Metro Vancouver demands overhaul of ‘inequitable’ property-based tax system

BURNABY (NEWS 1130) – Describing it as ‘inequitable,’ Metro Vancouver is calling on BC’s four main political parties to overhaul the province’s property-based tax regime.

The regional district says the BC Homeowner Grant, Property Transfer Tax, and School Property Transfer Tax need substantial changes to make taxation fairer for homeowners and businesses across the region.

“Metro Vancouver residents are facing an inequitable tax burden because of an antiquated taxation system based on assessed property values,” says Metro Vancouver Board Chair Greg Moore. “It’s patently unfair for more than half of BC’s population to be financially penalized when many residents are struggling to afford to remain in their homes.”

The agency says people in Metro Vancouver pay three times as much School Property Tax per household than the rest of the province, while the Property Transfer Tax outpaces the rest of BC by 85 per cent and has since about 2011.

“If school expenditures kept pace with revenue, education spending would have increased by $290 million per year, while we could also use the revenue from Property Transfer Tax to address affordable housing and the homelessness crisis we’re facing right now,” argues Metro Vancouver Vice-Chair Raymond Louie. “The system needs an urgent overhaul.”

The board says over two years, Metro Vancouver’s contributions are believed to have generated additional Property Transfer Tax revenue of $900 million, while a jump in home prices means fewer homeowners are actually eligible for the full Home Owner Grant.

The agency is making several recommendations to the BC Liberals, BC NDP, BC Green Party and BC Conservatives.

Board recommendations (Source: Metro Vancouver)

• Set the Home Owner Grant threshold within Metro Vancouver to match the provincial average. Currently at 91 per cent for residential properties that fall below the threshold, to reflect increased values within the region and protect homeowners facing tax increases without corresponding income growth
• Calculate the School Property Tax annually on a regional basis to reflect the provincial average threshold of school district expenditures, which were 46 per cent in 2016
• Invest the unbudgeted revenue generated within the Metro Vancouver Regional District from the Property Transfer Tax collection back into local government infrastructure, transit and affordable housing within the Metro Vancouver region