The good news is that Port Coquitlam homeowners are expected to pay less in property taxes this year than the city had initially planned.

 

 

The bad news is that the same taxpayers may have forked over more than was necessary in 2012.

 

 

A review of council’s approved funding decisions conducted by the city’s finance staff found that a planned infrastructure reserve transfer was duplicated in this year’s financial plan.

 

 

(The infrastructure reserve, established in 2010, has collected 1% annually to address the gap in funding needed to replace aging roads and facilities.)

 

 

“As a consequence, the reserve fund transfer included in the budget for 2013 is inflated by $442,000,” said a city staff report. “The financial plan and related Tax Rates Bylaws for 2013 are therefore being reduced.”

 

 

That means that instead of a 3.7% increase that was initially announced, residential property owners will get a bill with a 2.84% increase, which translates into a tax bill that’s about $16.50 less for the average single-family homeowner.

 

 

What is further complicating the issue is the fact all B.C. cities are legally required to finalize their budgets by May 15 — next Wednesday.

 

 

With the deadline looming, council is expected to vote on Monday to rescind third reading of its old tax bylaw before voting on the new amendment.

 

 

If it passes, a special meeting will have to be held on Tuesday — the quickest amount of time between readings that is legally allowed — to give the amended document fourth and final reading.

 

 

The duplication of the infrastructure reserve transfer was also present in last year’s budget, according to Richard Wells, PoCo’s interim director of corporate services. But he stopped short of saying that the city collected more in 2012 than it had intended.

 

 

Had council known about the duplication, he said, it is likely it would have kept the property tax increase for 2012 at the same percentage the city collected and used the money for other things.

 

 

“It’s hard to go back and try to determine what council’s decisions would have been or whether they would have decided to do other projects,” he said. “It is hard to go back and say that it would have been different.”

 

 

He added that the total shown on residents’ tax bills was the amount collected by the city and no one was overcharged.

 

 

Last year, in an effort to keep rates low, council voted to use surplus funds from the 2011 budget to reduce the 1% increase to about 0.28%. But because of the duplication, residents would have paid both, for a total of 1.28%, said Wells.

 

 

Council is expected to discuss the issue during Monday night’s meeting at 7 p.m. at city hall (2580 Shaughnessy Street).

 

 

gmckenna@tricitynews.com

 

PocoCityHall-1.jpg 

Read full post

THE REALTOR IN Rajiv Pandey shows, even on the election-campaign trail.

 

When knocking on doors in Vancouver-Fraserview, the B.C. Conservative candidate talks about one other thing aside from typical issues like education and health care: the property transfer tax. Even though his party hasn’t taken a stand on the levy, Pandey tells voters that he wants to see this tax reduced.

“As a realtor, I’m totally opposed to it,” Pandey told the Georgia Straight in a phone interview.

The Real Estate Board of Greater Vancouver has also identified the reduction of the B.C. property transfer tax as its top issue in the May 14 provincial election.

Introduced in 1987 by the government of the day as a form of a wealth tax, it’s a one percent levy on the first $200,000 of the purchase price, and two percent on the balance of the transaction.

But according to REBGV president Sandra Wyant, 1987 was a long time ago. “And that’s what makes the tax so unfair,” Wyant told theStraight by phone.

She recalled that the property transfer tax was implemented at a time when only five percent of homes in the Greater Vancouver area were selling for $200,000 or more. Today, 96 percent of residential properties in the region are priced higher than $200,000.

The REBGV is proposing an increase of the one percent threshold to $525,000. According to the association, this would mean that the new property transfer tax on a $600,000 home would be $6,750. This will save homebuyers $3,250.

The REBGV also notes that the tax generated $780 million in fiscal year 2012-13. For the last 26 years, the levy has brought into government coffers revenues totalling $11.9 billion.

So far, the association’s campaign to reduce the property transfer tax has attracted the support of only four candidates, including Pandey. Out of the four, three are realtors.

