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    Posted February 24, 2014 by
    Inpho
    Location
    Surrey, British Columbia
    Assignment
    Assignment
    This iReport is part of an assignment:
    Impact Your World

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    Government Reduces Tax Burden On First-time Buyers

     
    First-time home buyers received welcome news in today’s provincial budget.

    Any REALTORS® currently working with first-time buyers will want to share this news with them as soon as possible.

    The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

    The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

    With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

    The government estimates this measure will cost $8 million in lost tax revenue each year.

    The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.

    In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000.

    In 2005, the government increased the threshold to $325,000 from $275,000.

    The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

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