The BC Real Estate Association (BCREA) is calling for major housing tax reform aimed at increasing affordability and fairness in the province, ahead of the election.
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 since 2016. This has had a significant negative effect on the cost of housing in the province.
BCREA’s recommendations include a systematic review of the Property Transfer Tax (PTT), a review of policies related to foreign investment, including the Foreign Buyer Tax, 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 the association says are both duplicated at the federal level.
Trevor Koot, BCREA CEO, noted that an important first step would be to review 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,” said Koot. “The PTT has far outlived its original purpose without ever facing a systematic review, and the time has come for that to change.”
Koot added that while taxes are a necessary tool for funding public services, they shouldn’t be a barrier to homeownership or add unnecessary complexity to real estate transactions.
The BCREA says that 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 residents.
