BILL 35 An Act to Amend the Gasoline and Motive Fuel Tax Act

BILL 35

An Act to Amend the Gasoline and Motive Fuel Tax Act

 

 

 

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 1 of the Gasoline and Motive Fuel Tax Act, chapter G-3 of the Revised Statutes, 1973, is amended

(a) by adding in alphabetical order the following definitions:

(i) "base jurisdiction" means base jurisdiction as defined in the regulations;

 

(ii) "gross mass" means

(a) the combined weight of the motor vehicle and the load, or

(b) where the motor vehicle is drawing a trailer or trailers, the combined weight of the motor vehicle, trailer or trailers and load;

(iii) "IFTA" means the International Fuel Tax Agreement which the Minister has joined pursuant to section 12.1, and includes the Articles of Agreement, the Procedures Manual and the Audit Manual;

 

(iv) "interjurisdictional carrier" means a person who operates one or more qualified motor vehicles inside and outside New Brunswick;

(v) "qualified motor vehicle" means a commercial vehicle that

(a) has two axles and a gross mass or registered gross mass exceeding 26,000 pounds or 11,797 kilograms,

(b) has three or more axles, regardless of weight, or

(c) draws a trailer or trailers when the combined weight of the vehicle and the trailer or trailers exceeds 26,000 pounds or 11,797 kilograms gross mass or registered gross mass;

(b) by repealing the following definitions:

(i) "fuel permit";

(ii) "single trip fuel permit";

 

(c) in the definition "licence" by striking out "section 15" and substituting "under this Act".

 

2 Section 7 of the Act is amended by adding after subsection (1) the following:

7(1.1) A person who is the holder of a marking authorization permit under paragraph 15(1)(b.1) shall mark or colour tax exempt motive fuel in accordance with the regulations.

3 Subsection 10(6) of the Act is repealed and the following is substituted:

10(6) Failure by a collector, consumer, interjurisdictional carrier or retailer to

 

(a) make a return,

(b) make a remittance, or

(c) substantiate by records as required,

 

is cause for suspension, cancellation or revocation of any licence, permit or fuel exemption card held by the collector, consumer, interjurisdictional carrier or retailer.

 

4 Section 12.1 of the Act is amended

(a) in subsection (1) by striking out "with any Province or State to collect and apportion the tax payable in relation to gasoline and motive fuel purchased for or consumed in commercial vehicles" and substituting "with any other jurisdiction to collect and apportion the tax payable in relation to gasoline and motive fuel purchased for or consumed in qualified motor vehicles";

  

(b) in subsection (2)

(i) by repealing paragraph (b) and substituting the following:

(b) the identification of qualified motor vehicles operated by an interjurisdictional carrier,

 

(ii) by repealing paragraph (c) and substituting the following:

(c) the registration and licensing of interjurisdictional carriers,

(c) by repealing subsection (3).

5 The Act is amended by adding after section 12.1 the following:

12.2(1) No person shall act as an interjurisdictional carrier unless the person is registered with the Minister.

12.2(2) Subject to subsection (3), a person is considered to be registered as an interjurisdictional carrier with the Minister if the person holds

 

(a) an IFTA licence issued by a jurisdiction other than New Brunswick,

 

(b) an IFTA licence issued by the Minister, or

 

(c) a single trip fuel permit issued by the Minister.

12.2(3) A person who holds a licence referred to in subsection (2), when operating a qualified motor vehicle, is considered to be registered with the Minister only if the person

(a) affixes registration decals on the qualified motor vehicle in accordance with the regulations and maintains the decals on the vehicle in accordance with the regulations, and

(b) maintains a copy of the IFTA licence issued to the licensee in the qualified motor vehicle.

12.3(1) A person whose base jurisdiction is New Brunswick and who proposes to act as an interjurisdictional carrier may apply to the Minister for an IFTA licence in the form provided by the Minister and shall pay the prescribed fees with the application.

12.3(2) An interjurisdictional carrier who is issued an IFTA licence by the Minister is entitled to be issued registration decals upon application in the form provided by the Minister and payment of the prescribed fees.

12.4(1) An interjurisdictional carrier who is not registered with the Minister pursuant to paragraph 12.2(2)(a) or (b) may apply for a single trip fuel permit in the form provided by the Minister and shall pay the prescribed fees with the application.

 

12.4(2) A single trip fuel permit shall be valid for such period as is specified in the permit.

 

12.4(3) An interjurisdictional carrier shall ensure that a single trip fuel permit is kept in the qualified motor vehicle in respect of which it was issued at all times during travel within the Province.

