Definitely a couple of very noteworthy points for we BC residents. Some very good news, some not so good. Let’s get the “somewhere in between” news out of the way.
The big news, the green one (Haha, Finance Minister Carole Taylor was all decked out in green including her John Fluevog shoes – Photo Credit to Ray Smith of Canwest), is that we are all going to get taxed on our carbon footprint. Gas (all forms including petrol, diesel, and heating) will incur an additional tax that will be increasing each year. This is being refered to as the Carbon Tax. It starts at a measely 2.4 cents which is really unlikely to change anyone’s driving habits. Where it is much more likely to be felt is with organizations that purchase large amounts of fuel. Shipping, trucking, bussing, and other mass transit will likely use this as an excuse to raise tarrifs. Anything you need delivered be it yourself in a taxi or a package by UPS will likely become slightly more expensive to do so. Transportation of your fruits, vegetables, and other produce will be affected. Remeber that while it starts at this low, low introductory rate of 2.4 cents it is expected to increase over the years and some have suggested that driving habits really won’t change until we are taxed at 45 cents to the litre (which they couldn’t introduce lest desiring to face a lynch mob outside Victoria).
To sugar coat this new tax they are giving every man, woman, and child $100! Yeah! CTV did a breakdown on the average family and found the net benefit to be $5. Oh….
But there is more. They are also reducing income tax by 10% on those earning up to $108,000. Yeah! We now have the lowest provincial income taxes in the country.
On the housing front there are two initiatives. The first is to set aside $250 million for a housing endowment fund meant to support innovative housing projects. I hope this means green housing. I’d hate to think they would invest in standard housing that would use more energy (and generate more tax via the new carbon tax) than necessary.
The second initaitive, the big one for most, on the housing front is the increase in the First Time Home Buyer Property Transfer Tax Exemption from $375,000 to $425,000. And they have eliminated the exemption limit for downpayments of 30%! Imagine that. They are no longer penalizing those who saved a sizable downpayment. Any home under $425,000, any downpayment, as long as it is your first home and no Property Transfer Tax. Huzzah!
In addition, on the property tax front, the Home Owners Grant exmption has been raised to $950,000 from $780,000. this is especially welcome news by those who have owned their home for some time now and have watched their tax increase without seeing really any benefit to the increased value (they are not selling).
So to sum up: Carbon Tax – not sure about. Property Transfer Tax threshold increase – Great! Home Owners Grant Threshold Increase – Great!
One more point to note. The government really wants you to not pay the carbon tax. They are encouraging all of us to go out and be more green to avoid it. Some more initiatives they have for us include:
- Energy efficient refrigerators, freezers and clothes washers with an Energy Star rating will be PST exempt.
- Residential gas-fired water heaters with an “energy factor” of 0.80 or greater will be PST exempt.
- Insulation for hot water tanks, water pipes and ductwork will be PST exempt.
- Electric-powered bicycles and tricycles will be PST exempt.
- Emission control devices for diesel vehicles will be PST exempt.
- Motorcycles and scooters that run exclusively on electricity will be eligible for a 50 per cent reduction in PST up to a maximum of $1,000. The exemption expires April 1, 2011.
I would just like to note, however, that replacing a not too old working appliance just for the sake of “going green” (or is that “going stainless”? – just kidding) is actually more harmful to the environment both in the cost to recycle/waste the working appliance and the energy it took to produce an uneccesary new appliance. If, however, you’re just about to purchase your first home, and it needs a lot of updating and the appliances are pretty much on their last legs, well, you are about to save a lot of money taht you wouldn’t have in years prior.
Vancouver, BC 