The real estate market slowdown may feel like good news for many who are struggling to afford a home in our pricey province – but it’s certainly not good news for provincial coffers.
The B.C. government has reported that it is expecting property transfer tax (PTT) in the 2018/19 fiscal year to bring in $400 million less in revenue than projected in its original budget.
The figure was revised downwards from the original budget by $250 million in the Ministry of Finance’s first quarter report of 2018, and then another $150 million in the Q2 report. The projected figure was revised from its original $2.235 billion to $1.835 billion.
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In an emailed statement February 8, the Ministry told Glacier Media: “This is in line with government’s efforts to moderate the housing market to make homes more affordable for people.”
Some $37 million of the shortfall is an anticipated reduction in projected foreign-buyer tax revenues, which have been revised to $190 million for the $2018/19, down from $227 million.