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.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Affordable apartments planned for Nanaimo’s Brechin Hill neighbourhood

Proposed development would be near Terminal Park plaza and B.C. Ferries’ Departure Bay terminal

Storm score a Game 2 win against Buccaneers

VIJHL playoff series between Nanaimo and Campbell River tied 1-1

Wee Tipple Party whiskies and fine foods nourish Nanaimo’s performing arts

Crimson Coast Dance fundraiser happens Friday, March 6, at the Grand Hotel

‘Going green’ en vogue for Prom Closet Nanaimo

Non-profit event looking to make high school prom less cost-prohibitive goes March 5-7

VIU and Nanaimo high schools host Skills Canada competitions

Central Island and Sunshine Coast high school student compete for spots on provincials and nationals

Beefs & Bouquets, Feb. 27

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail editor@nanaimobulletin.com

Nanaimo woman to compete in new season of ‘Big Brother Canada’

Carol Rosher, a cancer survivor, is one of 16 houseguests appearing on reality TV show

Nanaimo teen to audition on ‘American Idol’ on Sunday’s episode

Lauren Spencer-Smith will be auditioning in front of judges Katy Perry, Lionel Richie, and Luke Bryan

Hundreds of B.C. firefighters ‘climb the wall’ for BC Lung Association

The charity fundraiser saw participants climbing up 48 storeys

Cheslatta Carrier Nation and Rio Tinto sign a historic agreement

Co-operation crucial to stem dropping Nechako Reservoir level

Stories of sexual assault at B.C. tree planting camps ‘shocking but not surprising:’ advocate

Contractors’ association is working with trainers to create respectful culture

Lawyer gets house arrest for possessing child porn

Maple Ridge resident gets nine-month term

Most Read