Reinvesting the PTT in green homes and buildings; Good for our economy, our environment and our neighbourhoods
RealtorLink October 19, 2007
With Property Transfer Tax (PTT) revenues forecast to increase to $1 billion in 2008, the provincial government is in a position to tackle climate change head on by reinvesting PTT revenue.
About 11 per cent of greenhouse gas emissions can be attributed to buildings, including homes and offices, another 15 per cent is the result of construction and another eight per cent the result of construction waste.
"Two professions - real estate and home building - are so concerned, we've partnered to develop solutions," says Real Estate Board of Greater Vancouver president Brian Naphtali.
Those solutions can be found in the Board's annual pre-budget submission.
This year, the Board worked with BC Real Estate Association (BCREA) and with the Canadian Home Builders' Association of BC (CHBA-BC) to develop recommendations on how the government can help reduce emissions from homes and commercial buildings.
The result is a program the Board, BCREA and CHBA-BC has named The Green Building Tax Incentives and Rebate Program. It will be a two-year pilot program in selected BC communities to make green building, buying and renovating homes and buildings more affordable.
The program would see the BC government reinvest PTT and Provincial Sales Tax revenues to fund rebates and incentives outlined in five recommendations:
- 1. Provide a PTT rebate to buyers of homes that meet or exceed the standards of the Built GreenTM BC program.
- 2. Provide a PST rebate to home owners renovating to energy efficient standards.
- 3. Provide a PTT rebate to buyers of energy efficient green commercial buildings.
- 4. Provide a PST rebate to owners of commercial buildings renovating to energy efficient standards.
- 5. Provide incentives to local governments to promote green development.
"Everyone understands that green buildings are more energy efficient, healthy and sustainable, and they create new markets for green products and services," says Naphtali.
"But they cost more. We can encourage builders, buyer and renovators of homes and buildings by offering incentives and rebates."
In BC, there are only 828 Built Green TM BC homes. Each one annually saves 2.5 tonnes of greenhouse gases. One 60-lot subdivision is the equivalent of taking 40 cars off the road each year.
How much would this program cost?
Last year 36,443 new homes were built in BC. If just five per cent or 1,820 homes had been built to the Built GreenTM BC Gold standard and had received a $5,000 PTT rebate, it would have cost the government $9.1 million. This is less than one per cent of the $1 billion in revenue the PTT will generate this year.
"As a result 4,550 tonnes of greenhouse gas would have been prevented from entering our environment," explains Naphtali. "Our recommendations are good for our economy, good for our environment, and good for our neighbourhoods."
The Real Estate Board has recommended the BC government reinvest revenue from the Property Transfer Tax (PTT) and the Provincial Sales Tax (PST) in green homes and buildings by providing incentives and rebates to builders, buyers and renovators.
The Board has called on the government to implement a Green Building Tax and Rebate Program that would give rebates and incentives to:
- home buyers who buy green homes;
- home owners who are renovating to make their homes energy efficient;
- commercial buyers who buy green buildings; and
- commercial building owners who are renovating to make their building more energy efficient.
Home buyers and home owners
How much money would the Real Estate Board's recommendations save home buyers?
A home buyer of a:
- home built only to the BC Building Code would not receive a rebate.
- Bronze level home would receive a $2,500 rebate.
- Silver level home would receive a $3,500 rebate.
- Gold level home would receive a $5,000 rebate.
- Platinum level home would receive a $7,000 rebate.
Home owners who renovate
Any homeowner renovating to make their home more energy efficient would receive:
- a Provincial Sales Tax (PST) rebate.
Qualifying renovations could include energy efficient appliances, heating equipment, cooling and ventilation equipment, windows, doors, skylights, lighting and landscaping including drought tolerant plants, permeable paving and efficient irrigation using technology.
