Media Release – UDI on 15% additional Property Transfer Tax for foreign buyers
Today the provincial government announced that effective August 2nd 2016 an additional 15% Property Transfer Tax (PTT) will apply for purchasers of Metro Vancouver residential real estate who are foreign nationals or foreign-controlled corporations.
Government news release here: https://news.gov.bc.ca/releases/2016PREM0080-001346
This announcement is the latest in taxation measures created in response to increasing housing prices. In February of this year the annual Provincial Budget included increases to the PTT on homes over $2 million. Earlier this month the Province confirmed that the City of Vancouver will have statutory ability to proceed with a vacancy tax on empty homes.
It is uncertain what combined impact these taxes will have on the housing market. The Urban Development Institute believes that taxes alone will not solve our affordability problems. With three new taxes proposed it is now time to focus on creating more housing supply. A portion of the PTT tax revenues will be deposited in a new Housing Priority Initiatives Fund. If allocated wisely, these revenues could provide a real opportunity to increase the supply of both market and rental housing.
Note: UDI President & CEO Anne McMullin is available for interviews.