BC: Tax amendments to help keep more money in people's pockets
By Mario Cywinski | November 24, 2008
BC: By proposing amendments to some existing government Acts, the province is hoping to bring economic stability to British Columbians.
In all, the Economic Incentive and Stabilization Statutes Amendment Act is set to make alterations to eight current government acts. Each amendment will try to benefit a different section of society, from individuals and families to small businesses.
"We are providing tax relief to families and small businesses, while taking action to keep British Columbia's economy strong and competitive," said Finance Minister Colin Hansen.
Small business can expect to see their income tax rate be dropped to 2.5 per cent, effective December 1. It is believed that this will free up over $140 million for small businesses over the next three years.
A 50 per cent industrial property tax credit is also in the works and will allow owners to save money on school property taxes. Also, depositors of credit unions in the province will now have unlimited deposit insurance protection.
Those who are worried about how their property will be assessed can sleep easy knowing that 90 per cent of properties will use either the July 1, 2007 or 2008 number, depending on which is lower.
Further amendments are also expected, they include:
- a five per cent cut in personal income tax on the first $70,000 earned;
- the option of deferring 2009 and 2010 property taxes for those who have at least 15 per cent equity in their home to a later time;
- protection of fund in a Registered Retirement Savings Plan from being seized by creditors;
- and an amendment to allow beneficiaries of those with a Tax Free Savings Account to be honoured upon death.
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