I've been reading up on the British Columbia Real Estate Association (BCREA) Government Relations Briefs and I came across a little tid bit of information which really surprised me! The Background:
The Property Transfer Tax is a tax implemented by our provincial government that applies to all home purchases (unless you're part of the First Time Buyer Program).
When you buy property and register it at the Land Titles Office, you are taxed 1% on the first $200,000 and 2% on the balance of your purchase.
The Reality:
It turns out the property transfer tax started in 1987 and was supposed to be a "Wealth Tax" with the 2% portion of the charge only applying to 5% of home sold. In 2009, the 2% portion applied to about 88% of homes sold. These are provincial numbers... imagine what the percentage is in Victoria.
Shocking.
In my opinion, this is a huge cash grab for the Provincial Government. The BCREA is working to have this property transfer tax abolished by 2012. Read more in their brief on sheleter taxes here
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