As of April 12th, 2015, two changes are in effect for how British Columbia applies the Multi-jurisdictional Vehicle (MJV) Tax to:
- prorate vehicles being transferred between fleets
- prorate licenses (P-plates) being cancelled and then relicensed with the same fleet
A prorate vehicle being transferred from one fleet to another will now receive an automatic credit for any unused months in the first fleet. The MJV tax payable by the second fleet is thereby reduced. Previously, you would have to apply for a refund from the Consumers Taxation Branch.
For P-plates that have been cancelled temporarily and then relicensed with the same fleet, the MJV tax will be collected again at the time of relicensing. The carrier or owner-operator must then apply for a refund of the unused portion of the tax paid on the first plate. This refund will not be issued until the end of the fleet license term. Carriers and owner-operators concerned with cash flow issues resulting from this change are advised to minimize the insurance coverage on a vehicle while it is not in use instead of cancelling.
Meanwhile, the British Columbia Trucking Association has requested that the Consumer Taxation Branch allow these refunds to be issued immediately to avoid the unnecessary financial burdens the delay could cause.
If you have any questions or would like more information, contact a CapriCMW Transportation Risk Advisor.