WHEREAS the government of the Province of British Columbia collects a 4.4 tax on the premiums for insurance; AND WHEREAS the funds gathered through this tax are directed to general revenue and only a small portion of the amount collected is redirected through the budget to fund what was the original intent of the tax: THEREFORE BE IT RESOLVED that the Union of BC Municipalities request that the provincial government direct the funds gathered from this tax to local governments, to offset the cost of fire protection related services.
MINISTRY OF FINANCE The fire insurance premium tax imposed under the Fire Services Act was repealed in Budget 98. The tax revenue generated from the 4.4 per cent tax paid by insurance companies on property insurance premiums is intended to be a general revenue source and it is the provincial governments view that this is the appropriate use of the revenue. Any proposed transfer of tax revenue to local governments must be evaluated within the context of the governments fiscal plan and the need to fund critical provincial programs.