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Property Transfer Tax

Since 1987, the Property Transfer Tax (PTT) has been levied on all real estate transactions as follows:

 

Fair Markete Value  PTT Rate

First $200,000    1%

Balance over $200,000      2%
  

Originally, the PTT was considered a wealth tax, with the 2% portion expected to apply to only 5% of homes sold. In 2008, the 2% portion was levied on about 85% of homes sold, and rose even higher to 88% in 2009.

BC ranks worst among all provinces in terms of burden of land transfer taxes on homeowners. In fact, British Columbians pay 222% more in land transfer taxes per transaction than the average Canadian and the BC Government levies a PTT rate that is 129% higher than the average for Canadian provinces. Higher property prices are not solely to blame for this scenario; prices in British Columbia are 45% higher than the Canadian average, so the inequitable structure of the BC Government's PTT adds an additional burden of up to 177%.

The chart below shows the amount of revenue that the government has collected from the PPT in the past ten years.


Toal taxation revenue ($ mil.) PTT revenue ($ mil.) Proportion of taxation revenue from PTT (%)
1997/1998 13,103 310 2.37
1998/1999 13,134 223 1.70
1999/2000 13,378 245 1.83
2000/2001 13,894 262 1.89
2001/2002 14,090 303 2.15
2002/2003 12,365 392 3.17
2003/2004 13,830 517 3.74
2004/2005 14,917 604 4.05
2005/2006 16,429 843 5.13
2006/2007 18,017 914 5.07
2007/2008 19,406 1,068 5.50
2008/2009 18,197 715 3.93
2009/2010 17,102 887 5.19

Source: BC Minstry of Finance

The BC Real Estate Association and REALTORS® across the province have lobbied the BC Government for years to amend the PTT. Click here for BCREA’s latest recommendations.

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