It is a tax register paid for changes to a certificate of title to Land Title Office in British Columbia. Simply said - if you are buying a property, you have to pay this tax.
When do I have to pay the tax?
You are obliged to pay the tax, when you:
- acquire a registered interest in the property, or
- gain an additional registered interest in the property, or
- become the registered holder of a lease, life estate, or
- right to purchase against the property is required to pay the tax unless they qualify for an exemption. This person is referred to as the transferee or purchaser
Some examples of taxable transactions:
- a transfer of legal title
- a right to purchase (an agreement for sale)
- a lease or lease modification agreement
- a life estate
- a foreclosure
- a property transfer pursuant to a corporate reorganization
- an escheat, forfeiture or quit claim
- a Crown grant
How much is it?
The tax is charged at a rate of 1% on the first $200,000 of the fair market value of the property, and 2% on the rest.
For example, if the fair market value of the property is $150,000, the tax is 1% of $150,000 or $1,500.
If the property's fair market value is $500,000 the tax is 1% of $200,000 ($2,000) plus 2% of the remaining $300,000 ($6,000) for a total tax of $8,000.
Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% of the remainder of the purchase price of a home priced up to $475,000. There is a proportional exemption for homes between $475,000 and $500,000. At $500,000 and above the rebate is nil.