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HUB International TRANSPORTATION Insurance
British Columbia’s leading source of Transportation insurance solutions
When you bring your business to our TRANSPORTATION specialists at HUB International Insurance Brokers, you receive the combined power of our vast global resources and solid local relationships. Our longstanding relationships with the best providers in the business allow us to deliver the solution that serves you best. With HUB, you can run your business knowing that you are headed in the right direction.

Update on MVJ Tax Changes - Effective April 12, 2015

Changes to the Multi-jurisdictional Vehicle Tax for fleet-to-fleet tranfsers - Effective April 12, 2015

The Good News:

  • Fleet-to-fleet transfers of prorate vehicles will now qualify for an automatic credit for the unused months remaining in their first fleet, reducing the amount of MJV tax payable when the vehicle is licensed in the second fleet.
  • ICBC will automatically apply a fleet-to-fleet transfer credit for the unused months in the first fleet, to reduce the MJV tax amount payable by the second fleet regardless of how long it takes to complete the paperwork.
  • The automatic credit occurs even if it takes longer than 24 hours for the transfer to take place. 

The Bad News:

  • If a prorate licence (P-plate) is temporarily cancelled due to slowdowns, repairs, personal or medical leaves - ICBC must re-assess and require payment of the MJV tax for a new P-plate when it comes time to be re-licenced.  
  • Carriers must manually apply for a refund for the unused portion of the MJV tax paid for the first plate, but will not receive it until the end of the fleet license term. Subsequently, the carrier would be required to pay the MJV tax twice for the same vehicle, but will not receive the refund until the end of the term.
  • Depending on the size of the fleet and number of p-plate licences a carrier has, this could cause concern for potential cash flow issues

Smart Tip:

  • Carriers can avoid double payment of the MJV tax by taking the vehicle off the road without cancelling the plate and lowering the insurance coverage while the vehicle is not being used. Although, initially this will be more expensive than putting the vehicle on storage/garage policy, it avoids MJV-tax-related problems.

Tia Chisholm, HUB International TRANSPORTATION

HUB International TRANSPORTATION specialists are based in Vancouver. Our longstanding relationships with the best providers in the business allow us to deliver the solution that serve you best. With HUB, you can run your business knowing that you are headed in the right direction.

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