British Columbia Issues Notice on Multijurisdictional Vehicle Tax

British Columbia’s Ministry of Finance has issued Notice 2014-006, “Multijurisdictional Vehicle (“MJV”) Tax and the Implementation of the Full Reciprocity Plan” to announce the intention to introduce legislation to amend the Provincial Sales Tax Act to reflect changes to the International Registration Plan (“IRP”).

Effective January 1, 2015, IRP will implement a new Full Reciprocity Plan (“FRP”), under which licensed persons can operate in all 59 IRP jurisdictions without the requirement to update vehicle licenses.

The Notice also contains information about MJV tax, the proposed amendments, and the differences between the rules for current and proposed MJV tax calculations.