Real estate developers will be required to collect and report information on pre-sale condo assignments if proposed laws are passed.
The British Columbia government wants to crackdown on tax evasion in the province and the new legislation will give local governments the powers to address the issue.
“For too long, people who resell condos before they have been built have been inflating real estate prices, without necessarily paying taxes on their gains,” said Carole James, Minister of Finance. “We are making it fairer for people who want to buy a condo, by making sure those who flip pre-sale condos are paying their fair share.”
The changes to the Real Estate Development Marketing Act will mean developers adding terms to their contracts informing buyers of the requirements to report their details to the provincial administrator designated under the Property Transfer Tax Act.
The BC government has also introduced two pieces of legislation to tackle housing affordability by giving local governments tools to limit zoning to rental homes.
“There is a shortage of rental homes in British Columbia,” said Selina Robinson, Minister of Municipal Affairs and Housing. “The steps we are taking today will both help local governments track the needs of their communities and give them a powerful tool to deliver homes people can afford in the communities where they work, go to school and raise their families.”
The zoning authority will be optional for local governments, but a requirement for those authorities to assess local housing needs will be mandatory if the legislation is approved.
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