Zoocasa
Real Estate Sold Prices
Calculator
Map
Property Trends & Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
Zoocasa
Home Guest Posts

British Columbia Speculation Tax Scaled Back After Backlash

Which Mortgage by Which Mortgage
March 28, 2018
in Guest Posts, Real Estate News
3 min read
British Columbia Speculation Tax
Share12
Tweet
Share
12 Shares

With files from Penelope Graham

British Columbia’s ruling NDP government has responded to the backlash from homeowners protesting the Speculation Tax (ST), with new details announced March 26 by provincial Finance Minister Carol James and Premier John Horgan.

Originally unveiled in the provincial 2018-19 budget within a 30-part housing plan, the ST had proposed taxing BC homeowners who don’t pay income tax to the province, 0.5 per cent of their home’s value in 2018, and 2 per cent in 2019 and forward. It applied to non-permanently-occupied secondary or vacation homes in Metro Vancouver, the Fraser Valley, Capital and Nanaimo Regional Districts (including the Gulf Islands), and the municipalities of Kelowna and West Kelowna.

While BC residents would get a tax credit to offset the bill, depending on how much income tax they pay in the province, all non-BC residents would be liable for the full tax. This parked a major outcry among owners of homes in the affected areas, many of whom say they aren’t speculators and cannot afford to pay the tax.

Vacation Regions Now Exempt

Policy makers have scaled back the tax’s reach, excluding the Gulf Islands and Juan de Fuca – popular vacation home destinations – and have introduced a new tax rate; British Columbians with secondary homes that remain vacant a minimum of six months per year in affected areas will pay just 0.5 per cent. Canadian citizens and permanent residents with BC properties who reside outside of BC will pay 1 per cent, while foreign purchasers will be taxed the full 2 per cent.

“Over 99 per cent of British Columbians will not pay the tax,” stated James. “Only those who hold multiple properties and leave them empty in our province’s major cities will be asked to contribute.”

Homeowners in Neighbouring Provinces Hardest Hit

Much of the initial backlash came from Canadians – many from Alberta and Saskatchewan – who own vacation homes in the province. They argued they’d be negatively impacted by the tax, with the worst affected likely to sell their properties.

Local districts had also raised strong objections, with Nanaimo, the City of Kelowna, and West Kelowna all registering their protests with the Horgan government over fears of lost tourism and development. West Kelowna’s council had stated it wants to be excluded from the new tax, though it remains within the affected area under the updated proposal.

Horgan, in response to Canadians’ concerns, stated the tax would neither be scrapped nor radically altered.

“My office has spoken to the Mayor of Kelowna as recently as [March 20],” Horgan stated at the time. “Minister James is responsible for the file and I have every confidence in her that she will be able to deal with the challenges that have been raised by some. I have to tell you there are a lot of people who are cheering us on and saying we have to stem the speculation.”

Real Estate Association Still Has Concerns

The British Columbia Real Estate Association released a statement in response to the tax changes, saying it’s “pleased to see more details of the proposed speculation tax,” but continues to have underlying concerns.

“We look forward to more answers as the speculation tax takes shape and more opportunities to minimize its negative impact in all affected areas for all homeowners who pay income tax in Canada,” states BCREA’s release.

“For example, homeowners in the city of Vancouver could potentially be charged twice for leaving their homes vacant: once by the city, and once by the province. Communities could face economic problems, due to fewer visits, less consumer spending, and lower housing prices.

The real estate association adds that development properties can also remain empty for years before work commences, and that those tax costs would ultimately be passed onto buyers of new builds, and calls for a formal, public consultation before the tax is officially rolled out.

Also read: Pat Carney slams Horgan government’s new Speculation Tax

Previous Post

12 Toronto Condos That Sell for $1000 PSF [INFOGRAPHIC]

Next Post

Should Buyers Go Fixed or Variable as Mortgage Rates Rise?

Which Mortgage

Which Mortgage

Which Mortgage provides readers with a resource for mortgage-related information. The website features useful tools like mortgage calculators, rate comparisons, and a regularly updated news section. Designed with the first-time homebuyer and real estate investor in mind, Which Mortgage is your one-stop shop for all of your mortgage needs.

Related Posts

Canada

Sharp Housing Adjustment as Sales Continue to Drop: CREA

August 15, 2022
Buying a Home

Condo Apartments Remain the Most Affordable and Second Most In-Demand Property Type in Toronto and GTA: TRREB

August 4, 2022
Affordability

June 2022 Home Sales BELOW The 10-Year Average Across Canada: CREA

July 15, 2022

Blog Search

No Result
View All Result

Recent Articles

Variable or Fixed-Rate Mortgage? 4 Tips to Help You Decide Which to Choose While Interest Rates are Rising

August 17, 2022

Sharp Housing Adjustment as Sales Continue to Drop: CREA

August 15, 2022

Hidden Gems for Sale in Markham under $700,000

August 12, 2022

Rent or Buy? Average Monthly Rental Prices vs. Monthly Mortgage Payments in the GTA

August 10, 2022

Variable or Fixed-Rate Mortgage? 4 Tips to Help You Decide Which to Choose While Interest Rates are Rising

August 17, 2022

Sharp Housing Adjustment as Sales Continue to Drop: CREA

August 15, 2022

Hidden Gems for Sale in Markham under $700,000

August 12, 2022

Rent or Buy? Average Monthly Rental Prices vs. Monthly Mortgage Payments in the GTA

August 10, 2022

Should You Purchase a Home With an Open Floor Plan?

August 8, 2022

Condo Apartments Remain the Most Affordable and Second Most In-Demand Property Type in Toronto and GTA: TRREB

August 4, 2022

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Social Media

Featured Listings (Updated Weekly)

Hidden Gems for Sale in Markham under $700,000

August 12, 2022

The Most Expensive and Affordable Homes Sold in July in the GTA

July 29, 2022

The Most Viewed Homes in June 2022

July 22, 2022

Condos for Sale with Amenities in the GTA

July 11, 2022
first-time home buyer programs and rebates

About Zoocasa

Zoocasa.com is a full-service brokerage that offers advanced online search tools to empower Canadians with the data and expertise they need to make more successful real estate decisions.

Newsletter Sign-up

Join 130,000+ weekly subscribers. Don’t miss important real estate news, market data, and buying and selling tips: sign-up here.

Social Media

Zoocasa Tools

MLS Listings Canada
Search Sold Listings
iOS App
Android App
Find an Agent
Contact Us

  • Homes & Real Estate Properties
  • Terms of Use
  • Privacy Policy
  • Contact Us

© 2015 - 2022 Zoocasa Realty Inc., Brokerage

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
No Result
View All Result

© 2015 - 2022 Zoocasa Realty Inc., Brokerage