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.

 

Just Posted

Two volunteers work to sieve a sample of sand and ocean water through a filter, capturing any potential microplastics. (Courtesy of Ocean Diagnostics)
Victoria startup making waves in microplastics research

New products from Ocean Diagnostics will make research faster, more affordable

Willows Beach in Oak Bay. (Black Press Media file photo)
Seven days of sun set to shine on Greater Victoria

Special weather statement warns of higher than usual temperatures

Chef Trevor Randle leads a June 21 online cooking featuring recipes – beef zesty lettuce wraps, blueberry strudel and blueberry spritzer. (Courtesy We Heart Local BC)
Free online cooking course explores B.C. blueberries and beef

Chef Trevor Randle calls them the province’s most flavourful foods

Island Savings kick-starts the Equipped to Heal campaign with $120,000. (Courtesy Victoria Hospitals Foundation)
Latest Victoria Hospitals Foundation campaign targets $1M for mental health

Goal is to outfit new 19-bed unit at Eric Martin Pavilion

Shaelyn Sinnott of Oak Bay Volunteer Services delivers groceries for client Irene Kenny. The organization has kept up delivery of food and medication throughout all phases of the COVID-19 pandemic. (Courtesy Oak Bay Volunteer Services)
Oak Bay volunteers keep critical services running

Duo drove between Oak Bay and Jubilee three days a week, twice a day during pandemic

Jesse Roper tackles weeds in his garden to kick off the 2021 season of What’s In My Garden Man? (YouTube/Whats In My Garden)
VIDEO: Metchosin singer-songwriter Jesse Roper invites gardeners into his plot

What’s In My Garden, Man? kicks off with the poop on compost

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

A Lotto 6/49 ticket purchased in Parksville for the June 19, 2021 draw is a $3M winner. (Submitted photo)
Winning Lotto 6/49 ticket worth $3M purchased on Vancouver Island

Lottery prize winners have 52 weeks to claim jackpot

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

Most Read