How much general Property Transfer Tax is payable on a $5,000,000 commercial property purchase in BC?
Correct Answer
C) $128,000
1% of $200,000 ($2,000) + 2% of $1,800,000 ($36,000) + 3% of the $3,000,000 above $2,000,000 ($90,000) = $128,000. The further 2% on value above $3,000,000 applies only to residential property, so it does not apply here.
Why This Is the Correct Answer
Applying only the three general brackets to a commercial property gives $2,000 + $36,000 + $90,000 = $128,000.
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