Finance Minister Mike de Jong and Premier Christy Clark take questions on their new foreign buyer tax Monday

B.C. imposes foreign buyer tax on Metro real estate

New 15% tax imposed on non-Canadian buyers in Metro Vancouver, proceeds to a new housing fund

The B.C. government is imposing a new 15 per cent tax on property purchased in Metro Vancouver by non-Canadian citizens or residents.

The tax is to take effect Aug. 2, Finance Minister Mike de Jong told the B.C. legislature Monday at a special session called to deal with the spiralling cost of real estate in parts of urban B.C. The tax does not extend to municipalities outside Metro Vancouver, but could be amended to include those later.

De Jong said revenue from the tax will go into a new provincial fund to provide rental and social housing. Some revenues from a recent increase in B.C.’s property transfer tax on high-end homes may also be directed to the “housing priority initiatives fund,” which is being started up with $75 million in seed money from the provincial treasury.

The new 15 per cent rate on the property transfer tax will be imposed on purchases by foreign nationals and foreign controlled corporations, intended to discourage investment by non-residents.

MORE: Pundits split on whether foreign buyer tax will cool market

In the budget in February, de Jong increased the property transfer tax to three per cent on value of homes more than $2 million, and raised the exemption level to $750,000 for the purchase of new homes, in an effort to encourage new supply.

The property transfer tax continues to apply at one per cent on the first $200,000 of resold homes, and two per cent on value between $200,000 and $2 million. It has produced a windfall of revenues to the province in a hot real estate market in southern urban areas.

Premier Christy Clark said there will be more details in the coming months on how the province will use the new housing fund. She said the 15 per cent foreign buyer tax was chosen after examining similar taxes in Singapore, Hong Kong, London and Sydney.

“There is evidence now that suggests that very wealthy foreign buyers have raised the overall price of housing for British Columbia,” Clark said. “And if we are going to put British Columbians first, and that is what we are intending to do, we need to make sure that we do everything we can to try to keep housing affordable, and to try and make sure those very wealthy foreign buyers find it a little bit harder to buy a house in the Greater Vancouver area.”

NDP leader John Horgan said the province needs to use income tax data to determine whether home buyers are paying tax in Canada, rather than impose rules on foreign nationals.

“Much of the investment that’s happening now in the Lower Mainland is being directed by cash from somewhere else, by people who are already here,” Horgan said.

NDP housing critic David Eby said a foreign investor could avoid the tax by setting up a Canadian company to buy real estate.

The housing legislation introduced Monday also imposes new regulation on the B.C. real estate industry, replacing self-regulation with a new Real Estate Council appointed by the provincial cabinet.

 

Just Posted

North Island College holding information session on new culinary diploma

Get a sneak peek at the new culinary kitchen at the Campbell River campus

Council approves replacement of overhead heaters at Fire Hall

Port Hardy council has agreed to spend $11,000 on the replacement of… Continue reading

North Island Eagles minor rep ockey organization hand out year-end awards in Port McNeill

It was quite the season and then some for minor rep hockey here in the North Island.

North Island resident to campaign on climate, economy for Liberal Party seat in Ottawa

Peter Schwarzhoff joins race for the second time in North Island-Powell River riding

Press release: Port Alice Health Centre service model announced

“a sustainable and dependable model of health care service delivery in Port Alice is a priority”

Kelowna toddler suffers cracked skull after fall from balcony

Neighbour who found the two-year-old boy said he has a bump the size of a golf ball on his head

Support growing for orphaned Okanagan child after father dies in highway crash

Family thanks emergency crews for assistance in traumatic incident

RCMP probe if teen was intentionally hit with ski pole by mystery skier on B.C. mountain

The incident happened on March 20 on Grouse Mountain. Police are urging witnesses to come forward

Pipeline protester chimes in on Justin Trudeau’s B.C. fundraising speech

The government purchased the Trans Mountain pipeline and expansion project for $4.5 billion

Baby boom seniors putting pressure on B.C. long-term care: report

B.C. leads Canada in growth of dementia, dependence on care

UPDATED: B.C. man says he’ll take People’s Party lawsuit as far as he can

Federal judge shut down Satinder Dhillon’s ‘nonsensical’ motion to bar use of PPC name in byelection

Canada stripping citizenship from Chinese man over alleged marriage fraud

The move comes amid severely strained relations between Ottawa and Beijing

Nevada court orders former Vancouver man to pay back $21.7M to investors

The commission says Michael Lathigee committed fraud over a decade ago

Most Read