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.

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

Just Posted

Indigenous youth arrested during 15-hour occupation to hold press conference Wednesday morning

The speakers are expected to condemn police, RCMP actions towards Indigenous people

Southern resident orca L41 considered missing and feared dead

The orca was last spotted in Aug. 2019 when photographed in western Strait of Juan de Fuca

Sap thief taps Saanich park maple trees, faces hefty fine

One tree found with four taps in Mount Doug Park

VIDEO: Saanich family competes on first season of ‘Family Feud Canada’

Charania family will face off against the Torres family from Hamilton, Ont.

Victoria resident says WestJet employee uttered racist comment, refused to let her on plane

Customer claims she was told ‘You guys can’t handle your alcohol’ by WestJet employee

B.C. reports first coronavirus in Vancouver region

First patient visited Wuhan, China, reported symptoms

Greater Victoria’s wanted list for the week of Jan. 28

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Are you concerned about the coronavirus?

The coronavirus which has sparked concern around the globe has now arrived… Continue reading

Off-duty Nanaimo Mountie takes down would-be ice cream thief

Suspect attempted to steal Dilly Bars from Dairy Queen location on Sunday

Nanaimo man hit with pole in dispute over off-leash dog

RCMP say no charges recommended at this time

Was there a tornado on Vancouver Island Monday?

Suspected phone app glitch gives eerie warning

Work has started on Malahat Skywalk, expected completion in 2021

$15-million project expected to open in spring, 2021

B.C. reports first coronavirus in Vancouver region

First patient visited Wuhan, China, reported symptoms

Sooke Minor Fastball to host coaching clinic

Clinic ideal for those planning to coach U6 to U18 teams

Most Read