1. How is the government going to monitor the 1 year occupancy detail ? The Ministry will send a letter to the purchaser at the end of the year to confirm compliance.
2. If client is FTHB and purchases a 550K used (not new) property, do they still pay PTT? Yes, the $475K limit remains the same for FTHB first property. The FTHB Exemption values remain as they were.
3. The new amendments to the PTT Act deal only with the registration date and not the date of the contract.
4. For the New Housing Exemption of $750,000, is there any portion over $750,000 subject to 1%, or does it start at 2% on the portion over $750,000 – much like the FTHB exemption, a partial exemption is available where the fmv is over $750,000 but less than $800,000. If the price is $800,000 or more, PTT is payable on the entire price. So if the price is $801,000, PTT is on the entire amount, not just the last $1,000.
5. The new rules also apply to commercial property purchases There is a 3% tax on the value over $2,000,000.00.
6. To qualify for the full exemption, which is up to $750,000, the calculation is based on the price, net GST, so that PTT is calculated on net price
7. For a Buyer to qualify for the FTHB or the New Housing Exemption - even if they move here from another province – the Buyer must be either a Canadian citizen or permanent resident AND have lived in B.C. for 12 consecutive months immediately before the date they take ownership of the property, or they have filed at least 2 income tax returns as a B.C. resident in the last 6 years. For the New Housing Exemption the Buyer must be an individual and either a Canadian citizen or permanent resident.
**Note the difference, for the FTHB exemption there is a residency in B.C. requirement but not for the New Housing Exemption.
8. The New Housing PTT exemption apply only apply to principal residence, not to investment properties.
9. The new rules - It is 1% on the first $200,000, 2% on values over $200,000 up to $2,000,000, and 3% on any value over $2,000,000.
The change is when the sale reaches $2,000,000, it will be 3% on the value over $2,000,000.