B.C. Finance Minister Carole James. (Hansard TV)

Battle resumes over speculation tax on B.C. vacant homes

Opposition calls it ‘fake’ tax that is reducing housing supply

B.C. Finance Minister Carole James has delivered her promise to impose a speculation tax on homes that sit vacant more than half of the year, focused on urban areas with high housing prices and low rental vacancy rates.

The introduction of the tax bill prompted an immediate demand from the opposition to scrap the tax. B.C. Liberal leader Andrew Wilkinson referred to mayors who objected to the tax at the recent Union of B.C. Municipalities convention, calling it a “fake” tax that has targeted mostly B.C. residents and caused new housing developments to be cancelled.

James said she has met with mayors who called for the tax to be a local decision, and she’s moving ahead.

“We’ve seen examples of families being forced to live in tents, workers and seniors living in their cars and professionals leaving this province,” James told the legislature. “As a result, businesses can’t find the workers they need to keep our economy growing.”

RELATED: Mayors call for changes to speculation tax

James rolled back the extent of the tax in March after protests from vacation homeowners, exempting the Gulf Islands, Parksville, Qualicum Beach, the Juan de Fuca region in Premier John Horgan’s constituency and rural areas of the Fraser Valley and Central Okanagan.

The tax applies to Metro Vancouver (except Lions Bay and Bowen Island), Greater Victoria and the municipalities of Nanaimo, Lantzville, Abbotsford, Chilliwack, Mission, Kelowna and West Kelowna. It is to take effect based on 2018 assessed property values, at 0.5 per cent for B.C. residents, one per cent for Canadians whose principal residence is outside B.C., and two per cent for foreign owners and “satellite families” who don’t pay income tax in B.C.

A satellite family is defined as a family that resides in B.C. but reports half or more of its family income outside Canada. Non-resident Canadians are those who pay income tax in another province.

B.C. Green Party leader Andrew Weaver was among the critics who had the rural areas and islands removed from the tax area. He said Tuesday he is still concerned that the tax may land on property owners who are not speculators.

“I have been raising numerous examples of homeowners who are not speculators who are being unfairly impacted by this tax, and I will be looking to see whether government has addressed these concerns,” Weaver said after the legislation was presented. “In addition, I have raised concerns about the impact of this tax on land under development and its implementation in stratas with no-rental clauses.”

James has stressed that people can avoid the tax by renting out their second residence for half the year or more.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Flames lose at home, win in Mission

Host Kodiaks on Friday night

Weavers and spinners to kick off holiday shopping

The Whonnock Weavers and Spinners’ 38th annual exhibit and sale takes place Nov. 25

Strong support for Pitt Meadows transportation projects

Overpass/underpass projects get majority support

Police aim to prevent retaliation after Hells Angel found dead in Maple Ridge

IHIT confirms Chad Wilson, 43, was the victim of a ‘targeted’ homicide

Ridge Meadows Hospital parking is still pay, but streets free

Surrey has removed meters on streets, asking Fraser Health for free parking at the hospital

UPDATE: IHIT confirms identity of Hells Angels homicide victim

Chad John Wilson was one of four men arrested in Spain in 2013 on allegations of smuggling cocaine.

Former NHL player and coach Dan Maloney dies at 68

Maloney coached the Toronto Maple Leafs and Winnipeg Jets

Ex-MSU president charged with lying to police about Nassar

Lou Anna Simon was charged Tuesday with lying to police during an investigation

Otter makes a snack out of koi fish in Vancouver Chinese garden

Staff say the otter has eaten at least five fish

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

B.C. lumber mills struggle with shortage of logs, price slump

Signs of recovery after U.S. market swings, industry executive says

25% of Canadians still won’t say they use pot, survey says

Statistics Canada poll says Canadians on average were 18.9 years old when they first tried pot.

Canucks’ 50/50 jackpot expected to surpass $1 million

The guaranteed prize for one lucky winner will be $500,000 minimum when Vancouver hosts LA Nov 27

The latest advent calendar trend: Holiday cannabis

A Canadian company is giving people from coast to coast a new way to celebrate the Christmas countdown.

Most Read