WHEREAS the threat of climate change has prompted municipalities to undertake action to reduce corporate greenhouse gas emissions; AND WHEREAS to reduce emissions some municipalities have created carpooling programs which allow municipal employees to commute to and from work in municipal fleet vehicles provided that they pay a taxable benefit based largely on the vehicle purchase price; AND WHEREAS municipalities have been encouraged to purchase hybrid electric vehicles which may cost up to twice as much as conventional fuel vehicles: THEREFORE BE IT RESOLVED that the Union of BC Municipalities request senior government to restructure the municipal vehicle taxable benefit policy so that municipal carpoolers using hybrid vehicles are not charged any more tax than users in a comparable conventional fuel vehicle.
Ministry of Finance The tax treatment of employee benefits is an area of federal responsibility. This is the case because BC is party to the federal-provincial tax collection agreement which gives responsibility for determining taxable income to the federal government. The benefits of this agreement are a savings in tax collection costs and the fact that taxpayers need only file one tax return each year. The government provides a provincial sales tax PST reduction of up to 2,000 for purchases of new hybrid vehicles, directly benefiting consumers. As many hybrid models are not that much more expensive than conventional models, this initiative can significantly reduce the incremental cost of purchasing a hybrid. In addition, consumers will benefit over time from the cost savings associated with increased fuel efficiency.