Proposal to increase BC’s Property Transfer Tax on Foreign Buyers
An interesting change to the province’s Property Transfer Tax proposed by the BC Chamber of Commerce would see some of the tax burden shifted to foreign buyers. There are some promising ideas in this option. Since the provincial government is unlikely to accept any reduction in the overall revenue from this tax (what a foolish concept), then maybe a shift of the tax from residents to foreign investors would be the best the residents of BC could hope for. Don Cayo’s article covers the proposal.
Currently buyers (resident and non-resident) pay 1% on the first $200K of purchase price and 2% on the balance above $200K. The change would see a flat tax of 1% of any primary residence purchase for residents while non-residents would pay 2%. BC residents would still pay the current 1%/2% rate for non-primary residences.
I like the ideas here except I would also bump the tax on resident primary residence purchases to 1.5% on purchase price amounts over $1 million.
I welcome comments from others on this so feel free to comment below.