British Columbia Can Substantially Lower Housing Costs with One Simple Trick
Previously, we showed that development cost charges (DCCs) and similar charges (community amenities charges), the GST and property transfer taxes (PTT) add over $250,000 to the price of a Vancouver condo. Nearly $12,000 of the $250,000 from tax-on-tax, GST and PTT charged on development charges. Over $36,000 of the $250,000 comes from the equivalent of “junk fees” - interest costs and margin requirements on developers stemming from how DCCs are structured and timed; essentially pure waste. Governments have several options to reduce housing taxes, including enhanced GST and PTT rebates, as well as discounts on development charges. Governments could also defer DCC payment to the end of a project, which would help reduce junk fees through reduced interest costs. The biggest cost reductions would result from a regulatory change that treats development charges as a separate tax item, rather than incorporating them into housing costs. In our example, it would provide a savings of $68,216, wh
Previously, we showed that development cost charges (DCCs) and similar charges (community amenities charges), the GST and property transfer taxes (PTT) add over $250,000 to the price of a Vancouver condo. Nearly $12,000 of the $250,000 from tax-on-tax, GST and PTT charged on development charges. Over $36,000 of the $250,000 comes from the equivalent of “junk fees” - interest costs and margin requirements on developers stemming from how DCCs are structured and timed; essentially pure waste. Governments have several options to reduce housing taxes, including enhanced GST and PTT rebates, as well
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