British Columbia-> Budget 2014
British Columbia 2014 Budget - February 18, 2014
Medical Service Plan (MSP) Premiums
Maximum monthly premium rates will increase by approximately 4% for 2015. Premium assistance will also be enhanced to ensure those receiving assistance will not be affected by the increase. Details will be available later in 2014. We have published a table of the 2015 MSP rates, which reflects no change in the rates for those receiving assistance.
The threshold for the phase-out of the home owner grant is reduced from $1,295,000 to $1,100,000 for the 2014 tax year. For properties valued above $1,100,000, the grant is reduced by $5 for every $1,000 of assessed value (i.e., 0.5%) in excess of the threshold. If your grant is reduced because of high assessed value, you may qualify for a low income supplement.
The threshold for the income-tested home owner grant is $30,000. The income threshold for a partial benefit is $32,000.
The home owner grant is only allowed for the principal residence. Effective January 2011, the Home Owner Grant Program was amended to provide relief to homeowners who were disentitled from the grant because they incorrectly applied for a grant on a second residential property rather than on their principal residence.
A veteran's supplement for qualifying low-income veterans under 65 was introduced starting in 2012.
Effective for 2012 and future years, qualifying homeowners who have moved into a residential facility will be able to apply for the Home Owner Grant for one additional year, for the home that they continue to own, and that qualified in the previous year.
Effective April 1, 2015, the BC Early Childhood Tax Benefit will be introduced. This is a refundable tax credit that will be administered through the federal Canada Child Tax Benefit system, and is applied for by applying for the federal Canada Child Tax Benefit. Individuals must file a personal income tax return to be eligible.
The maximum benefit will be $55 per month, or $660 annually, for each child under the age of 6. The maximum benefit will be available to eligible families with family net incomes up to $100,000, at which point the benefit will be reduced. The benefit will be fully phased out at family net income of $150,000.
This tax credit is extended to the end of 2014.
This tax credit is extended for an additional three years to September 1, 2017.
Tobacco Tax Rates
The tax rate on cigarettes is increased effective April 1, 2014 from $44.60 to $47.80 per carton of 200 cigarettes. The tax rate on fine-cut tobacco is increased from 22.3 cents per gram to 23.9 cents per gram.
The threshold for eligible residential property under the First Time Home Buyers' Program is increased to $475,000 from $425,000 effective for registrations on or after February 19, 2014. The partial exemption applies to homes valued between $475,000 and $500,000. This allows eligible first time home buyers to save up to $7,500 in property transfer tax on the purchase of their home.
All of the tax changes in the 2014 Budget are subject to legislative approval.
The above does not include all provisions of the 2014 Budget. For further information see the following on the BC Government website:
Revised: December 22, 2016
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