BC BUDGET: NDP cracks down on speculators, hidden ownership

Foreign buyers’ tax extended to Fraser Valley, Okanagan, Vancouver Island

The NDP government has a 30-point budget plan that brings in a speculation tax, raises the foreign buyers’ tax and pledges to close loopholes that raise costs for B.C. residents.

Finance Minister Carol James introduced a much-anticipated speculation tax, to be put into place by fall 2018.

“It will tax foreign and domestic speculators and the tax will apply to property owners who don’t pay taxes in our province, including those who leave their units vacant,” said James. “This tax will penalize people who’ve been parking their capital on our housing market simply to speculate, driving up prices and removing rental stock.”

MORE ON BC BUDGET: NDP push for purpose-built rentals in ‘historic’ $1.6B housing investment

The tax will start at 0.5 per cent and rise to the two per cent rate this year as promised. It’s estimated to bring in $87 million in its first year, $13 million shy of the $100 million promised during the election.

It’s being extended beyond Metro Vancouver to the Fraser Valley, the Capital Regional District, the Nanaimo Regional District, Kelowna and West Kelowna.

Most principal residences will be exempt, as will qualifying long-term rental properties. Those who don’t qualify for the up-front exemption will be able to apply for an income tax credit for those who pay taxes in B.C.

Raising the foreign buyers tax

The NDP budget called the 15-per-cent foreign buyers tax in Metro Vancouver “insufficient” and immediately raises it to 20 per cent in Metro Vancouver and expanding it other urban areas.

“We think that foreign buyers should contribute more for the quality of life they enjoy living in our province,” said James.

What’s not included in this budget update is the BC Greens’ desired ban on foreign ownership altogether.

READ: Throne Speech leaves B.C. housing, childcare advocates awaiting details

The property transfer tax and school tax rate are both going up for properties worth more than $3 million. The transfer tax will go up from three to five per cent.

The province will bring in a registry to crack down on hidden ownership, where the name, or numbered company, on the land title is not the one benefiting from the property, as well as require developers to collect more information during condo pre-sales to make sure that required taxes are paid.

Addressing criticisms heard in Richmond, Delta and throughout the Capital Regional District, the province said it would look to review tax policies for homes built on ALR land to ensure the land is used for farming first.

The NDP are nixing the BC Home Owner Mortgage and Equity Partnership program in April, which gave first-time homebuyers loans of up to $37,500 or five per cent of the purchase price for homes under $750,000.

Brought in by the former Liberal government, the program was meant to bring more people into the housing market and spur development of entry-level homes.

However, the NDP said the program “has helped far fewer first-time home buyers than originally projected and had a minimal impact on housing affordability.”


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Sentencing for South Okanagan man who sent Christmas card to shooting victim

A South Okanagan dangerous offender tacked on another nine months of prison time

Video: Bizarre incident in Penticton alley leads to arrest of Calgary man

A man was witnessed jumping on a car ‘acting like an ape’

Gucci Mane concert officially postponed in Penticton

Agency is looking at new tour dates between the Sept. 3 and 15

Proposed pharmacy on busy Penticton corner could mean intersection improvements

The lot at 595 Carmi Ave. would be narrowed to widen the traffic lanes

Penticton block party to give a boost to local youth

Ellis on the Rise block party takes place on May 24

VIDEO: Showers are back in the forecast

Temperatures are expected to drop, paired with clouds and rain

Nominate your favourite businesses for the Best of the South Okanagan

Join the Penticton Western News as they celebrate the Best of the South Okanagan awards

Roadside device to weed out THC can’t detect impairment, B.C. lawyer says

‘This fact alone is likely to have serious implications for Canadians’ Charter Rights,’ lawyer Sarah Leamon warns

Summerland skater excels at 2019 Victoria Day Super Series

Yuzuki Onishi competed at recent skating event

VIDEO: Fire damaged Salmon Arm 7-Eleven demolished

7-Eleven representative says company interested opening elsewhere in Salmon Arm

Okanagan company wins contract for Kitimat LNG project

SK Form & Finish will work with equivalent of 4,000 fully loaded concrete trucks

Most British Columbians agree the ‘big one’ is coming, but only 50% are prepared

Only 46 per cent of British Columbians have prepared an emergency kit with supplies they might need

Kamloops RCMP bait program expands to include packages and bikes

Police are scatter items throughout the city in an attempt to lure thieves

B.C. man to pay Maxime Bernier’s People’s Party $20k over lawsuit

Federal judge shut down Satinder Dhillon’s ‘nonsensical’ motion to bar use of PPC name in byelection

Most Read