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VanLord
Real Estate Talker
Topic Author
Posts: 288
Joined: Fri Aug 24, 2007 3:52 pm

The Money Pit Tax

Sat Jun 24, 2017 9:18 am

http://www.theprovince.com/news/local+n ... story.html

Looks as if this tax will cost taxpayers a lot more than expected, and doubtful it will ease the tight rental market
 
jimtan
Real Estate Talker
Posts: 5434
Joined: Tue Jul 31, 2007 10:59 pm

Re: The Money Pit Tax

Sat Jun 24, 2017 1:24 pm

"The number of “under-occupied” homes in Vancouver has almost doubled in the past 15 years, from 12,885 to 25,495 dwellings, according to census data.

So although some of those homes will be exempt from the tax, and even if some cheaters skirt the rules, it’s hard to imagine the city not raising enough money to cover the cost of the tax, said Tom Davidoff, a housing economist from UBC’s Sauder School of Business, adding: “I would be very unpleasantly surprised to see the city actually lose money on this deal.”

... This week, Davidoff was far more bullish, saying: “I don’t think $100 million (in first-year revenue) is out of the question...

But even as cost estimates rise, one of the only ways the city could actually lose money, Davidoff noted, would be if a huge number of people decided to rent out their empty homes to avoid the tax.

And if that did happen — in a city where the rental market has become painfully tight — it might be money well spent."

Thumbs Up. Keeps our taxes lower.  :mrgreen:
 
jimtan
Real Estate Talker
Posts: 5434
Joined: Tue Jul 31, 2007 10:59 pm

Re: The Money Pit Tax

Fri Jul 28, 2017 7:07 am

Enforcement is gonna be brutal ...

"CRA takes developers to court, seeks information on pre-sale condo flippers

Officials say they want to ensure taxes paid on transactions..."

http://www.cbc.ca/news/canada/british-c ... -1.4223488
 
VanLord
Real Estate Talker
Topic Author
Posts: 288
Joined: Fri Aug 24, 2007 3:52 pm

Re: The Money Pit Tax

Fri Jul 28, 2017 8:37 am

jimtan wrote:
Enforcement is gonna be brutal ...

"CRA takes developers to court, seeks information on pre-sale condo flippers

Officials say they want to ensure taxes paid on transactions..."

http://www.cbc.ca/news/canada/british-c ... -1.4223488

About 15 years late to the party, but good, As I've said before we never needed a bunch of new taxes, just to enforce the existing taxes.  How many billions in profits walked out of Canada with not a sniff from the CRA.  These transactions should be enforced and a witholding tax applied to a flip

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