PTT Tax Fairness for Homebuyers
October 2013
Tax Fairness for Homebuyers
REALTORS® around the province agree that the Property Transfer Tax (PTT) is an unfair burden on homebuyers. For 26 years, on behalf of 11 real estate boards and nearly 19,000 REALTORS®, BCREA has encouraged the BC government to minimize the negative impact of the PTT.
Homebuyers in BC deserve a fresh start. Since it’s unlikely the government will eliminate the tax, due to its contribution to provincial revenue, it’s time to restructure the PTT to better reflect market conditions and assist BC families who face some of the highest home ownership costs in the country.
On September 20, BCREA recommended that the provincial government:
- Index the 1% PTT threshold, using either Statistics Canada’s New Housing Price Index or the MLS® Home Price Index, and make adjustments annually.
- Increase the 1% PTT threshold from $200,000 to $525,000, with 2% applying to the remainder of the fair market value. This change will particularly benefit homebuyers in expensive markets, such as Vancouver and Victoria.