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Reduce PTT for Fairness and Affordability

VRBA has been a longtime advocate of housing affordability and a strong economy.

If housing costs are minimized, more people can enjoy home ownership, contribute to the local property tax base, and create employment throughout BC.

However, multiple taxes on housing are at odds with these goals.

British Columbia’s Property Transfer Tax (PTT) is a classic example.

A developer pays PTT when buying land to develop.

A builder pays the PTT again when buying a lot from the developer.

When the home is built and sold, buyers pay the PTT for a third time on the lot, plus the new house.

Also, like other manufactured products, the previous PTT costs are embedded in the final house price.

Government taxes and fees represent about 20% of a home’s cost, and virtually double over the lifetime of a mortgage.

Tax fairness alone dictates the province should remove the PTT on the initial stages of housing development.

Additional benefits include greater housing affordability and employment in every community.

The result is a strong economy and more sustainable provincial revenue driven by homebuyers and local businesses.

It all starts with fair taxation – a key component for a healthy economy in British Columbia.

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