Finance Minister Mike de Jong and Premier Christy Clark take questions on their new foreign buyer tax Monday

B.C. imposes foreign buyer tax on Metro real estate

New 15% tax imposed on non-Canadian buyers in Metro Vancouver, proceeds to a new housing fund

The B.C. government is imposing a new 15 per cent tax on property purchased in Metro Vancouver by non-Canadian citizens or residents.

The tax is to take effect Aug. 2, Finance Minister Mike de Jong told the B.C. legislature Monday at a special session called to deal with the spiralling cost of real estate in parts of urban B.C. The tax does not extend to municipalities outside Metro Vancouver, but could be amended to include those later.

De Jong said revenue from the tax will go into a new provincial fund to provide rental and social housing. Some revenues from a recent increase in B.C.’s property transfer tax on high-end homes may also be directed to the “housing priority initiatives fund,” which is being started up with $75 million in seed money from the provincial treasury.

The new 15 per cent rate on the property transfer tax will be imposed on purchases by foreign nationals and foreign controlled corporations, intended to discourage investment by non-residents.

MORE: Pundits split on whether foreign buyer tax will cool market

In the budget in February, de Jong increased the property transfer tax to three per cent on value of homes more than $2 million, and raised the exemption level to $750,000 for the purchase of new homes, in an effort to encourage new supply.

The property transfer tax continues to apply at one per cent on the first $200,000 of resold homes, and two per cent on value between $200,000 and $2 million. It has produced a windfall of revenues to the province in a hot real estate market in southern urban areas.

Premier Christy Clark said there will be more details in the coming months on how the province will use the new housing fund. She said the 15 per cent foreign buyer tax was chosen after examining similar taxes in Singapore, Hong Kong, London and Sydney.

“There is evidence now that suggests that very wealthy foreign buyers have raised the overall price of housing for British Columbia,” Clark said. “And if we are going to put British Columbians first, and that is what we are intending to do, we need to make sure that we do everything we can to try to keep housing affordable, and to try and make sure those very wealthy foreign buyers find it a little bit harder to buy a house in the Greater Vancouver area.”

NDP leader John Horgan said the province needs to use income tax data to determine whether home buyers are paying tax in Canada, rather than impose rules on foreign nationals.

“Much of the investment that’s happening now in the Lower Mainland is being directed by cash from somewhere else, by people who are already here,” Horgan said.

NDP housing critic David Eby said a foreign investor could avoid the tax by setting up a Canadian company to buy real estate.

The housing legislation introduced Monday also imposes new regulation on the B.C. real estate industry, replacing self-regulation with a new Real Estate Council appointed by the provincial cabinet.

 

Just Posted

North Delta junior curlers score a rare eight-ender

Delta Thistle Curling’s Junior Delta 1 is among only 12 teams in B.C. to score a perfect end this season

Delta to give Deltassist $75,000 for seniors programs

The funding will replace a grant from United Way that’s set to expire next year

Rainstorm drenches Lower Mainland as snow falls on the Sea-to-Sky

Heavy rains, snow expected till Friday morning

Community steps up to get Sources’ food bank truck on the road

Individuals, businesses help fix vehicle that had been damaged by theft

Man climbs tree to evade police after Surrey RCMP called to domestic dispute

The man was 60 feet up the tree for hours, according to a Black Press freelancer at the scene

Man caught on camera allegedly trying to defraud ICBC

Auto-insurer warns B.C. drivers to record info after crashes

North Delta happening: week of Dec. 13

Events, courses and clubs listings for North Delta

‘People talk about deep sadness:’ Scientists study climate change grief

Some call it environmental grief, some call it solastalgia — a word coined for a feeling of homesickness when home changes around you.

As protectors abandon Trump, investigation draws closer

Cohen was sentenced Wednesday to three years in prison for an array of crimes.

Senate delays start of sittings in new home, delaying start of broadcasts

The Senate and House of Commons are moving into temporary homes for the next decade as a result of long-planned and badly needed renovations to the Centre Block.

UK leader seeks EU lifeline after surviving confidence vote

EU leaders gather for a two-day summit, beginning Thursday, which will center on the Brexit negotiations.

French police try to catch attack suspect dead or alive

Local authorities increase death toll to three, including 13 wounded and five in serious condition

BCHL’ers blanked by Russia at World Junior A Challenge

Canada West loses battle of the unbeaten teams in the preliminary round

Second Canadian missing in China after questioning by authorities

Michael Spavor, founder of a non-profit that organizes cultural-exchange trips to North Korea, “is presently missing in China”

Most Read