FOREIGN BUYERS AND TAXABLE TRUSTEES PROPERTY TAX;
Foreign Buyer’s tax for Residential properties has gone from 15% to 20%, effective today. The area this tax covers has been extended from just Greater Vancouver to : The Capital Region District, Fraser Valley Regional District, Regional District of Central Okanagan and Nanaimo Regional District.
The areas for each region can be found at https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax/bc-areas
– If the property is farmland or commercial with a residential component, the tax applies on the residential component.
– Exemption for BC Provincial Nominee Program still applies.
SPECULATION TAX – NEW
1. The tax is meant to target foreign and domestic homeowners who do not pay income tax in B.C.
2. The tax will apply to same areas as foreign buyers tax apart from Okanagan, where it only applies to Kelowna and West Kelowna.
3. This tax starts in 2018 at $5.00 per $1,000.00 of assessed value and goes up to $20 in 2019.
Other details are not available at this time
PROPERTY TRANSFER TAX – Increase for Properties over $3 million.
1. Tax rises from 3% to 5% on value of homes over $3,000,000.00.
2. It remains at 1% on first $200,000.00, 2% on amounts between $200,000.00 and $2,000,000; 3% on amounts between $2,000,000.00 and $3,000,000.00 and 5% on amounts over $3,000,000.00.
PRE-SALE CONDO ASSIGNMENTS
1. Developers will collect and report information about pre-sale condo purchases; nothing else in budget about pre-sale contracts or assignments that we have seen.
B.C. HOME OWNER SECOND MORTGAGES
1. This program is now cancelled – don’t think it was used much anyway.