7) establishes that a suspension or cancellation takes effect on the date the notice of cancellation or suspension is given to the authorized person.

Subsection 14(8) [Repealed 2019-36-35.]

Subsection 14(9) establishes that the director may make the lifting of a suspension subject to compliance with any terms or conditions that the director considers appropriate.

Section 14.1 – Authority To Sell Coloured Fuel

MFT - SEC.14.1/Int.

References:

Act: Section 1 “coloured fuel”

MFTR: Section 11

Bulletin MFT-CT 003

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

Effective September 15, 2004, Bill 42, Provincial Revenue Statutes Amendment Act (No. 2), 2003, added section 14.1 to provide that all persons who sell coloured fuel must have an authorization from the director and the authorization may be suspended or cancelled for non-compliance with the Act.

Subsection 14.1(1) allows the director to authorize a person to coloured fuel and establishes that the authorization must be in writing and may be subject to terms and conditions the director considers appropriate.

Subsection 14.1(2) establishes that an authorized person cannot delegate or transfer the authorization to sell colour fuel to another person.

Subsection 14.1(3) establishes that only an authorized person may sell coloured fuel.

Subsection 14.1(4) provides that subsections 14(4) to 14(9) [authority to colour fuel] applies to an authorization under this section. These specific provisions relate to the suspension or cancellation of an authorization.

Section 14.2 – Authority To Colour Heating Oil And Sell Coloured Heating Oil

MFT - SEC.14.2/Int.

REPEALED

Interpretation (Issued: 2015/04)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed section 14.2 as a consequential amendment to the Act. With the return of the PST, Part 3.1 was added to provide for provisions concerning the colouring and selling of heating oil.

Effective July 1, 2010, Bill 9, Consumption Tax Rebate and Transition Act, 2010, added section 14.2 as a consequential amendment to the Act. Section 14.2 provided that:

• Section 14 [authority to coloured fuel] applied to the colouring of heating oil as if it were fuel.
• Section 14.1[authority to sell coloured fuel] applied to heating oil that was coloured in accordance with section 14 as if coloured heating oil was coloured fuel.