B.C. Finance Minister Carole James and B.C. Green Party leader Andrew Weaver announce rate reduction for Canadian citizens paying new property tax on homes empty six months of the year or more, October 2018. (Black Press files)

12,000 property owners paying B.C. speculation tax so far

Mostly foreign owners, ‘satellite families,’ high-end properties

The B.C. government estimates it is owed $115 million for the first year of its speculation and vacancy tax on homes in urban areas.

As of July 4, there were 12,029 property owners paying the additional property tax, the finance ministry reported Thursday. Of those, 4,585 are foreign owners and 3,241 are what the province calls “satellite families” who live in B.C. while the main income earner is a foreign resident.

There are 2,410 B.C. residents currently assessed for the tax, for secondary homes in the designated cities of Abbotsford, Chilliwack, Mission, Kelowna, West Kelowna, Nanaimo, Lantzville, Metro Vancouver and the Capital Regional District around Victoria.

The province sent out 1.6 million tax notices to property owners in affected cities early this year, requiring every owner listed on title to register and either claim an exemption or pay the tax. About 23,000 registrations are still not accounted for, including owners who may be deceased or out of the country.

The figures released Thursday are for 2018, where the tax was due by July 2, 2019. All taxes collected for the first year are assessed at 0.5 per cent of property value, but foreign owners will soon pay four times that much unless they can find an exemption.

Foreign owners and satellite families pay the highest rate this year, two per cent of property value. The rate for B.C. residents who are not considered satellite families and Canadians living outside B.C. is 0.5 per cent, after the B.C. Green Party refused to support charging a higher rate to people from Alberta and other provinces who have vacation properties in B.C.

RELATED: B.C. Liberal leader vows to scrap speculation tax

RELATED: Speculation tax holdouts should talk to city hall: James

The finance ministry says the first-year revenue is higher than expected, partly because the tax is being paid on higher-value properties. The average assessed value of properties subject to the tax for 2018-19 is $1.62 million, while the average value for the cities where it applies is $1.11 million.

The provincial speculation tax is in addition to the empty homes tax assessed by the City of Vancouver. The B.C. version sparked a political battle, first over rural areas with vacation properties that were originally included, and then over the rate and requirement to occupy or rent out properties at least six months of the year to be exempt.

Finance Minister Carole James promised to meet with mayors of the affected communities this summer to discuss hardship cases and other exemptions. Those meetings are now scheduled to take place in September.

@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

South Okanaga SPCA receives over $21,000 from Penticton fundraiser

Barry Zarudenec almost single handedly raised over $21,000 for the South Okanagan Similkameen SPCA

All things spooky happening at Cawston Hall on Saturday

Masquerade Madness is back for fourth year

Ranchers help grow PRH

Ranching family’s roots recognized through PRH donation

Oktoberfest kicks off new Beer Week

The 10th annual event ties into the new week-long celebration of craft beers.

Vees fall to Clippers by 4-1

It was a bit of a feeling out process through the opening 20 minutes between two teams

B.C. mayor apologizes for removal of Queen’s portrait from council chambers

‘I prefer to be inclusive of the many aspects of our history’

Hergott: Driving and talking to a passenger

Lawyer Paul Hergott writes about distracted driving with passengers

Alcohol a possible factor in crash that killed 17-year-old girl near Williams Lake

A pickup truck left the road and rolled over on Highway 20 on the weekend

Summerland man celebrates 100th birthday

Bill Kenzle credits positive attitude as secret to a long life

Rare bird spotted in Victoria draws enthusiasts from across the continent

It’s the first time a yellow-browed warbler has been reported on the mainland of North America

B.C. woman must pay $1,000 after unleashed dog bites another

Owner should never have left Bibi unattended, tribunal member wrote

Halloween musical creeps onto the Summerland Community Arts Centre stage

Tracy Fehr and the Voice Studio Singers perform on Oct. 25.

Vernon player wins ATP tour event, named to Davis Cup squad

Vasek Pospisil joins Raonic, Shapovalov and Auger-Aliassime in representing Canada

Most Read