The new rules on BC’s Property Transfer Tax have been released with the potential to save up to $13,000 for some, and rate increases for others. The goal of the province’s 2016 budget to help put home ownership within the reach of more people, but you can weigh in – does BC’s New PTT achieve its stated goals?
- Exemption for buyers of new homes that priced at up to $750,000;
- PTT increase to 3% from 2% for properties valued at more than $2 million;
- Requirement that property buyers self-report their nationality when they register their property.
Let’s go back and recognize the PTT as a major source of BC’s revenue, Vancouver accounting for nearly one-quarter of the government’s $1.15-billion windfall from B.C.’s property transfer tax in the past fiscal year.
The property transfer tax was introduced in 1987 as a “luxury tax,” however thresholds have not changed since then, meaning it has turned into a revenue generator for the province.