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

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

Just Posted

Cowichan Performing Arts Centre streaming new short film tonight

Standing By has been created and performed by Cowichan-raised actor Nicole Ratjen.

Who’s running in Cowichan?

A list of Cowichan candidates for the upcoming provincial election

Original drums recovered amid offers to replace stolen Chemainus church set

Chemainus United Church grateful for actions of a caring community

Shawnigan Lake’s Kubica gets 25 to life for murder in California

Former Shawnigan Lake man convicted of killing woman in 1990

105 new COVID-19 cases, 1 death as health officials urge B.C. to remember safety protocols

There are currently 1268 active cases, with 3,337 people under public health monitoring

B.C. nurses report rise in depression, anxiety, exhaustion due to pandemic

A new UBC study looks into how the COVID-19 response has impacted frontline nurses

National child-care plan could help Canada rebound from COVID-induced economic crisis: prof

A $2 billion investment this year could help parents during second wave of pandemic

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

Search suspended for Indigenous elder last seen mushroom picking in northwest B.C.

Mushroom picker Thomas (Tommy) Dennis has been missing since Sept. 16

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

16 MLAs retiring from B.C. politics add up to $20M in pensions: Taxpayers Federation

Taxpayers pay $4 for every dollar MLAs contribute to their pensions

‘Bonnie’ and ‘Henry’ among latest litter of service dog puppies

B.C. Alberta Guide Dogs names two pups after provincial health officer

B.C. VOTES 2020: Few solutions offered for ‘out of control’ camping

B.C. Liberals, NDP spend millions as problem keeps growing

Most Read