B.C. ringing in new year with home-flipping tax, with income tax rebate on the way

VICTORIA — A maximum 20-per-cent home-flipping tax is among new regulations taking effect in British Columbia as of Jan. 1, with a promised middle-income tax cut arriving in the coming months as well as a spring carbon tax increase.

Premier David Eby said Tuesday the middle-income tax cut he promised during last fall’s election campaign would help form the New Democrat government’s agenda in the new year.

“I have heard that you want our government to work harder to tackle the issues that you and your family are talking about around the kitchen table,” he said in a statement. “That is our focus for 2025 and beyond.”

Eby had promised economic development and the tax cut in a year-end interview with The Canadian Press earlier in December.

“The focus will be on growing our economy,” he said. “And, of course, affordability. British Columbians are going to see that middle-class tax cut.”

Eby had said he expected the newly created Ministry of Infrastructure to help drive economic development in 2025.

“You’re going to see an approach from us about streamlining projects to get them approved and ensure people are working,” he said. “Around building the province, we’ve got a new infrastructure ministry that is focused on streamlining and expediting things like schools, hospitals and transit systems.”

Eby said during the election campaign the tax cut of up to $1,000 would initially come as a rebate in 2025, followed by the exemption of an additional $10,000 of individual income from provincial tax every year after that. That would represent a tax cut of $1,000 for households and $500 for individuals.

Opposition B.C. Conservative finance critic Peter Milobar said Eby promised immediate tax relief during the election, but people are still waiting.

“David Eby could have recalled the legislature last November to deliver the ‘immediate’ relief,’ said Milobar in a statement. “Will Eby finally deliver next February? We still don’t know.”

Eby has promised tax relief and affordability measures, but the New Democrat government is poised to implement a carbon tax increase on April 1, Milobar said.

“David Eby and Finance Minister Brenda Bailey are touting temporary cost-of-living relief while families are facing more permanent carbon tax pain in just three months,” Milobar said. “It’s tough to see how the NDP are serious about the cost of living, when they plan to add 3.3 cents a litre to the price of gas on April 1st.”

B.C.’s Finance Minister Brenda Bailey said the government is committed to helping people cope with the high living costs driven by global inflation.

“While the federal government continues to require the carbon tax, we will continue to ensure the cost for people in B.C. is offset by our climate action tax credits, worth $600 a year for the average family,” said Bailey. “We have been clear there is more to come.”

The current carbon tax on a litre of gasoline in B.C. is almost 18 cents. That is scheduled to increase above 20 cents in April.

The government’s previously announced 20-per-cent home-flipping tax, to be levied against non-exempt people who sell homes within two years of purchase, is aimed at discouraging investors “from buying housing to turn a quick profit,” said the provincial government.

Exemptions to the new tax include cases involving divorce, job loss or other changes in household membership.

B.C. has estimated that about 4,000 properties will be subject to the tax in the new year, with the revenue going toward “strengthening housing programs and building new affordable homes.”

The Ministry of Finance said in a statement a new maximum annual allowable rent increase rate of three per cent also takes effect Wednesday, down from 2024’s rate of 3.5 per cent.

Other new year regulations include new rules to cut methane emissions in B.C.’s oil and gas sector, as well as a possible general property tax exemption for buyers of qualifying purpose-built rental housing.

Later in January, the province says qualifying residents should also receive payments from the quarterly climate action tax credit as well as income support that will include a temporary 25 per cent cost-of-living bonus.

— With files from Chuck Chiang in Vancouver.

This report by The Canadian Press was first published Dec. 31, 2024.

Dirk Meissner, The Canadian Press