On February 22, 2024, British Columbia’s 2024 Funds was launched. Included within the Funds are the next measures referring to actual property taxes:

[1] New Dwelling Flipping Tax: The house flipping tax will apply to revenue from the sale of sure residential property bought on or after January 1, 2025 that was owned for lower than 2 years. The tax price will probably be 20% for properties bought inside twelve months of acquisition, with a declining price for properties bought inside 366 – 730 days of acquisition.

Draft laws for this tax just isn’t but obtainable, however it’s anticipated to:

1. apply to the sale of combined use properties, however solely the residential portion of such properties;
2. apply to revenue from the project of residential pre-sale contracts;
3. include exemptions for transactions that add to the housing provide (e.g. gross sales of vacant improvement land will seemingly be exempt), and;
4. include exemptions from the tax for “life circumstances” e.g. separation or divorce, demise, incapacity or sickness, insolvency, and so forth. Notice that these exemptions usually match the exemptions below the Federal Residential Property Flipping Guidelines, however BC’s residence flipping tax will probably be a definite tax.

[2] Property Switch Tax Exemption For Objective Constructed Leases: Newly constructed purpose-built rental buildings acquired between January 1, 2025 and December 31, 2030 will probably be exempt from property switch tax. As a way to qualify for this exemption, the constructing have to be newly constructed, non-stratified, include no less than 4 housing items, and be supplied for lease on a month-to-month foundation (or longer) for no less than 10 years following the acquisition. If the constructing is bought throughout the 10 years following preliminary acquisition, the proprietor will probably be required to repay a proportionate share of the exempted tax (calculated based mostly on the size of time the proprietor has owned the constructing). There may also be numerous exemptions to the requirement to repeatedly supply the items within the constructing throughout this 10 yr interval for: 1) important renovations; 2) power majeure; 3) as much as 2 items within the constructing being occupied by the proprietor or a caretaker.