BCREA’s Position on Shelter Taxes
BCREA describes the Property Transfer Tax (PTT) and Harmonized Sales Tax (HST) as provincial shelter taxes. HST and PTT negatively impact the affordability of housing, which directly impedes the quality of life of British Columbians.
BCREA Recommends the Provincial Government:
- Increase the 1% PTT threshold from $200,000 to $525,000, with 2% applying to the remainder of the fair market value.
- Index the 1% PTT threshold of $525,000 using Statistics Canada’s New Housing Price, and make adjustments annually.
On February 17, 2012, the Provincial Sales Tax (PST) transition rules were published, and the BC Minister of Finance reaffirmed that the PST would be reinstated on April 1, 2013. The minister also announced two significant relief measures for the real estate sector:
- Effective April 1, 2012, the BC HST rebate threshold for new homes will increase to $850,000 from $525,000, with a maximum rebate of $42,500.
- Effective April 1, 2012, buyers of newly-constructed recreational properties/secondary homes outside of the Capital and Greater Vancouver Regional Districts, will be able to claim a provincial grant of up to $42,500. Currently, no grant is available for such purchases.
In February 2012, the provincial government also introduced the BC First-Time New Home Buyers' bonus. This temporary measure (Feb. 21, 2012-Mar. 31, 2013) provides a refundable income tax credit of up to $10,000 to first-time buyers of newly-built homes.