B.C. Conservatives promise major rebate to address housing costs
CBC News | Posted: September 24, 2024 8:01 PM | Last Updated: September 24
The party says it would exempt $3,000 per month of rent, mortgage interest costs from provincial income taxes
The B.C. Conservatives have promised a major provincial tax rebate to address housing affordability, though the party has not said how it plans to pay for this proposal.
Leader John Rustad announced Monday that if elected, his party would exempt $3,000 per month of rent or mortgage interest costs from provincial income taxes.
The program — dubbed the Rustad Rebate — would start with a $1,500-per-month exemption that would cost around $900 million for Budget 2026, according to the party. The rebate would then be increased by $500 each year until it reaches the target amount in 2029, which the party says could cost around $3.5 billion if used by every home in B.C.
"This is one of the most significant tax reliefs that British Columbia has ever given," Rustad said at a news conference Monday.
WATCH | A profile of B.C. Conservatives Leader John Rustad:
He also added that when fully implemented, the program could save renters and homeowners around $1,600 to $1,700 annually. In addition, he says the rebate — which is aimed at middle-class tax relief — would also have a cap of around $250,000 in annual household income.
But the party has yet to explain how it plans to pay for the rebate, and Rustad said Monday it still needs to take a close look at the budget.
"Are we going to be able to balance right away? No," he said. "But we also need to make sure that we're providing tax relief immediately."
CBC News contacted the B.C. Conservatives Tuesday for additional comment about how the party would pay for its proposal.
Currently, the B.C. NDP's rebate — which was enacted last year — shaves up to $400 off taxes owed by low- and middle-income renters. Tenants making a combined net household income of $60,000 or less are eligible for the full amount, and those making up to $80,000 are eligible for a reduced amount.
Beyond increasing the deficit, UBC economist Tom Davidoff said Tuesday that there are few options to fund the B.C. Conservatives' proposed rebate.
LISTEN | Tom Davidoff discusses parties' housing promises:
"We know how it has to be paid for: either you raise taxes, or you cut spending on other programs," he said in an interview with CBC's The Early Edition. "Maybe the schools are a little bit worse. Maybe you pay more income tax. Maybe we have even worse health care."
He also said it's critical to address the core issue of costs drastically outpacing incomes, including creating more housing.
In particular, he called policies like Bill 44, which requires municipalities to add more density, important. On the other hand, Rustad has promised to eliminate provisions under this bill.
"Because anything you do to make life easier for people renting homes in British Columbia or buying homes means more people want to live in British Columbia," Davidoff said. "If you don't expand supply, you're just pushing up demand for a fixed supply of homes."