British Columbia-> Budget 2018
Bill 2, the Budget Measures Implementation Act, 2018 was tabled on February 20, 2018 and received Royal Assent March 15, 2018.
Bill 44, Budget Measures Implementation (Employer Health Tax) Act, 2018 was tabled on October 16, 2018 and received Royal Assent November 8, 2018.
Bill 45, Budget Measures Implementation (Speculation and Vacancy Tax) Act, 2018 was tabled on October 16, 2018 and received Royal Assent November 27, 2018.
The budget proposes to eliminate MSP premiums effective January 1, 2020. The loss of revenue will be offset by a new Employer Health Tax, beginning January 1, 2019.
- 1.95% of total payroll, for
business with a payroll of more than $1.5 million,
The budget proposes that, starting on April 1, 2018, parents with children in licensed care will be eligible for the following fee reductions if their child care provider opts into the program:
- up to $350/month for group
The budget proposes to fund a child care benefit of up to $900 per month, per child, in child care cost relief by 2020, in addition to the above maximum of $350 for child care costs, resulting in maximum relief of up to $1,250 per month. Families will be able to apply for this benefit beginning in September 2018. Families with pre-tax incomes of $45,000 or less will receive the full benefit, up to the cost of care, while those who make up to $111,000 will receive a reduced amount, scaling according to income.
See Child Care BC on the BC 2018 Budget site for more information on child care costs, the child care benefit, and other child care related measures.
Personal Income Tax
The budget proposes to replace the Infirm Dependant and In-Home Care of Relative (caregiver) tax credits with a new BC Caregiver Tax Credit effective for 2018 and subsequent tax years. It will follow the same rules as the Canada Caregiver Credit.
The budget proposes to eliminate the Education Tax Credit for the 2019 and subsequent taxation years. The federal education and textbook tax credits were eliminated effective for the 2017 and subsequent taxation years.
The Budget proposes to levy an additional 2% on the portion of the fair market value of residential land and improvements greater than $3 million, effective February 21, 2018. For example, if a property is sold for $4 million, the property transfer tax will be:
- 1% on the first $200,000 ($2,000)
This means that the portion of the fair market value over $3 million is subject to a total of 5% property transfer tax. The above $4 million property would have property transfer tax totalling $118,000 (2,000 + 36,000 + 60,000 + 20,000).
Additional Property Transfer Tax for Foreign Entities & Taxable Trustees (Foreign Buyer Tax)
A foreign national, foreign corporation or taxable trustee must pay additional property transfer tax on a residential property transfer if the property is within specified areas of BC.
The tax rate is 15% of the fair market value for property transfers registered on or before February 20, 2018, if the property is within the Greater Vancouver Regional District (GVRD).
The tax rate is 20% of the fair market value for property transfers registered on or after February 21, 2018, if the property is within the GVRD, Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan, or Regional District of Nanaimo.
The budget proposes to levy an additional school tax, starting in 2019, for high-valued residential properties in the province. The additional tax rate is:
- 0.2% on the residential portion assessed between $3 million and $4 million
Municipal revitalization property tax exemptions for eligible new purpose-built rental housing will also apply to provincial property taxes starting in 2019.
As previously announced, the threshold for the home owner grant phase-out is increased from $1.6 million to $1.65 million for the 2018 tax year. For properties valued above the threshold, the grant is reduced by $5 for every $1,000 of assessed value in excess of the threshold.
Sales & Tobacco Taxes
More provincial sales tax changes can be found on the BC government website.
Other Tax Measures
There are more tax changes in addition what we've detailed above, including the following proposed changes. Links are to the BC government website.
For more information see the Budget Tax Changes document.
See Budget 2018 on the Ministry of Finance website for complete budget details.
Revised: January 18, 2019
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