Taxes and Fees on Whistler Real Estate

Canadian Citizens and Permanent Residents of Canada, who are considering buying, owning, or selling real estate in Whistler, this is your page. Please note, that this page was compiled by Marion Anderson, the realtor. It is recommended that you seek professional accounting and legal representation. This page is an overview and not intended as advice.

Resident of Canada Tax and Fees Table

The following is an overview of the taxes that may be payable when buying, owning, and selling a Whistler property. There are pages and pages of information about these taxes on the Government of Canada website. However, to provide you with an overview, this page focuses on the residents of Canada buying, owning, and selling Whistler real estate. The Whistler properties described may be residential property or property zoned for nightly rental which is generating revenue. Regardless, I recommend you speak with your accountant about these taxes and how they may affect your budget.

Resident of Canada Taxes and Fees

Table to show the taxes and fees that may be due for residents of Canada. The property the chart refers to is residential and residential property zoned for nightly rental.

Timing	Tax Imposed by	Tax	Property Type	Timing	Exemptions/Deductions
Buying	Federal Government of Canada	Goods & Services Tax (GST)	all property	one-time	Yes
Buying	BC Provincial Government	Property Transfer Tax (PTT)	all property	one-time	Yes
Buying	BC Provincial Government	Provincial Sales Tax (PST) on Furniture	all property	one-time	Yes
Owning	Resort Municipality of Whistler	Property Taxes	all property	annual	No
Owning	Resort Municipality of Whistler	Tourism Whistler (TW) Fees	property on Resort Land	monthly	Yes
Owning	Strata Council	Strata Fees	strata developments	monthly	No
Owning	Strata Council	Special Assessments	strata developments	monthly	No
Owning	Federal Government of Canada	GST on change of use	property with nightly rental zoning	every time there is a change of use	Yes
Owning	Federal Government of Canada	GST collecting and submitting	nightly rental property generating rental income	monthly	No
Owning	Federal Government of Canada	GST on a major renovation/rebuild	all property	one-time	Yes
Owning	Federal Government of Canada	Underused Housing Tax (UHT)	all property	annual	Yes
Selling	Federal Government of Canada	Tax on the dispostion of property	all property	one-time	No
Selling	BC Provincial Government	Home Flipping Tax	all property	one-time	Yes

FAQ

BUYING

GST on the Purchase

Goods and Services Tax (GST) is a federal tax on the purchase of goods and services. If GST payment is due on the sale of a property, it is due on the completion date of the sale and is a one-time payment. The current rate is 5% of the purchase price. GST applies to all real estate transactions regardless if you are a resident or non-resident of Canada. However, some properties, such as “used” residential housing, are exempt from GST.

In addition, if you are buying a residential property that is zoned for nightly rental and you intend to rent out your property nightly, then the GST may be exempt. For more details on this, please read the blog post: GST Buyer Information.

From the perspective of the Buyer’s realtor, it is up to the Seller to inform their realtor if GST is exempt on the property, or not. This exemption would be shown in the listing data. The Buyer’s agent will require the Seller to warrant that the GST is exempt or not exempt on the Contract of Purchase and Sale.

Note: Canadian Banks will not include GST as part of your mortgage financing.

Property Transfer Tax (PTT)

PTT is a BC provincial tax and applies any time there is a change of ownership registered with the Land Title Office, then the BC Government wants to collect. When a resident or non-resident of Canada buys a property they will be required to pay the PTT on the completion date of the sale. This is a one-time charge.

In addition, if you decide that you want to add or delete someone to/from the title after the completion date, then you may be subject to a portion of the PTT. There are many rules in place with PTT so best contact a professional accountant or lawyer.

The property transfer tax rate is:

• 1% on the first $200,000,
• 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
• 3% on the portion of the fair market value greater than $2,000,000, and
• if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).

For more information, please link through to my blog on How to Calculate PTT

Property Taxes

The Resort Municipality of Whistler’s annual property taxes will be noted on the listing data for each property. These taxes will increase every year based on the Resort Municipality of Whistler (RMOW) budget increases. The BC Assessment occurs annually and the owner is notified in early January of any increase and decrease in the assessed value of their property. However, it is the RMOW’s annual budget that determines whether as a homeowner, how much your taxes will increase annually. The municipal annual taxes are due to be paid on July 1st. Click the link for more insight into BC Assessment.

