Finance Minister Carole James explains her budget measures in Victoria, Feb. 20, 2018. (Black Press files)

Rural cabins, cottages exempted from speculation tax

B.C. residents with second homes under $400,000 don’t pay

B.C.’s speculation tax on vacant homes is being restricted to urban areas, with vacation homes in rural areas exempted, Finance Minister Carole James said Monday.

The Gulf Islands, the Juan de Fuca region in Premier John Horgan’s constituency, Parksville and Qualicum Beach are being exempted, James said. The municipalities of Nanaimo, Lantzville, Abbotsford, Chilliwack and Mission will still be included, as are Metro Vancouver, Greater Victoria and the cities of Kelowna and West Kelowna.

B.C. residents also get a break on the tax rate for vacant second homes in urban areas. The tax takes effect on 2018 property value and stays at 0.5 per cent for B.C. residents with second homes.

Albertans and other Canadians whose principal residence is outside B.C. will pay 0.5 per cent the first year, rising to one per cent in 2019 and beyond. Foreign owners and “satellite families” will be the only vacant home owners charged the full two per cent that James announced in February, effective 2019.

B.C. residents with second homes that are subject to the tax will be eligible for a non-refundable tax credit that applies immediately, the finance ministry says. It offsets up to $2,000 of the new tax, meaning they will pay no speculation tax on properties up to $400,000 in value.

To be considered occupied, a home has to be rented at least six months a year in increments of one month. James said second homes in condo developments that don’t allow rentals will be temporarily exempted as well. Being rented out for three months will be sufficient for exemption in 2018 only.

James said she has heard many calls for change or repeal of the tax she announced in February, but it is needed in large urban areas to give people incentive to rent out vacant homes.

The change is designed to exempt “cottages and cabins on the lake,” James told reporters in a conference call from Vancouver.

As originally announced in the B.C. budget Feb. 20, the speculation tax would be charged to out-of-province residents who inherited a family summer or ski cabin, if it is in Metro Vancouver, the Fraser Valley, Nanaimo or Capital Regional District, or the municipalities of Kelowna and West Kelowna.

James did not comment on the effect the geographical and rate refinements would have on the expected revenue from the tax. She said it is needed to encourage more people to rent out properties that are vacant half the year or more, and to discourage speculative real estate investment.

B.C. Liberal leader Andrew Wilkinson said the NDP budget projected revenues of $200 million from the speculation tax, and now the rate is being cut for many and boundaries are being changed.

“We’re very concerned that the NDP are making up taxes by trial and error,” Wilkinson said.

Exemptions will also be considered for special circumstances such as a resident moving into long-term care or a property sitting vacant due to a death in the family, James said.

Just Posted

Nanaimo can skate and dance its way into 2019

New Year’s Eve event at Beban Park flashes back to the ’80s

Windstorm topples tree onto townhouse in Nanaimo

Heavy winds have thousands of B.C. Hydro customers without power

Lantzville council approves financial plan, property tax increase of 5.6-per cent

Councillors to vote in the new year on motion to lower property tax increase

Coast Bastion Hotel, union reach tentative deal

Deal between hotel chain and union representing Nanaimo workers reached early Friday

UPDATE: Winds knocking out power across the Nanaimo region

More than 12,000 residences affected across B.C. Hydro’s Vancouver Island North area

Trudeau to make it harder for future PM to reverse Senate reforms

Of the 105 current senators, 54 are now independents who have banded together in Independent Senators’ Group

Beefs & Bouquets, Dec. 13

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

Nanaimo city council will reconsider waterfront walkway plan

Project included in financial plan but councillors want to examine scope and timelines

Janet Jackson, Def Leppard, Nicks join Rock Hall of Fame

Radiohead, the Cure, Roxy Music and the Zombies will also be ushered in at the 34th induction ceremony

Supreme Court affirms privacy rights for Canadians who share a computer

Section 8 of the Charter of Rights and Freedoms protects Canadians against unreasonable search and seizure

‘I practically begged’: Kootenay woman with breast cancer denied referral to Calgary

Breast cancer patient left to fight disease alone after being denied referral to Calgary

21 detained before Paris protests as police deploy in force

There was a strong police presence outside the central Saint Lazare train station, where police in riot gear checked bags

Media, robotics, Indigenous studies coming to B.C. Grade 12 classrooms in 2019-20

Provincial tests are also being changed for students in Grade 10 to 12, the Education Ministry said

ICBC to apply for 6.3% hike to basic insurance rates

Crown Corporation said it will be submitting its next basic rate application to the British Columbia Utilities Commission Friday

Most Read