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

Victoria non-profit empowers women escaping abusive homes with a fresh start

Organization’s gift certificate program helped around 400 women last year

VIDEO: Royal Bay Secondary students take flight in ‘Peter and the Starcatcher’

Play tells the story of the orphan who becomes Peter Pan

Sidney designer showing killer collection at Van Fashion Week

A young Sidney designer is showing her 14 piece collection Obsidian Nights at Vancouver Fashion Week

WATCH: Oak Bay wins regional skating competition

Winning tradition continues leading up to provincials

Volunteers begin work on memorial garden for former Metchosin counsellor

Garden a fitting tribute to Moralea Milne, a champion of Garry oak ecosystems

VIDEO: Iconic ‘snow cone’ takes shape at B.C. park near Clearwater

Snow cone forming at Wells Gray Provincial Park one that would make Disney’s Queen Elsa proud

POLL: Will you be wearing pink to take a stand against bullying?

Schools and workplaces across Greater Victoria and around the province will be… Continue reading

Indigenous leaders, politicians say Trans Mountain report flawed

The National Energy Board has endorsed an expansion of the Trans Mountain pipeline a second time

UPDATE: Reports of rashes prompt closure of all Harrison Hot Springs pools

Public pool available after Fraser Health shut down all five mineral pools until further notice

Legislation to protect B.C. farmland comes into effect

Regulations enhance food security, encourage long-term farming

Have you heard the legend of Shuswaggi, the Shuswap Lake monster?

Witness accounts as old as 1904, and as recent as 2018, place a creature in the lake’s depths

UPDATE: B.C. ticket holder winner of $25.9-million Lotto Max jackpot

Next draw set for Mar. 1 with an estimated jackpot of $10 million

B.C.-based ‘Team Tardi’ brings home gold in junior curling worlds

In a 9-4 victory over Switzerland, a Langley-based curling team earned its 2nd straight world title

B.C. weavers to help Alaska Native project honouring survivors of violence

Dozens of Chilkat and Ravenstail weavers from all over North America will be weaving 5-inch-by-5-inch squares

Most Read