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)

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.

BC legislature

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

Just Posted

A medical worker prepares vials of the COVID-19 vaccines, Chinese Sinopharm, left, Sputnik V, center, and Pfizer at a vaccine centre, in the Usce shopping mall in Belgrade, Serbia, Thursday, May 6, 2021. Serbian authorities are looking for incentives for people to boost vaccination that has slowed down in recent weeks amid widespread anti-vaccination and conspiracy theories in the Balkan nation. The government has also promised a payment of around 25 euros to everyone who gets vaccinated by the end of May. (AP Photo/Darko Vojinovic)
38 new COVID-19 cases, more than 335k vaccines administered in Interior Health

Interior Health also to start targeted vaccinations in high transmission neighbourhoods

FILE PHOTO
Second doses of COVID-19 vaccine will be available, as AstraZeneca supply runs low: Interior Health

Province expecting large volumes of Pfizer BioNTech as age-based cohort immunization program ramps up

Kevin Allen of Fernie helped research and untangle the relationship between West Fernie and the City of Fernie, and is now writing a book on West Fernie. (Phil McLachlan / The Free Press)
Local historian writing book on West Fernie

Kevin Allen of Fernie is compiling his research on West Fernie into a book thanks to a grant from the RDEK

The design green-lit by the Sparwood District Council for the Centennial Square revitalization. It retains storefront parking, as desired by the business community in the square. (Image courtesy of District of Sparwood)
New Centennial Square design green-lit by Sparwood

The new design retains some storefront parking in the square

Greg Nesteroff and Eric Brighton, the historians behind popular Facebook page Lost Kootenays, are set to release a book of the same name and have just unveiled its cover showing the ghostly Hotel in Slocan City shortly before its 1953 demolition. Photo courtesy of Greg Nesteroff and Eric Brighton.
Popular historical Facebook page Lost Kootenays set to release book

128-page hard copy documenting history of East and West Kootenays coming this fall

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

Gord Judson steers his log truck down a forest service road, using two-way radio and call signals to mark his position for oncoming traffic. (B.C. Forest Safety Council)
Planning some B.C. wilderness fishing? Don’t catch a log truck

Remote recreation areas bracing for heavy pandemic pressure

Former University of British Columbia student Stephanie Hale, 22. THE CANADIAN PRESS/Jeff Bassett
Human Rights Tribunal to hear complaint against UBC Okanagan for ‘mishandling’ sexual assault report

Stephanie Hale did not return to campus after the student she alleges attacked her was cleared of wrongdoing

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Jennifer Coffman, owner of Truffle Pigs in Field, B.C., poses beside her business sign on Thursday, May 6, 2021, in this handout photo. Her restaurant and lodge have been hit hard by a closure of a section of the Trans-Canada Highway and by the British Columbia government discouraging Alberta residents from visiting during the pandemic. THE CANADIAN PRESS/HO-Jennifer Coffman, *MANDATORY CREDIT*
‘Why we survive’: B.C. boundary towns struggle without Albertans during pandemic

Jennifer Coffman’s restaurant is located in the tiny community of Field, which relies on tourism

A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
B.C. to start releasing neighbourhood-specific COVID numbers after data leak

Documents obtained by the Vancouver Sun show cases broken down by neighbourhoods

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix update B.C.’s COVID-19 situation at the B.C. legislature, April 29, 2021. (B.C. government)
B.C.’s COVID-19 case count creeps up, seven more deaths

445 people in hospital, 157 in intensive care

Summerland’s positive test rate is much higher than surrounding local health areas, according to internal BC CDC documents. (BC CDC)
Summerland 3rd behind Surrey, Abbotsford in daily per capita COVID-19 cases

Interior Health is rolling out additional vaccine availability to the community

Amazon is pausing its Prime Day marketing event in Canada this year amid ongoing COVID-19 outbreaks at its facilities in Ontario. THE CANADIAN PRESS/Nathan Denette
Amazon Prime Day halted in Canada due to COVID-19 outbreaks in warehouses

The event was postponed to protect the health and safety of employees and customers, the company says

Most Read