If you are planning on buying a newly developed home over the next few months or the next few years, then you need to know about the 2% BC Transaction Tax.
Its the new Tax that comes into effect on April 1, 2013. The Tax applies to home that are more then 10% complete as of April 1st 2013. The 2% Tax will end on March 31st, 2015.
The 2% transaction Tax applies to the full price of a new home, which is 10% or more complet, where ownership or possession is on or after April 1, 2013, but before April 1, 2015. The 5% GST also applies to full price of the new home.
With the end of HST and the return of PST/GST system, the government chose to introduce 2% BC Transaction Tax as a way, in their words, "ensure the equitable application of tax for purchaser of new residential homes currently under the HST system".
These purchasers who were planning on paying taxes of 12% (HST) of the purchase price have been bumped down to 7% if they meet the following requirements which are listed above.
Speak with a proffesional for details and more info.
For more info please contact The Aziz Group.