Tax Increase Effective July 1st, 2010
Between January
1st, 2010 and July 1 , 2010. There are two significant changes
taking place with respect to the taxes payable on parking in the
area defined as the South Coast British Columbia Transportation
Region. This area includes Vancouver and much of the Lower
Mainland.
For a complete copy of Province of
BC Ministry of Finance Tax Notice
click here.
Prior to January
1, 2010, the total tax payable on parking was 12%. After July
1, taxes payable on parking will have increased to 35.52%
Changes to
taxes on parking
effective January 1, 2010
The Ministry of
Finance issued a notice to all 'Parking Sellers' in the South
Coast British Columbia Transportation Service Region including
the following instructions:
Effective January
1, 2010, the provincial sales tax (PST) rate on the purchase
price of parking rights will increase from 7% to 21%. This
applies to the South Coast British Columbia transportation
region. If you sell taxable parking in this region, you must
charge PST on the purchase price of the parking at the rate of
21% beginning January 1, 2010.
The PST rate for
taxable parking in the South Coast British Columbia
transportation service region is set by the South Coast British
Columbia Transportation Authority (Translink).
The increase also
triggered GST being payable on both the parking charge and the
PST collected; the total tax (GST and PST) payable on parking
therefore increased to 27.05% after January 1st, 2010.
Note that
subsequent information clarified the Translink position that,
although the ‘PST’ on parking was collected under the same
legislation as the Provincial Sales Tax, it was in fact a
‘Parking Sales Tax’, and would therefore not be subject to
elimination upon the harmonization of GST and PST on July 1,
2010.
Changes to
taxes on parking
effective May 1, 2010
While the changes
coming into effect as a result of the harmonization do not apply
on regular transactions until July 1, annual permits sold after
May 1st are subject to HST, and therefore the new higher tax
rate applies.
Changes to
taxes on parking
effective July 1, 2010
The new HST
legislation comes into effect on all transactions on July 1,
2010, with HST at 12% replacing the GST and Provincial Sales
Tax. This does not have any impact on the Parking Sales Tax at
21% that was introduced in January, and UBC is still required to
collect this tax on all parking sales. The new HST is payable
on both the parking transaction value, and the Parking Sales
Tax. The result is a total combined tax on parking of 35.52%.
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MANDATE OF ANCILLARY DEPARTMENT
UBC Parking & Access Control Services is an UBC ancillary
department.
UBC’s Ancillary departments are self supporting, sustainable
businesses that provide quality, value added services to the
campus community and financial contributions to support the
academic mission of the University.
The Ancillary departments are committed to:
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Providing their
respective services to meet the needs of the University
community and to enhance the lives of students, faculty,
staff, residents and visitors
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Operating in a
fiscally responsible manner that includes regularly benchmarking
against competitors and peers
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Providing a
financial contribution whenever possible to the centre in
support of the core goals of UBC
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Investing in the
businesses to manage the development and maintenance of
facilities and physical assets
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