Highlights of the 2016 British Columbia Budget | KPMG | CA

Highlights of the 2016 British Columbia Budget

Highlights of the 2016 British Columbia Budget

February 16, 2016, No. 2016-08. British Columbia Finance Minister Michael de Jong delivered the province’s 2016 budget on February 16, 2016. The budget anticipates a surplus of $377 million for the current 2015-16 year, $264 million in 2016-17, $287 million in 2017-18 and $373 million for 2018-19.

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The budget does not include any general corporate or personal income tax rate changes. However, the budget announces measures aimed at improving housing affordability in British Columbia. Effective February 17, 2016, the property transfer tax on purchases of newly constructed homes for use as a principal residence is eliminated where the value of the home is less than $750,000 with partial relief for homes between $750,000 and $800,000. In order to fund this relief, the property tax rate will be increased to 3% on the portion of the value of a property transferred that exceeds $2 million.

The budget announces that a Commission of Tax Competitiveness will be established to review the competitiveness of British Columbia’s tax regime and make recommendations for making that regime more competitive in the fall of 2016. However, the Commission’s mandate will specifically exclude consideration of the return of the harmonized sales tax.

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Disclaimer

Information is current to February 16, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.

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