In its 30-Point Plan for Housing Affordability in British Columbia, the provincial government plans to introduce a new speculation tax on residential property, as part of its efforts to service local residents as opposed to speculators.
The new tax will target owners of residential property in B.C. who do not pay taxes in the province and owners who leave their properties vacant. Tax rate will be 0.5% of taxable assessed value for the 2018 tax year and 2% thereafter, and is forecasted raise $200 million each year. The tax will apply expansively in Metro Vancouver, Fraser Valley, Capital and Nanaimo Regional Districts, and municipalities of Kelowna and West Kelowna. Although the tax will affect satellite families, the Province will provide exemptions for eligible principal residences, long-term rental properties and special scenarios. According to the Province’s fiscal plan for 2018/2019, those who pay income tax in British Columbia will benefit from a non-refundable income tax credit to offset property tax.