Home builders applaud tax savings for first-time home buyers and small businesses in BC Budget 2017
February 21, 2017. Victoria, British Columbia – The provincial budget announced today in the Legislature includes new tax savings for both first-time home buyers and small businesses. These changes are welcomed by the Canadian Home Builders’ Association of British Columbia (CHBA BC.)
Effective for registrations made on or after Feb. 22, 2017, the threshold for the first-time home buyers program for the property transfer tax (PTT) will increase to $500,000 from $475,000. The partial exemption threshold has also increased to $525,000. This will now save first-time home buyers up to $8,000, which is an increase of $500.
CHBA BC recommended an increase to the first-time home buyers’ program in its 2017-18 pre-budget submission, to better reflect rising home prices. In 2014, the threshold for the exemption increased to $475,000 from $425,000.
“CHBA BC has advocated for changes to the outdated property transfer tax structure for many years, and this reduction in tax is positive for first-time home buyers in all areas of the province,” says CHBA BC CEO Neil Moody. “It may seem like a small increase, but it represents that the program is keeping pace with rising home prices. It provides a larger threshold for first-time home buyers to purchase within and receive the tax savings.”