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

Climate change warnings based on science

Letter to the Editor from Jos Sharp of Trail

Kootenay Boundary hospital addresses construction woes

Ground broke on the project last month, and has since caused access and traffic problems at KBRH

Christmas Raffle, Helping Seniors for 18 years

Draw is Dec. 17; Tickets for the 18th annual raffle are available in the lobby of the Trail hospital

Stolen sax, sheet music, impacts Trail big-band and after school band

Anyone with information is urged to call the Trail RCMP detachment at 250.364.2566

Extensive road repair nears completion in Fruitvale

The scope of work includes new water and sewer service connections as well as road resurfacing

VIDEO: E. coli outbreak linked to romaine lettuce sickens 18 people in Ontario, Quebec

The Canadian Food Inspection Agency says it’s working with U.S. authorities to determine the source of the romaine lettuce those who got ill were exposed to.

B.C. sees biggest spike in homicides across Canada, at 34%

Much of the killing was attributed to gang violence, according to Statistics Canada

Sea lion tangled in rope on Vancouver Island

Marine debris is a ‘significant problem’ for marine wildlife

Postal strike affects charities at critical fundraising time

Canadian fundraising professionals and charities join call for fast resolution

$90,000 pen from space created by B.C man

The Space pen is made from a meteorite

Friendly falcon now in residence at Okanagan raptor rehab centre

A rare prairie falcon caught in Trail will spend the winter at the SORCO Raptor Rehab Centre

B.C. woman fined $2,300 for clocking 215 km/hr in Alberta

It’s the highest fine Alberta police have issued

Watchdog calls for probe into police board spending on former Victoria police chief

Police Complaint Commissioner says accountable and transparent review is in public interest

South Korean named Interpol president in blow to Russia

South Korea’s Kim Jong Yang was elected as Interpol’s president edging out a longtime veteran of Russia’s security services.

Most Read