Important update to the MDC Study Guide and Plain Language Legislation Review - March 2006

Effective February 2006, the Provincial Sales Tax rates have changed for passenger vehicles. Following are the new rates:

For passenger vehicles in BC, if the purchase price is:

< $55,000, tax is 7%
= $55,000 and < $56,000, tax is 8%
= $56,000 and < $57,000, tax is 9%
= $57,000 or > $57,000, tax is 10%

With a trade-in, tax is applied on the difference in value between the new vehicle and the trade-in vehicle, but the percentage of tax is determined by the value of the new vehicle. If the purchase price of the new vehicle is:

< $55,000, tax is 7%
= $55,000 and < $56,000, tax is 8%
= $56,000 and < $57,000, tax is 9%
= $57,000 or > $57,000, tax is 10%

These new rates should replace the information on page 113 of the MDC Plain Language Legislation Review and page 38 of the MDC Occupational Standards Study Guide in all versions prior to March 2006.

Important Update to the MDC (MDSA) Study Guide - March 2003

It has come to our attention that there is an error in the Study Guide used in the MDC (MDSA) Training and Certification Course prior to March 2003. This error is in the information pertaining to the residence requirements for people holding a Status Indian Card to qualify for tax exempt status when purchasing a vehicle.

Please note the following changes to the section below that is taken from Page 39 of the MDSA Study Guide printed before March 2003.

There are both deletions, shown with a strike-out, as well as additions, shown in bold.

Page 39 of the MDSA Study Guide (prior to March 2003)

Tax exemption

The federal Indian Act and provincial Consumer Taxation Branch provide a provincial tax exemption to people who hold a 'Certificate of Indian Status' card and live on a reserve in BC. This exemption applies to goods purchased on the reserve, and to goods for which the title passes once the goods have been delivered to the reserve location. For title to pass on reserve land, the seller must retain ownership and responsibility for the goods until they are delivered to the purchaser on reserve land. For a leased vehicle, a person who holds a 'Certificate of Indian Status' card, as well as proof that they are a resident of a reserve, can take possession of the vehicle on or off reserve. Proof of residence can be provided by such things as a driver's license or a letter from the band.

Additional information concerning sales tax exemption regulations for Status Indians can be found in the Consumer Taxation Branch Bulletins # 034 and # 046. These bulletins are available on the internet at www.rev.gov.bc.ca/ctb/ or by calling 1-877-388-4440 or 604-660-4524 and selecting option #1.

Other information resulting from questions raised in MDC classes throughout the province can be found at Industry Questions.

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