WHEREAS district energy utilities provide sustainable energy sources for British Columbians; AND WHEREAS the reimplementation of the Provincial Sales Tax PST as proposed creates inequities for district energy utility providers that will impact their ability to compete on the basis of their respective system efficiencies, technical merit, and carbon emissions: THEREFORE BE IT RESOLVED that the Ministry of Finance reinstate the PST in an equitable manner that will i provide exemption or reimbursement of PST charges on energy purchased for the purpose of generating energy for resale, ii introduce former exemptions on Production Machinery and Equipment for equipment purchased by district energy systems, and iii maintain, as per the former PST regulations, the PST exemption on the sale of heat to residential district energy consumers.
Ministry of Finance The PST applies to the same goods and services which were subject to tax under the previous PST. There was no PST exemption under the previous PST for energy purchased for the purpose of generating energy or any other good for resale. No change to this policy is under consideration. All production machinery and equipment exemptions under the former PST are again available under the re-implemented PST, including the exemption formerly available for district energy systems operated by a local government body or local government corporation to generate electricity or electricity and heat at a cogeneration plant. The PST exemption on the purchase of heat by residential consumers has been re-implemented. Heat, steam or cooling produced through a district energy system is exempt from PST when purchased for residential use in a residential dwelling.