B.C. Finance Minister Carole James and B.C. Green Party leader Andrew Weaver announce rate reduction for Canadian citizens paying speculation and vacancy tax, Sept. 9, 2018. (Black Press files)

B.C. speculation tax going up for non-Canadian property owners

Finance minister to decide soon if strata rent bans exempted

The B.C. government’s speculation and vacancy tax is moving into full effect this year, with $185 million expected to be collected for 2019 as the rate increases for foreign owners in urban areas.

Finance Minister Carole James met with mayors in the effected regions Thursday, to hear their concerns about the impact of the tax on part-time residents and home construction. Going into the meeting, James said the data collected so far indicate that the tax is working as intended, contributing to a softening of home prices in Metro Vancouver and other urban regions.

Ministry data released Thursday do not indicate if the tax has had any effect on rental vacancy rates, the main objective of applying it.

Ministry data show 5,400 vacant homes are exempted because strata councils don’t allow rentals in the building. James said meetings with the mayors will determine if that exemption continues for 2020 and beyond, or if the tax applies no-rent condos starting next year.

The tax applies to secondary homes vacant for six months of the year or more in the designated cities of Abbotsford, Chilliwack, Mission, Kelowna, West Kelowna, Nanaimo, Lantzville, Metro Vancouver and the Capital Regional District around Victoria.

The B.C. government expects to collect most tax revenue from foreign owners and what the province calls “satellite families” who live in B.C. while the main income earner is a foreign resident. Applied to assessed value each calendar year, the tax started at 0.5 per cent of value for 2018, and goes up to two per cent for 2019.

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

RELATED: Speculation tax targets retirees unfairly, U.S. couple says

There are about 12,000 property owners required to pay or rent out their vacant home, with 4,600 of them foreign owners and 3,060 classified as satellite families.

More than 98 per cent of B.C. residents are exempt from the tax, mostly because their principal residence is their only home in B.C. Other vacant homes are exempted because the property is recently acquired or inherited, under construction or renovation, or are rented out at least six months of the year.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Festival of all things spicy kicks off Friday

Organizers say Sizzle keeps getting bigger and bigger

RDOS board remuneration, expenses come to $500,000

Costs presented in Statement of Financial Information

LocoLanding flowers brighten seniors’ day in Penticton

The many flowers that bloom in LocoLanding during the summer brighten the day for seniors

Affordable housing project in Okanagan Falls ready for tenants

South Skaha Place now accepting applications for affordable housing units

‘It’s almost surreal’: Penticton fire chief, sidekick Sammy recap rescue mission in Bahamas

Chief Larry Watkinson and Sam the disaster dog spent 8 days assisting a search and rescue team

Canadian stars Virtue, Moir say in video they’re ‘stepping away’ from ice dancing

The pair thank fans for their support in an emotional message

Kamloops high school evacuated after receiving threat

Police have not released any further details into what the threat includes

Woman held at gunpoint during carjacking in UBC parkade

University RCMP say the vehicle is still missing, and two suspects are at large

Morning start: Did you know Mary never actually had a little lamb?

Your morning start: Fun fact, weather, and video of the day

VIDEO: Angry B.C. cyclist starts shaming dangerous drivers online

‘You motorists deserve all your costs and misery’

Open fire ban rescinded in Kamloops, Okanagan and coastal regions

Category 2 and 3 open fires will be permitted starting Wednesday at noon

‘Time to take action:’ Children advocates call for national youth suicide strategy

Council wants Ottawa to make reporting of suicides and attempted suicides mandatory for data collection

Swedish rock band Ghost bringing full-scale performance to South Okanagan

The Swedish rock band’s Ultimate Tour Named Death arrives Sept. 21

Most Read