Finance Minister Mike de Jong releases audited public accounts showing a larger-than-expected surplus for 2015-16.

Finance Minister Mike de Jong releases audited public accounts showing a larger-than-expected surplus for 2015-16.

Real estate tax windfall continues for B.C.

Finance Minister Mike de Jong says measures to deal with high housing cost coming when legislature sits next week

The B.C. government took in more income tax, sales tax and property transfer tax than it budgeted last year, leading to an operating surplus of $730 million for the fiscal year ended March 31.

The focus is on the government’s windfall from a hot real estate market, with property transfer tax revenue up $468 million over the previous year, according to audited year-end figures released by Finance Minister Mike de Jong Thursday.

The current B.C. budget had forecast a decline in property transfer tax revenue this year, but de Jong said those revenues are running significantly ahead of what was expected in February. When the B.C. legislature convenes for a rare summer sitting next week, de Jong said there will be further indications of how the government will use its extra revenues to deal with a housing market that has become unaffordable for many people in urban areas.

The government has committed to allow Vancouver to impose a new property tax on vacant homes, in an effort to make absentee owners sell them or offer them for rent. Victoria has indicated an interest in similar taxation power, but de Jong said changes to the Community Charter that governs cities outside Vancouver won’t happen this summer.

If there is a consensus among local governments at the Union of B.C. Municipalities convention this fall that a vacant residence tax is needed, the province will likely allow it, de Jong said. But he repeated his view that the best answer to rising home prices and a shortage of rental accommodation is to build more of them.

“Let us not make the mistake of assuming that government is going to tax our way out of the challenge people are facing when trying to buy a house,” de Jong said.

NDP leader John Horgan said B.C.’s surplus is despite a slump in resource revenues, and instead is based on $200 million from increased Medical Services Plan premiums and a “massive increase” in property transfer taxes.

“And as we’ve seen in the past, blackjack, booze and bungalows is not a way to build a sustainable economy,” Horgan said.

For 2015-16, the number of properties sold in B.C. jumped 18.6 per cent over the previous year, and the total value of sales was up 20.9 per cent.

The finance ministry estimates the total value of real estate sold in 2015-16 was $93.67 billion, with nearly $80 billion in residential properties and the rest commercial.

B.C. finished the fiscal year with economic growth of three per cent, more than triple the national average. Population rose and retail sales increased by six per cent.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Black Press Media file photo)
Court-registered sex offender arrested for breach of parole in Langford

Cameron Ratelle returned to correctional facility after female youth approached at bus stop

Marc Porpaczy said he’s glad he delayed his daily walk with his dog, Juno, after a car crashed just outside his driveway just before 8 p.m. on Tuesday, Jan. 25. (Aaron Guillen/News Staff)
VIDEO: Dramatic crash highlights need for sidewalks, say Colwood residents

‘The residents have gone from frustrated to angry’

Jerry Dyck plans to purchase a new RV to drive across Canada in, once it’s safe to travel again. (Courtesy BCLC)
Victoria man plans post-pandemic cross-Canada RV trip after $2M lottery win

Retired electrician bought the winning ticket in Duncan

Crews with Discovery Channel film as an Aggressive Towing driver moves a Grumman S2F Tracker aircraft around a 90-degree turn from its compound and onto the road on Saturday, Jan. 23, 2021. It was the “most difficult” part of the move for the airplane, one organizer said. (Jenna Hauck/ Chilliwack Progress)
VIDEO: Vintage military plane gets towed from Chilliwack to Greater Victoria

Grumman CP-121 Tracker’s eventual home the British Columbia Aviation Museum on Vancouver Island

Residents of the Cowichan Valley decorated more than 55 vehicles with anti-racist slogans for a car rally in support of Cowichan Tribes on Saturday, January 24. (Kevin Rothbauer/Citizen)
Dozens join anti-racism car rally and virtual panel in Cowichan Valley

Provincial ministry and BC Green caucus issue joint statement detailing concerns

Jesse Savidant, 31, is wanted by the RCMP after failing to appear in provincial court in Nanaimo in December. Police warn Savidant should be considered violent. (Photo Submitted)
Warrant out for man accused of stolen property offences across Vancouver Island

Jesse Savidant did not appear for court date in Nanaimo last month, say RCMP

Rolling seven-day average of cases by B.C. health authority to Jan. 21. Fraser Health in purple, Vancouver Coastal red, Interior Health orange, Northern Health green and Vancouver Island blue. (B.C. Centre for Disease Control)
2nd COVID vaccine doses on hold as B.C. delivery delayed again

New COVID-19 cases slowing in Fraser Health region

The Pacific Rim National Park Reserve is urging visitors to stay on designated trails after a hiker became injured in an unsanctioned area last week. (Westerly file photo)
Injured hiker rescued in Pacific Rim National Park Reserve

“Safety is everyone’s responsibility.”

Provincial health officer Dr. Bonnie Henry talk about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. Two more cases of the COVID-19 strain first identified in South Africa have been diagnosed in British Columbia, bringing the total to three as of Jan. 16.THE CANADIAN PRESS/Chad Hipolito
B.C. now has three cases of South African COVID-19 variant, six of U.K. strain

Both variants are thought to spread faster than earlier strains

Rodney and Ekaterina Baker in an undated photo from social media. The couple has been ticketed and charged under the Yukon’s <em>Civil Emergency Measures Act</em> for breaking isolation requirements in order to sneak into a vaccine clinic and receive Moderna vaccine doses in Beaver Creek. (Facebook/Submitted)
Great Canadian Gaming CEO resigns after being accused of sneaking into Yukon for vaccine

Rod Baker and Ekaterina Baker were charged with two CEMA violations each

Police discovered a makeshift nightclub in a Vancouver apartment on Jan. 23, 2021, and say it wasn’t the first time this month officers have been called to the unit over social gathering concerns. (Phil McLachlan - Capital News)
Doorman of makeshift ‘booze-can’ in Vancouver apartment fined; police look to court order

This marks the fourth complaint about social gatherings inside the apartment in January

Local musician and artist Daisy Melville created a watercolour portrait of U.S. Senator Bernie Sanders from the recent American inauguration, and with help from her mom, is now selling t-shirts and more with funds going to the Comox Valley Food Bank. Image submitted
Island artist turns Sanders inauguration meme into art for good

All proceeds from the sale of shirts, sweaters and more will go to the Comox Valley Food Bank

Most Read