Most British Columbians believe that B.C.'s property transfer tax (PTT) places an unfair tax burden on homebuyers, according to an Ipsos Reid poll released May 1.
The poll found 58% of those surveyed found that the poll was "unfair" to homebuyers compared with other segments of the population. A bare majority (51%) also believe that the B.C. government should adjust the way the PTT is calculated to lessen the burden on homebuyers, according to the poll.
Real-estate buyers pay a 1% tax on each dollar up to $200,000 and a 2% tax on each dollar they spend above that amount. The only exemption is for first-time homebuyers who spend less than $425,000.
The Real Estate Board of Greater Vancouver advocates raising the 1% threshold so that buyers pay 1% on each dollar up to $525,000 and 2% on each dollar thereafter.
The tax annually brings in about $600 million in revenue to provincial coffers and the changes that the REBGV advocates would wipe out about 26% of that, according to its calculations.
"We are committed to balancing our budget and the province does not have the financial room to make any changes to the PTT at this time," Finance Minister Mike de Jong, who is also a BC Liberal candidate in Abbotsford-West, told Business in Vancouver April 30.
NDP finance critic Bruce Ralston, who is a candidate in Surrey-Whalley, similarly rejects the idea that his government would forego any of the revenue that the tax generates.
"We are open to considering proposals to improve the PTT that are revenue neutral," he told BIV.
