B.C. Finance Minister Carole James and B.C. Green Party leader Andrew Weaver announce rate reduction for Canadian citizens paying new property tax on homes empty six months of the year or more, October 2018. (Black Press files)

12,000 property owners paying B.C. speculation tax so far

Mostly foreign owners, ‘satellite families,’ high-end properties

The B.C. government estimates it is owed $115 million for the first year of its speculation and vacancy tax on homes in urban areas.

As of July 4, there were 12,029 property owners paying the additional property tax, the finance ministry reported Thursday. Of those, 4,585 are foreign owners and 3,241 are what the province calls “satellite families” who live in B.C. while the main income earner is a foreign resident.

There are 2,410 B.C. residents currently assessed for the tax, for secondary homes in the designated cities of Abbotsford, Chilliwack, Mission, Kelowna, West Kelowna, Nanaimo, Lantzville, Metro Vancouver and the Capital Regional District around Victoria.

The province sent out 1.6 million tax notices to property owners in affected cities early this year, requiring every owner listed on title to register and either claim an exemption or pay the tax. About 23,000 registrations are still not accounted for, including owners who may be deceased or out of the country.

The figures released Thursday are for 2018, where the tax was due by July 2, 2019. All taxes collected for the first year are assessed at 0.5 per cent of property value, but foreign owners will soon pay four times that much unless they can find an exemption.

Foreign owners and satellite families pay the highest rate this year, two per cent of property value. The rate for B.C. residents who are not considered satellite families and Canadians living outside B.C. is 0.5 per cent, after the B.C. Green Party refused to support charging a higher rate to people from Alberta and other provinces who have vacation properties in B.C.

RELATED: B.C. Liberal leader vows to scrap speculation tax

RELATED: Speculation tax holdouts should talk to city hall: James

The finance ministry says the first-year revenue is higher than expected, partly because the tax is being paid on higher-value properties. The average assessed value of properties subject to the tax for 2018-19 is $1.62 million, while the average value for the cities where it applies is $1.11 million.

The provincial speculation tax is in addition to the empty homes tax assessed by the City of Vancouver. The B.C. version sparked a political battle, first over rural areas with vacation properties that were originally included, and then over the rate and requirement to occupy or rent out properties at least six months of the year to be exempt.

Finance Minister Carole James promised to meet with mayors of the affected communities this summer to discuss hardship cases and other exemptions. Those meetings are now scheduled to take place in September.

@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

QUIZ: A celebration of apples

September is the start of the apple harvest

Smoky skies clearing throughout B.C. Interior

Environment Canada expects “widespread” improvement for all affected areas by Sunday

Interior Health reports three additional COVID-19 cases in region

The number of cases in the region since the beginning of the pandemic are now at 492

‘This is a very difficult sentencing’; Judge delays Kiera Bourque manslaughter trial to next week

The courts heard Friday that Bourque “did not intend to cause harm” but that her actions were “reckless”

COVID-19 minimizes Okanagan Regional Library budget increase

Library adapts to pandemic fiscal disruptions

3 new deaths due to COVID-19 in B.C., 139 new cases

B.C. confirms 40 ‘historic cases,’ as well

Stranger in truck grabs boy walking home from school in Kelowna

The 11-year-old boy escaped the incident, RCMP are investigating

Supreme Court Justice Ruth Bader Ginsburg dies at 87

The court’s second female justice, died Friday at her home in Washington

Emaciated grizzly found dead on central B.C. coast as low salmon count sparks concern

Grizzly was found on Gwa’sala-‘Nakwaxda’xw territory in Smith Inlet, 60K north of Port Hardy

VIDEO: B.C. to launch mouth-rinse COVID-19 test for kids

Test involves swishing and gargling saline in mouth and no deep-nasal swab

Young Canadians have curtailed vaping during pandemic, survey finds

The survey funded by Heart & Stroke also found the decrease in vaping frequency is most notable in British Columbia and Ontario

B.C. teachers file Labour Relations Board application over COVID-19 classroom concerns

The application comes as B.C.’s second week of the new school year comes to a close

CHARTS: Beyond Metro Vancouver, COVID-19 cases in B.C. haven’t increased much recently

COVID-19 case counts outside of Metro Vancouver have been level since July

70-year-old punched in the head in dispute over disability parking space in Nanaimo

Senior’s turban knocked off in incident at mall parking lot

Most Read