WHEREAS the Province of British Columbia collects 4.4 of gross property and vehicle insurance premiums Insurance Premium Tax, which was originally intended to offset the costs of the Office of the Fire Commissioner; AND WHEREAS less than 1 of the tax collected is contributed directly to community fire services: THEREFORE BE IT RESOLVED that the Province redirect a portion of the Insurance Premium Tax to local governments to help defray the increased costs of fire protection.
Ministry of Finance The fire insurance premium tax imposed under the Fire Services Act was repealed in Budget 98.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 percent tax paid by insurance companies on property insurance premiums is intended to be a general revenue source. Municipal governments have received significant financial support from both senior levels of government over the past year. On the federal side, the GST rebate for municipalities was increased to 100 percent and a portion of federal fuel tax revenue is being shared. Recent provincial support includes: - the transfer of 100 percent of traffic fine revenue to 70 local governments for community policing, crime prevention and other initiatives to help make communities safer; and - the 80 million British Columbia Community Water Improvement Program to help ensure safe, reliable and accessible drinking water and improved waste water systems.