NEWSFLASH | B.C. Reduces Tax Burden (PTT) - vancouveravenue.ca

NEWSFLASH | B.C. Reduces Tax Burden (PTT)

As a current member of REBGV’s Government Relations Committee, I am incredibly proud of all of the time and commitment the organization has put into this endeavour, most of which came before my time. So kudos to all of you who have worked/are working so hard – you know who you are!

Government reduces tax burden on first-time buyers

(via the Real Estate Board of Greater Vancouver)

First-time home buyers received welcome news in today’s provincial budget. Any REALTORS® currently working with first-time buyers will want to share this news with them as soon as possible.

The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

The government estimates this measure will cost $8 million in lost tax revenue each year.

The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.

In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000.

In 2005, the government increased the threshold to $325,000 from $275,000.

The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

To learn more about REBGV’s PTT lobbying efforts, please visit: helpreducetheptt.ca
Here is a link to the Budget: bcbudget.gov.bc.ca/2014/default.htm

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