What  is  Property   Transfer  Tax?

Property  transfer  tax  is  a  registration  tax  that  you  pay  whenever  you  acquire  an  interest  in  a  property.  

 

What  is  the  Tax  Payable  On?

The  amount  of  tax  due  depends  on  the  fair  market  value  of  the  property  that  is  transferred.   If  the  fair  market  value  is  $200,000  or  less,  the  tax  is  1%  of  the  fair  market  value.   If  the  fair  market  value  is  greater  than  $200,000,  the  tax  is  1%  of  the  fair  market  value  up  to  $200,000,  plus  2%  on  the  portion  of  the  fair  market  value  that  is  greater  than  $200,000.   For  example: if  fair  market  value  of  property  is    $150,000  tax  payable  is:  1%  of  $150,000  =   $     1,500 

If  fair  market  value  of  property  is   $250,000  tax  payable  is:  1%  of  $200,000  =   $ 2,000   plus  2%  of  $50,000  =      $ 1,000   for  total  tax  payable  of    $3,000  

If you are purchasing your first home, you may qualify for an exemption from property transfer tax if certain requirements are met.

You qualify for the exemption if:

• you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada,

• you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property,

• you have never owned an interest in a principal residence anywhere in the world at anytime,

and

• you have never received a first time home buyers’ exemption or refund.

Property

• The property you purchase qualifies if:

• the fair market value of the property is not more than the current threshold of $425,000,

• the land is 0.5 hectares (1.24 acres) or smaller, and

• the property will only be used as your principal residence.

If the property does not meet all of these requirements, you may still qualify for a partial exemption.

 

Who  is  Required  to  File  a  Property  Transfer  Tax  Return?

For  each  taxable  transaction  registered,  you  (the  transferee  or  purchaser)  are  required  to  file  the  property  transfer  tax  return  at  the  Land  Title  office.    

You  can  either  complete  and  file  the  return  at  a  Land  Title  office  or  you  can  have  your  representative  (lawyer,  notary  public)  complete  and  file  the  return  on  your  behalf.   Regardless  of  who  completes  the  form,  you,  as  the  purchaser,  must  sign  the  certification  portion.  

Most  law  firms  and  notaries  have  supplies  of  the  tax  return  forms,  or  you  can  get  them  from  any  Land  Title  or  Service  BC  Centre,  or  by  calling  the  Property  Transfer  Tax  office  at  250  387‐0604.