Parking Tax FAQs

A: Parking Tax is tax paid on the sale of a parking right. The Parking Tax is calculated on the purchase price of parking rights within TransLink's transportation service region. This includes parking rights sold by the hour, month, year or any other basis.

Further information about Parking Tax legislation can be found within the South Coast British Columbia Transportation Authority Act, Section 169.

A: Taxable parking can be defined as a parking site, space or area, in which a motor vehicle may, for a price or other consideration, be parked for any period of time.

A: Parking Tax should be charged on the sale of any parking rights within TransLink's transportation service region, including parking rights sold through ticket vending machines, unless there is a specific exception from tax.

For further information, including a list of exemptions, please refer to Bulletin 105 Motor Vehicle Parking.

A: The Parking Tax rate of 21% is applied on the purchase price of the parking rights sold to the customer before HST.

For vending machine sales, you may include the Parking Tax in the purchase price. If a receipt is issued, the tax should be set out as a separate item on the receipt, or the receipt should indicate that the purchase price includes the tax.

A: The 12% HST will apply to the parking price charged by the vendor plus the Parking Tax payable to TransLink. If you have any questions regarding the HST implementation, please contact CRA at 1.800.959.5525.

A: The amount of Parking Tax owed is calculated as a percentage of your total parking sales before HST. Please refer to Bulletin 105 Motor Vehicle Parking to determine your Parking Tax remittance amount.

A: The Parking Tax to be remitted is calculated from your total parking sales as reported in your Parking Tax Return. After calculating the tax amount due in the worksheet portion of the return, you submit the payment along with any required supporting documentation to TransLink Parking Tax Services. Please refer to the Remitting Parking Tax bulletin for more information.

A: The appropriate documents can be found on our Bulletins and Forms page.

A: As of July 1 2010, TransLink inherited the rights of the province in administering, enforcing, and collecting the Parking Tax owed. Please refer to the South Coast British Columbia Transportation Authority Act, Section 169 for complete legislative details.

A: Provincial Sales Tax (PST) was eliminated in BC when the Harmonized Sales Tax (HST) was implemented in July 2010. The Parking Tax was one of the taxes in the PST. The Province therefore decided to give TransLink the legislated rights for full administration of the Parking Tax.

A: No, the rate of Parking Tax remitted from parking sales remains the same, at 21%, as of January 1, 2010. This amount was previously remitted to the province, but will now be payable directly to TransLink.

A: No, for the purpose of transition, your existing registration certificate issued by the Ministry of Finance remains valid until 1) you are issued a new registration certificate by TransLink, or 2) December 31, 2010, whichever is earlier.

A: If you are an existing registrant under the Social Service Tax Act, TransLink will be re-registering all parking vendors by December 31, 2010. If you are currently not registered, you need to register with TransLink ASAP if you intend to sell parking rights.

A: To make the transition as simple as possible, TransLink has adopted most of the policies formerly used by the province. Significant changes that you should be aware of are highlighted in these FAQs. Please refer to the Parking Rights Tax Regulation and the South Coast British Columbia Transportation Authority Act, Section 169 for full legislative rulings and details.

A: Yes, full details on qualifications for refund can be found in our Refunds of Overpayments of Parking Tax bulletin. If you are inquiring about your refund of overpayment, please contact TransLink Parking Tax Services.

A: Yes, you will receive a remittance form for your Parking Tax after the 21st day of the final month of the reporting period.

A: Parking Tax must be remitted to TransLink. Please direct all correspondence and payment to TransLink Parking Tax Services.

You are still required to submit all appropriate amounts for HST/other taxes to the government. Please contact the Ministry of Finance or CRA for details on filing your non-Parking Tax related remittances.

A: Payment by cheque or money order can be submitted in person, or mailed or couriered directly to TransLink. If payment is done through a financial institution, they will accept cash, cheque, or debit from your bank account. You may also pay online by payment transfer from your bank account.

Note that if your payment is made at a financial institution or processed online from your bank account, you will still need to submit your return to TransLink on or before the due date. You can deliver the return in person, or by mail or fax to TransLink Parking Tax Services.

TransLink does not accept payment by cash, debit, or credit card at this time.

A: TransLink is in the process of setting up bill payment services at a number of financial institutions. At this time, the following financial institutions will accept Parking Tax payments:

• Bank of Montreal (BMO)
• Bank of Nova Scotia (Scotiabank)
• Canadian Imperial Bank of Commerce (CIBC)
• Canadian Western Bank
• HSBC Bank Canada
• National Bank Financial Group
• Royal Bank of Canada (RBC)
• TD Canada Trust (Toronto-Dominion Bank)
• All credit unions in BC (see full list on Credit Unions of BC website)

To provide greater flexibility for vendors, TransLink will consider adding other financial institutions not listed above if there is sufficient demand. Please contact TransLink Parking Tax Services for more information.

A: For new Parking Tax registrants, the remittance frequency depends on the amount of Parking Tax the business collects and remits on a yearly basis.

All businesses remit tax returns monthly, quarterly, semi-annually or annually. The following chart illustrates the filing frequency options available to businesses.

For existing Parking Tax registrants, your current remittance frequency will remain the same.

Seasonal and casual filing frequencies will change to annual filing except in special circumstances. TransLink will contact you if your filing frequency needs to be changed.

To request to have your filing frequency changed, contact TransLink Parking Tax Services. Detailed information can be found in the Remitting Parking Tax bulletin.

A: The remittance due dates will continue to be on the 23rd day of the month following the reporting period.