12.4(4) A person who is issued a single trip fuel permit is not required to make a report under section 12.

12.5(1) An interjurisdictional carrier who holds an IFTA licence shall, with respect to qualified motor vehicles operated by the carrier inside and outside New Brunswick, be deemed to have complied with section 12 only if the interjurisdictional carrier reports and remits the taxes payable under this Act in accordance with the reporting and remission requirements of the IFTA.

12.5(2) Subsection (1) applies only with respect to the gasoline or motive fuel in the fuel tank of the internal combustion engine of a qualified motor vehicle.

6 Section 15 of the Act is amended

(a) in subsection (1) by adding after paragraph (b.1) the following:

(b.2) issue an IFTA licence to an interjurisdictional carrier whose base jurisdiction is New Brunswick;

(b.3) issue a single trip fuel permit to an interjurisdictional carrier;

(b) by repealing paragraph (2)(d) and substituting the following:

(d) kept and displayed on the premises or in the motor vehicle of the holder as prescribed by regulation.

(c) in subsection (2.2)

(i) in paragraph (c) by striking out "or" at the end of the paragraph;

(ii) by adding after paragraph (c) the following:

(c.1) where an application is made for an IFTA licence, an IFTA licence issued to the applicant by another jurisdiction has been revoked or suspended and has not been reinstated by that jurisdiction, and

7 Section 16.1 of the Act is repealed.

8 Section 39 of the Act is amended by adding after subsection (1) the following:

39(1.1) Notwithstanding subsection 56(5) of the Provincial Offences Procedure Act, the minimum fine that may be imposed by a judge under that Act in respect of a violation of subsection (1) shall be five hundred dollars.

 

9 Section 40.1 of the Act is repealed.

10 Subsection 45(2) of the Act is amended

(a) by repealing paragraph (g.2);

(b) by repealing paragraph (g.3);

(c) by repealing paragraph (g.4);

(d) by adding after paragraph (h.1) the following:

(h.01) respecting the registration of interjurisdictional carriers;

(h.02) prescribing the fees to be paid for registration decals;

(h.03) respecting registration decals, including the affixing and maintenance of registration decals on a qualified motor vehicle;

11 Schedule A of the Act is amended

(a) by adding

7(1.1) E

before

7(2) E

(b) by adding after

12(2) E

the following:

12.2(1) E

(c) by striking out the following:

40.1(1) E

12 Any fuel permit that was issued and is in force on the commencement of this section shall be deemed to be an IFTA licence issued by the Minister and is valid until it expires, unless it is suspended, cancelled or revoked, and any decals issued with or as a fuel permit shall be deemed to be registration decals.

 

 

13 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.

 

EXPLANATORY NOTES

Section 1

The definition section is amended. The amendments are consequential on the amendment in section 5 of this amending Act.

Section 2

New provision.

Section 3

This amendment is consequential on the amendment in section 5 of this amending Act. The existing provision is as follows:

10(6) Failure by a collector, consumer or retailer to

 

(a) make a return,

(b) make a remittance, or

(c) substantiate by records as required,

is cause for suspension, cancellation or revocation of any licence, permit or fuel exemption card held by the collector, consumer or retailer.

 

Section 4

(a) The existing provision is as follows:

12.1(1) The Minister, with the approval of the Lieutenant-Governor in Council, may enter into an agreement with any Province or State to collect and apportion the tax payable in relation to gasoline and motive fuel purchased for or consumed in commercial vehicles engaged in interprovincial or international travel on a basis of distance travelled within each jurisdiction that is a party to the agreement.

 

(b) The existing provision is as follows:

12.1(2) An agreement entered into under subsection (1) may contain provisions respecting

(a) the payment, collection, division and apportionment of tax on gasoline and motive fuel,

(b) the identification of commercial vehicles engaged in interprovincial or international travel,

(c) the registration of persons who operate or cause to be operated commercial vehicles on an interprovincial or international basis,

(d) record keeping and reporting requirements and base jurisdiction accounting,

(e) assessment and appeal procedures,

(f) membership and expulsion of parties to the agreement, and

(g) such other provisions as are necessary for the administration of the agreement.

(c) The existing provision is as follows:

12.1(3) A person registered under an agreement entered into under subsection (1) shall not be obliged to make a report under section 12 unless the person holds a fuel permit issued under this Act.

 

Section 5

New provisions. These provisions relate to the implementation of the International Fuel Tax Agreement and provide for the registration and licensing of interjurisdictional carriers.

