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.
THE PROPERTY ASSESSMENT Appeal Board has approved a joint recommendation from Bosa Development (Pacific Point) Inc. and B.C. Assessment’s area assessor for the Vancouver Sea to Sky Region to reduce the valuations on nine addresses on the northwest edge of Yaletown.
Reblogged from The Georgia Straight | Charlie Smith
In 2013, Bosa Development completed the Pacific Point project at the corner of Homer and Pacific streets.
For 425, 427, and 429 Pacific Street, there were reductions of 6.7 percent, 17.8 percent, and 15.8 percent, respectively.
These three properties were initially assessed at $900,500. As a result of the agreement, the three sites are now valued at $790,000.
Six other addresses in the 1300 block of Homer experienced a collective drop in assessment from $2.5 million to $2.3 million. For these six sites, the average reduction was seven percent.
In each instance, the value of the land was reduced but the value of the “improvement” (i.e., the building) remained the same. This indicates that under certain circumstances, B.C. Assessment may be prepared to make adjustments on its assessments of land in the downtown core.
Lower assessed values translate into lower property taxes. That’s because municipal and school levies are based on B.C. Assessment’s valuations.
The head of Bosa Development, Nat Bosa, was in the news late last month after he and his wife bought the famed 106-year-old Empress Hotel in Victoria. The Bosas purchased the 477-room hotel from Ivanhoé Cambridge for an undisclosed price.
The Empress Hotel was designed by architect Francis Mawson Rattenbury. His fame increased after he was murdered in England in 1935 by his wife’s lover.
In addition to designing the Empress Hotel, Rattenbury was the architect of the neighbouring parliament buildings in Victoria and the Vancouver Art Gallery.
Read the original article and more here.