British Columbia -> BC Budgets -> Budget 2009
British Columbia 2009 Budget - February 17, 2009
Personal tax
Dividend tax credit (DTC) rates
It is proposed to reduce the regular (small business) dividend tax credit rate
 | dividend tax credit reduced to 3.4% of taxable dividend, effective January 1, 2010. |
| small business dividend tax credit rate was previously reduced for 2009 to 4.2% from 5.1% of taxable dividends |
The enhanced dividend tax credit rate for eligible dividends was previously reduced, effective January 1, 2009, to 11% from 12% of taxable dividends. No further changes were announced in the 2009 Budget.
See the BC Dividend Tax Credit page for a table showing the revised combined federal/BC marginal tax rates for eligible dividends when the BC dividend tax credit rate reduction and personal tax rate reductions are combined with the federal reduction of the dividend gross-up, and the changes in the federal dividend tax credit rate.
BC mining flow-through share tax credit (MFTS)
It is proposed to extend the MFTS to the end of 2009, retroactive to January 1, 2009.
The MFTS provides a non-refundable tax credit equal to 20% of BC flow-through mining expenditures.
See the BC Small Business and Revenue page Tax Credits - British Columbia Mining Flow-Through Share Tax Credit.
Corporate income tax
It is proposed to reduce the general corporate income tax rate
| to 10.5% effective January 1, 2010 |
| to 10% effective January 1, 2011 |
There is no proposal to reduce the small business corporate tax rate, which was reduced from 3.5% to 2.5% effective December 1, 2008.
See the BC Small Business and Revenue website for changes to
- Film and Television Tax Credit - eligibility expansion for this refundable tax credit- Production Services Tax Credit - relaxation of requirements for this refundable tax credit
- Logging Tax Credit - partial remission
Provincial sales taxes (PST)
The budget announced the extension of some temporary PST exemptions and introduction of some new temporary exemptions.
Property Tax
Northern and Rural Homeowner benefit
A benefit of up to $200 per homeowner will be provided in 2011 to homeowners in areas outside the Capital, Greater Vancouver and Fraser Valley regional districts. Based on the current forecast of carbon tax revenues for 2011/12 the Northern and Rural Homeowner benefit is expected to be $200 per homeowner.
Industrial Property Tax Credit
The Industrial Property Tax Credit will be increased to 60% from 50% for the 2011 tax year
School Property Tax
School property taxes for land classified as farm will be reduced by 50% for the 2011 tax year.
Tobacco Tax
Tobacco tax rates have been increased effective February 18, 2009 to:
| $37.00 per carton of 200 cigarettes from $35.80 |
| 18.5¢ per gram of loose tobacco from 17.9¢ |
See the Small Business and Revenue web page Budget 2009 - Consumer Taxes for more information.
All of the tax changes in the 2009 Budget are subject to legislative approval.
For further information see the BC Government Budget website, and the Tax Measures - Supplementary(pdf) starting on page 64 (pdf page 72) of the Budget and Fiscal Plan.
BC Budget Update - September 1, 2009
Medical Service Plan (MSP) Premiums
Maximum monthly premium rates will increase by $3 per month ($36 per year) for single persons and $6 per month ($72 per year) for families. However, the adjusted net family income thresholds are increased by $2,000 each. As a result, individuals and families with adjusted net income of $30,000 or less will have lower premiums effective January 1, 2010. See the new premium table on our MSP page.
Personal tax
| Tax credit changes effective January 1, 2010:
| ||||
| BC mining flow-through share tax credit (BC MFTS) expiry date is extended for an additional year, to December 31, 2010. |
Business tax
| Effective July 1, 2009, the Basic Training Tax Credit for employers is increased from 10% of wages (up to $2,000 per apprentice) to 20% of wages (up to $4,000 per apprentice). See BC Finance Ministry information on Training Tax Credits. |
| Corporate income tax - effective January 1, 2010, the small business limit is increased to $500,000. |
Harmonized Sales Tax (HST)
British Columbia intends to harmonize its provincial sales tax (PST) with the Federal goods and services tax (GST) effective July 1, 2010.
The current PST rate in BC is 7%, which, when combined with the GST will result in a harmonized sales tax (HST) rate of 12%.
In the Budget Update, the provincial government announced that it also proposes to provide a provincially administered HST exemption for residential energy use. This was included in their HST backgrounder (pdf) document.
The change to HST will mean a significant savings and boost in productivity for businesses in BC. See our BC HST page for more information.
Further information on the BC Government website regarding the September 2009 Budget Update:
- September Budget Update 2009
Revised: November 20, 2024