The BC Home Owner Grant reduces the amount of property taxes you pay each year on your principal residence. The grant is available to homeowners who pay property taxes to a municipality, or to the province if they live in a rural area.

For more information please link through to my blog, How are Whistler Property Taxes Calculated?

Provincial Sales Tax on Furniture

When buying a property in Whistler and furniture is included, Provincial Sales Tax (PST) is applicable. This 7% PST is charged on used furniture and has to be accounted for. This tax will be of most concern to the buyer who is financing the purchase. The mortgage company will not finance furniture. Therefore if the furniture was included in the sold price this money has to be adjusted or deducted from the sale price. For more on this topic, please read the blog, Provincial Sales Tax on Furniture.

OWNING

Tourism Whistler (TW) Fees

If you own a property that is close to the ski slopes, Whistler Village, or the Whistler Mountain base at Creekside, you will notice on the listing data sheet there are TW fees. To categorize these properties, we say that they are “on resort land”. This terminology does not relate to First Nations or Aboriginal Lands. It was a term created by the council of the day back in the eighties and has stuck.

When Whistler started major developments in the eighties, the municipality realized that it needed to spend marketing dollars to encourage tourists to come to Whistler. Therefore the TW fees were charged to owners of property on resort land.

The fee is now administered by Tourism Whistler. Not all owners of residential property zoned for nightly rental rent out their property. There is a modest fee for residential ownership and a higher, but still modest fee for those renting out their property on a nightly basis.

Strata Fees

If you are buying in a strata development, then there will be monthly strata fees. Strata fees can cover the annual operating costs for common areas, for example, insurance, snow clearing, lighting, landscaping, etc. The monthly strata fee will be noted on the listing data. However, it is essential to read the strata documents to determine what exactly you are left to pay for.

The Depreciation Report may accompany the strata documents and this should alert you to the work that will be needed to be done on the building. Please read my blog, Understanding the Depreciation Report for more information.

Special Assessment

A Special Assessment or a Special Levy can occur at any time. This typically happens when major work is looming and there is not enough money to cover the cost. These assessments can also happen if there is an emergency repair that needs to be done. This means that you may be called upon to pay up on short notice for work to be done.

Every Buyer loves a low strata fee. However, that typically means that not enough money is being collected and set aside in the Contingency Fund for such work or emergencies. If that is the case with the strata you are considering, budget accordingly.

GST

Change in the Use of Your Property

From the Government of Canada’s website, “Changes in the Use of Your Property: When there is a change in use of a property you own, you may be considered to have sold all or part of your property even though you did not actually sell it. The following are some sample situations:

• “You change all or part of your principal residence to a rental or business operation
• You change your rental or business operation to a principal residence”

Example 1) You buy a residential property that is also zoned for nightly rental, and like the sellers, you are going to keep the property residential and not rent it out as much as you can. However, you decide that you need to rent the property out and earn as much income as you can. You have now enacted a change of use.

Example 2: You buy a Whistler property that is zoned for nightly rental. The sellers have been earning over $30,000 in income from their property and you want to do the same. Therefore the GST is deferred, meaning the buyer does not pay GST on the sale price. The family situation changes and you end up using the property for family rather than renting it out. You have enacted a change of use.

For more information, read the blog post, GST: Change of Use

GST On Nightly Rentals

When you purchase a property with the intent of generating rental income, you apply for a GST number (unless you already have one) prior to the completion date. The Government asks you at the time of application, whether you want to submit the GST collected on a monthly, quarterly, or annual basis. Please note, GST is not deemed as income.

When you retain a property manager, they will generally charge and collect the GST on the nightly rentals. The property manager will then remit the GST collected directly to CRA monthly.

Collecting and Submitting GST

The person who collects the GST on the revenue and submits it to the CRA files a return quarterly.

• GST on revenue is called output tax.
• GST on expenses is called input tax.
• Output tax minus input tax is what is submitted.

