Property Transfer Tax
This year alone, the Property Transfer Tax (PTT) will pour upwards of a billion dollars into the provincial government's revenue stream.
Charged at a rate of one per cent on the first $200,000 and two per cent on the remainder, the tax will add $5,500 up front to the cost of a $375,000 home. If the home buyer isn't prepared and hasn't saved, the PTT amortized over 25 years (at 5.5 per cent) will cost them $10,071.
Housing affordability remains a significant concern for BC real estate boards. One way to make housing more affordable is to take steps toward reducing the PTT.
Home ownership is fundamental to establishing healthy, vibrant and sustainable communities and is a barometer of a resident's quality of life. The PTT doesn't just make homes less affordable. It limits consumer choice and mobility.
In the Real Estate Board's Pre-Budget Submission delivered to the government in October 2006, we made several recommendations that BCREA adopted for use in recommendations it made to government during GL Days.
These recommendations include that the provincial government continue to work toward eliminating the PTT by:
• increasing the ceiling for the one per cent portion of the tax to $300,000 from $200,000; and
• indexing the price exemption threshold to annual changes in the median MLS® home price by provincial development regions.
Realtor Link - May 4 2007