BC's Speculation & Vacancy Tax
B.C.'s Speculation & Vacancy Tax was introduced by the B.C. Government in 2018 in order to help take action against unaffordable housing and rental prices in major urban cities across B.C. According to the government, more than 99% of British Colombians are estimated to be exempt from the tax.
Whether you agree or disagree with the tax, here is what it is designed to do:
Target foreign and domestic speculators who own residences in B.C. but don't pay taxes here
Turn empty homes into good housing for people
Raise revenue that will directly support affordable housing
All owners of residential property in the designated taxable regions must complete an annual declaration. Click here to see where those regions are.
The tax rate is as follows:
0.5% of the property's assessed value for all properties subject to the tax
For 2019 and subsequent years, the tax rate is:
2% for foreign owners an satellite families
0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family.
The following are all reasons someone may be exempt from paying the speculation and vacancy tax:
Principal residence exemptions
Occupied by a tenant
Can't live in the residence because it is uninhabitable
Secondary residence close to medical treatment facility
Just bought or inherited the property
Separation or divorce
Recent death of owner
Property is in a trust created by a will for a minor
Property has a rental restrictions
Property is a strata hotel
Property includes a licensed child daycare
No residence on the property
To view all the exemptions, click on the following link to be taken to the governments site for the BC Speculation & Vacancy Tax.
Click here to reach out to a member of our team today if you have any questions on the following tax!