B.C. Finance Minister Carole James presents her first budget, February 2017. (Chad Hipolito/Canadian Press/pool)

James continues to defend housing speculation tax

Removed from vacation homes, it still targets mostly B.C. homeowners

Finance Minister Carole James continues to defend the remaining properties targeted by her government’s speculation tax on vacant homes, after revealing that the majority that will pay the tax are B.C. residents.

Introduced in the February budget as an extension of the empty home tax imposed by the City of Vancouver to target mainly foreign real estate investors, the area affected by the tax was whittled down to major urban centres after an outcry from people with vacation homes.

RELATED: Rural cottages exempted from speculation tax

It now captures about 32,000 properties, 20,000 of which are owned by B.C. residents, James confirmed in debate on her ministry’s budget this week. This prompted a renewed attack by opposition MLAs, who say it still isn’t a speculation tax but rather an asset tax on people with second homes.

James stressed that 99 per cent of B.C. residents won’t pay the tax, and it is needed to promote rentals.

“One per cent who have second or third or fourth homes that they own in the regions that we’ve targeted will pay the speculation tax, if they choose not to rent their place out,” James said Thursday. “We’re in a housing crisis.”

James rolled back the extent of the tax in March after protests from vacation homeowners, exempting the Gulf Islands, Parksville, Qualicum Beach, the Juan de Fuca region in Premier John Horgan’s constituency and rural areas of the Fraser Valley and Central Okanagan.

It currently applies to Metro Vancouver, Greater Victoria and the municipalities of Nanaimo, Lantzville, Abbotsford, Chilliwack, Mission, Kelowna and West Kelowna. It is to take effect based on 2018 assessed property values, at 0.5 per cent for B.C. residents and two per cent for foreign owners and “satellite families” who don’t pay income tax in B.C.

Albertans and other Canadians whose principal residence is outside B.C. will pay 0.5 per cent in 2018 and one per cent in 2019 and later.

Just Posted

Okanagan winery gets global recognition

Mission Hill is being recognized as having one of the top vineyard designs in the world.

Okanagan air quality improves slightly

Index for entire Okanagan Valley rated at 10+, or very high risk, because of wildfire smoke

Controlled burn slows down Snowy wildfire growth

BC Wildfire Service said back burn helped slow wildfire growth near Keremeos

Motorists urged to steer clear of Mabel forest road due to wildfires

Road closure in effect from kilometre 10-59 to give BC Forestry crews space

UPDATE: Okanagan air quality index poor due to smoke

Index for entire Okanagan Valley rated at 10+, or very high risk, because of wildfire smoke

A first-hand look at hazards facing scooter users

A Salmon Arm reporter tags along on a mobility scooter tour of the city to learn about safety hazards

RCMP to search for body after man drowns in B.C.’s Buntzen Lake

Officers and fire crews responded but the man from the Lower Mainland is believed to have drowned.

Man found not guilty in 2011 drug-related shooting in Shuswap

Judge rules Jeremy Davis couldn’t foresee his companion would kill 24-year-old Nick Larsen.

Police chiefs call for stricter controls on pill presses to fight opioids

Canada’s police chiefs are urging Ottawa to beef up its fight against the opioid scourge by closely vetting people who import pill presses

Hot, dry conditions forces drought rating to highest level on Vancouver Island

The province says Vancouver Island is under Stage 4 drought conditions

Victoria police say explicit calls continue to target women

Over 50 reports of unwanted, sexually explicit calls have come in

Targeted Enforcement putting pressure on career criminals

RCMP take down another priority offender in Penticton

Parks Canada has ‘general concept’ in mind for South Okanagan-Similkameen

Minister Catherine McKenna will be providing a further update to representatives in Penticton Friday, August 17

‘It’s like a party in your mouth’

B.C. creator’s Milkshake Burger makes its debut at the PNE

Most Read