VANCOUVER – As the British Columbia election counts down to Oct. 19 the BC Real Estate Association (BCREA) is calling for a comprehensive review of housing taxes to improve affordability in the province.
The association noted B.C. housing taxation levels are some of the highest in the world and have risen sharply since 2016, which has had a significant negative effect on the cost of housing in the province.
One of BCREA’s key policy recommendations is a systematic review of the property transfer tax (PTT), originally launched in 1997 and “intended to only apply to five per cent of real estate transactions, but now applies to nearly 100 per cent in the Lower Mainland and roughly 70 per cent even in the relatively more affordable areas of the province.”
“The Property Transfer Tax was originally supposed to be a ‘luxury tax,’ but it’s evolved into a heavy burden for all British Columbians. The PTT has far outlived its original purpose without ever facing a systematic review, and the time has come for that to change,” BCREA CEO Trevor Koot said in a statement.
Other recommendations include a review of policies related to foreign investment, including the Foreign Buyer Tax, to ensure the province continues to attract investment from outside of Canada “as a means of reaching aggressive housing targets” and the repeal of both the Speculation and Vacancy Tax and the yet-to-be-implemented Residential Property Short-Term Holding Profit Tax, which are both duplicated at the federal level.
“While taxes are a necessary tool for funding public services they shouldn’t be a barrier to homeownership or add unnecessary complexity to real estate transactions. The way forward is a long, hard look at the current policies, which must be undertaken by B.C.’s next government to ensure fairness for British Columbians,” Koot added.
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