In BC, how much general Property Transfer Tax is payable on the purchase of a commercial property with a fair market value of $3,000,000?
Correct Answer
B) $68,000
The general tax is 1% of the first $200,000 ($2,000) + 2% of $200,000 to $2,000,000 ($36,000) + 3% of the $1,000,000 above $2,000,000 ($30,000) = $68,000. The further 2% above $3 million applies only to residential property and would not apply here in any case.
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