Real estate, low dollar keep B.C. in the black

Property transfer tax up $150 million from spring budget, tourism and movie business surge due to 75-cent Canadian dollar

Finance Minister Mike de Jong

The B.C. government expects to finish the fiscal year next March with a $265 million surplus, thanks to surging property transfer tax revenues and a lower Canadian dollar that helps everything from tourism to the movie and TV industry.

Government revenues have declined due to lower natural gas, metals and other natural resources, Finance Minister Mike de Jong said Tuesday in his second quarter financial update. But with a continued hot real estate market in southwestern B.C. and housing starts running above average, property purchase tax revenue is $150 million ahead of the February budget forecast.

Retail sales are running 7.2 per cent ahead of last year for the period of April to August, with vehicle and parts sales up 9.5 per cent and food and beverage up 7.5 per cent.

De Jong said the Canadian dollar, currently trading at 75 cents U.S., has cut down on cross-border shopping trips from B.C. and contributed to a rebound of tourism, which along with stronger employment has helped increase retail sales.

The dollar exchange rate has also led to an increase in movie and TV production, which costs the province because of the big tax incentives offered to lure foreign productions here.

Foreign movie companies get a 25 per cent tax rebate for all spending on labour in the province, and the latest estimate is those credits will climb to a record $514 million for the current year. De Jong said B.C. remains competitive in the movie business despite Ontario increasing its tax credits in 2009 to cover 25 per cent of all spending by foreign movie and TV production companies.

Forest fire expenses were higher than average this year, but not as high as expected earlier in the season.

Exports from B.C. are down overall, with economic growth projections downgraded for the U.S., Canada, China and Japan, which de Jong said is now back in a recession.

 

Just Posted

Saanich residents deliver notice to Capital Regional District

Grange Road residents fear the loss of up to 50 trees

Council approves plan banning cycling in Haro Woods

Municipality accused of caving to small minority of park users

‘Fix Canada First’ posters found at Victoria bus stops

At least five posters found along Douglas Street

Victoria Police investigate stabbing in restaurant on Douglas Street

Police were called to the 800-block around 1:30 p.m.

Oak Bay teen targets 1,000 toys

Toy drive for Stan Hagen Centre For Families is Dec. 15 and 16 on Oak Bay Avenue

WATCH: Hundreds of gifts go out to Victoria’s Our Place patrons

The Angel Gifts Program saw 700 Christmas presents go out to the community

POLL: Are you dreaming of a white Christmas?

The rain Vancouver Island is famous for is coming down in buckets,… Continue reading

Vancouver Island man named Philadelphia Flyers assistant GM

Courtenay’s Brent Flahr spent nine-plus years in Minnesota

Warning issued as forecast calls for 20-foot waves in Tofino

Dangerous waves, strong currents and upper-shoreline flooding expected for Tofino-Ucluelet area

Oil tanker ban to be reviewed by committee

Indigenous groups for and against Bill C-48 travel to Ottawa to influence the Senate’s decision

An 800-pound pig named Theodore needs a forever home, B.C. society says

‘Theodore is not destined to be somebody’s bacon’

Teenager Alphonso Davies wins Canadian Men’s Soccer Player for the Year Award

Derek Cornelius and Chilliwack native, Jordyn Huitema were named Canadian Youth International Players of the Year

B.C. teen MMA fighter shows heart

Young Unity MMA competitors bring home Ws

Most Read