B.C. eyes luxury tax on high-end property

Property transfer tax expected to produce $200M windfall for B.C. government this year, adding to housing cost pressure

Condo tower construction: increasing property transfer tax on high-end homes could be used to reduce tax load for lower-priced properties.

A roaring real estate market is expected to generate $200 million more than the province expected in property transfer tax this year, further pushing up housing costs in urban areas that are already beyond the reach of many people.

Finance Minister Mike de Jong says he is working on new ways to reduce the burden of a tax that hits properties every time they are sold. That could include a higher rate for high-priced properties, as suggested by Vancouver Mayor Gregor Robertson. He proposed it as a way of discourage property flipping in a city that sees bidding wars for all but the most costly homes.

Since the tax was brought in by former premier Bill Vander Zalm in 1987, its take has grown to more than $1 billion a year. Since its inception, it has charged one per cent on the first $200,000 of the home purchase price and two per cent on the rest, taking about $10,000 on the sale of a $600,000 home.

De Jong said this week he is considering adding a third step for high-end properties, with revenues used to reduce the burden on middle-priced homes. Another option considered for next February’s budget is to raise the exemption for first-time buyers, currently spared the tax up to $475,000.

“How many first-time buyers are purchasing homes in excess of that is a question that deserves to be asked before we tout a further reduction of that threshold,” de Jong said.

Statistics Canada reports that Vancouver’s housing price index was up 1.6 per cent in July, compared to the same month last year. Victoria’s index fell by 1.5 per cent.

Premier Christy Clark said in February she wants to eliminate the property transfer tax in the long term, once the province’s debt is reduced. De Jong’s financial update this week showed the province paying down operating debt accumulated since the recession of 2008-09.

NDP finance critic Carole James said the province is expecting a $277 million surplus this year, most of it accounted for by the windfall from property transfer tax.

“For an economy to rely on a hot housing market in the Lower Mainland and [Vancouver] Island is a problem,” James said. “We need a diverse economy.”

 

Just Posted

VIDEO TOUR: Eagle Pass Lodge recognized at Thompson Okanagan Kootenay Commercial Building Awards

Eagle Pass Heli Skiing’s lodge is located south of Revelstoke on Highway 23

Columbia Shuswap Regional District establishing junior firefighter program

Aimed at youth 15-17 in Columbia Shuswap region to help with training and potential recruitment

Advance Voting in Revelstoke a success

The municiple election season is well underway with advance voting held on Oct. 10 and Oct. 17

Revelstoke peewee Grizzlies lose to Vernon

The Revelstoke Grizzlies Peewee Tier 3 team played Vernon on Saturday, losing… Continue reading

Fred Penner is coming to Revelstoke

The iconic children’s entertainer will be at the Revelstoke Performing Arts Centre Oct. 20

Fashion Fridays: You can never have enough shoes

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

5 races to watch in B.C.’s municipal elections this Saturday

This year’s election results across more than 160 cities in B.C. will start pouring in after polls close Saturday at 8 p.m.

Annual pace of inflation slows to 2.2 per cent in September: Statistics Canada

Statistics Canada said Friday the consumer price index in September was up 2.2 per cent from a year ago compared with a year-over-year increase of 2.8 per cent in August

Record-breaking $113 million Lotto Max jackpot up for grabs

This is Canada’s highest top prize offering ever and includes 53 Max Millions

Migrants, police mass in town on Guatemala-Mexico border

Many of the more than 2,000 Hondurans in a migrant caravan trying to wend its way to the United States left spontaneously with little more than the clothes on their backs and what they could quickly throw into backpacks.

Trump: ‘Severe’ consequences if Saudis murdered Khashoggi

Pro-government newspaper Yeni Safak on Wednesday said it had obtained audio recordings of the alleged killing of Saudi writer Jamal Khashoggi inside the Saudi Arabia’s consulate in Istanbul on Oct. 2.

Feds dead set against ‘ridiculous’ quotas to replace steel, aluminum tariffs

Donald Trump imposed the so-called Section 232 tariffs — 25 per cent on steel and 10 per cent on aluminum — back in June on national security grounds.

Campus brawl leads to charge against B.C. football player

Takudzwa Timothy Brandon Gandire, a 21-year-old defensive back from Vancouver, is charged with assault causing bodily harm.

Stadium vendor seen in pizza spitting video pleads guilty

The 21-year-old’s sentencing is Nov. 15. His lawyer has said he understood what he did was wrong and was remorseful.

Most Read