Two decades of the PTT(Property Transfer Tax)

It's been 20 years since the BC government, without consultation or even a warning, introduced the Property Purchase Tax. The tax, charged on transactions registered at the Land Title Office at a rate of one per cent of the first $200,000 of fair market value and two per cent on the remainder, generated $140 million the first year it was levied.

In the two decades since, the tax, now called the Property Transfer Tax ( PTT), has generated more than $7.5 billion in total revenue, $950 million of this in 2006/2007 alone.

Middle and lower income families have shouldered the burden of the PTT, which now adds $10,832 to the detached benchmark price of $641,596 for a Greater Vancouver detached home.

Overall, the tax had implications for the livability of our communities. By making homes more expensive ( and less affordable), it has forced some buyers further and further afield in their search for an affordable home. It's one more factor which has indirectly helped to create sprawl, long commutes, pollution and pressure on agricultural land.

From the beginning, the Real Estate Board has taken the side of home buyers, urging government to scrap the tax. In the past few years, the Greater Vancouver Real Estate Board has stepped up its efforts. The government is running healthy budget surpluses at a time when homes are becoming less and less affordable. The Board has responded with recommendations to reduce the tax in a step-by-step manner over a three year period, with the ultimate goal of getting rid of it altogether. They have made progess, as a result of their efforts, the government has made adjustments, raising the price threshold for first-time buyers. The Greater Vancouver Real Estate Board will continue to press the government to eliminate the tax.

Comparison of land transfer taxes/fees by province for a $350,000 home
Province PTT or Equilavent in dollars
BC 5,000
Alberta 455
Saskatchewan 1,050
Manitoba 7,000
Ontario 3,725
Quebec 3,750
New Brunswick 930
Nova Scotia * 45-5,295
PEI 3,500
Newfoundland 1,450
Yukon 110
NWT N/A
Nunavut N/A
*Depends on area and ranges from a $45 in Springhill to $5,295 in Sackville.
Source: Greater Vancouver Real Estate Board