The government of British Columbia intends to crack down on the tax evasion associated with pre-sale condo flipping, it announced April 24.
The province has introduced three changes to the Real Estate Development Marketing Act that, if approved by the legislature, would require developers to report pre-sale condo assignment information to the government in order to make sure buyers are paying appropriate taxes. Developers would also have to inform buyers of these requirements.
“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 Minister of Finance Carole James.
“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.”
On the same day, the government introduced two other pieces of legislation that are intended to increase affordable housing in the province.
“Local governments are on the front lines of the housing crisis, so they’re well positioned to guide the right types of housing to meet the needs of their residents,” said Selina Robinson, B.C.’s minister of municipal affairs and housing. “There is a shortage of rental homes in British Columbia.
“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.”
If approved, these additional changes would limit tenure to rental through zoning requirements.