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

Flames will start new season based in Abbotsford

Junior B team could not find ice in Maple Ridge or Pitt Meadows

LETTER: Glad to say goodbye to CERB for local drug users

Reader feels COVID subsidy contributed to more overdose deaths among Maple Ridge homeless

SHARE: Recent wildfire smoke didn’t seem to stop local fowl

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon

IN THE PAGES: Libraries offer online educational alternatives for kids

Maple Ridge librarian Sarah Jost suggests a few websites parents might want to check out this fall

SHARE: Views offered from local dikes

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon

QUIZ: Do you know what’s on TV?

Fall is normally the time when new television shows are released

ZYTARUK: Fleecing students at U. of Fees

Students are forced to pay a scandalous heap of mandatory fees on top of their tuition

B.C. marriage annulled because husband was unable to have sex with wife

Husband did not disclose any sexual health concerns to his wife prior to marriage

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. VOTES 2020: B.C. Liberals vow to eliminate sales tax for a year

From 7% to zero, then back in at 3% to stimulate economy

White Rock’s namesake spray-painted with Black Lives Matter slogan

Vandalism occurred sometime between Friday and Saturday

The holiday everyone needs this year: Vote for your favourite in Fat Bear Week 2020

Voters will get to decide who gets to take home this year’s most coveted prize

Most Read