Information for the Buyer and the Seller:

The result of the Harmonizing Sales Tax (HST)

Increasing Cost of New Homes

For new homes, under the previous system, only 5% GST was charged on new home sales. Now, new homes and developments will be subject to the 12% HST.

To offset the increase in costs, the BC Government plans to offer a partial rebate of the HST for new housing, intending that new homes up to $525,000 should bear no more tax than under the current PST system. Homes above $525,000 will receive a flat rebate of $26,250. New home sales over $525,000 will be impacted, as buyers will have to pay an additional 7% tax less the $26,250 flat rebate.

On November 18, 2009 the provincial government announced the HST transitional rules on housing which includes a threshold increase from $400,000 to $525,000, moving the threshold to above the median new home price in the province. According to the government news release announcing the transitional rules, the limit was increased due to feedback from consumers and the industry.

Increasing Cost of Professional Services like REALTOR® Commissions

The HST will apply to most services provided by GST/HST registrants in BC. As such, service-providers like REALTORS®, home inspectors, and appraisers will be required by government to collect and remit 12% HST on their fees.

Property Transfer Tax (PTT) Information:

Since 1987, the Property Transfer Tax (PTT) has been levied on all real estate transactions as follows:

PTT Rate
First $200,000 = 1%
Balance over $200,000 = 2%

Originally, the PTT was considered a wealth tax, with the 2% portion expected to apply to only 5% of homes sold. In 2008, the 2% portion was levied on about 85% of homes sold, and rose even higher to 88% in 2009.

BC ranks worst among all provinces in terms of burden of land transfer taxes on homeowners. In fact, British Columbians pay 222% more in land transfer taxes per transaction than the average Canadian and the BC Government levies a PTT rate that is 129% higher than the average for Canadian provinces. Higher property prices are not solely to blame for this scenario; prices in British Columbia are 45% higher than the Canadian average, so the inequitable structure of the BC Government's PTT adds an additional burden of up to 177%.

What are the Building Restrictions on Saturna Island?

The Saturna Island By laws state the permitted uses for:

RURAL RESIDENTIAL ZONE (RR)

Permitted Uses
The following uses are permitted, subject to the regulations set out in this section and the general regulations set out in Part 2, and all other uses are prohibited.
(1) Residential;
(2) Home occupations.

Residential Site Density
On a parcel hectares (3 acres) or less the maximum density is one (1) residence.
On a parcel greater than 1.21 hectares (3 acres) the maximum density is one (1)
residence and one (1) cottage.

Lot Coverage
On lots less than .4 hectare (one acre), lot coverage for buildings and structures shall not exceed 20 %.

Building Setbacks
No building or structure except a fence or pumphouse shall be located within 7.6 metres (25 ft.) of any front lot line or rear lot line .No building or structure or part thereof except a fence or pumphouse shall be located closer than a distance of 3 metres (10 ft.) measured from the interior side lot line to the furthest projection of the building, nor, subject to the regulations adopted pursuant to the Highways Act, closer than 4.5 metres (15 ft.) from an exterior side lot line. No enclosure or structure for housing animals and poultry shall be closer than 7.6 metres
(25 ft.) to any property line.

Subdivision Lot Size Requirements
No lot having an area less than 0.81 hectares (2 acres) may be created by subdivision in the Rural Residential Zone except where a proposed lot fronts on the ocean, it may have an area not less than 0.4 hectares (1 acre). No subdivision plan may be approved unless the lots created by the subdivision have an average area of at least 2.02 hectares (5 acres).

RURAL GENERAL ZONE (RG)

Permitted Uses
In the Rural General (RG) Zone the following uses are permitted, subject to the
regulations set out in this section and the general regulations set out in Part 2, and all other uses are prohibited.
(1) residential; (2) home occupations and home based industry;
In addition to the uses permitted above, the following uses shall be permitted on parcels 1.0 ha (2.5 acres) or larger:

Residential Site Density
On a parcel 1.21 hectares (3 acres) or less the maximum density is one (1) residence. On a parcel greater than 1.21 hectares (3 acres) and less than 4.05 hectares (10 acres) the maximum density is one (1) residence and one (1) cottage (under 1000sq ft). On parcels 4.05 hectares (10 acres) or greater one (1) residence and one (1) cottage per 2.02 hectares (5 acres) are permitted up to a maximum density of five (5) units and five (5) cottages per parcel.

Lot Coverage
On lots less than .4 hectare (one acre), lot coverage for buildings and structures shall not exceed 20 %.

Building Setbacks
No building or structure or part thereof except a fence or pumphouse shall be located within 7.6 metres (25 ft.) of any front lot line or rear lot line. No building or structure or part thereof except a fence or pumphouse shall be located within 3 metres (10 feet) of any interior side lot line nor subject to the regulations adopted pursuant to the Highways Act, shall be located closer than 4.5 metres (15 ft.) from an exterior side lot line. No enclosure or structure for housing animals and poultry shall be closer than 7.6 metres (25 ft.) to any property line.