 

Section 6

(a) The existing provision is as follows:

15(1) The Minister may

(a) issue a licence, herein called a wholesaler’s licence, to a person authorizing him to sell or keep for sale, gasoline or motive fuel at wholesale, to refine gasoline and motive fuel and, notwithstanding any other provision in this Act or the regulations under this Act, to sell gasoline or motive fuel, including tax exempt motive fuel, directly to a consumer, or keep it for sale directly to a consumer, if the gasoline or motive fuel, including tax exempt motive fuel, is not sold from, or kept for sale in, a gasoline pump or motive fuel pump;

  

(b) issue a licence, herein called a retailer’s licence, to a person authorizing him to sell or keep for sale at retail, gasoline, motive fuel or tax exempt motive fuel;

 

(b.1) issue a permit, herein called a marking authorization permit, to a person authorizing him to mark or colour motive fuel;…..

(b) The existing provision is as follows:

15(2) Every licence and permit issued under this section shall be

(a) in the form prescribed by regulation,

 

(b) issued only on payment of any fee prescribed by regulation,

(c) subject to any terms and conditions imposed by the Minister in accordance with the regulations, and

(d) posted and displayed on the premises of the holder as prescribed by regulation.

(c) The existing provision is as follows:

15(2.2) The Minister may refuse to issue a licence or permit if the Minister has reasonable and probable grounds to believe that

(a) the applicant has been convicted of a violation of a provision of this Act or the regulations or any provision relating to gasoline or motive fuel in any other Act of the Legislature, any Act of the Parliament of Canada or any regulation or statutory instrument under those Acts,

 

(b) the applicant has failed to deposit with the commissioner security that is satisfactory to the commissioner as required under the Revenue Administration Act,

(c) the applicant has violated or failed to comply with any term or condition imposed in relation to a licence or permit previously issued to the applicant, or

 

(d) a licence or permit previously issued to the applicant under this Act or the regulations was cancelled during the previous five years.

Section 7

This amendment is consequential on the amendment in section 5 of this amending Act. The existing provision is as follows:

16.1(1) The Minister or a person designated by the Minister may, upon payment of a fee set by regulation, issue

(a) a fuel permit, or

(b) a single trip fuel permit.

16.1(2) The fuel permit shall be displayed on the commercial vehicle in accordance with the regulations at all times during travel in the Province.

16.1(3) The holder of a fuel permit who is registered under an agreement entered into under section 12.1 shall comply with the terms and conditions of the registration and failure on the part of the holder to do so is cause for suspension, revocation or cancellation of the fuel permit.

16.1(4) A single trip fuel permit shall be valid for such period as is specified in the permit.

16.1(5) A single trip fuel permit shall be kept in the commercial vehicle in respect of which it was issued at all times during travel in the Province.

 

16.1(6) A person who is issued a single trip fuel permit shall not be obliged to make a report under section 12.

 

Section 8

New provision.

Section 9

This amendment is consequential on the amendment in section 5 of this amending Act. The existing provision is as follows:

40.1(1) A person engaged in interprovincial or international travel shall not operate or cause to be operated a commercial vehicle in the Province unless

(a) a fuel permit is displayed on the commercial vehicle in accordance with the regulations,

(b) the person holds a single trip fuel permit, or

 

(c) the person holds a valid authorization comparable to a fuel permit which has been issued by a party to an agreement entered into under section 12.1 and the person is registered under that agreement.

 

40.1(2) Where a person violates subsection (1), the Minister or a person authorized by the Minister may issue a single trip fuel permit at a fee set by regulation which fee may differ from the fee set by regulation for a person who has not violated subsection (1).

 

Section 10

(a), (b) and (c) The regulation-making authority is amended. The repealed provisions are as follows:

45(2) Without limiting the generality of subsection (1), the Lieutenant-Governor in Council may make regulations…

(g.2) respecting the issuance of fuel permits and single trip fuel permits and the privileges, terms, conditions, limitations and restrictions to be granted to or observed by the holder of a fuel permit or single trip fuel permit;

 

 

(g.3) respecting the display of fuel permits on commercial vehicles;

(g.4) respecting the fee or fees to be paid on the issuance of fuel permits and single trip fuel permits which fee or fees may differ if the person has violated subsection 40.1(1);

 

 

(d) The regulation-making authority is expanded.

Section 11

Schedule A of the Act is amended.

Section 12

Transitional provision.

Section 13

Commencement provision.