April 13th, 2024

B.C. government targets ‘profiteers’ with legislation to bring in flipping tax

By The Canadian Press on April 3, 2024.

VICTORIA – British Columbia has tabled legislation to enact the home-flipping tax, charging 20 per cent to those who sell their home within the first year.

Finance Minister Katrine Conroy told the legislature that the tax is aimed at speculators who use housing only to turn a quick profit and it will make “profiteers think twice about a practice that inflates housing costs during a housing crisis.”

The tax on income from the sale of property starts next year and will gradually decrease after the first year until it drops to nothing after the second year.

The tax was introduced in this year’s budget, which says it is expected to generate $43 million in the first full fiscal year and the province has promised the money will go directly to building affordable housing.

The British Columbia Real Estate Association has said the tax will lower sales in the province by 1.7 per cent, have minimal impact on home prices, and risks discouraging people from putting homes on the market.

The government says exemptions will exist for life events like separation, divorce or death.

This report by The Canadian Press was first published April 3, 2024.

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