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The B.C. government is set to provide details of the home-flipping tax on Wednesday.
The tax will target profits from the quick sale of residential properties, which the government says will crack down on speculators and those driving up the cost of housing.
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Finance Minister Katrine Conroy and Housing Minister Ravi Kahlon will hold a news conference at 2:45 p.m. to speak about the new tax which was included in Budget 2024.
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As of Jan. 1, 2025, homes in B.C. sold within the first year after being purchased will face a tax rate of 20 per cent of the profit, while that tax rate drops gradually to zero after two years.
The budget estimates the tax will raise $43 million in its first full fiscal year, but the B.C. Real Estate Association predicts the province could lose $20 million in property transfer taxes as people put off their sales.
Premier David Eby has said the flipping tax is “not a silver bullet” and is only one of a series of actions the government is taking related to housing. He said anything the government can do to reduce the number of people competing for housing in the market is welcome.
Other housing-related reforms include increased tax exemptions to benefit first-time homebuyers and the builders of new apartment buildings.
With files from The Canadian Press and Dan Fumano
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