Two days after introducing Canada鈥檚 first 鈥渟peculation tax鈥� on empty homes, B.C. Finance Minister Carole James . People who don鈥檛 pay income tax in B.C. but own a vacation home in high-demand areas of the province that isn鈥檛 available for long-term rental will pay the new tax.
Now, after hearing from people whose primary residence is in Alberta or another province with a vacation home in B.C., James is hinting that changes will be made.
鈥淲e鈥檙e targeting people who are speculating in the market, who are not contributing to the tax system in British Columbia,鈥� James told reporters at the legislature Wednesday. 鈥淧eople who are using our housing market as a stock market.鈥�
As originally announced in the B.C. budget Feb. 20, the speculation tax would be charged to out-of-province residents who inherited a family summer or ski cabin, if it is in Metro Vancouver, the Fraser Valley, Nanaimo or Capital Regional District, or the municipalities of Kelowna and West Kelowna.
It is to begin this fall at 0.5 per cent of property value, rising to two per cent later.
As announced in February, it would not be charged to someone who pays income tax in B.C. and owns multiple homes as investments, even if they are not offered for long-term rent and sit empty. James said Wednesday that is also being reconsidered.
鈥淩emember, the tax notices don鈥檛 go out until late in the fall, so we have the time,鈥� James said. 鈥淲e wanted to introduce it as part of the February budget because people want to know what we鈥檙e moving on with affordable housing. The speculation tax was key to that.鈥�
B.C. Liberal leader Andrew Wilkinson said the NDP government is 鈥渕aking up tax policy on the fly,鈥� having second thoughts about applying the employer health tax to hospital and school payrolls, and considering exemptions for the speculation tax on secondary homes.
鈥淲hat the NDP have done is called a speculation tax what is really an asset tax,鈥� Wilkinson said. 鈥淲hat they want to do is slowly chip away at people鈥檚 equity in their homes. They鈥檙e saying for now it鈥檚 secondary homes, but not sure if its applying to foreigners only, not sure if it鈥檚 applying to Albertans.鈥�
