Premier Christy Clark says B.C. is going to lift the foreign buyer’s tax to people with work permits.
“The legislation gives us the ability to change the foreign tax to exempt groups of people. So we will be exempting workers who have work permits, who are foreigners, who want to buy a home but they’ve been paying their taxes and living in British Columbia.”
She hopes this move will encourage people to come to the province.
READ MORE: B.C. foreign buyers tax kicks in
“We believe the best and the brightest should be able to come to B.C.”
It is unknown when the change will kick in.
The news come right after President Donal Trump’s 90-day travel ban from Iraq, Syria, Iran, Sudan, Libya, Somalia, or Yemen.
Too many questions
UBC’s Tom Davidoff says he doesn’t think people in BC on a working permit is a big part of the affordability equation.
“I do think affluent people who do not make a living here buying property was a very important part of the price increase and has been an important part of the softening of the market.”
He says the exemption needs to be implemented carefully because the devil is in the details.
“If paying any tax at all on your income gets you out of the foreign buyer’s tax it’s pretty easy to see that nobody will pay the foreign buyers tax.”
He says if it’s a broad exemption there will be an adverse impact on affordability if it’s a narrow exemption it will be a positive one.
With files from Michelle Morton