BC Acreage Buying Rules: ALR, Farm Class and GST

On this page (11 sections)

These BC rules apply to every acreage, farm and rural-land purchase on this site, whichever area it is in. They are written once here; each area page covers only what is specific to that area.

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First question: is the parcel in the Agricultural Land Reserve?

Being in an area does not settle it. Whether a parcel is in the ALR is decided parcel by parcel, and the Agricultural Land Commission publishes ALR maps for checking before you write an offer. If the parcel is in the reserve, the rules below apply to it. If it is not, the municipal zoning bylaw is what governs the land.

How many homes you can have on ALR land

The Commission’s housing rules say ALR land may generally have no more than one residence per parcel unless the parcel qualifies for an additional one, and a local government can restrict residences further through zoning. A principal residence must have a total floor area of 500 m² or less, and no more than 1,000 m² of fill, including structural aggregate for foundations and driveways, can be placed to build it. A secondary suite is allowed only inside the principal residence. One additional residence, detached from the principal one, is allowed up to 90 m² on a property of 40 hectares or less, or up to 186 m² on a property over 40 hectares. A larger home, or more homes than that, needs the Commission’s approval.

Subdividing or stratifying ALR land

Subdividing land in the ALR requires the Agricultural Land Commission’s approval, and depositing a strata plan counts as a subdivision. So ALR residences cannot be stratified without the Commission’s permission (ALC Information Bulletin 09 s.6, Strata Property Act s.239, Agricultural Land Commission Act s.21(1)). That is a permission rule, not an absolute ban, but price an ALR parcel as one parcel unless that permission exists. A bare-land strata lot is strata tenure, with Form B, fees and bylaws, and is the opposite of a fee-simple acreage purchase.

Farm class and what it takes to keep it

BC Assessment’s farm classification lowers the property tax on land that is genuinely farmed, and it depends on farm income, not on how a listing describes the land. The minimum gross income at farm-gate prices is $2,500 if the farm operation is between 0.8 ha (1.98 acres) and 4 ha (10 acres); $2,500 plus 5% of the actual value of the area over 4 ha if the operation is larger than 4 ha; and $10,000 if it is under 0.8 ha. A new application must be submitted by October 31 to count for the next assessment and tax year. A buyer who plans to keep farming a farm-classified property submits a General Application for Farm Classification by October 31. BC Assessment removes the classification if a property stops meeting the requirements or the owner does not provide the supporting information it asks for.

GST on farm land and vacant land

Canada Revenue Agency Info Sheet GI-003 says most sales of vacant land by individuals are exempt, with personal-use land as the example. An individual’s sale can still be taxable where the land is capital property used mainly in a business, is sold in the course of a business, or is a subdivided parcel of more than two parts. Farmland is the caution: the CRA treats sales of farmland by individuals in a separate info sheet and generally as taxable, with limited exemptions, including certain transfers to a related person for personal use. For a working farm the land, barns, quota and residence can each carry a different GST position, so the contract should state it and the vendor’s status should be confirmed before subjects come off.

Small-scale multi-unit housing rarely applies to acreage

The province’s small-scale multi-unit housing rules are written for serviced urban lots. As one example, the Township of Langley’s bylaw (Bylaw 6020, adopted November 18, 2024) allows 3 or 4 units only on lots of 4,050 m² or smaller that are inside the Urban Containment Boundary and on municipal water and sewer, so most acreages fail on size and servicing alone. Every municipality has its own bylaw, so confirm what the zone allows for a second home, a shop or a suite before pricing any plan around extra units.

Wells, septic and what to test before removing subjects

Rural parcels are often on a well and a septic field rather than city water and sewer. Before removing subjects, test the well’s flow and water quality, have the septic system inspected, confirm the permits for outbuildings, suites and shops, and ask the municipality what the zone allows.

Flood, drainage and farm-business items

Much of the Fraser Valley’s best farmland sits on a floodplain behind dikes, so ask the municipality about dike, drainage and floodplain status for the specific parcel. Quota, barn standards and marketing-board rules for poultry, egg or other supply-managed operations are not covered by a source here; confirm them with the relevant marketing board and the vendor.

Sources

BC acreage buying: your questions answered

Is this parcel in the ALR, and what changes if it is?

ALR status is decided parcel by parcel, so check the Agricultural Land Commission’s ALR maps before writing an offer. If it is in the reserve, residences are limited (generally one principal residence of 500 m² or less, plus the additional-residence allowance), subdividing or stratifying needs the Commission’s approval, and local zoning applies on top.

How many homes can I build on an ALR acreage?

Generally one principal residence of 500 m² or less (with no more than 1,000 m² of fill), a secondary suite only inside that residence, and one additional detached residence of up to 90 m² on properties of 40 ha or less, or up to 186 m² on properties over 40 ha. More or larger needs ALC approval, and local bylaws may be stricter.

Can I stratify or subdivide an ALR acreage to sell pieces of it?

Only with the Agricultural Land Commission’s permission. Depositing a strata plan is a subdivision, and subdivision in the ALR requires Commission approval or must fall under the ALR General Regulation. Price the land as one parcel unless that permission exists.

What farm income does a parcel need to keep farm class?

At farm-gate prices: $2,500 if the farm operation is 0.8 to 4 hectares; $2,500 plus 5% of the actual value of the area over 4 hectares if it is larger; and $10,000 if it is under 0.8 hectares. Applications to BC Assessment are due by October 31, including from a new owner who will keep farming.

Will GST apply when I buy farmland or vacant land?

It depends on the seller and the land. Most sales of vacant land by individuals are exempt under CRA Info Sheet GI-003, but farmland is treated separately and is usually taxable with limited exemptions, and business or subdivided-parcel sales can be taxable. Have the contract state the GST position.

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