[URBAN NOTE] "Class-action lawsuit filed against B.C.'s foreign buyer property tax"

[rfmcdonald]

CBC News' Eric Rankin reports on a class action lawsuit filed against British Columbia for its tax on foreign home buyers. This sounds like it could have some legs.

A class-action lawsuit has been filed in B.C. Supreme Court on behalf of virtually all non-Canadians who have been forced to pay an extra 15 per cent under amendments to the Property Transfer tax act.

If the lawsuit is certified by the courts and succeeds, the province could be forced to repay hundreds of millions of dollars — much of the expected revenue now earmarked to pay for affordable housing for British Columbians.

[. . .]

The lead plaintiff in the case is Jing Li, 29, a university student from the People's Republic of China, now living in Burnaby.

In August, Jing told CBC News she was caught in a financial crunch by the imposition of the additional tax.

In mid-July, she cobbled together a 10 per cent deposit on a $560,000 townhouse in Langley by borrowing from her parents and friends in China.

Twelve days later, the new levy was imposed.

The tax added $84,000 to the price of the property. If she backs out of the deal, she will lose her non-refundable deposit of $56,000.