Starting January 1, 2014 a two year increase in BC personal income taxes will apply to taxpayers making over $150,000. Unfortunately, this won't apply to me. The projected rate increase is 2.1% on taxable income over $150,000. An increase in provincial corporate income tax from 10% to 11% that was scheduled to start
April 1, 2014 has been moved up to April 1, 2013.
Ahoy, all you smokers out there in BC. The price of your cigarettes is going to bounce sharply upward. The previously announced increase in BC provincial taxes of $5.60 per carton will come into effect April 1, 2013. On October 1, 2013 a further $2.00 will be levied. Naturally, these increases will also have the effect of automatically increasing the GST that applies to your cigarettes. Similar hikes are planned for fine-cut tobacco.
BC Medical Plan premiums will be increased starting January 1, 2014. The maximum monthly rate for one person will go up by $2.75 to $69.25. The maximum rate for a couple will go up $5.00 to $125.50 and the hit for a family of three or more will go up by $5.50 to $138.50. These increases don't sound like a lot but they work out to around 4%. Seniors who live on pensions are not likely to see a 4% increase in their monthly pension payments anytime soon.
The threshold for phasing out the property tax homeowner grant is increased to $1,295,000 for 2013. The school tax credit for class 5 light industry will be phased out in 2013 and 2014.
The exemption from property transfer taxes on the transfer of a deceased person's family farm is being expanded to include situations where the property had been used and farmed by the deceased, the deceased person's family or by a family farm corporation.
A new baby bonus is in the works. Mr. de Jong announced that starting April 1, 2015 a BC Early Childhood Tax Benefit of $55 per month per child will be paid to families for children under the age of six. This refundable tax credit will be reduced when family income exceeds $100,000 and eliminated if family income reaches $150,000. The province expects to piggyback the application form with the Canada Tax Benefit application. Mr. de Jong also proposed a one-time training or education grant of $1200 for children born after 2006. In order to get this grant, families would have to open an RESP account and apply for the grant before the child is 7 years old.
Don't forget on April 1, 2013, BC PST and GST will be back and the Harmonized Sales Tax (HST) no longer will apply in BC. The PST regulations that will apply have not yet been released.