Finance Minister Mike de Jong releases audited public accounts showing a larger-than-expected surplus for 2015-16.

Real estate tax windfall continues for B.C.

Finance Minister Mike de Jong says measures to deal with high housing cost coming when legislature sits next week

The B.C. government took in more income tax, sales tax and property transfer tax than it budgeted last year, leading to an operating surplus of $730 million for the fiscal year ended March 31.

The focus is on the government’s windfall from a hot real estate market, with property transfer tax revenue up $468 million over the previous year, according to audited year-end figures released by Finance Minister Mike de Jong Thursday.

The current B.C. budget had forecast a decline in property transfer tax revenue this year, but de Jong said those revenues are running significantly ahead of what was expected in February. When the B.C. legislature convenes for a rare summer sitting next week, de Jong said there will be further indications of how the government will use its extra revenues to deal with a housing market that has become unaffordable for many people in urban areas.

The government has committed to allow Vancouver to impose a new property tax on vacant homes, in an effort to make absentee owners sell them or offer them for rent. Victoria has indicated an interest in similar taxation power, but de Jong said changes to the Community Charter that governs cities outside Vancouver won’t happen this summer.

If there is a consensus among local governments at the Union of B.C. Municipalities convention this fall that a vacant residence tax is needed, the province will likely allow it, de Jong said. But he repeated his view that the best answer to rising home prices and a shortage of rental accommodation is to build more of them.

“Let us not make the mistake of assuming that government is going to tax our way out of the challenge people are facing when trying to buy a house,” de Jong said.

NDP leader John Horgan said B.C.’s surplus is despite a slump in resource revenues, and instead is based on $200 million from increased Medical Services Plan premiums and a “massive increase” in property transfer taxes.

“And as we’ve seen in the past, blackjack, booze and bungalows is not a way to build a sustainable economy,” Horgan said.

For 2015-16, the number of properties sold in B.C. jumped 18.6 per cent over the previous year, and the total value of sales was up 20.9 per cent.

The finance ministry estimates the total value of real estate sold in 2015-16 was $93.67 billion, with nearly $80 billion in residential properties and the rest commercial.

B.C. finished the fiscal year with economic growth of three per cent, more than triple the national average. Population rose and retail sales increased by six per cent.

 

Just Posted

Qualtrough ready to ‘hit the ground running’ in second term as Delta’s MP

The Liberal candidate says she looks forward to picking up where her government left off

Theft of dog-outfits ‘a huge hit’ to South Surrey mother-daughter business

Kathy Neumeyer says 100-plus dog sweaters and raincoats were nicked from her SUV last week

Diwali in Surrey: ‘Festival of light’ celebrations at several halls, a library, other venues

This year Diwali is on Sunday, Oct. 27, but Surrey-area events are held over a two-week period

People’s Party of Canada not finished, defeated Surrey candidate says

Surrey’s five PPC candidates combined received 4,213 votes

Player-of-year Seumanutafa leads UBC to women’s rugby title

Semiahmoo grads help Thunderbirds to first-ever Canada West rugby title

Raptors Bling: NBA champions receive their rings in pre-game ceremony

There are over 650 diamonds — at a weight of 14 carats — in the 14-karat yellow gold ring

Homicide team deployed in Coquitlam

Integrated Homicide Investigative Team investigating near Seaton Avenue, Ducklow Street

100-pound pumpkin stolen a second time from B.C. business

According to security footage, a man and woman took the pumpkin on Oct. 20 at 8:20 p.m.

Greta Thunberg declines invitation to Victoria due to time, not ferry emissions

Thunberg confirmed that she will be joining a climate strike at the Vancouver Art Gallery on Friday

Feds finally decriminalizing drugs possible – but it’s up to Jagmeet Singh, expert says

National pharmacare was one of Singh’s most highly-touted platform policies

‘Havoc and chaos:’ Alberta separatist group gains support as Liberals re-elected

The idea is getting interest from people in Saskatchewan, Manitoba and parts of British Columbia

In the news: Wexit, Brexit and Trump sparks outrage

There’s been a surge of support for an Alberta separatist group

VIDEO: Man in his 20s in hospital following shooting in Abbotsford

Incident takes place Tuesday night in 31700 block of South Fraser Way

Most Read