British Columbia’s Finance Minister delivered the province’s 2016 budget on 16 February 2016. The budget does not include any general corporate or individual (personal) income tax rate changes. However, the budget announces measures aimed at improving housing affordability in British Columbia.
Effective 17 February 2016, the property transfer tax on purchases of newly constructed homes for use as a principal residence is eliminated when 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 $2 million. [*$ = Canadian dollar]
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.
Read a February 2016 report [PDF 62 KB] prepared by the KPMG member firm in Canada: Highlights of the 2016 British Columbia Budget
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