BC Real Estate Association Urges Comprehensive Review of BC Housing Taxes
Vancouver, Oct. 07, 2024 (GLOBE NEWSWIRE) -- With the British Columbia election less than two weeks away, the BC Real Estate Association (BCREA) is calling for major housing tax reform aimed at increasing affordability and fairness in the province, the Association announced today.
As outlined on their housing policy resource hub launched in the lead-up to the election, BCREA noted that BC housing taxation levels are some of the highest in the world and have risen sharply since 2016. This has had a significant negative effect on the cost of housing in the province.
BCREA recommendations include:
- a systematic review of the Property Transfer Tax (PTT), which was launched in 1987 as a "luxury tax" 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;
- a review of policies related to foreign investment, including the Foreign Buyer Tax, to ensure that the province continues to attract investment from outside of Canada as a means of reaching aggressive housing targets; and
- the immediate repeal of both the Speculation and Vacancy Tax (SVT) and the yet-to-be-implemented Residential Property Short-Term Holding Profit Tax (Flipping Tax), which are both duplicated at the federal level.
Trevor Koot, BCREA CEO, noted that a vital first step would be the review of the PTT, which now accounts for $1.95 billion in annual tax revenue for 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," Koot said. "The PTT has far outlived its original purpose without ever facing a systematic review, and the time has come for that to change."
While taxes are a necessary tool for funding public services, Koot added, 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 BC's next government to ensure fairness for British Columbians.
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Learn More:
For more information on housing tax reform and several other housing issues of concern, check out the BCREA Election resource hub.
About BCREA
BCREA is the provincial association for BC REALTORS®. As a champion for the real estate sector, BCREA advances REALTOR® professionalism and ensures the REALTOR® voice is heard, for the benefit of consumers and communities, across BC. By working in collaboration with the province's real estate boards and associations, our mission is to provide professional development opportunities, advocacy, economic and policy research, and standard forms so REALTORS® are trusted, respected, and proud of their profession.
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