Thanks to our advocacy, the BC Ministry of Finance has agreed to waive payment of the Exit Tax to ICBC for multijurisdictional vehicles becoming licensed for use solely in BC and will allow carriers to apply for MJV tax refunds for vehicles ceasing to be prorate licensed before the end of the licence term. These measures are temporary, to support passenger and freight carriers during the COVID-19 pandemic, and certain conditions apply.
Usually, when an MJV ceases to be prorate licensed and is then licensed for use solely within BC, an exit tax of 7 percent applies to the depreciated purchase price of the vehicle.
Effective immediately, the Exit Tax is waived for an MJV if:
- you purchased the vehicle before May 4, 2020, and
- between March 11, 2020 and September 30, 2020, you cancel the prorate licence for the vehicle and obtain a licence for use solely within BC.
As well, for MJV Tax refunds, ICBC may provide a refund to you if your vehicle ceases to be prorate licensed on a date that is:
- within the vehicle licence period, and
- between March 11, 2020 and September 30, 2020.
Please review PST Notice 2020-003 for complete details, including examples for the Exit Tax and additional guidance regarding eligibility.