B.C. expands vacancy tax aimed at turning empty houses into rental homes
British Columbia is expanding the tax it created to clamp down on real estate speculation and ensure homes in rental-strapped communities don't sit empty.
A statement from the Ministry of Finance says the Speculation and Vacancy Tax now includes the municipalities of North Cowichan, Duncan, Ladysmith, Lake Cowichan, Lions Bay and Squamish.
Starting early next year, homeowners in those areas will join owners in 40 other B.C. cities, districts and towns who are required to declare how their property was used in 2023.
The statement says 99 per cent of people who live in B.C., can expect to be exempt for the 2023 tax year, but homeowners in the new municipalities, along with those already covered by the tax, must make formal declarations in the new year.
Failure to make an accurate declaration can lead to a penalty amounting to between half a per cent and two per cent of the property's total value, depending on whether the claimant is a Canadian citizen or a foreign owner.
The tax, in place since 2018, covers most residential properties in the Metro Vancouver and Capital regional districts, the districts of Mission and Lantzville and the cities of Abbotsford, Chilliwack, Kelowna, West Kelowna and Nanaimo.
Funds raised are returned to the areas where the tax applies, the ministry said.
The statement shows more than $313 million has been raised since 2018, with the money used to build new, more affordable types of housing.
Finance Minister Katrine Conroy said the tax was being expanded to ensure homes are available.
"People in our province expect housing to be used as homes, not investments for speculators," Conroy said in the statement.
"The speculation and vacancy tax is making sure homes are available for people, not left empty," she said.
Ministry data show the measure helped turn approximately 20,000 empty condos into homes in Metro Vancouver and it says expansion of the tax is anticipated to bring more homes to communities struggling with low vacancy rates.
This report by The Canadian Press was first published May 26, 2023.
CTVNews.ca Top Stories
Montreal doctors' breakthrough discovery about causes of cerebral palsy giving hope
A breakthrough discovery made by doctors at the Montreal Children's Hospital about the causes of cerebral palsy is giving new hope to one West Island family.
Weather alerts issued for 7 provinces, 1 territory
Warnings of up to 60 millimetres of rain and other alerts have been issued for seven Canadian provinces and one territory ahead of the Easter weekend.
Ontario homeowner on the hook for $27,000 when contractor severed power line
An Ontario man who built a garage on his property has been locked in a battle with his electricity provider for a year and half over a severed power line.
For years she thought her son had died of an overdose. The police video changed all that
Austin Hunter Turner died in 2017, on a night that his mother has rewound and replayed again and again, trying to make sense of what happened.
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
Why Kim Kardashian is being sued for 'knockoff' furniture
The estate of minimalist contemporary artist Donald Judd filed a lawsuit against Kardashian this week, claiming the fashion and beauty mogul promoted 'cheap knockoffs' of his furniture designs.
Where is the worst place for allergy sufferers in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
Louis Gossett Jr., 1st Black man to win supporting actor Oscar, dies at 87
Louis Gossett Jr., the first Black man to win a supporting actor Oscar and an Emmy winner for his role in the seminal TV miniseries 'Roots,' has died. He was 87.