Whereas the high cost of land is one of the greatest barriers to non-market housing development in British Columbia; And whereas municipalities have been asked by the Province to support the development of new non-market housing developments, including by forgoing market value of their own lands to provide to not-for-profit organizations at a nominal rate and for extended periods of time to facilitate the development of affordable housing; And whereas municipalities view not-for-profit organizations as partners in non-market housing development, regardless of their registration status as a society or charity: Therefore be it resolved that UBCM urge the provincial government to review the Property Transfer Tax and other provincial legislation to expand the exemption from payment of Property Transfer Tax to all not-for-profit societies, co-operatives or corporations incorporated and in good standing under the BC Societies Act, Cooperative Association Act, or the Canada Not-for-profit Corporations Act who are leasing municipal lands for the development of affordable housing from payment of Property Transfer Tax to eliminate this financial burden on the creation of non-market housing.
Ministry of Finance The Property Transfer Tax Act was introduced in 1987. The purpose of the tax was to diversify the tax base, provide a fair return for the public on rising property values, and reduce reliance on other provincial taxes. Currently, registered charities are exempt from property transfer tax PTT when they purchase or receive property that will be used for a charitable purpose. To be eligible for these exemptions, an organization must be registered as a charity with the Canada Revenue Agency. Provincial policy is to only provide the exemption to charitable organizations that meet the federal governments criteria. Many non-profit societies cannot meet these requirements because they are not exclusively created for a charitable purpose. Further, non-profit societies may be organized for reasons other than charitable purposes, provided they do not operate to generate a profit. Providing an exemption to non-profit organizationshousing societies which have varied purposes would set a difficult precedent for government. While not always practical due to third party financing and funding arrangements, leases under 30 years are exempt from PTT. In Budget 2023, the province announced partial PTT exemption for new purpose-built rental buildings to further encourage construction of this type of housing to address housing affordability. The Province appreciates the suggestion and will take it under advisement.