Tax on homes: British Columbia has announced plans to implement a new tax scheme targeting property flipping in the province as part of its 2024 budget released on Thursday.

Under the proposed measure, residential properties sold within two years of purchase could be subject to a tax of up to 20 per cent on the profits earned from the sale.

The tax structure will impose a 20 per cent levy on gains made from properties sold within the first year of purchase, with exemptions applying in cases of divorce, death, disability, and relocation, among other circumstances. 

Following the first year, the tax rate will gradually decrease, reaching zero between 366 and 730 days after the initial purchase.

The initiative, pending legislative approval, is distinct from federal property flipping regulations and aims to curb speculation that drives up residential property prices rapidly. 

The move responds to Canada's ongoing housing affordability crisis, attributed in part to heightened demand from migrants and international students, exacerbating housing shortages amid rising construction costs.

(With Reuters Inputs)