B.C. Issues Correction to MJV Tax Rate

MJV tax rate

British Columbia has issued a correction to the percentage-factor on its chart of multi-jurisdictional vehicle (MJV) tax rates. The prior factor reflected two decimal points; however, B.C.’s system records five decimal points.

While this error was discovered and posted at the International Registration Plan (IRP) web site last June, the province did not send a notification to each IRP jurisdiction directly.

What is MJV tax?

All multi-jurisdictional vehicles except trailers that are “prorate licensed” under IRP and travel in B.C. are subject to the province’s MJV tax when a license is issued or renewed. If a multi-jurisdictional vehicle is based in B.C., the MJV tax is charged and collected at the time of licensing by the Insurance Corporation of British Columbia (ICBC). If an MJV is licensed outside of B.C., the jurisdiction that issues the license will charge and collect the MJV tax and forward it to ICBC. All MJV tax collected is remitted by ICBC to the B.C. government (Consumer Taxation Branch).

MJV tax is payable for each license period a vehicle is licensed for use in B.C. and is calculated based on the purchase price of the vehicle, applicable tax rate, ratio of the distance traveled in B.C. to the total distance traveled in all jurisdictions, and the travel months in the vehicle license period.

British Columbia re-introduced the MJV tax last April with the return of the provincial sale tax (PST) system.

If you operate multi-jurisdictional vehicles in British Columbia, make sure you’re reporting your MJV tax correctly. More information is available at gov.bc.ca/PST, or contact us at North Start Fleet Services.

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