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

ZONE 8: Gabby Knox is a 2nd-generation BC Summer Games competitor

Both parents competed in softball, but Knox of Williams Lake is making waves in the pool

This year’s 25th anniversary of Tour de Cariboo to be the last

This year’s Tour de Cariboo fundraiser will celebrate 25 years of memories.

Tl’etinqox community strengthed by 2017 wildfires, says chief

Residents denied evacuation order to help themselves

West Fraser continues burned timber salvage in the Cariboo Chilcotin

Two cutting permits will allow the company to harvest 227,000 cubic metres of burnt timber

2017 fire babies pose for photo one year later

23 babies and their moms gathered for a photo shoot at the Williams Lake Fire Department

All-Indigenous teams break new ground, making BC Games history

This is the first time there have been dedicated Indigenous teams at the BC Summer Games

Lower Mainland teams battle for baseball gold at BC Games

Vancouver Coastal squeaked out a 3-2 win against Fraser Valley

The Northern Secwepemc te Qelmucw people signed an agreement-in-principle with the B.C. government

The signing ceremony, at the Eliza Archie Memorial School, was 25 years in the making

Ping-pong balls of fire dropped to merge two B.C. wildfires

The merger is considered successful by BC Wildfire Services

Canada to resettle dozens of White Helmets and their families from Syria

There are fears the volunteers would become a target for government troops

Francesco Molinari wins British Open at Carnoustie

It is his first win at a major and the first by an Italian

Government sets full-time salary range for Justin Trudeau’s nanny

At its top range, the order works out to a rate of $21.79 per hour, assuming a 40-hour work week

ZONE 7: Players’ insistence delivers North West softball team to BC Games

North West hasn’t had a girls softball team since 2010 but that changed at the Cowichan Summer Games

Recovery high schools could help teens before addiction takes hold: B.C. parents

Schools could provide mental health supports and let parents discuss their children’s drug use openly

Most Read