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, October 2018. (Black Press files)

12,000 property owners paying B.C. speculation tax so far

Mostly foreign owners, ‘satellite families,’ high-end properties

The B.C. government estimates it is owed $115 million for the first year of its speculation and vacancy tax on homes in urban areas.

As of July 4, there were 12,029 property owners paying the additional property tax, the finance ministry reported Thursday. Of those, 4,585 are foreign owners and 3,241 are what the province calls “satellite families” who live in B.C. while the main income earner is a foreign resident.

There are 2,410 B.C. residents currently assessed for the tax, for secondary homes in the designated cities of Abbotsford, Chilliwack, Mission, Kelowna, West Kelowna, Nanaimo, Lantzville, Metro Vancouver and the Capital Regional District around Victoria.

The province sent out 1.6 million tax notices to property owners in affected cities early this year, requiring every owner listed on title to register and either claim an exemption or pay the tax. About 23,000 registrations are still not accounted for, including owners who may be deceased or out of the country.

The figures released Thursday are for 2018, where the tax was due by July 2, 2019. All taxes collected for the first year are assessed at 0.5 per cent of property value, but foreign owners will soon pay four times that much unless they can find an exemption.

Foreign owners and satellite families pay the highest rate this year, two per cent of property value. The rate for B.C. residents who are not considered satellite families and Canadians living outside B.C. is 0.5 per cent, after the B.C. Green Party refused to support charging a higher rate to people from Alberta and other provinces who have vacation properties in B.C.

RELATED: B.C. Liberal leader vows to scrap speculation tax

RELATED: Speculation tax holdouts should talk to city hall: James

The finance ministry says the first-year revenue is higher than expected, partly because the tax is being paid on higher-value properties. The average assessed value of properties subject to the tax for 2018-19 is $1.62 million, while the average value for the cities where it applies is $1.11 million.

The provincial speculation tax is in addition to the empty homes tax assessed by the City of Vancouver. The B.C. version sparked a political battle, first over rural areas with vacation properties that were originally included, and then over the rate and requirement to occupy or rent out properties at least six months of the year to be exempt.

Finance Minister Carole James promised to meet with mayors of the affected communities this summer to discuss hardship cases and other exemptions. Those meetings are now scheduled to take place in September.

@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

VicPD arrest reportedly armed man wanted on Canada-wide warrant

The man was found near Centennial Square on Tuesday afternoon

Port Renfrew man charged with animal cruelty

Hot coffee poured on dog’s face, say police

Victoria shipyard awarded one-third of $1.5 billion frigate-repair contracts

The federal government has promised to invest $7.5 billion to maintain the 12 frigates

Property registration crucial for Oak Bay’s deer contraception program

Got deer? Want them gone? Do your part, register your property!

Saanich sponsors Jeux de la Francophonie giving $50,000 for the French-language Games

Couns. Susan Brice and Nathalie Chambers opposed funding, citing substantive and procedural concerns

VIDEO: Black bear caught climbing tree in Langford neighbourhood

Triangle Mountain residents on alert following bear sighting

Report of dead body in B.C. park actually headless sex doll

This discovery, made at Manning Park on July 10, led police to uncovering two other sex mannequins

Grand Forks fire chief found to have bullied, harassed volunteer firefighter: report

WorkSafeBC, third-party human resources investigation looking into allegations complete

Taekwondo instructor, 21, identified as B.C. bat rabies victim

Nick Major, 21, an instructor at Cascadia Martial Arts in Parksville

15-year-old with imitation gun caused ‘dynamic’ scene at Nanaimo mall

No one was harmed in Monday’s incident, say Nanaimo RCMP

B.C. on right road with tougher ride-hailing driver rules, says expert

The provincial government is holding firm that ride-hailing drivers have a Class 4 licence

RCMP investigating alleged ‘sexual misconduct’ by cyclist on BCIT campus

BCIT said they were reviewing video evidence of the incident

New home cost dips in B.C.’s large urban centres

Victoria, Kelowna, Vancouver prices decline from last year

Graphic suicide scene edited out of ‘13 Reasons Why’ finale

Suicide prevention groups support the decision

Most Read