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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.

Change to ICBC's Practice When Applying MJV Tax

On April 7, 2015 ICBC sent a letter to carriers advising a change to ICBC's practice when applying the multijurisdictional vehicle (MJV) tax, when a vehicle is licensed twice in the same fleet, in the same term, for the same owner.

Under the International Registration Plan, MJV tax must be charged when a vehicle is licensed under the plan.  However, the Ministry of Finance advised ICBC that in some circumstances where a vehicle is licensed and subsequently relicensed in the same fleet term period, the MJV tax has not been charged correctly.  In such instances, MJV tax should be charged with the issuance of each licence, with MJV tax refunds being handled separately.  As a result, ICBC is making changes to ensure compliance with the legislation.

In What Instance Will This Change Affect Me?

  • If a vehicle is prorate licensed (P-plate) and MJV tax is charged for the fleet's license term, the vehicle is subsequently taken off the road and the P-plate is cancelled; and
  • Within the same prorate fleet term, the vehicle is put back on the road and a second license (P-plate) is issued under the same prorate fleet, vehicle and owner.

How is ICBC's System Changing?

  • ICBC's system change will be implemented on April 12, 2015.
  • When a second prorate licenese is issued for the same vehicle on the same fleet during the same prorate fleet term, the MJV tax will be charged on this transaction; MJV tax paid on your previous license transaction will not be applied to reduce the MJV tax payable on this second P-plate licence transaction.
  • At the end of the prorate term, you may apply to the Ministry of Finace (Consumer Taxation Branch) directly for a refund of the MJV tax for the unused months from the first prorate licence.

What if I Don't Delete My Vehicle From the Prorate Fleet?

  • If you don't delete your vehicle from the prorate fleet when the first P-plate is cancelled, the ICBC Prorate Office will contact your insurance broker and request the submission of two forms: MV150V to delete the vehicle from the fleet, and MV150V to add the vehicle back onto the fleet.

Source: ICBC Prorate Office, "MJV Tax When Prorate Vehicle Licensed Twice on Same Fleet in Same Term" letter (April 7, 2015).
 

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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