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Provincial Budget - BC - Income Tax Measures
Provincial Budget - BC - Income Tax Measures
Feb 20, 2008
Tax Refund Expanded for Persons with Disabilities
Effective February 20, 2008, the fuel tax refund for
persons with disabilities is expanded to include persons
with mental disabilities. To be eligible individuals must
be certified by a medical practitioner as suffering from a
permanent mental disability which precludes them from
safely using public transit. Payments are made to guardians
on behalf of eligible individuals.
Property Transfer Tax Act
Fair Market Value Threshold for Eligibility under the First
Time Home Buyers’ Program Increased
Effective for registrations after February 19, 2008, the
fair market value threshold for eligible residential
property under the First Time Home Buyers’ Program is
increased to $425,000 from $375,000.
A proportional exemption is provided for principal
residences that have a fair market value up to $25,000
above the new threshold.
Financing Requirements under the First Time Home Buyers’
Program Removed
Effective February 20, 2008 first time buyers are no longer
required to have registered financing to be eligible for
the exemption.
For first time buyers who bought a home prior to February
20, 2008, and were eligible for the exemption because they
had a mortgage of at least 70 per cent, the requirements
regarding the amount by which the mortgage may be reduced
during the first year of ownership remain in place until
midnight February 19, 2008. After February 19, 2008, a
mortgage may be paid down by any amount without losing
entitlement to the exemption.
Home Owner Grant Act
Threshold for Home Owner Grant Phase-out Increased
As announced on January 11, 2008, effective for the 2008
tax year, the threshold for the phase-out of the home owner
grant is increased to $1,050,000 of assessed value from
$950,000. This change ensures that more than 95 per cent of
homeowners remain eligible for the full grant.
For properties valued above the threshold of $1,050,000,
the grant is reduced by $5 for every $1,000 of assessed
value in excess of the threshold. The basic grant is
eliminated for properties valued at $1,164,000 and above
and for recipients of the additional grant, which is
available to seniors, veterans and the disabled, it is
eliminated for properties valued at $1,219,000 and above.
Grant Provided During an Extended Absence
A person who ceases to occupy their residence because of
damage or destruction from fire, flood or other natural
disasters during reconstruction or repair may claim the
grant or the low-income grant supplement for up to two
taxation years if:
the person occupied the residence as their principal
residence before it was damaged or destroyed and intends to
reoccupy it as their principal residence once it has been
reconstructed or repaired;
the residence is unoccupied and is not rented or for sale
during the absence; and
the person would have been eligible for a grant or a
low-income grant supplement had the damaged or destroyed
residence continued to be their principal residence during
the absence.
A person who ceases to occupy their residence for any other
reason, other than incarceration, may claim the grant for
up to two taxation years if:
the person occupied the residence as their principal
residence before the absence and received a grant or
low-income grant supplement on the residence in the year
before the absence;
the person intends to reoccupy the residence as their
principal residence in the first taxation year after the
last taxation year in which they claimed a home owner grant
or low-income grant supplement as an absent owner;
the residence is occupied by a spouse or relative of the
owner or is vacant during the absence;
the residence is not rented or for sale during the absence;
and,
the person would have been eligible for a home owner grant
or low-income grant supplement had the residence continued
to be their principal residence during the absence.
Disability Portion of Additional Grant for Home Owners
Expanded
Effective for the 2008 tax year, home owners may qualify
for the additional grant if they construct a new residence
that has design specifications that have been modified to
meet their disability needs or those of their spouse or
relative and the modifications impose a cost that exceeds
$2,000.
The Home Owner Grant Act is Clarified
The following clarifications are made to the Act:
the definition of spouse is amended so that those who
cohabit and live in a marriage-like relationship for a
period of at least two years before they apply for a
low-income grant supplement are considered spouses for
purposes of the Act;
the Act is amended to clarify that:
if an individual has received a home owner grant or a
low-income grant supplement in respect of a residence for a
taxation year, neither they nor their spouse may claim a
home owner grant or a low-income grant supplement in
respect of another residence for that year; and
an individual may not claim a grant or a low-income grant
supplement in respect of a residence for which their spouse
has already claimed a grant or low-income grant supplement
for a taxation year unless they claim a partial home owner
grant or low-income grant supplement.
a permanent resident is defined to have the same meaning as
in the Immigration and Refugee Protection Act (Canada). The
conditions for eligibility under the Act are amended to
clarify that the applicant must be a Canadian citizen or
permanent resident and that they must be ordinarily
resident in British Columbia; and
the conditions under which the spouse or relative of a
deceased person may be eligible for the grant are amended
to clarify that the deceased person must have been a
Canadian citizen or permanent resident and must have
occupied the residence as their principal residence at the
time of death.
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