HUB LinkedIn
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.

Legislative Changes Proposed for MJV Exit Tax

On December 3, 2013 the BC Minister of Finance advised that it is intending to introduce legislative changes at the earliest opportunity to impose exit tax only when the vehicle is licensed for use solely within BC. This change will affect how Prorate Licensing adminsters the collection of exit tax.

Until such amendments can be introduced in the Legislative Assembly, the Ministry of Finance has directed the Insurance Corporation of British Columbia (ICBC) to only collect the MJV exit tax when an MJV is licensed for use solely within BC. Therefore, effective December 3rd, ICBC will not collect exit tax in the following circumstances, provided the vehicle is not licensed for use solely within BC:

  • A prorate licence expires at the end of the month and it is not renewed on or before the first day of the following month
  • A vehicle changes fleets in a fleet-to-fleet transfer, but the transfer results in a gap in a prorate licensing status of one or more calendar days
  • A seasonally-operated prorate licensed vehicle is taken off the road, and its licence is cancelled
  • A prorate licence for a vehicle is cancelled while an operator goes on vacation (e.g. a storage insurance policy is obtained for the vehicle)
  • A prorate licensed vehicle is sold or traded in, and the new owner of the vehicle does not obtain a prorate licence for the vehicle on the day or day following the cancellation of the prior licence
  • A prorate licensed vehilce is destroyed

Should this amendment to the Provincial Sales Tax Act be approved by the Legislative Assembly and proclaimed in force retroactive to April 1, 2013, an operator of an MJV who has paid the MJV exit tax in circumstances other than when the vehicle is licensed for use solely within BC will be entitled to a refund of the MJV exit tax paid.

For further information on this development, please see Minister of Finance PST FAQs.

 

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.

Request a Callback

(604) 269-1000
 

RSS Feed

Subscribe via our RSS feed

Email Newsletter

Subscribe to HUB Transportation news
 

Get a Quote