1. The Property Transfer Tax (PTT) is charged at a rate of:
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
- 3% on the portion of the fair market value greater than $2,000,000.
A foreign entity or taxable trustee who buys residential property in Metro Vancouver also pays an 15% additional PTT (the Foreign Buyers Tax), unless they have a work permit through the BC Provincial Nominee Program. Then they are exempt. The exemption began March 17, 2017.
Buyers of newly built homes priced up to $750,000 are exempt from the PTT.
2. The PTT must be paid each time a property changes hands. When a developer buys raw land, the developer pays the PTT. When a builder buys lots from the developer, the builder pays the PTT. When a home buyer buys a home from the builder, the home buyer pays the PTT. When the buyer moves to a larger home or downsizes to a smaller home, or buys a similar home due to a job transfer, they pay the PTT.
3. The PTT is an unfair tax because it places a disproportionate burden on property buyers, who are the only ones who pay it. Only a small portion of the revenue goes making home ownership more affordable in programs such as the BC Home Partnership program (the government matches downpayments up to $37,500). Most of the PTT revenue goes into provincial general revenue.
4. If the 2% portion of the PTT applied only to the top 5% of all home sales today, as originally intended, the $200,000 threshold would need to be raised to more than $1.4 million in Greater Vancouver.
For more information contact Harriet Permut, Manager, Government Relations at: email@example.com