B.C.'s Economic Plan to Support Families, Workers and Boost Productivity
Across British Columbia, people and communities are feeling the effects of the global economic slowdown. Your government is taking steps to help you and your family deal with the personal economic impacts.
These measures include accelerated tax reductions, support for low-income earners, and new protection for people’s savings. Many of these benefits will flow to you directly.
More Information:
- New Steps to Help Homeowners, Seniors & Rural Residents
- Economic Plan Supports Families and Boosts Productivity
- Premier Announces Measures to Build Economic Strengths
- B.C. Adjusts to Global Economic Challenges
- Legislation Introduced to Maintain Strong Economy
- Low-Income Families Receive Climate Action Tax Credit
- Text of Bill 45 - the Economic Incentive and Stabilization Statutes Amendment Act
- Finance Minister Describes Bill 45 in the Legislature
New Help for Homeowners
Your government is introducing new measures to create certainty for homeowners and provide financial relief during these challenging economic times:
Temporary Tax Deferment
New legislation will allow homeowners who are experiencing financial difficulties as a result of the current economic conditions and have at least 15 per cent equity in their home to defer their property tax payments for each of the next two years, with simple interest applied at the prime rate. The deferred taxes do not have to be repaid until the home is sold, but can be paid back earlier if desired.
This builds on B.C.'s existing property tax-deferral program for homeowners 55 and over. Click for information on how to apply.
Property Assessments
For the 2009 assessment roll only, property owners will have their assessments set at the lower of the property values identified as of July 1, 2007 or July 1, 2008. This is to ensure that no property owner is faced with a higher assessment next year than they had this past year.
Assessments are used as the basis for municipalities to set their mill rates for property taxes. This change is intended to more closely reflect true property values in light of the significant drop in average property values in most areas of the province. Click for more information on what this means for you.
LiveSmart BC
Homeowners can also save thousands of dollars through B.C. government rebates.Choose to take advantage of B.C.'s new home energy efficiency incentives. Choose to better insulate your home. Choose low energy appliances, heating and lighting options. Save on power bills. Save on heating and cooling costs. Save on sales tax. Save hundreds to thousands of dollars by going to: LiveSmartBC.ca
Lowest Income Taxes in Canada
There will be a five per cent personal income tax reduction retroactive to January 1, 2008. This includes the two per cent tax cut that took effect July 1 of this year as well as the planned three per cent reduction that was to take effect January 1, 2009. Taxpayers will see the retroactive benefit on their 2008 tax return. It will put an additional $144 million in the pockets of British Columbians.
As a result of tax cuts made since 2001, an additional 250,000 low-income British Columbians now pay no provincial income tax. Individuals pay the lowest income taxes in Canada at all income levels up to $116,000 and most have seen a decrease of between 30 and 70 per cent since 2001.
Support for Low-Income Families
The B.C. Low Income Climate Action Tax Credit is providing up to $100 per adult, and $30 per child ($100 for the first child in a single-parent family) to low-income B.C. families. This tax credit is funded by the new carbon tax on pollution and is issued quarterly along with the federal GST credit rebate. Click for more information.
Rental Assistance
B.C.’s new Rental Assistance Program provides up to $765 per month towards rent payments for families with a household income of $35,000 or less and at least one dependent child. Click for more information and to apply or call 1-800 257-7756.
A New Pension
Your government is spearheading development of a privately financed, defined contribution pension plan that will be available to employers, employees and self employed people.
More Options for Seniors
Federal regulations currently require people to convert and draw down their Registered Retirement Savings Plans (RRSPs) to Registered Retirement Income Funds (RIFs) at age 71. To give seniors more flexibility, the Province has asked the federal government to change these rules. This would give seniors more choice on when to draw down their RRSPs, provide more time for their RRSP value to return; and allow them to continue making tax-deductible contributions to their RRSPs.
Security for Your Savings
New legislation will protect bank-held RRSPs from creditors. Currently, only RRSPs through insurance companies are protected. Your government is protecting the hard-earned investments of British Columbians no matter where their RRSPs are held. It is also making changes to provide unlimited insurance for deposits to credit unions so people know those deposits are protected.
Rental Assistance for Seniors
Through the Shelter Aid for Elderly Renters (SAFER) program, your government provides an average of $150 per month towards rent payments for low income seniors.
For information on how to apply, call 1-800-257-7756 or visit bchousing.org.
Small Business Tax Relief
Effective December 1, 2008 the small business income tax rate was reduced to 2.5 per cent. Combined with the reduction in July from 4.5 per cent to 3.5 per cent, small businesses have seen a 44 per cent reduction in small business tax this year alone. These tax cuts will inject an additional $401 million into B.C. small businesses over three years.
Corporate Income Tax Relief
Corporate income tax rates will be reduced to 10 per cent by 2011, giving B.C. the lowest corporate income tax rate in Canada.
PST and HRT Commission Increase
Your government is doubling the commission paid to businesses for collecting the PST and the hotel room tax. That will add up to $1,200 to a business’s annual bottom line.
Industry Tax Rebate
50 per cent of all school property taxes will be rebated to light and heavy industry annually. That will return approximately $50 million annually to our oldest and largest employers to help them reinvest and maintain jobs – especially in rural communities.
Removing the Coquihalla tolls is saving the average truck driver making a round trip once a week about $4,800 a year and the average motorist travelling the Coquihalla twice a month about $480 annually. You can save even more through the Province’s green tax rebates and the provincial Scrap-It program, that combined can provide up to $4,250 towards the purchase of a highly fuel-efficient automobile. Your government also provides tax exemptions for truckers to install aerodynamic devices that can save thousands of dollars annually. Visit LiveSmartBC.ca
Your government will accelerate public investment in capital infrastructure projects to keep people employed in our construction sector and keep goods and people moving.
This includes upgrades to the Highway 97 Cariboo Connector, Highway 3, Highway 16, and the Trans-Canada Highway and decommissioning of the toll plaza on the Coquihalla Highway. $20 million will be invested over 18 months for resource road maintenance, providing better transportation routes for workers and families in rural B.C.
33% Off Ferry Fares in December 2008 and January 2009
During the holiday season, many families travel on BC Ferries between the Lower Mainland, the Gulf Islands and Vancouver Island. To make things a little easier through the holidays, ferry fares this year were cut by one-third through December and January.
