Provincial Budget – good news for homebuyers and owners

The provincial Budget 2010 includes new tax breaks.

For Property Buyers

• HST New Housing rebate: buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of up to $26,250.
• HST New Rental rebate: landlords buying new or substantially renovated homes are eligible for a rebate up to $26,250 per unit.

For Property owners

• Land Tax Deferment for Families with Children: homeowners with children under age 18 can defer property taxes if they have at least 15% equity in their home. Deferred taxes are charged interest at the prime rate. This is similar to current programs for seniors and home owners facing financial hardship.
• Northern and Rural Home Owner Benefit: as of 2011, home owners will be eligible for $200 in addition to the current Home Owner Grant in rural areas of BC.
• Provincial Farm Land Property Tax Credit: as of 2011, owners of farm land will see their provincial school property tax on farm land reduced by 50%.
• Industrial Property Tax Credit Increased: as of 2011, Industrial property owners will see their provincial school property tax credit on major industrial (class 4) and light industrial (class 5) properties decrease 10%.
• Property Transfer Tax Act – Two changes:
  • Home buyers don’t have to pay the Property Transfer Tax (PTT) on transfers to correct a conveyancing error.
  • Transfers required to amend a strata plan are also exempt from the PTT, except where owners receive an increased interest. PTT is payable on value of the increased interest.
• LiveSmart BC: property owners can apply for grants to improve the energy efficiency of their homes. This includes energy audits, energy efficient retrofits and smart meters.
• Residential Energy Credit: homeowners and residential landlords will see a point of sale rebate on utility bills. If you buy energy that is not separately metered and you don’t receive the credit on your utility bill, you can apply to the provincial government for the credit.

Details on all programs and initiatives are coming soon.

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