16 BCBUSINESS MARCH 2016 ISTOCK
A Tax on All Their Houses
T h e M a t r i x
A tax on changes to property title, which many in real estate argue to be
antiquated and burdensome, has become a major windfall for the provincial
government
by Jacob Parry
W
hen the B.C. government introduced the property transfer tax in the late
'80s—and started collecting a percentage on each home sold—it was a way
to catch a little wind from the property boom. Almost 30 years on, groups
like the B.C. Real Estate Association would like to see the tax axed, arguing
that it contributes to housing unaffordability and that its rates are out of sync with today's
market. While Premier Christy Clark has mused about scrapping the tax eventually, her
finance minister, Mike de Jong, has conversely suggested that increasing the tax could dampen
speculative investments. Whatever its destiny, the tax is now a big source of revenue for the
government—over $1 billion in the last fiscal year (2014-15)—as well as for others across Canada.
B.C. TORONTO MONTREAL/QUEBEC CITY
THE
TAX
THE
TAKE
THE
CRITIC
SOURCE: B.C. MINISTRY OF FINANCE
s 1% on first $200,000 of the sale price
s 2% on the rest
s Introduced in 1987
$1 BILLION
s
$432 MILLION
s
$1.3 BILLION
$154 MILLION
s A combined 4% on the value of sale; half
goes to the City of Toronto, half to the province
s Introduced in 2008
to the City of Toronto in 2015
to the province in 2015
to the City of Montreal in 2015
s 1.5% on the portion of the sale price
between $250,000-$500,000
s 2% on portion between $500,000-$1 million
s 2.5% on the value of the house over $1 million
s Introduced in 1992
to the B.C. government in 2014/15
"B.C. has the dubious
distinction of the least
competitive real estate
transfer tax in
the world"
—Cameron Muir, chief
economist, B.C. Real Estate
Association
"Most councillors
want to keep this
unfair tax and
keep spending
the millions it
brings in"
—Rob Ford, former mayor of Toronto
"By separating the assets,
the spouse who acquires
the house has to pay
the transfer tax.
How does that
make sense?"
—Régis Labeaume, mayor of
Quebec City
Revenues from B.C.'s property
transfer tax
2015
$1.039
billion
2014
$928
million
2013
$899
million
2012
$778
million
2011
$850
million
2010
$810
million
