Property Transfer Tax going the way of the DODO?
The BCREA and the BC Northern, Fraser Valley, Greater Vancouver and Victoria real estate boards this fall made recommendations to reduce the burden of the Property Transfer Tax (PTT) on consumers. Last week, those recommendations appeared in a high-level report issued by the BC Legislature’s Standing Committee on Finance and Government Services. The report has been submitted to the Minister of Finance for consideration as she prepares the 2006 budget.
This marks the first time the profession’s recommendations have been quoted in the report on pre-budget consultations. Review the reference on page 11 of The Report on the 2006 Budget Consultation Process:
PROPERTY TRANSFER TAX
A recommendation put forward by both the real estate industry and individual citizens was a call for raising the threshold for first-time home buyers to qualify for an exemption to the property transfer tax (PTT), with the eventual goal of removing the tax from all real estate transactions. We heard that both the rules and the inadequacy of current PTT exemption levels have significantly reduced the number of first-time home buyers qualifying for PTT exemptions. This issue has been exacerbated by the strong housing market resulting in dramatic increases in housing prices over the last few years. As such, home ownership for many housing types remains firmly out of reach of median income earners in British Columbia. These witnesses’ specific ideas were:
“The British Columbia Real Estate Association recommends that the provincial government review the property transfer tax — in consultation with the BCREA and other sector groups — to determine the tax’s broader economic impact and identify alternative sources of revenue, and that government table a plan to eliminate the tax, or at the very least, significantly reduce it.” (British Columbia Real Estate Association). “We are recommending that you raise the exemption ceiling to $375,000 (for first-time home buyers) and we believe that the price ceiling should be adjusted every year.” (Real Estate Board of Greater Vancouver).
“With sky-rocketing home prices in many parts of BC, it is time to eliminate or reduce the property transfer tax.” (Gordon Roberts, Vancouver).
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