“Four is a start and we still have a couple of weeks to go,” Wyant said.

She also noted that her association has sent letters to the major political parties and has yet to hear from any of them as April 30. “Realtors never give up,” Wyant said when asked if she’s discouraged.

Pandey has also written his B.C. Conservative Party about the issue and hasn’t heard back. This hasn’t discouraged the first-time candidate from talking about it on the campaign trail.

Pandey also has a quick answer to the question of how the province will raise money to cover the difference if it adjusts the property transfer tax: “The government has so much money, so much wastage. We have tons of money that we could reduce the property transfer tax, and still run the business.”

Read full post

VANCOUVER, BC – May 1, 2013 – In a recent Ipsos Reid opinion poll, 58 per cent of respondents agreed that the Property Transfer Tax (PTT) places an unfair tax burden on home buyers relative to other segments of the population. Twenty nine per cent disagreed, and 13 per cent had no opinion on the issue.

The poll also found that 51 per cent of respondents believe the provincial government should adjust the way the PTT is calculated to reflect price changes in the housing market over time. Of the 854 respondents, 26 per cent did not believe the PTT should be adjusted to reflect inflationary trends in the housing market and 23 per cent had no opinion.

Ipsos Reid conducted the poll on behalf of the Real Estate Board of Greater Vancouver (REBGV).  It was conducted online with 854 adult British Columbians responding between April 19 and 24, 2013.

“While the PTT is not top of mind in most people’s daily lives, when the time comes to purchase a home this tax becomes a significant burden for home buyers in BC to shoulder,” says Sandra Wyant, REBGV president.

The province introduced the tax 26 years ago. It was structured to add 1 per cent on the first $200,000 of the purchase price, and 2 per cent on the balance. The government of the day touted the PTT as a wealth tax, as just 5 per cent of homes in Greater Vancouver in 1987 sold for $200,000 or more. Today, the reverse holds true, with 96 per cent of homes in Greater Vancouver selling for more than $200,000. However, the tax’s structure hasn’t changed in nearly three decades.

“The PTT is structured to reflect home prices in the 1980s, not the prices home buyers pay today,” Wyant says. “The fact that it hasn’t been adjusted in 26 years is simply not fair to home buyers and the candidates in this year’s election should address this issue,” Wyant said.

The REBGV has launched a campaign to increase voter awareness of the need for government to reduce the PTT. To support this campaign, people can “like” our Facebook page atfacebook.com/helpreducetheptt.

The REBGV is asking candidates if they would support increasing the one per cent threshold to $525,000 from $200,000. This would mean that on a $600,000 home, the PTT would be $6,750, instead of $10,000, saving home buyers $3,250.

The PTT generated $780 million for the provincial government in 2012. This money goes into general revenue to fund public services. It’s paid each time a property changes hands in the development process. 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. Each time that home is sold, the buyer pays PTT.

To learn more about the PTT and its implications on BC home buyers, visit helpreducetheptt.ca.

Editor’s Note: Ipsos is a global independent market research company. Click here to view the full survey results.
These are the findings of an online Ipsos Reid poll of 854 adult British Columbians conducted for the Real Estate Board of Greater Vancouver using Ipsos Reid’s national online household panel between April 19 and 24, 2013. These data were statistically weighted to ensure the sample’s regional and age/sex composition reflects that of the actual BC population according to 2011 Census data. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 3.8 percentage points had all British Columbia adults been surveyed. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

 The Real Estate Board of Greater Vancouver is a non-partisan association representing 11,000 REALTORS® in Greater Vancouver. For information about the REBGV visit www.rebgv.org.
 Authorized by the British Columbia Real Estate Association, registered under the Election Act, 604.683.7702.

For information contact:
Craig Munn, Assistant Manager of Communication
Real Estate Board of Greater Vancouver
Phone: (604) 730-3146; cmunn@rebgv.org
www.rebgv.orgFacebook|Twitter

 

Add our logo!
Read full post

 

VANCOUVER, BC – April 23, 2013 –  BC voters head to the polls on May 14 and the Property Transfer Tax (PTT) is a top election issue for the Real Estate Board of Greater Vancouver (REBGV).