Due dates for monthly remittances will be the 23rd day of the first month following the reporting period.

Due date for quarterly remittances are:

Due dates for semi-annual remittances are:

Annual remittances are due on July 23 of each year.

A: You received a Notice of Assessment because there is a Parking Tax amount owed to TransLink. The notice is typically issued as a result of an audit, a late return, under-payment of a return, or other failure to pay tax, penalty or interest on returns.

A: Please submit all inquiries to TransLink Parking Tax Services. If you are not satisfied with the response, you may request to appeal the response to the Parking Tax Administrator. If you remain in disagreement with the Administrator's decision, you may submit a formal appeal to the TransLink Chief Executive Officer (CEO). All appeals to the TransLink CEO must be made within 90 days after the date on the Administrator's notice of decision.

The appeals process is currently under review by TransLink. More information will be posted on the Appeals page when available.

A: For late payments, interest is charged on the amount payable at 3% above the prime lending rate, in accordance with B.C. Reg. 386/92, Interest Rate Under Various Statutes Regulation.

A: Yes, the same penalty rates and imposition criteria still apply. A penalty is usually imposed where the facts indicate that the taxpayer had knowledge of the liability, was previously advised of the proper tax application, or consciously decided not to pay or remit the tax.

A: The first time your remittance is not paid, or not paid in full by the due date, you will be issued a Warning Letter, along with a Notice of Assessment, and Statement of Account. If you have a record of making your payments on time and in full, penalty and interest will not be assessed, and commission can be retained. After that, each time you submit your remittance return late, or do not pay in full, you will receive a Notice of Assessment for the tax due plus penalty and interest, and commission will be disallowed.

If you ignore the assessment, or fail to contact us within the time stated in our notices, collection action may start.

A: Some examples of the collection actions TransLink may take to recover the amounts due are:

• place a lien on your property
• issue a demand (garnishment) of your wages, bank account or accounts receivable
• apply for an injunction from British Columbia Supreme Court
• seize and sell your assets
• recover any debt by action in a court, or
• hold directors personally responsible for Parking Tax debt under the South Coast British Columbia Transportation Authority Act

A: Please see examples of exemptions in Bulletin 105 Motor Vehicle Parking, and refer to Part 2 of the Parking Rights Tax Regulation for a complete list of exemptions legislated by the South Coast British Columbia Transportation Authority Act.

A: In the Parking Rights Tax Regulation, residential parking is defined as parking in an area located in, or in close proximity to the building which you live, and is used as your primary parking while you are living there. Close proximity to the building means the vehicle is parked in an area in the building, attached to the building, or adjacent to the building.

A: If the marina is your primary residence, you are eligible for a Parking Tax exemption. "Close proximity" as defined in the question above is interpreted to include the closest parking stall available to the marina. Proof of the marina as your primary residence is required. Acceptable proof of primary residence includes a valid BC drivers licence, mailing address listed on incoming mail, or a copy of your live aboard licence fee.

A: Some exemptions exist for "parking at prescribed parking sites" due to business requirement, but certain conditions must be met to qualify for these exemptions. Please refer to Part 2 of the Parking Rights Tax Regulation for a complete list of conditions and details.

A: In order to qualify for this exemption, the requirements include 1) parking must be purchased for longer than 28 consecutive days, 2) the vehicle must be owned or leased by the business and used solely for business purpose, and 3) the vehicle must be parked when it is not being used for the business. In this case, the vehicle is owned or leased by you, and not your company. Therefore, you would be denied the exemption. Please refer to Section 2(2) of the Parking Rights Tax Regulation for complete details.

A: Yes, trailers are not subject to Parking Tax. A trailer is not designed to be self-propelled, and therefore does not meet the definition of a motor vehicle in the South Coast British Columbia Transportation Authority Act.

A: Yes, Government of Canada is exempt from Parking Tax under the Constitution Act. The federal government would have to provide sufficient proof such as an official federal government purchase order or acquisition card, and identification that they are employed by the federal government. The parking vendor can then provide the exemption by charging to the purchase order or acquisition card.

A: No, charities are not exempt from Parking Tax when they purchase parking.

A: No, if you do not pay for that first hour of parking, you do not need to pay tax for that hour. You pay Parking Tax when you are charged a fee for parking.

A: Yes, if the parking space, although located in the commercial lot, is used for your primary parking while you are residing in the building, and the lot is in the building, Parking Tax would not apply. Please refer to Bulletin 105 Motor Vehicle Parking for details on residential exemptions.

A: No, you would not have to pay Parking Tax as long as there is evidence that the vehicle parked in the visitor parking belongs to you, as a resident, in the building. A rental agreement, for example, could be used as evidence that you are a resident in the building.

A: No, the company would not charge the car rental company Parking Tax. Part 2 of the Parking Rights Tax Regulation exempts motor vehicle leasing companies from Parking Tax when they purchase parking rights solely for parking their inventory of vehicles while they are not rented out.

A: No, Parking Tax does not apply in the case where lots are rented out for setup of events, and not rented out for parking motor vehicles for a fee. If only a portion of the lot is used for a special event, and the rest is used for pay parking, then Parking Tax applies to the portion used for pay parking.

A: In an audit, usually a driver's licence, utility bills or credit card statements with your residential address is sufficient evidence. If your driver's licence shows a new residential address, then utility bills or credit card statements with the residential address for the audit period would usually be sufficient.

A: The exemption supporting documentation and process are currently under review by TransLink. More information will be posted on the Parking Tax website when available.