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Tax ranges from 0.5% on secondary homes left vacant by B.C. residents, to 2% on foreign-owned properties

BC’s finance minister has introduced legislation to move ahead with a controversial speculation tax on vacant or underutilized properties.

The bill ends months of speculation about how the province planned to use the new levy to help deal with runaway housing prices in some B.C. communities, outlining a range of tax rates from 0.5 to 2% and a number of exemptions.

If the legislation is passed, the new tax will apply to all properties in designated regions of BC These include most parts of Metro Vancouver and the Capital Regional District (excluding the Gulf Islands), along with Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo and Lantzville.

Homeowners who live at their properties – Or rent them out – Wwill receive an exemption by filing an annual declaration form.

For the remaining properties, a tax rate of 0.5% of the assessed value will apply for 2018.

In 2019 and subsequent years, BC residents with vacant or underutilized properties will continue to pay that rate, while Canadian citizens or permanent residents who are not BC residents will start paying 1%

Foreign homeowners will pay more

Foreign homeowners or “satellite families” who make 50% of their income outside BC will pay 2% on all properties, unless they rent them out.

 

Source: CBC News