 

The REBGV has launched a campaign to raise voter awareness of the need for the next government to reduce the PTT.

“Our goal is to send a strong message to this year’s candidates that it’s long overdue for government to reduce the burden of the PTT on home buyers,” Sandra Wyant, REBGV president said.

To support this campaign, people can “like” our Facebook page at facebook.com/helpreducethepttTo learn more about the PTT and its implications on BC home buyers, visit helpreducetheptt.ca.

The province introduced the PTT 26 years ago. It was structured to add 1 per cent on the first $200,000 of the purchase price, and 2 per cent on the balance. The government of the day touted the PTT as a wealth tax, as just 5 per cent of homes in Greater Vancouver sold for $200,000 or more.

Since 1987, home prices have increased substantially. Yet, after all these years, the tax’s structure hasn’t changed. Today, 96 per cent of homes in Greater Vancouver sell for more than $200,000.

“It’s time to relieve some of the unfair tax burden the PTT places on home buyers and we’d like to know where the candidates and parties stand on this issue,” Wyant said.

The PTT adds $10,000 to a $600,000 home. It annually generates $780 million for the provincial government. This money goes into general revenue to fund public services.

The PTT is paid each time a property changes hands in the development process. 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. Every time that same home is sold, the next buyer pays the PTT.

The REBGV is asking candidates if they would support increasing the one per cent threshold to $525,000 from $200,000. This would mean that on a $600,000 home, the PTT would be $6,750, instead of $10,000, saving home buyers $3,250.

“We know it would be difficult for any future government to replace the revenue generated from the PTT, but this is a case where the notion of tax fairness needs to apply,” Wyant said. “The next government of BC should adjust the PTT to better reflect the tax’s original purpose,” Wyant said.

The Real Estate Board of Greater Vancouver is a non-partisan association representing 11,000 REALTORS® in Greater Vancouver. For more information about the REBGV visit www.rebgv.org.

Authorized by the British Columbia Real Estate Association, registered under the Election Act, 604.683.7702.

For more information contact:
Craig Munn, Assistant Manager of Communications
Real Estate Board of Greater Vancouver
Phone: (604) 730-3146 
cmunn@rebgv.org

BACKGROUND

What does the PTT cost a Greater Vancouver home buyer? 

Community

Housing Type

MLS® HPI Benchmark Price

PTT

Greater Vancouver

Detached

$906,900

$16,138

 

Attached

$454,300

$7,086

 

Apartment

$362,100

$5,242

Bowen Island

Detached

$572,400

$9,448

 

Attached

N/A

N/A

 

Apartment

N/A

N/A

Burnaby East

Detached

$738,800

$12,776

 

Attached

$404,600

$6,092

 

Apartment

$375,100

$5,502

Burnaby North

Detached

$898,900

$15,978

 

Attached

$400,100

$6,002

 

Apartment

$332,200

$4,644

Burnaby South

Detached

$923,900

$16,478

 

Attached

$411,600

$6,232

 

Apartment

$373,100

$5,642

Coquitlam

Detached

$702,800

$12,056

 

Attached

$381,400

$5,628

 

Apartment

$242,300

$2,846

Ladner

Detached

$632,800

$10,565

 

Attached

$435,200

$6,704

 

Apartment

$301,200

$4,024

Maple Ridge

Detached

$458,400

$7,168

 

Attached

$272,600

$3,452

 

Apartment

$175,000

$1,750

New Westminster

Detached

$657,000

$11,140

 

Attached

$384,100

$5,682

 

Apartment

$272,700

$3,454

North Vancouver

Detached

$936,100

$16,722

 

Attached

$584,100

$9,682

 

Apartment

$342,800

$4,856

Pitt Meadows

Detached

$494,500

$7,890

 

Attached

$322,900

$4,458

 

