As of March 14, 2016, fleets will no longer receive an automatic credit for multijurisdictional vehicle tax paid when there is a change in ownership of an MJV during a prorate licence term and will have to apply for a refund at the end of the licensing term instead.
This change is required because of updated direction from the Ministry of Finance to ICBC on application of the MJV tax. Now, whenever there is a transfer of ownership of an MJV, the MJV tax is payable by the party taking ownership of the vehicle, and the party transferring ownership must wait to the end of the original policy term before receiving a refund for the MJV tax it originally paid. This change will also affect leasebacks and lease buy-outs that take place during a prorate licence term for an MJV that is remaining with the same prorate fleet.
Although there are no additional costs to carriers, there will be a delay in receiving refunds as well as the additional administrative time required to apply for them.
For information about the MJV tax and how to apply for a tax refund, please see PST Bulletin 135. You may also contact ICBC’s Prorate department for assistance directly at 604-443-4450.
BCTA continues to work for a more streamlined MJV Tax process, including a request for automatic MJV tax credits in our recent Red-Tape Reduction submission to the provincial government. Please see the following Bulletin articles for related information on our efforts to date:
Join us for a fun round of Texas Scramble golf at Meadow Gardens Golf Club in Pitt Meadows on Tuesday, September 10th. Enjoy networking and socializing with industry friends, excellent golf and on-course activities, superb food and opportunities to win challenges and prizes.