B.C. Finance Minister Carole James and B.C. Green Party leader Andrew Weaver announce rate reduction for Canadian citizens paying new property tax on homes empty six months of the year or more. B.C. legislature, Sept. 9, 2018. (Tom Fletcher/Black Press)

Strata rental bans escape B.C. speculation tax through 2021, Carole James says

Vacant home tax won’t apply to cabins accessible only by water

The B.C. government is changing exemptions to its speculation and empty home tax in urban areas, as it prepares to quadruple the rate charged for foreign owners and “satellite families” who don’t pay Canadian income tax.

Finance Minister Carole James announced Tuesday that the speculation tax exemption for strata properties where rentals are banned will end on Dec. 31, 2021. That date is after the next scheduled B.C. election, and the B.C. Liberal opposition has opposed the NDP speculation tax as a method to force property owners to rent out homes that are vacant six months or more per year.

Also to be phased out at the end of 2021 is an exemption for strata accommodation properties, or strata hotels, units kept in some condo buildings for tenants to rent out to visitors. An exemption for vacant land ends after this year, meaning it won’t apply to property tax bills until 2021.

The speculation tax was introduced in 2018, with both the rates and the areas of application altered after protests from owners and the B.C. Green Party. For Canadian owners, it now applies at an annual rate of 0.5 per cent of the assessed value of the property every year on secondary homes. For the 2019 assessment year, the tax rises to 2.0 per cent for foreign owners and satellite families, payable on 2020 property taxes.

RELATED: Seniors with unrentable Bellcarra cabins protest tax

RELATED: Greens force lower speculation tax rate for Canadians

After rural areas including the Gulf Islands and parts of Vancouver Island were exempted, the tax now applies in the designated cities of Abbotsford, Chilliwack, Mission, Kelowna, West Kelowna, Nanaimo, Lantzville, Metro Vancouver and the Capital Regional District around Victoria.

James said Tuesday the tax is working as expected, applying mainly to foreign owners who buy properties as investments in a rising urban real estate market. The province is also increasing the identification required of corporations, trusts, partnerships and foreign owners, to close loopholes that would allow “beneficial owners” of properties to avoid the tax.

“I recognize that there are a variety of views on the speculation and vacancy tax,” James said. “There are those who oppose the tax and others who want to implement additional tax.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Just Posted

Restaurants at the Prestige in Radium “ready and eager to welcome patrons”

Conrad’s Kitchen and Grill as well as Don Agave Cantina re-open.

Local company’s sweet burn fades

Local owners Dave and Kathy Sutherland are moving on, leaving stockpiles of their jelly dwindling.

Video invites visitors back to valley

Chamber video says: “Hey, hey! Come back and play, play.”

Invermere deer ‘hoofs’ woman and dog

Aggressive deer incidents increase this year, as woman and dog left bruised and injured

Recent surge in COVID-19 cases not unexpected amid Phase Three of reopening: B.C.’s top doc

Keep circles small, wear masks and be aware of symptoms, Dr. Bonnie Henry says

COVID-19 gives B.C. First Nation rare chance to examine tourism’s impact on grizzly bears

With 40 infrared cameras deployed in Kitasoo-Xai’Xais territory, research will help develop tourism plan with least impact on bears

NDP wants Lower Mainland MLA removed from BC Liberal caucus for alleged homophobia

BC Liberal leader, some MLAs apologize for Christian magazine ads but Laurie Throness doubles down

B.C. health officials pleased with likely extension of Canada-U.S. border closure

Health Minister Adrian Dix says the situation is ‘very serious in the United States’

Children suffer swollen eyes, burns while playing at Lower Mainland spray park

Mission RCMP are investigating incident that injured several children

B.C. NDP changing WorkSafeBC regulations to respond to COVID-19

Employers say reclassifying coronavirus could be ‘ruinous’

Baby raccoon rescued from 10-foot deep drainage pipe on Vancouver Island

‘Its cries were loud, pitiful and heartbreaking,’ Saanich animal control officer says

Statistical flaws led to B.C. wolf cull which didn’t save endangered caribou as estimated

Study finds statistical flaws in an influential 2019 report supporting a wolf cull

Windows broken, racist graffiti left on Okanagan home

Family says nothing like this has happened since they moved to Summerland in 1980s

Most Read