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Provincial Elections 2013 and PPT

Now is a good time to bring up the issue about the property purchase tax (PPT) with the candidates that are running to represent us. Let's ask them what are they going to to with a huge financial burden that the provincial government is placing on home buyers.

For those of you that are not familiar here is a brief history of PPT. Introduced in 1987 by the government as a form of a wealth tax, it’s a one percent levy on the first $200,000 of the purchase price, and two percent on the balance of the transaction.
What makes this tax unfair today is the fact that PPT was implemented at a time when only five percent of homes in the Greater Vancouver area were selling for $200,000 or more. Today, 96 percent of residential properties in the region are priced higher than $200,000. What most of the British Columbia Real Estate Boards are proposing is an increase of the one percent threshold to $525,000. This would mean that the new property transfer tax on a $600,000 home would be $6,750. This will save home buyers $3,250. The Real Estate Board of Vancouver notes that the tax generated $780 million in fiscal year 2012-13. For the last 26 years, the levy has brought into government coffers revenues totaling $11.9

In Vancouver so far, the Real Estate association’s campaign to reduce the property transfer tax has attracted the support of only four candidates. Out of the four, three are realtors. Four is a good start however we still have 2 weeks left so please talk to your candidates and bring up this issue. Together we can make a difference.

Also don't forget to vote on May 14.

Tibor Bogdan

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