The BC Government released Budget 2014/2015. The most direct and immediate announcement for REALTORS® is:
Property Transfer Tax
Effective for registrations on and after February 19, 2014 (tomorrow), the Property Transfer Tax exemption threshold under the First Time Home Buyers’ Program is increased to $475,000 from $425,000, with the partial exemption/phase out applying between $475,000 and $500,000.
The government estimates that approximately 1,700 first-time buyers will benefit this year, saving an average of $4,000 at a cost to government estimated at $8 million.
Home Owner Grant
For the 2014 tax year, the Home Owner Grant threshold for phase out will be decreased from $1,295,000 to $1,100,000. For properties valued above the threshold, the grant is reduced by $5 for every $1,000 of assessed value in excess of the threshold. The threshold captures at least 93.8% of homeowners as opposed to 95% previously. The measure is estimated to provide an additional $11 million in revenue.