The provincial government has clarified that apartment buildings with four or more units are exempt from a higher school tax to be levied on expensive properties.
The B.C. Ministry of Finance issued the clarification following claims that an increased school tax will affect the rental industry.
The ministry pointed out that the exemption of apartment buildings with four or more units was provided in the budget bill that was tabled on February 20.
An earlier news release from the team led by father and son realtors David and Mark Goodman indicated that the province changed its mind about the application of the school tax on apartment buildings.
The finance ministry clarified that this was not the case because the budget bill contained the exemption in the first place.
The budget provided a province-wide increase in the school tax for properties in the residential class, whose values exceed $3 million.
In the budget rolled out by the B.C. NDP government, an additional tax of 0.2 percent will be applied starting in 2019 on the portion of residential properties exceeding $3 million.
Based on the budget, a higher rate of 0.4 percent will be collected on the portion of residential value above $4 million.