CAN BC PRL issued Bill 15, Budget measures implementation (residential short-term holding profit tax) act, to impose tax on income from disposition of residential property
Document dated Apr. 25, 2024, was received on Jul. 13, 2024, due to a fixed feed.
Bill Provisions
Imposes tax on income from the disposition of specified residential property in BC.
Applies to dispositions made on/after Jan. 1, 2025, of beneficial interest in property with housing unit, in property zoned for residential use, or of right to acquire property.
Tax is payable at a rate of 20% if disposition occurs 1 year or less after acquired.
If disposition occurs between 1 and 2 years after taxable property was acquired, tax is payable at rate that declines in proportion to length of time taxable property was held.
No tax payable on income from disposition that occurs over 2 years after acquiring.
Provisions provided rules for calculating taxable income and net taxable income.
Provided for a tax deduction of up to $20k for disposition of person's primary residence
Additionally, provisions provided for exemptions from the tax, including exemptions for particular life circumstances and in respect of additions to the housing supply.
Bill established rules for the administration and enforcement of the income tax.
Legislative History
On Apr. 3, 2024, bill introduced in Legislature; on Apr. 24, 2024, bill passed Legislature
On Apr. 25, 2024, Bill 15 recieved royal assent and was assigned Chapter 14.
Effectiveness
Sections 1 to 104, sections 106, 107, and section 109 take effect on Jan. 1, 2025.
Remainder of bill takes effect by regulation of the Lieutenant Governor in Council.
