BC Speculation Tax : Holmes Realty, Real Estate in Victoria BC

BC Speculation Tax

What is the Speculation and Vacancy Tax?

On February 20th, 2018 the government of British Columbia announced it's intention to introduce a new real estate speculation tax on residential property in British Columbia. This annual tax was to be imposed upon owners of property in certain parts of the province. In general, this tax was to apply to homes that are not a primary residence, or are not being rented out long term. The goverment introduced this tax as a measure to quell foreign and domestic property speculators who purchase and hold vacant property, this in turn would open up more rental property for individuals unable to afford a home.

Despite the protests of Real Estate industry professionals, many local mayors and the development community whom feel that the this tax will have an adverse effect affordability and locla economies, the tax was tabled and made into law in October of 2018.

The tax will apply at a reduced rate in 2018, based on property owned as of Dec. 31, 2018. It expands in 2019 to 0.5 per cent of assessed value for B.C. residents, one per cent for Canadians from outside B.C., and two per cent for non-Canadians.

Owners are exempt if they rent their properties for at least six months a year. And there is also a tax credit for B.C. residents with second homes valued under $400,000.

Did you know that BC’s new Speculation and Vacancy Tax is an OPT-OUT tax?

Even though the new tax is alleged to financialy only impact 1% of British Columbians, all BC property owners must apply for the exemption before March 1st, 2019 or you will be billed...

In the coming days, you will be recieveing in the mail a Declaration letter from the province with some unique codes. You will need these codes to make your declaration through their Provincial website, or via phone. Don’t throw out that letter!

If you own one home as your principle residnence and are a British Columbian, you are exempt from paying the 0.5% tax; however, you must still make the declaration. Failure to do so might land you a hefty property tax tax notice.

I have questions about how this tax will impact me, what should I do?

For more information about the Speculation Tax and how it might impact you, please get in touch with one of our Licensed Professionals by calling us at 250-656-0911 or via email to reachus@holmesrealty.com

We're here to help!