Note, some rental managers who are dealing with many owners, may submit all the output tax on their own GST number. If that is the case, then when the owner files their quarterly or annual GST return, they claim the GST on their expenses. This is where having a rental property manager taking care of this for you, can relieve you from this responsibility. Again, it is vital to have an accountant guiding you through this process.

GST Threshold

When you own a property that has zoning for nightly rental and you rent your property nightly, there is a threshold of $30,000 gross revenue per year before you need to start collecting and submitting GST to the Canadian Government. At the $30,000 gross revenue, the government decides you are running a commercial operation. This threshold applies to any business in Canada.

However, to be clear, anyone earning income under $30,000 must declare their net income. In addition, the word revenue is not the same as income which is not the same as net income. Did I mention, that you need to seek professional advice about GST?

Once you exceed that threshold, the Government of Canada tax authority, called the Canada Revenue Agency (CRA) expects you to declare your net income on nightly rentals. It also expects you to file a regular GST filing. The $30,000 threshold also has a bearing on whether you need to obtain a GST number for filing.

Note: Collecting GST on rental income is separate from paying tax on income, and all of that is different from paying GST on the purchase of your property.

GST on a Major Renovation

This is a topic that should be researched when you are considering a major renovation/rebuild. The Government of Canada says that any renovation that affects 90% of the property may enact 5% GST to be due on the property. How that 90% is calculated is the key.

This page, written by realtor, Marion Anderson was designed to give you just enough information so that you can raise your concerns with a professional. In this case, I would suggest that the architect or builder calculate how close you would be with your renovation to raise the interest of the CRA. Then review their findings with your accountant.

The Government of Canada has a page of information on this topic, under “Point 2. Determining whether a building has been substantially renovated:

Underused Housing Tax – UHT annual

For an overview of the UHT and the issue it is causing in Whistler, please read my blog, Underused Housing Tax is Unclear For Whistler.

Regarding the UHT there are two designations, “excluded” and “affected”. Typically Canadian Citizens are excluded if one of the following pertains to you:

• an individual who is a citizen or permanent resident of Canada, unless you are an owner of the residential property as either of the following:
  • a trustee of a trust (except if you are the personal representative of a deceased individual, in which case you are an excluded owner of the residential property)
  • a partner of a partnership
• a corporation that is incorporated under the laws of Canada or a province whose shares are listed on a Canadian stock exchange designated for Canadian income tax purposes

Please note, that there is a longer list of the criteria for excluded classification as found on the GOC website.

If you are excluded, then you do not need to:

1. file a return
2. pay the tax.

SELLING

Tax on the Disposition of Property

When you sell your Whistler property, the CRA wants their cut. A resident of Canada is taxed on 50% of the net capital gain. For example:

You bought the property for $1,000,000 and sold it for $3,000,000, therefore the net capital gain of 50% of $2,000,000 is $1,000,000. Then the selling costs would be deducted, for example, selling costs were $100,000. Therefore the net capital gain would be taxed on $900,000. It is important to speak with your accountant to discuss any expenses incurred while owning the property, for example, a renovation. This may affect the net calculation.

BC Home Flipping Tax

The BC home flipping tax will apply to income from B.C. properties sold on or after January 1, 2025. Income from property purchased before the tax’s effective date may be subject to the new tax if sold on or after January 1, 2025, and within 2 years of purchase unless an exemption applies. 

The Federal Government’s tax on capital gain on the sale price is 50% of the profit which is taxed at the marginal tax rate. The BC Home Flipping tax rate will be 20 percent for income earned from properties sold within 365 days of purchase and will decline to zero between 366 and 730 days. For full information on this tax please read the blog, BC Home Flipping Tax.

Next Steps

Buying real estate in Whistler, whether ski-in/ski-out or not, is a smooth process when working with an experienced Whistler real estate agent who follows the rules. Everything in real estate, except for writing the contract and the negotiation is a process. Experienced realtor, and skilled negotiator, Marion Anderson will work with you directly from start to finish. No assistants are involved.

If you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me. I look forward to hearing from you.

It’s a Good Life in Whistler!

Marion

Marion Anderson Personal Real Estate Corporation

marion@WhistlerSkiinSkiout.com (604) 938-3885