Speculation and vacancy tax added in coastal communities

The B.C. Government is expanding the Speculation and Vacancy Tax (SVT) in six new communities on Vancouver Island and in the Lower Mainland.

The 0.5 per cent speculation tax for Canadian citizens or permanent residents, and the two per cent tax rate for foreign owners and satellite families, will be established for vacant properties in the municipalities of North Cowichan, Duncan, Ladysmith, Lake Cowichan, Lions Bay and Squamish.

The expansion comes after an independent review of the tax that was first put in place in 2018. The report stated that, since being implemented, the province has collected approximately $230-million in revenues from properties that were left empty or being held as investments. Those funds have helped create over 20,000 units in B.C.’s long-term rental market, mainly in the Lower Mainland, and encouraged other owners of vacant properties to either rent them out or sell them.

The newly added communities were identified as needing the SVT as there are acute housing shortages in the areas and very low vacancy rates.