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

Two of Chemainus photographer Marston’s images picked among National Geographic’s 2018 elite

Rare double honour from the 36 best Your Shots out of nearly 19,000 photos

Wrestlers begin 2019 in fine form with Cowichan camp

The particpants ranged in age from seven to 17

Mary Lowther column: Seed catalogues and proper storage

Seeds kept dry and at 4 C can last three times as long as if they were held in household conditions.

Chemainus businesses take a direct hit during storm

Last few days before Christmas important to many to compensate for slower times

Annual hockey jamboree at Lake Cowichan coming this weekend

Annual Lake Cowichan hockey jamboree ready to hit the ice

VIDEO: Cowichan Secondary starts two-week run of ‘The Addams Family’ Jan. 16

The Cow High cast is ready, the stage is set: all they need is you so make tracks to see this show

Coming up in Cowichan: Anti-pipeline meeting; women’s shelter open house

Public meeting in Duncan to support pipeline protests A public meeting has… Continue reading

‘Prince of Pot’ Marc Emery accused of sexual assault, harassment

Emery denied the allegations, but a Toronto woman says she is not the only one speaking out

Ex-Liberal candidate in Burnaby, B.C., says volunteer wrote controversial post

Karen Wang dropped out following online post singling out NDP Leader Jagmeet Singh’s ethnicity

Asteroids are smacking Earth twice as often as before

The team counted 29 craters that were no older than 290 million years

Canada’s arrest of Huawei exec an act of ‘backstabbing,’ Chinese ambassador says

China has called Canada’s arrest of Huawei chief financial officer Meng Wanzhou ‘politically motivated’

RCMP’s use of force in arrest of Island man not excessive, judge rules

Campbell River man high on cocaine led high speed chase through city’s downtown

In limbo: Leftover embryos challenge clinics, couples

Some are outright abandoned by people who quit paying storage fees and other couples struggle with tough decisions

BREAKING: Jury finds man accused of killing B.C. girl, 12, guilty

Twelve-year-old Monica Jack disappeared in May 1978 while riding her bike along a highway in Merritt, B.C.

Most Read