BC Budget: Spotlight on Housing
The BC Government's 2016/2017 budget contained several measures related to housing, including the most significant changes ever made to the Property Transfer Tax (PTT). The changes didn't quite meet BCREA's expectations, but there's some good news for real estate consumers—at least in the short term:
- Newly Built Home Exemption – Effective February 17, 2016, newly-constructed homes used as principal residences, up to $750,000, are exempt from the PTT. A partial exemption is available for new homes up to $800,000. This is for all buyers, not just first-time buyers, who are Canadian citizens or permanent residents. More information: www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/exemptions/newly-built-home-exemption.
- Third tier over $2 million – Effective February 17, 2016, the PTT rate increased to 3% (from 2%) on the portion of a property's fair market value above $2 million. Rates of 1% on the first $200,000 of a property's fair market value and 2% on the fair market value between $200,000 and $2 million continue to apply. More information: www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand.
- Data on citizenship – Effective in spring 2016, disclosure of citizenship will be required, on registration of a taxable transaction. This will apply to individuals and to corporations. The amendments will also require the disclosure of the names, addresses and citizenship information of settlors and beneficiaries of bare trusts.
