Government Announcement: Immediate Tax Changes
The BC/NDP Government Announcement yesterday had everyone scrambling for more details. As part of the 2018 Budget, they’ve immediately implemented Property Transfer Tax changes, coming into effect today, February 21st.
These changes include:
- The rate for Property Transfer Tax on residential properties with a value above $3 million has increased.
- An additional 20% Property Transfer Tax has been introduced for the CRD and other areas within BC, if you’re a foreign national, foreign corporation or taxable trustee.
- The Property Transfer Tax Act has been amended to allow for more information sharing & enhanced administration.
- Limitation period for Property Transfer Tax Assessments has been extended to 6 years.
- Extra information will be collected on Property Transfer Tax returns.
- A new monetary penalty has been introduced for non-compliance.
- The pre-existing general anti-avoidance rule has been extended to the entire Property Transfer Tax Act.
- Access to additional information, including the MLS database, has been enabled.
On a lighter note, in the same budget announcement that included the Property Transfer Tax changes, the Government also announced that they would eliminate MSP premiums as of Jan 1, 2020.
For more information on these changes, and a full list of the changes announced yesterday, visit Government of BC’s website here.
There are, of course, mixed reviews and feelings about the changes that have been implemented, and how quickly the announcement was made. Purchasers already under contract to purchase a residential property within BC may be affected by these changes, if you already have a contract written and are unsure of how these changes might affect you, we suggest getting in touch with your Real Estate Agent right away.
If you’re concerned about how these changes will affect you as a current or future buyer or seller, get in touch with The Condo Group for expert insight and advice at 250-382-6636.
— Amy Francoeur