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

Part 2: Online shopping, taxes and labour pressure on Rupert’s retail

Part Two of a series investigating the shrinking retail sector on the North Coast of B.C.

Fire crews put out basement fire on 6th Avenue East

Prince Rupert fire chief said the fire is not being considered suspicious

Northern Savings buys old Dairy Queen building

Old Prince Rupert DQ building has been vacant in since the 1990s

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

Commercial diver from Prince Rupert drowns in Hecate Strait

WorkSafeBC and BC Coroners Service are investigating the diving incident south of Dewdney Island

This Week Pocast – Episode 107

Rainbow Nation’s host Russel Adams joins the show to talk about elections, cannabis and Halloween

Delivering the paper as a family

The Northern View is looking for newspaper carriers in Prince Rupert, join our team today

Proportional representation grows government, B.C. study finds

Spending, deficits higher in countries where voting system used

Black market will thrive until small pot growers and sellers included: advocates

Advocates say the black market will continue to thrive until small retail shops and craft growers are included in the regime.

Goodbye cable, hello Netflix: 1/3 of Canadians cut the cord

Just under half of households no longer have a landline phone

‘Some baloney’ in assertion Canada’s pension fund has highest ethical standards

The Canadian Press Baloney Meter is a dispassionate examination of political statements culminating in a ranking of accuracy on a scale of “no baloney” to “full of baloney”.

In Mexico Beach after Hurricane Michael, some coming home find no home

State emergency management officials said some 124,500 customers across the Panhandle were still without power Wednesday morning and 1,157 remained in shelters.

Man linked to Saudi prince at consulate when writer vanished

Saudi Arabia, which initially called the allegations “baseless,” has not responded to repeated requests for comment from The Associated Press over recent days.

Manhunt in Crimea for possible accomplice in school attack

An 18-year-old student, who later killed himself, was initially believed to be the only one involved

Most Read