In West Vancouver, the income tax rate is one of the highest in the province. This is true even if you own a property for a fraction of its assessed value. If you rent out your property for less than six months of the year, you’ll have to pay an additional 1% of the assessed value. Nonetheless, there are some exemptions for certain goods and services.
1% of assessed value if it is not rented out for 6 months or more of the year
For the 2018 tax year, most British Columbia residents will be exempt from paying the 1% income tax rate on the assessed value of their residential property. However, to qualify, the home must be their principal residence and must be rented out for at least three months of the year. If the home is not rented out, it does not count towards the three-month total. There are other exemptions for co-ownerships of taxable residential properties.
If the property is rented out for six months or more of the year, the owner will have to pay the tax on the remaining six months. The rate for renting out a property in West Vancouver is 1% of the assessed value. The BC government expects that more than 99% of people will qualify for the exemption. However, it is important to note that BC residents are not subject to the 1% speculation and vacancy tax if they own a primary residence.
As of December 2016, there are over 25,000 vacant properties in Vancouver. The city has introduced a bylaw to encourage property owners to rent out these properties instead of sitting vacant. This measure has been successful in increasing the amount of rental property in Vancouver and is expected to lower the tax rate in the future.
When selling a property, it is important to remember that property tax rates in West Vancouver vary. This is because of the fact that the tax rate is set by the taxing authority, and it applies to each $1,000 of taxable assessed value.
Exemptions for certain goods and/or services
Some goods and services can be exempt from the West Vancouver income tax. For example, certain automobiles are not subject to the 7% PST. However, when a person purchases a new or used vehicle, the PST is applicable. To claim the exemption, a person must register with the provincial government and provide the PST number or purchase exemption certificate. There are also some exemptions for manufacturing, farming, and fishing activities.
Income tax exemptions for some goods and services in West Vancouver are available for businesses that meet certain requirements. Some of these goods and services include unprocessed food, restaurants, motor fuel, vitamins, transportation fares, and repairs and maintenance. Previously, some of these services were exempt from the PST.
These exemptions are applied to the tax rolls by the British Columbia Assessment Authority. However, some goods and services are not exempt from the GST, including places of public worship. Other goods and services may require a Permissive Tax Exemption to avoid taxes. A person can also apply for an exemption if they own auxiliary buildings, or property used for charitable purposes.
The PST (Provincial Sales Tax) is applied to almost all purchases in British Columbia. The 7% PST and the 5% GST were introduced into British Columbia on 1 July 2010. The new system was implemented amid a lot of debate among British Columbians. The Liberal government announced their plans to replace the PST with HST, which combined the federal and provincial tax. This change was controversial and resulted in a referendum on tax systems.
Aside from the PST, there are other taxes that businesses should pay. The PST on motor fuels is an example. The provincial government chose not to reduce the taxes on motor fuels and transit. This means that businesses that buy motor fuel or adventure tours cannot deduct their provincial taxes from HST.
Increases for single-family homeowners
One of the most recent changes to the Vancouver zoning code involves the reduction of minimum lot size for single-family homes. The new minimum lot size is ten thousand square feet, a 12.5% reduction from the current minimum. This change will affect approximately 11,400 lots. In addition, the city may soon allow duplexes, resulting in the construction of smaller and less expensive homes.
In British Columbia, the housing affordability crisis is a political challenge. Premier John Horgan recently acknowledged the value of homeowners’ equity in their homes. However, the looming political pressures from those who are left behind are difficult to dismiss. The government must realize that housing is no longer both an affordable investment and a lucrative one. In order to combat this, policymakers must consider raising property taxes and limiting the capital gains tax exemption. The homeowner grant must also be scrapped.
The housing market in West Vancouver is seeing a significant increase in home prices. Single-family detached homes in West Vancouver now average $2,550,000. This is a 14.6% increase from the first half of 2020 and over 70 per cent higher than the average over the past decade. There are also notable disparities between the high and low end markets. In fact, 12 of the top 100 highest-valued homes in the province are located in West Vancouver and the North Shore. SFU City Program director Andy Yan said the property value increases highlight the disconnection between incomes and house prices in the Lower Mainland.
West Vancouver is becoming a buyer’s market. The market is increasingly difficult to access for working households in the region, largely due to the high cost of renting. The median rent in West Vancouver has grown by 44% in just three years.
Increases for strata units assessed at $1.6 million
The increases are based on preliminary information from BC Assessment, and the average property value in the community is a major determining factor in individual increases. In addition, city staff expect to see a decrease in revenue from other sources next year. If the increases are passed, strata units assessed at $1.6 million in value will pay $131 more in 2020 than they will in 2019.
The increases in income tax rates are also being reflected in increases to the value of single-family homes and strata units. An average single-family home in the region now costs $767,500 while an average townhouse is $586,500. The housing crisis in the area is causing widespread social ramifications. For example, the Lions Gate Hospital is closing 10 to 20 beds a day. Moreover, young nurses are no longer choosing to work on the North Shore. In response to this housing crisis, the city and region have considered various options.
The city’s tax rates remain relatively low compared to other Canadian cities. Vancouver’s property tax rate is among the lowest among municipalities with a population over 10K. It also has the lowest rates in the province among those with a population of more than 10K.
Increases for strata units assessed at $1.5 million in West Vancouver income tax rate is a way to increase revenue to pay for infrastructure and services in the community. The city must balance its budget every year and is not allowed to operate in a deficit.
The West Vancouver income tax rate is calculated using the same formula as the federal tax rate. It is based on a property’s taxable assessed value. This rate is determined by the class of the property. The higher the assessment, the higher the income tax rate.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.