Property tax in bc and more

Posted on Sep 30, 2021 in Selling and Buying Advice

Few things are guaranteed in life and taxes is one of them. Local, provincial or federal governments always seem to find a way to tax more. Recent elections promises, not in any party official party's platforms, was property taxes. Three major discussion during fall election were about taxing speculators who sell a home less than a year after purchase ( eliminate flipping ), taxing foreign buyers ( even more then they are, see below tax brackets) and tax sellers on capital gains.

The ladder I have a problem with as many people would because a property is the nest egg for many people or way to retirement. So, if you purchased a home to live in 20-30 years ago and now it's value went up multi-fold should be punished ? Like it's not enough the amount of local taxes need to pay, not based on purchase price but, on today's property assessed value. Could you appeal the tax bill ? Someone needs to pay for roads, water systems or government salaries. Contact David for any tax questions before it's too late propertytaxman@gmail.com

There are different land forms in GV which have different tax structure

Residential makes up 51% of land in GV

Commercial 3%

Industrial 8%

Institutional 8%

Utility 5%

Recreational space 5%

Streets 20%

What are some property taxes every property owner should know or to expect if and when consider buying or selling. Please feel free to contact me to learn more what to expect before consider acquiring a second property, a vacation , investment property or any other tax implication.

What is BC’s “school tax”?

Unlike the new Speculation Tax and Foreign Buyers’ Tax, the school tax, starting in 2019, will be an additional tax applying to most high-valued residential properties in the province, including:

Detached homes
Stratified condominium or townhouse units
Most vacant land
The additional tax rate is:

0.2% on the residential portion assessed between $3 million and $4 million
0.4% tax rate on the residential portion assessed over $4 million
For example, if you owned a $4M home in Vancouver you would pay an additional $2,000 in property taxes

How much is the property transfer tax in BC? The property transfer tax rate in BC is: 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, 3% on the portion of the fair market value greater than $2,000,000, and if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).

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