Subdivision Lot Size Requirements
No lot having an area less than 0.81 hectares (2 acres) may be created by subdivision in the Rural General Zone. No subdivision plan may be approved unless the lots created by the subdivision have an average area of at least 2.02 hectares (5 acres).

FOREST GENERAL ZONE (FG) Permitted Uses

9.2.1 In the Forest General (FG) Zone the following uses are permitted, subject to the regulations set out in this section and the general regulations set out in Part 2, and all other uses are prohibited.

9.2.1(1) residential;

9.2.1(2) the harvesting of trees and the carrying out of all silvicultural practices;

9.2.1(3) grazing, accessory to the growing of trees

9.2.1(4) portable wood chippers and sawmills for logs harvested on the parcel;

9.2.1(5) television and radio antennas;

9.2.1(6) home occupations and home based industry; and,

9.2.1(7) farm use on land within the Agricultural Land Reserve.

Height
9.2.2 No building shall exceed 9 metres (30 ft.) in height.

Building Setbacks
9.2.3 No building or structure except a fence or a pumphouse shall be located within 7.6 metres (25 ft.) of any front or rear lot line, nor within 3 metres (9.8 ft.) of any interior side lot line, nor within 4.6 metres (15 ft.) of any exterior side lot line.

Site Density
9.2.4 The permitted site density shall be one residence and one cottage per parcel.

Lot Size Requirements
9.2.5 No lot having an area less than 20.24 hectares (50 acres) may be created by subdivisionin this Zone.

For more zoning information:
Go to www.islandstrust.bc.ca click on Saturna Island land use by-law

Legislation which has been in effect since 2002 concerning bluffs and riparian areas

There are some special procedures for properties along fish-bearing streams and bluffs. This affects portions of this rocky island (as there are many bluffs) and the entire Lyall Creek Area.

a. DEVELOPMENT PERMIT AREA:
Along bluffs and streams (fish-bearing or not), when obtaining a building permit must be passed by the appropriate Island Trust planner. The Trust has a map of the island that delineates the Development Permit Area. This is done by overlaying it on a subdivision map of the island. Developing the lot on such an area cannot be stopped; they only need to be sure that the building plans do not in any way impact the biology of the area. (There are guidelines in Saturna's Official Community Plan that tell what has to be done.) Once the application is submitted a report from a qualified biologist will confirm the building site is not harmful to the area (bluffs or stream). The permit itself costs around $500 plus the cost for the biologist's report.

b. RIPARIAN AREAS:
When reviewing the information on Development Permit Areas it can affect those properties within 30 m of any creek. This requirement was put in place by the Ministry of Environment about 2 years ago. It legislates a report by a Qualified Environmental Professional and it's easy to meet the requirements if the stream is not fish-bearing. A short report just confirms it's not a fish-bearing stream. If it is a fish-bearing stream, however, like Lyall Creek, it mandates a more comprehensive report. This report is similar to the DPA in that building plans will not adversely affect the fish-bearing stream.

What is the Population and Size of Saturna?

Approximately 350 residents and only about 100 are full time

3422 hectares (8,455 acres)

What types of water systems are there on Island?

There are three main water systems:

1) Lyall Harbour/Boot Cove Water System
This service provides water supply and distribution facilities for the Lyall Harbour/Boot Cove area on Saturna Island, Southern Gulf Islands. About 171 lots participate in the service. Water is drawn from Money Lake.

This service is administered by the Lyall Harbour/Boot Cove Local Service Committee.

Contact
John Wiznuk 250.539.3275

2) Drilled wells, springs and artesian wells are other water sources

3) Cisterns. Most of the residents in the Cliffside area have water catchment systems and there is at least one desalinization plant on a property used as a back up.

Are there Certified Septic installers on Island?

1) Gaines Enterprises (250) 539-5463
2) Rowe (Ian) (250) 539-2013

Who can do site preparation?

1) Gaines Enterprises (250) 539-2452
2) Rowe (Ian) (250) 539-2013
3) Saturna Garage and Contracting (250) 539-5245

Who is available for construction on Island?

There is a plumber and an electrician and a variety of builders, carpenters and other trades people residing on Island. A look through the local phone book and the Island newspaper, the Scribbler, will help in this area.

What areas of the Island are covered by Internet?

Saturna Broadband Co-Operative is the major service provider for the island. It is covered on most parts of the island except along Cliffside and some of the properties on top of the ridge. Those properties however are hooked up with “orcas on-line” from across the border. Also, some residents access internet via satellite.

Who does Site Surveys?

Contact the CRD Building Inspections office for this information.

Any other questions?

Please do not hesitate to ask.

Gulfport Realty ~ Saturna Island Real Estate

Susanne Middleditch