Apartment

$233,200

$2,664

Community

Housing Type

MLS® HPI Benchmark Price

PTT

Port Coquitlam

Detached

$542,100

$8,842

 

Attached

$368,300

$5,366

 

Apartment

$216,600

$2,332

Port Moody

Detached

$806,900

$14,138

 

Attached

$402,700

$6,054

 

Apartment

$312,500

$4,250

Richmond

Detached

$938,100

$16,762

 

Attached

$487,800

$7,756

 

Apartment

$338,200

$4,764

Squamish

Detached

$494,200

$7,884

 

Attached

$327,100

$4,542

 

Apartment

$241,500

$2,830

Sunshine Coast

Detached

$338,800

$4,776

 

Attached

N/A

N/A

 

Apartment

N/A

N/A

Tsawwassen

Detached

$716,100

$12,322

 

Attached

$443,100

$6,862

 

Apartment

$321,900

$4,438

Vancouver East

Detached

$832,300

$14,646

 

Attached

$507,200

$8,144

 

Apartment

$304,900

$4,098

Vancouver West

Detached

$2,026,400

$38,528

 

Attached

$702,900

$12,058

 

Apartment

$464,100

$7,282

West Vancouver

Detached

$1,810,700

$34,214

 

Attached

N/A

N/A

 

Apartment

$612,400

$10,248

Whistler

Detached

$896,500

$15,930

 

Attached

$428,800

$6,576

 

Apartment

$211,900

$2,238

Source: Real Estate Board of Greater Vancouver. Stats as of March 31, 2013

 

MLS® HPI Benchmark represents a “typical” property within each market. Resale and new homes combined.

Read full post

Real estate agents' fees for home-sellers will also be lower under provincial sales tax regime

Tue Mar 12, 2013 12:01am PST

 

Most B.C. residents will reap no tax savings if they postpone buying a home until the provincial government officially eliminates the harmonized sales tax and reinstitutes a provincial sales tax (PST) on April 1.

 

 

Homebuilders are hammering away at this message in an attempt to eliminate confusion among consumers, who wrongly believe that they will save tax if they wait to buy a new home.

"Builders are frustrated with the confusion in the public," said Bob De Wit, who is CEO of the Greater Vancouver Home Builders' Association. "It's a complicated issue."

Cost savings on the purchases of new homes after the PST is re-instated April 1 will be limited to those priced above $850,000, said Mackay LLP director of income and commodity taxation Tom Baybutt. New homes are currently taxed the equivalent of 7% – not the full 12% HST – on the first $850,000. Every dollar above that threshold is taxed at 12%.

After April 1, buyers of new homes will have to pay the 5% goods and services tax (GST) and a 2% transitional tax on the cost of their home regardless of how expensive it is. But the transitional tax kicks in only if the home's construction is at least 10% complete. Builders of those homes are then reimbursed for the 7% PST that they will have to spend on the building materials that go into the homes.

Pre-sales and other homes that are at least 90% built after April 1 will not be subject to the transitional tax, and builders will not be eligible to apply for rebates on the 7% PST that they spend on building materials for those homes. (See link for downloadable PDF infographic.)

The 2% transitional tax will be phased out on March 31, 2015.

Baybutt pointed out that, after April 1, real estate commissions, which are subject to 12% HST, will be subject only to 5% GST.

The tax on legal fees, however, will not drop after April 1 because they are subject to the new PST. Condominium fees, such as move-in fees, are not taxable under either the HST or the future GST-PST system. •



