James: Spec tax working
Wayne Moore - Jan 22, 2020 - BC Biz

Photo: Contributed
B.C. Finance Minister Carole James believes her government’s spec tax is getting the job done.

A select number of residents in Kelowna and West Kelowna can expect to receive speculation and vacancy tax declaration packages in the mail.

The packages for the contentious tax will be arriving between Jan. 24 and Feb. 21.

Finance Minister Carole James says more than 99% of British Columbians will be exempt from paying the tax, while speculators, foreign owners and people who leave their homes vacant will continue to pay.

James points to the latest Canadian Mortgage and Housing Corporation rental report to claim the tax has been a success, though not all agree. According to the CMHC, the long-term rental stock in Metro Vancouver increased by nearly 19%, the most significant increase in a decade.

“We’re beginning to see moderation in the housing market, and over the past year we’ve seen more rental condos being put on the market and an increase in purpose-built rentals,” James said. “These are encouraging signs for making housing more affordable for families in B.C.”

The tax has now risen from 0.5% to 2% of assessed property value. In its first year, the government says it collected $115 million from the tax.

Two million of that came from properties in Kelowna. The government says that money will be funnelled back into the city through funding for housing.

Both Kelowna and West Kelowna continue to lobby the province to have the two cities exempt from the tax, which has been widely panned by the development and construction industries as being a job killer and rising prices for average home buyers.


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