A foreign corporation buys a commercial office building in downtown Vancouver for $20,000,000. The property contains no residential space. How much Property Transfer Tax is payable?
Correct Answer
C) $578,000 in general Property Transfer Tax only
The general tax is 1% of $200,000 ($2,000) + 2% of $1,800,000 ($36,000) + 3% of $18,000,000 ($540,000) = $578,000. The 20% additional tax applies only to residential property in a specified area, and the further 2% above $3,000,000 applies only to residential value, so neither applies to an office building.
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