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

Four Penticton residents celebrating their 100th birthday say Penticton is the city to be

They shared some of their stories and advice on living well

Award-winning artist Belle Plaine coming to the Dream Cafe

Belle Plaine and the Vultures have multiple shows next week in the Okanagan starting in Penticton.

Penticton United Church welcomes Makers’ Market Nov. 23

From baking, to knitting, to toys and everything in between, get your Christmas shopping done early

Overtime heroics help Vees to 2-1 overtime victory

Vees cracked Chenard late in the overtime frame, with only 15 seconds remaining in extra time

Pecha Kucha returns to Cannery Brewing to Move It on Dec. 5

Speakers for the upcoming show haven’t been announced yet.

Teen with cancer whose viral video urged Canadians to vote has died, uncle tweets

Maddison Yetman had been looking forward to voting in her first federal election since junior high school

Environmental and animal rights activists chain themselves to front doors of Kelowna bank

The group is protesting Interior Savings Credit Union’s support of Kelowna Ribfest

Cold, stormy winter forecast across much of Canada, The Weather Network predicts

In British Columbia temperatures will be slightly above normal and precipitation will be just below normal

Cell phone tickets worse tax grab than speed limits, SenseBC says

Distracted driving statistics questioned as B.C. tickets pile up

Rowing Canada, UVic investigate celebrated coach for harassment, abuse

Lily Copeland says she felt intimidated and trapped by Williams

Cleanup in the works after tanker truck fire leads to oil spill in B.C.’s Peace region

The province said the majority of the spilled oil likely burned away in the fire.

BC VIEWS: Action needed on healthcare workplace violence

While we’ve been talking about it, the number of B.C. victims has only grown

Closing arguments begin in B.C. case launched in 2009 over private health care

Dr. Day said he illegally opened the Cambie Surgery Centre in 1996 in order to create more operating-room time

MacLean says “Coach’s Corner is no more” following Cherry’s dismissal from Hockey Night

Cherry had singled out new immigrants in for not honouring Canada’s veterans and fallen soldiers

Most Read