The changes to the Property Transfer Tax (PTT) in the BC Government’s Budget 2016/2017 have fallen short of BCREA’s recommendations and represent a missed opportunity by the provincial government to provide broad assistance, despite the Speech from the Throne and several months of media coverage hinting at significant relief for homebuyers.
The changes to the PTT are as follows:
Effective February 17, 2016, newly-constructed homes used as principal residences, up to $750,000, will be exempt from the PTT. A partial exemption will be available for new homes up to $800,000. This is for all buyers, not just first-time buyers.
Further, the PTT rate is increased to 3% (from 2%) on the portion of a property’s fair market value above $2 million. Rates of 1% on the first $200,000 of a property’s fair market value and 2% on the fair market value between $200,000 and $2 million will continue to apply.