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In This Volume

15 (1) In this section:

  • “adjusted value” means the fair market value of a taxable transaction or the residential property value, as applicable, minus the following:
  • (a) the fair market value of the interest in the residential improvements transferred;
  • (b) if the parcel involved in the taxable transaction is
    • (i) 0.5 ha in area or less, the fair market value of the land transferred, not including improvements, or
    • (ii) more than 0.5 ha in area, the fair market value of the land transferred, not including improvements, multiplied by the ratio of 0.5 ha to the total area of the parcel;
  • “eligible transferee” means a transferee who does not qualify under section 14(3)(b), (c), (d), (e) or (p) or (4)(p.2) for an exemption in relation to a principal residence only because of one or both of the following reasons:
  • (a) there are non-residential improvements on the parcel involved in the taxable transaction;
  • (b) the parcel involved in the taxable transaction is larger than 0.5 ha in area;
  • “non-residential improvements” means improvements that are not classified under section 19 of the Assessment Act as property used for residential purposes;
  • “residential improvements” means improvements that are classified under section 19 of the Assessment Act as property used for residential purposes;
  • “residential property value” means residential property value as determined under section 3.01(3).
  • (2) An eligible transferee is exempt from the obligation to pay tax in accordance with section 3(1) in an amount equal to the transferee’s proportionate share of the fair market value of the taxable transaction multiplied by the following:
  • (a) for the purposes of section 3(1)(a) to (c), the amount that is the tax that would otherwise have been payable on the fair market value of the taxable transaction minus the tax that would be payable if the fair market value of the taxable transaction was equal to the adjusted value;
  • (b) for the purposes of section 3(1)(d), if applicable, the amount that is the tax that would otherwise have been payable on the residential property value minus the tax that would be payable if the residential property value was equal to the adjusted value.
  • (3) For the purposes of this section, the fair market value of the following must be determined in the prescribed manner:
  • (a) the interest in the residential improvements transferred;
  • (b) the land transferred, not including improvements.

1987-15-5.1; 1991-16-11; 2006-2-20, effective February 22, 2006; 2018-4-62; 2020-18-59, effective August 14, 2020.

REGULATIONS

Valuation of Residential Improvements

See Part 3 (ss. 16 and 17) of the Property Transfer Tax Regulation, B.C. Reg. 74/88, regarding valuations for the purposes of s. 15(2) and (4).