Jeffrey Qián 錢 曄 // 778-238-2014 // info@jeffreyqian.com

Meaningful, Affordable Change to the Property Transfer Tax

Minister of Finance Mike de Jong has made it clear that there’s no room in the provincial budget for new spending. In fact, that’s been the message of his office for several years, and BCREA respects this fiscally-prudent approach.

But fiscal prudence isn’t just about saying no; sometimes, a strategic yes is in order.

BCREA consistently and regularly recommends that the provincial government minimize the negative impact of the Property Transfer Tax (PTT). The PTT places an unfair burden on homebuyers, and is by far the highest provincial property transfer tax in the country. While BCREA understands the government’s objective to balance the budget, adjusting the PTT could stimulate additional activity in the real estate market, encourage spending related to property transactions and would certainly demonstrate an understanding of the important role of real estate and property owners in the provincial economy.

Since it was introduced in 1987 as a luxury tax, the PTT has always been applied in the following way: 1% on the first $200,000 of the fair market value of a property, and 2% on the remainder. This static structure is entirely at odds with BC’s dynamic real estate market.

As an initial measure to improve the fairness of the PTT today and in the future, BCREA strongly recommends the provincial government index the 1% threshold of $200,000, and then make adjustments annually.

The impact on provincial revenue would be minor, and the goodwill from homebuyers and real estate sector stakeholders significant. This is a strategic yes.

Comments:
No comments

Post Your Comment:

* indicates required fields.
Your Name: *
Please note, your email will not be shown publicly
Your Email (will not be published): *
Comment: *
Please type the text as it appears above:
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.