Property Transfer Tax Exemption Comox Valley
In BC, you pay Property Transfer Tax (PTT) each time you register a property at the Land Title office. This calculation is 1% on the first $200,000 and 2% on the balance.
The First Time Home Buyers' Program
If you are purchasing your first home, you may qualify for an exemption from PTT if certain requirements are met.
What are the requirements?
you are a Canadian Citizen, or a permanent resident as detereminded by Immigration Canada,
you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax retruns as a BC resident during the 6 years before the date that you register the property
you have never owned an interest in a principle residence anywhere in the world, at anytime, and
you have never received a first time home buyers' exemption or refund
the fair market value of the property is not more than the current threshold,
the land is .5 hectares (1.24acres) or smaller, and
the property will only be used as your principal residence
If the property does not meet all of these requirements, you may still qualify for a partial exemption.
How do I apply for the Exemption?
You apply for the exemption when you register the property at Land Title office.
Generally, a lawyer or notary public registers the property and applies the exemption on your behalf.
The Land Titel office sends your application to the Ministry of Small Business and Revenue to verify your eligibility.
Make sure you do not apply for the exemption if you have owned an interest in a principal residence anywhere in the world at any time. If you do this, you will be assessed for the tax due and an additional penalty equal to the tax due.
If you do not apply for the exemption when you register hte property at Land Title office, you can apply for a refund of the PTT you pay within 18 moths of the date you register the property.
What are the requirements to keep the exemption?
You need to occupy the property within 92 days of the date ou register the property and continue to use the property as your principle residence for at least 1 year after you register the property.
If the land is vacant when you purchase the property, a principal residence needs to be built on the property within 1 year of the registration date, and you need to reside on the property for the remainder of that year. The fair market value of the land, plus the cost of building any improvements on the land cannot exceed the current threshold.
The ministry will send you a letter at the end of the 1st year you own the property.
It is your responsibility to make sure the ministry receives all of the necessary information. If the ministry does not receive the information, you will be assessed for the PTT due.
Please contact your lawyer or notary public to discuss your, and the property in question's, eligibility for the First Time Home Buyers' program. Let's try to save you some money on your first home purchase!
The above was provided for general information on the First Time Home Buyers' Program. For details on the program, please see Bulletin PTT 004 online at http://www.gov.bc.ca/sbr.
You can also call for more information:
Telephone (Victoria): 1-250-387-0604
Toll Free in Canada: 1-800-663-7867