2016 BC Budget Update: Property Transfer Tax

On February 16, 2016, British Columbia Finance Minister Michael de Jong tabled the British Columbia budget for 2016. Included in the budget were changes to property transfer tax, which is generally paid whenever real property in the province is transferred to another person, subject to certain exemptions.

Effective February 17, 2016, there will be a property transfer tax exemption or refund on newly constructed homes up to $750,000 that are purchased by Canadian citizens or permanent residents. Homes eligible for the exemption or refund include the first purchase of a new housing unit or a newly subdivided unit and the purchase of land without a home, on which the owner builds a home and moves into it within one year. In order to qualify for the exemption or refund, the purchaser must live in the home as their principal residence until one year after the purchase date and the value of the finished property must be below $750,000. There will also be partial exemptions