On September 28, BCREA brought forward recommendations to improve housing affordability and tax fairness for BC homebuyers.
Provincial shelter taxes, namely the Property Transfer Tax (PTT) and Harmonized Sales Tax (HST), place an unfair burden on homebuyers. For this reason, BCREA asked the provincial Select Standing Committee on Finance and Government Services to forward the following recommendations to the Minister of Finance for inclusion in the 2011/2012 budget:
- 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 Index, and make adjustments annually.
- Index the HST new home rebate threshold—currently set at $525,000—using the New Housing Price Index, and make adjustments annually.
BCREA believes a fair system of taxation and a thriving economy will help citizens throughout BC enjoy an enviable quality of life and BCREA hopes that its recommendations will be considered to improve housing affordability with simple adjustments to the province’s tax structure for the 2010 provincial budget.
To read the full pre-budget submission, visit the BCREA’s website at www.bcrea.bc.ca/govt/