Finance Minister Carole James has faced questions for weeks about the effect of a new property tax on vacation homes. (Tom Fletcher/Black Press)

Pressure on Carole James to ease B.C. speculation tax

Vacation home owners plead for relief from vacant home levy

As B.C. Finance Minister Carole James prepares changes to the speculation tax she announced in her February budget, protests continue to come forward from people hit with steep new costs for their vacation homes.

Dave Pentland of Surrey says he is looking at a 500 per cent increase on his share of a Salt Spring Island vacation property he and his brother inherited. He calculates that his tax bill for the property would go from $1,849 to $9,284, which is nearly a quarter of his retirement income.

He says he and his brother are not speculators, and want to keep the property in the family.

“The NDP’s speculation tax has really left me with one option,” Pentland said. “Pay the tax until the next election and hope for a change in government. If the government does not change then I cut my losses, hand the keys to my brother and walk away.”

Retirees Tom Stewart and his wife sold their “modest home” in Ontario and bought a condo there and an apartment in Oak Bay where they spend half the year. Stewart says the proposed two per cent surtax on the apartment will cost at least $5,000 a year, which they can’t afford on their retirement income.

The couple has relatives in Ontario and don’t want to try to find a new doctor if they move to B.C. full time to avoid the tax. And the strata corporation that runs their Oak Bay apartment doesn’t allow rentals.

“It is frustrating that our retirement dream is being quashed almost from the outset,” Stewart said. “We are pretty far removed from the alleged target of the legislation.”

RELATED: Arizona snowbirds ‘pushed out’ of summer homes

James is expected to announce changes to the tax Monday afternoon.

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 at 0.5 per cent of property value, rising to two per cent later. People who pay income tax in B.C. would receive a tax credit, but some say they don’t have enough income to cover the cost of the speculation tax.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Telephone poles placed in centre of sidewalk angers West Kelowna watchdog

Audience Group calls placement of poles in new Boucherie Road upgrade project ‘idiocy’

Kelowna asking public to help update its Cultural Plan

Second survey this year to posted to gather public input about cultural programs and services

Three candidates drop out of Central Okanagan municipal election

Two running for Peachland/OK West trustee and OK East rural director candidate step aside

West Kelowna water warning downgraded

City lowers boil water notice for Lakeview water system to a water quality advisory

Ancestral remains uncovered at Fintry to be reburied

Remains found along Shorts Creek in Fintry Provincial Park during flood remediation measures

Your weekend weather update

Rain continues to move right across the Okanagan, Shuswap and Similkameen.

B.C. premier apologizes for removal of 1950s totem pole at Canada-U.S. border

First Nations say pole was raised at Peace Arch but removed to make way for tourism centre

Tornado touches down in Ottawa and Gatineau, Que.

Environment Canada says cars and homes have been damaged by severe thunderstorms and high wind gusts

Low risk associated with case of pneumococcal disease in the South Okanagan

No identified risk to the public from recent case of pneumococcal disease with associated meningitis

An unexpected sight: Bear spotted eating another bear in central B.C.

Cheslatta Carrier Nation Chief finds bear eating another bear’s carcass

RCMP confirm death of missing BC teen Jessica Patrick

No details on cause were given. Case is under criminal investigation and police are asking for tips.

CUTENESS OVERLOAD: 2 sea otters hold hands at the Vancouver Aquarium

Holding hands is a common – and adorable – way for otters to stay safe in the water

B.C. teen with autism a talented guitarist

Farley Mifsud is gaining fans with every performance

Yukon man facing new attempted murder charge in B.C. exploding mail case

Leon Nepper, 73, is now facing one charge each of aggravated assault and attempted murder

Most Read