Property owners are receiving declaration forms this month for the B.C. speculation and vacancy tax, but fewer than one out of 100 will actually have to pay. (Black Press Media files)

Property owners are receiving declaration forms this month for the B.C. speculation and vacancy tax, but fewer than one out of 100 will actually have to pay. (Black Press Media files)

B.C. speculation and vacancy tax a big job with small returns

Declaration letters on the way for Nanaimo, Victoria, Kelowna

Every property owner in B.C.’s largest urban regions should receive a declaration letter by the end of February for the speculation and vacancy tax that almost none of them will have to pay.

The B.C. government says more than 99 per cent of owners now qualify for one of the exemptions, mostly because they don’t have a second residence. But they must declare their property status each year to avoid being billed, with payment due by July 1.

It’s the third year for the tax, which took in $88 million last year based on being vacant for at least six months of 2019. That’s about half of the revenue that was projected when the tax was imposed, which the finance ministry says is a sign it is working, as vacant homes are being sold or rented to avoid paying it. About 12,000 owners were forced to pay in the first year.

What does it cost to mail out hundreds of thousands of letters, process the responses and bill for the tax? That information is not available, because finance staff and call centres to handle the work are also dealing with other tax issues as well.

“Cost to administer the SVT program are not broken down on a program-by-program basis,” the finance ministry said in a statement to Black Press Media Feb. 9. “We put the necessary staff in place to ensure property owners have the information and support they need, and that people have access to information in multiple languages to complete declarations, seek tax information and claim exemptions.”

Whatever the cost of administering it, the NDP government’s legislation requires that all of the SVT revenue be spent on rental housing for the regions where it is collected. Finance Minister Selina Robinson has carried on her predecessor Carole James’ position that the tax is not for revenue but to maximize rental stock available. The ministry says the urban rental vacancy rate increased slightly in 2019, but by the second half of 2020, the top three most expensive rents in Canada, after Vancouver and Toronto, were Burnaby, Victoria and Kelowna.

RELATED: Speculation tax doesn’t cool B.C.’s hot housing market

RELATED: Strata condo rental bans lose exemption after 2021

Condo owners are allowed to escape the tax if their strata council doesn’t allow rentals, but that exemption expires after this year. For the 2019 property tax year, 331,520 condo properties in all SVT regions declared for the tax, and 3,603 had an owner who claimed a strata rental restriction as the reason for its vacancy.

The ministry cites Capital Regional District results to show the tax is working. The region had 1,036 property owners who had to pay in 2018, and 22 per cent of those owners claimed a tenancy exemption in 2019, with the formerly vacant unit rented for at least half of the year.

The last places to receive declaration letters this year are West Kelowna, Nanaimo, Lantzville, Sooke and the Capital Regional District around Victoria, with mailing dates set for this week. Vancouver mailings are to go out next week, Feb. 12 to 17, while most people in Abbotsford, Chilliwack and Metro Vancouver suburbs should have received them by now. Kelowna and West Kelowna are the only urban areas outside southwestern B.C. that are subject to the tax, which is based on low urban rental vacancy rates.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureBC politics

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

Just Posted

West Shore RCMP is asking for the public’s help in locating Mackenzie Courchene, a Langford teenager.
MISSING: Mackenzie Courchene last seen in Langford on March 2

West Shore RCMP is asking for the public’s help in locating the Langford teenager

Rendering of the proposed Esquimalt public safety building. (Courtesy Township of Esquimalt)
Esquimalt blazes new trail toward modern public safety building

Township using alternative approval process for first time to gauge public support for proposal

Landmarks such as Howard the giant gnome at Galey's Farm in Saanich make a stunning backdrop for celebratory dance in the Greater Victoria Festival Society trailer for its coming Dance Victoria campaign. (Screeshot/Greater Victoria Festival Society)
Residents’ videos help campaign Dance Across Victoria

Celebratory dance clips to be compiled into Greater Victoria Festival Society video

Reynolds Secondary School’s spring musical Freaky Friday features Grace Fouracre as teen Ellie Blake (left) who swaps bodies with her overworked mother, Katherine, played by Nadia Lurie. (Photo courtesy Reynolds Secondary School)
Saanich high school goes virtual with Freaky Friday musical

Reynolds Secondary theatre program to livestream performances March 9-12

Saanich Fire Department. Black Press Media File Photo
Fire displaces three Saanich families from two homes

Saanich firefighters found the fire had spread to a neighbouring home upon arriving

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
‘It’s been a good week’: Tam hopeful on vaccines as pandemic anniversary nears

Tam says the addition of two new vaccines will help Canadians get immunized faster

Const. Allan Young. Photo: Abbotsford Police Department
Manslaughter charge laid in Nelson death of Abbotsford police officer

Allan Young died after an incident in downtown Nelson last summer

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

The Port Alice pulp mill has been dormant since 2015. (North Island Gazette file photo)
Parts recycled, life returning to inlet as as old Port Alice mill decommissioned

Bankruptcy company oversees de-risking the site, water treatment and environmental monitoring

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

(Black Press Media files)
Medicine gardens help Victoria’s Indigenous kids in care stay culturally connected

Traditional plants brought to the homes of Indigenous kids amid the COVID-19 pandemic

Most Read