Real Estate Information and Market Trends| Real Estate Victoria BC

Victoria Real Estate Taxed 129% Higher Than The National Average?

If you have been following our blogs (see blogs 210, 213, 214 and 265) you know that we would like to know exactly what the government does with the property transfer tax they collect on sales or Real Estate. Our governing body, British Columbia Real Estate Association have been lobbying the BC Government for many years to do something good with all the money they collect.

This afternoon, the British Columbia Real Estate Association (BCREA) and the Canadian Home Builders’ Association of BC (CHBA BC) recommended the provincial government, in Budget 2009, restructure the Property Transfer Tax to improve housing affordability and make better use of the housing sector to help residents make greener building choices.

“The Property Transfer Tax detracts from provincial affordable housing initiatives previous budgets have put in place, such as enhancements to the First-Time Home Buyers’ Program, and changes to the Home Owner Grant aimed at seniors,” said Robert Laing, BCREA Chief Executive Officer.

The BC Government levies a Property Transfer Tax rate that is 129 per cent higher than the average for Canadian provinces. The rate—1% on the first $200,000 of a property and 2% on the remainder—has remained the same since the tax was introduced in 1987. The negative impact of the Property Transfer Tax on British Columbians appears to be at odds with the provincial government’s competitive taxation principles.

In a submission to the Select Standing Committee on Finance and Government Services, and as a first step to a fairer Property Transfer Tax that enables greater affordability and accessibility to housing, BCREA and CHBA BC suggest the government restructure the Property Transfer Tax to reflect current housing market conditions in BC by increasing the 1% tax threshold to $400,000 and levying 2% tax on the balance.

The second key recommendation is for the government to improve the attainability of green housing through a program that provides a Property Transfer Tax rebate to buyers of new homes that meet a Built Green™ standard for greenhouse gas emissions and less waste. With the introduction of a new building code and a desire by CHBA BC builders to build to a higher energy standard, a home can now cost between 4 and 6% more.

“Built Green™ BC is about healthier buildings for homeowners and for the environment,” noted M.J. Whitemarsh, CEO of the Canadian Home Builders’ Association of BC. “The incentive we propose would return money to British Columbians in a way that’s directly targeted at reducing greenhouse gas emissions.”

With Budget 2009, the BC Government has the opportunity to build on past initiatives to help British Columbians become homeowners and reduce the province’s carbon footprint.

What are your thoughts on the property purchase tax?

If you are buying and are looking for a specific type of property like a small condo or a prestigious ocean front estate, we have the tools to make your search easy.

Cheers,
Bill

Bill Ethier B.Sc – REALTOR®

Properties in Victoria Professionals- Royal LePage Coast Capital Realty

Bill has been a REALTOR® in Victoria since 2006. Originally from the Vancouver area, Bill moved to Victoria to attend the University of Victoria where he received his Bachelor of Science. Not only does Bill have a wealth of real estate knowledge he is also an active member of the community. He is a member of Triple Shot Cycling Club, Island Road Racers and is the Race Director for the Sooke River 10K.