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Property Transfer Tax Revenues plus the Harmonized Sales Tax and Affordable Housing
The Issue
The provincial government has received millions of dollars in unanticipated Property Transfer Tax (PTT) revenues due to the significant increase in property values in recent years. The PTT adds significantly to the cost of purchasing a home and now the new Harmonized Sales Tax is adding an additional tax burden to the cost of newly constructed homes.
VREB Position
The provincial government should move as soon as possible to index the HST Rebate program in British Columbia using Canada’s new Housing Price Index so this reduction in tax will maintain value in the years to come assuming that tax remains in place. The government should also move immediately in the next budget to begin to reduce the tax burden of the PTT.
Update
A VREB presentation on October 7, 2010 VREB to the Legislature’s Select Standing Committee on Finance and Government Services supported the position of the British Columbia Real Estate Association in urging that there be an increase in the PTT 1% tax calculation from $200,000 to $525,000, with 2% applying to the remainder of the fair market value.
Ratification
Position ratified by the VREB Directors, January 2011.
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