Read full post
Categories:   Abbotsford Real Estate | Abbotsford West, Abbotsford Real Estate | Affordability | Albion, Maple Ridge Real Estate | Aldergrove Langley, Langley Real Estate | Annieville, N. Delta Real Estate | Award | Bank of Canada | BC | Big Bend, Burnaby South Real Estate | Birchland Manor, Port Coquitlam Real Estate | Bolivar Heights, North Surrey Real Estate | Brentwood Park, Burnaby North Real Estate | Brookswood Langley, Langley Real Estate | Burke Mountain, Coquitlam Real Estate | Burnaby North Real Estate | Buyer | Canada | Canyon Springs, Coquitlam Real Estate | Cape Horn, Coquitlam Real Estate | Central Coquitlam, Coquitlam Real Estate | Central Meadows, Pitt Meadows Real Estate | Central Meadows, Port Coquitlam Real Estate | Central Pt Coquitlam, Port Coquitlam Real Estate | Chilliwack Real Estate | Citadel PQ, Port Coquitlam Real Estate | Clayton, Cloverdale Real Estate | Clayton, Surrey Real Estate | Cloverdale BC, Surrey Real Estate | Colin Thornton | Collingwood VE, Vancouver East Real Estate | Commercial Real Estate | Condo | Construction | Coquitlam Real Estate | Coquitlam West, Coquitlam Real Estate | Costs | Cottonwood MR, Maple Ridge Real Estate | Design | Development | Dewdney Deroche, Mission Real Estate | DIY | Drone | Eagle Ridge CQ, Coquitlam Real Estate | Eagleridge, Coquitlam Real Estate | East Central, Maple Ridge Real Estate | Events | Funny | Glenwood PQ, Port Coquitlam Real Estate | Greg Thornton | Hatzic, Mission Real Estate | Heritage Woods PM, Port Moody Real Estate | Highgate, Burnaby South Real Estate | Hockaday, Coquitlam Real Estate | Holidays | Home Improvement | Home Inspection | HST | Inspection | Investment Property | Ladner Real Estate | Landlord | Langley City, Langley Real Estate | Langley Real Estate | Leadership | Lincoln Park PQ, Port Coquitlam Real Estate | Lower Mary Hill, Port Coquitlam Real Estate | Luxury | Maillardville, Coquitlam Real Estate | Maple Ridge Real Estate | Market Conditions | Mary Hill, Port Coquitlam Real Estate | Metrotown, Burnaby South Real Estate | Mid Meadows, Pitt Meadows Real Estate | Mission BC, Mission Real Estate | Mission Real Estate | Money | Monthly Tip | Mortgage | Moving | N. Delta Real Estate | New Horizons, Coquitlam Real Estate | New Westminster Real Estate | News | Nordel, N. Delta Real Estate | North Coquitlam, Coquitlam Real Estate | North Shore Pt Moody, Port Moody Real Estate | Northwest Maple Ridge, Maple Ridge Real Estate | Oxford Heights, Port Coquitlam Real Estate | Panorama Ridge, Surrey Real Estate | Park Ridge Estates, Coquitlam Real Estate | Photography | Pitt Meadows Real Estate | Port Coquitlam Real Estate | Port Moody Centre, Port Moody Real Estate | Port Moody Real Estate | Quay, New Westminster Real Estate | Real Estate | Real Estate Tips | Rent | Riverwood, Port Coquitlam Real Estate | Sardis West Vedder Rd, Chilliwack Real Estate | Sellers | selling | Silver Valley Real Estate | Silver Valley, Maple Ridge Real Estate | Simon Fraser Hills, Burnaby North Real Estate | Sold | South Meadows, Pitt Meadows Real Estate | South Slope, Burnaby South Real Estate | Southwest Maple Ridge, Maple Ridge Real Estate | Stave Falls, Mission Real Estate | Sunshine Hills Woods, N. Delta Real Estate | Surrey Real Estate | Taxation | Technology Strategy | The Thornton Group | UAV | Uptown NW, New Westminster Real Estate | Vacation Home | Vancouver | Vancouver West Real Estate | Walnut Grove, Langley Real Estate | West Central, Maple Ridge Real Estate | West Newton, Surrey Real Estate | Westwood Plateau, Coquitlam Real Estate | Willoughby Heights, Langley Real Estate | Woodland Acres PQ, Port Coquitlam Real Estate | Yale, Hope Real Estate
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.