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.

 

Kelowna Capital News

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Lake Country Food Bank welcomes wheelbarrow load of donations

Rotary Club presents symbolic cheque for the $24,600 raised since August 2018

Vernon family shares story of son’s cancer recovery to encourage blood donation

Finlay Ritson’s parents can’t donate blood, but hope his story will encourage others to do so

WATCH: North Okanagan seniors stay fit in self-isolation

Residents have taken to their balconies to follow along in exercise class

‘An extra $220 every 90 days’: Kelowna woman worried over increased prescription dispensing fees

The Kelowna woman says it’s outrageous to charge for refills every 30 days

COVID-19: Online tool helps vulnerable people in North Okanagan receive aid

United Way’s tool connects those in need with pre-screened volunteers in the local area

‘Hold our line’: 29 new cases of COVID-19 announced in B.C.

Saturday’s number of new cases marks the lowest in weeks.

UPDATE: Coronavirus concerns prompt event cancellations across the Okanagan

This is a running list of events cancelled across the Okanagan

Visitor to Kamloops army club tests positive for COVID-19: Interior Health

The individual visited Anavets 290 Army and Navy Club between March 13 and March 17

Two inmates found positive for COVID-19 at federal prison in B.C.; other tests pending

15 staff self-isolating waiting results, refusal to work notice sent, says correctional officer

COVID-19: Staying home in Shuswap is difficult when you don’t have one

As the snow flies, people without homes in Salmon Arm talk about how tough life is

Critic, workers’ group ‘disappointed’ Trudeau chose Amazon to distribute PPE

Amazon Canada said in an email to The Canadian Press that it is working with Canada Post, Purolator

Vernon politician questions if response to COVID-19 worse than virus

Precautions make sense but destroying economy in process doesn’t, says Coun. Scott Anderson

‘Always look on the sunny side,’ Okanagan senior says

Heaton Place resident shares story of growing up in Roaring Twenties

92-year-old Vernon woman crochets 1,000 toques for donation

Daisy Ferguson has been working on the toque project for the past six years

Most Read