Robert Simpson and Denise Pettersson Simpson on the porch of their Mitchell Street home. The couple has spent their retirement between two houses in Texas and Oak Bay. They believe the speculation tax should have been introduced with a grand-parented clause that doesn’t target people such as themselves, who are longtime homeowners and retirees. (Travis Paterson/News Staff)

B.C.’s speculation tax under fire in first major legal challenge

Group petition filed Thursday in B.C. Supreme Court

A group of B.C. homeowners filed a petition to the Supreme Court of B.C. on Thursday to challenge the new speculation and vacancy tax.

While the province introduced the speculation and vacancy tax (SVT) as a measure to mitigate ballooning real estate costs in the midst of a housing crisis in B.C.’s bigger urban centres, some feel it is unfair.

Many are Canadians who have lived in their B.C. homes for a long time. The petition seeks an injunction from their new taxes, through an order from the court declaring the SVT is unconstitutional and infringes Section 7 of the Canadian Charter of Rights and Freedoms.

Two of the petitioners include Oak Bay’s Denise Pettersson Simpson and Robert Simpson, who were issued a $6,000 speculation tax bill for their Mitchell Street house. Denise, 72, was raised in the house as a child and inherited it in 1996. The two have split their lives between there and their U.S. residence for more than 20 years.

Her husband is an American citizen and because of that, they are deemed to be a “satellite” family and are therefore ineligible for exemptions under the spec tax legislation. Next year, as a non-Canadian citizen, Robert will be assessed the full two per cent for 2019 and his bill will jump to approximately $12,000.

The couple live off their pensions, Robert’s being the same one he’s received most his life for career-ending injuries he suffered in war, they said.

“The home is the last connection I have to my family, they have all passed away,” Denise added.

Kailin Che, one of the Vancouver lawyers on the case, said “the implication of the tax will force homeowners to move out, sell or rent out their homes … It limits homeowners’ Charter protected liberty rights to choose to reside, without state interference.”

READ MORE: Speculation tax forces sale of Oak Bay’s tulip house

Other petitioners include a Canadian mother who resides in a home with her two children, taking care of her family with her retired, non-resident spouse.

The house is never vacant and has always been used as the family’s residence. The petition claims the family will have to move out of their home as neither spouse can afford to pay a $5,000 tax bill with their after-tax retirement income.

Che said it is a tax grab and a form of indirect taxation that falls outside the powers of the provincial government.

“The tax is arbitrary and divisive and quite frankly, misses the mark,” Che said. “It taxes many homeowners who are neither speculators nor leaving their homes vacant. Even if it doesn’t affect you today, it may affect you tomorrow.”

READ ALSO: Speculation tax has generated $3.74 million

Another one of the petitioners is a recently retired medical doctor who has limited vision. She lives in a small condo in Richmond that she purchased two years ago to be close to her work and her volunteer activities. Her spouse continues to reside in their previously purchased Surrey townhome. While there are exemptions for spouses living in separate residences for work purposes, the distance between their two residences falls below the 100-kilometre requirement.

The petition is funded by the Canadian Institute of Legal Reform, a grass-roots organization that is supporting and fundraising for legal challenges in respect of the SVT at saynotospectax.com.

reporter@oakbaynews.com


Like us on Facebook and follow us on Twitter

speculation tax

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

Comments are closed

Just Posted

Esquimalt splash pad back in action

Esquimalt Adventure Park reopens July 6

Police use tear gas to apprehend Saanich woman threatening neighbours, police

Woman facing possible criminal charges after standoff with police

Victoria woman loses $2,500 to scammer spoofing VicPD phone number

VicPD warns against sharing personal information, sending money to strangers

Victoria police conduct under review after arrest on Pandora Avenue

Police say man was screaming and walking into traffic before being taken into custody

Police issue warning after baby comes across suspected drugs in Kamloops park

The 11-month-old girl’s mother posted photos on social media showing a small plastic bag containing a purple substance

Collision results in train derailment just east of Golden

The derailment occurred Sunday night, according to a statement from CP

Lower Mainland woman says llama farming neighbour shot her 11-month-old pup

Young dog was on owner’s Maple Ridge property when it was killed on June 21

B.C. records 31 new cases, six deaths over three days due to COVID-19

There are 166 active cases in B.C., 16 people in hospital

B.C. highway widening job reduced, costs still up $61 million

Union-only project scales back work to widen Trans-Canada

BC Wildfire Service to conduct night vision trials for helicopters in South Okanagan

This technology could assist with future firefighting operations

Victoria man dies after skydiving incident on Vancouver Island

34-year-old had made more than 1,000 jumps

Most Read