B.C. Finance Minister Carole James delivers her first full budget, Feb. 20, 2018. (Tom Fletcher/Black Press)

Carole James hints at changes to B.C. empty home tax

Out-of-province vacation homeowners aren’t speculators, some B.C. residents are

Two days after introducing Canada’s first “speculation tax” on empty homes, B.C. Finance Minister Carole James was emphatic. People who don’t pay income tax in B.C. but own a vacation home in high-demand areas of the province that isn’t available for long-term rental will pay the new tax.

Now, after hearing from people whose primary residence is in Alberta or another province with a vacation home in B.C., James is hinting that changes will be made.

“We’re targeting people who are speculating in the market, who are not contributing to the tax system in British Columbia,” James told reporters at the legislature Wednesday. “People who are using our housing market as a stock market.”

As originally announced in the B.C. budget Feb. 20, the speculation tax would be charged to out-of-province residents who inherited a family summer or ski cabin, if it is in Metro Vancouver, the Fraser Valley, Nanaimo or Capital Regional District, or the municipalities of Kelowna and West Kelowna.

It is to begin this fall at 0.5 per cent of property value, rising to two per cent later.

As announced in February, it would not be charged to someone who pays income tax in B.C. and owns multiple homes as investments, even if they are not offered for long-term rent and sit empty. James said Wednesday that is also being reconsidered.

“Remember, the tax notices don’t go out until late in the fall, so we have the time,” James said. “We wanted to introduce it as part of the February budget because people want to know what we’re moving on with affordable housing. The speculation tax was key to that.”

B.C. Liberal leader Andrew Wilkinson said the NDP government is “making up tax policy on the fly,” having second thoughts about applying the employer health tax to hospital and school payrolls, and considering exemptions for the speculation tax on secondary homes.

“What the NDP have done is called a speculation tax what is really an asset tax,” Wilkinson said. “What they want to do is slowly chip away at people’s equity in their homes. They’re saying for now it’s secondary homes, but not sure if its applying to foreigners only, not sure if it’s applying to Albertans.”

Just Posted

Kelowna cyclist sent to hospital after colliding with truck

A woman was sent to the hospital Wednesday morning

Line-up set for 2019 Canadian Culinary Championships in Kelowna set

Eleven chefs from across the country have been selected for championships Feb. 1 and 2.

Rutland’s Christmas Light Up to bring holiday magic once again

The annual Rutland Light Up takes place Dec. 9

A Charlie Brown Christmas comes to Kelowna for a Holiday treat

The Peanuts classic comes to life again Dec. 6 to 16

Lake Country will get a new fire hall

Council allowed the district to borrow up to $6.6 million for the hall

VIDEO: E. coli outbreak linked to romaine lettuce sickens 18 people in Ontario, Quebec

The Canadian Food Inspection Agency says it’s working with U.S. authorities to determine the source of the romaine lettuce those who got ill were exposed to.

Feds give formal notice for law to end Canada Post strike

Trudeau government ready to legislate employees back to work after five weeks of rotating strikes

Lower Mainland suspect identified in fatal northern B.C. hit and run

Suspect and seven other individuals believed involved located on Haida Gwaii

‘Bait and switch’ warning ahead of Black Friday and Cyber Monday

Competition Bureau of Canada is warning shoppers of illegal sale tactics

Legal battle ahead for suspended B.C. legislature executives

Public removal ‘very unfair,’ says veteran clerk Craig James

B.C. sees biggest spike in homicides across Canada, at 34%

Much of the killing was attributed to gang violence, according to Statistics Canada

Fundraiser established for the family of South Okanagan crash victim

A GoFundMe account has been established for the Penticton driver who died in an accident

Sea lion tangled in rope on Vancouver Island

Marine debris is a ‘significant problem’ for marine wildlife

Postal strike affects charities at critical fundraising time

Canadian fundraising professionals and charities join call for fast resolution

Most Read