Finance Minister Mike de Jong releases audited public accounts showing a larger-than-expected surplus for 2015-16.

Real estate tax windfall continues for B.C.

Finance Minister Mike de Jong says measures to deal with high housing cost coming when legislature sits next week

The B.C. government took in more income tax, sales tax and property transfer tax than it budgeted last year, leading to an operating surplus of $730 million for the fiscal year ended March 31.

The focus is on the government’s windfall from a hot real estate market, with property transfer tax revenue up $468 million over the previous year, according to audited year-end figures released by Finance Minister Mike de Jong Thursday.

The current B.C. budget had forecast a decline in property transfer tax revenue this year, but de Jong said those revenues are running significantly ahead of what was expected in February. When the B.C. legislature convenes for a rare summer sitting next week, de Jong said there will be further indications of how the government will use its extra revenues to deal with a housing market that has become unaffordable for many people in urban areas.

The government has committed to allow Vancouver to impose a new property tax on vacant homes, in an effort to make absentee owners sell them or offer them for rent. Victoria has indicated an interest in similar taxation power, but de Jong said changes to the Community Charter that governs cities outside Vancouver won’t happen this summer.

If there is a consensus among local governments at the Union of B.C. Municipalities convention this fall that a vacant residence tax is needed, the province will likely allow it, de Jong said. But he repeated his view that the best answer to rising home prices and a shortage of rental accommodation is to build more of them.

“Let us not make the mistake of assuming that government is going to tax our way out of the challenge people are facing when trying to buy a house,” de Jong said.

NDP leader John Horgan said B.C.’s surplus is despite a slump in resource revenues, and instead is based on $200 million from increased Medical Services Plan premiums and a “massive increase” in property transfer taxes.

“And as we’ve seen in the past, blackjack, booze and bungalows is not a way to build a sustainable economy,” Horgan said.

For 2015-16, the number of properties sold in B.C. jumped 18.6 per cent over the previous year, and the total value of sales was up 20.9 per cent.

The finance ministry estimates the total value of real estate sold in 2015-16 was $93.67 billion, with nearly $80 billion in residential properties and the rest commercial.

B.C. finished the fiscal year with economic growth of three per cent, more than triple the national average. Population rose and retail sales increased by six per cent.

 

Just Posted

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

Ocean “Blob” returns to North Coast of B.C.

A 2,000 kilometre patch of warm ocean water could signal a warm winter in Prince Rupert

‘Police are ready’ for legal pot, say Canadian chiefs

But Canadians won’t see major policing changes as pot becomes legal

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

Singer k.d. lang receives Alberta’s highest honour

Celebrated singer-songwriter k.d. lang received the Alberta Order of Excellence in Edmonton

B.C. tickets win big in Lotto Max draw

Jackpot carried over; B.C. tickets share Max Millions prizes

‘Mom, I’m in trouble:’ Canadian faces 10 years for alleged graffiti

Brittney Schneider, another tourist caught spraying message on walls of Tha Pae Gate in Thailand

Feds consulting on national anti-racism strategy behind closed doors

Heritage Minister Pablo Rodriguez says people still face systemic racism in some communities

Enbridge aims for mid-November to finish B.C. pipeline repair after blast

A natural gas pipeline that ruptured and burned near Prince George caused an explosion and fireball

How to get government cheques if Canada Post staff go on strike

The Canadian Union of Postal Workers said members could go on rotating strikes as early as Monday

Anti-SOGI school trustee files defamation lawsuit against BCTF president

Barry Neufeld says Glen Hansman’s words caused him “indignity,” “personal harassment,” and “anxiety”

Ocean ‘blob’ returns to B.C.’s North Coast

A 2,000 kilometre patch of warm ocean water could signal a warm winter in Prince Rupert

Most Read