NDP votes against ammendment to sheild homeowners from hidden capital gains tax
Today, BC United Shadow Minister for Finance, Peter Milobar, introduced an amendment to Bill 15, the Budget Measures Implementation (Residential Property (Short-term Holding) Profit Tax) Act, 2024. The amendment, which would have restricted David Eby and the NDP’s efforts to implement a provincial capital gains tax on primary residences, was voted down by the NDP government.
“Homeowners living in their primary residences shouldn’t be burdened by an NDP-imposed capital gains tax,” said MLA Milobar. “Our amendment would have effectively sealed off the backdoor left open by the NDP, safeguarding British Columbians from unforeseen taxes on their homes. This was an effort to ensure that the government doesn’t sneak past changes that could dramatically affect homeowners across the province.”
While homeowners are exempt from federal capital gains taxes after living in their principal residence for a full year, clause 12 of Bill 15 subverts this exemption by applying a 20 percent tax on principal residences that meet this federal requirement. MLA Milobar’s amendment aimed to block future governments from levying a capital gains tax on primary residences while maintaining the intended purpose of the tax to prevent speculative real estate practices.
This amendment was rejected, allowing the implementation of recommendations from the NDP’s 2021 ‘Opening Doors’ report, led by NDP insider Joy MacPhail, which included revising the principal residence capital gains exemption and eliminating the B.C. Home Owner Grant.
“If re-elected, there’s a significant risk David Eby and the NDP could further adjust this bill to impose more severe taxes on homeowners. Our amendment sought to pre-empt such actions, ensuring long-term security for property owners,” Milobar added. “It’s crucial to prevent any measures that could lead to higher housing costs for British Columbians, especially as under the NDP, B.C. has the worst housing affordability in North America.”