Speculation and vacancy tax expanding to Vernon, Coldstream, Lake Country & more

Nov 22, 2023 | 1:08 PM

The B.C. Government is cracking down on foreign investors owning homes across B.C., including locally.

Minister of Finance Katrine Conroy stated homes should not be left empty and used as an investment opportunity for speculators while British Columbians are looking for viable housing options in their communities.

“We need to keep taking action to support people struggling to find secure housing, and the speculation and vacancy tax is one of the ways we can make sure we have homes being used for people. That’s why we’re expanding the tax to more municipalities in B.C. starting in 2024,” Conroy announced Wednesday, Nov. 22.

“These communities include Vernon and Coldstream, Penticton and Summerland, Lake Country and Peachland, Courtenay, Comox and Cumberland, Parksville and Qualicum Beach, Salmon Arm and Kamloops.”

The leaders of the communities that will fall under the speculation and vacancy tax were reportedly informed of the policy expansion yesterday.

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Residential property owners in the aforementioned communities will need to declare for the first time in January of 2025 how their properties were used in 2024.

“The expansion of the speculation and vacancy tax does not come as a surprise to us in Lake Country,” Lake Country Mayor Blair Ireland stated in a release from the province.

“It has always made sense to align major policy throughout communities of the Central Okanagan and, as such, we are now in line with the City of Kelowna. This decision provides a cohesive message to all Central Okanagan builders and buyers and less confusion for taxpayers.”

With these additions, the tax would apply to 59 communities across B.C.

Conroy noted many of the aforementioned communities, including Vernon, Coldstream and the other Okanagan and Shuswap area communities, have housing used for tourism purposes, but said that had been taken into consideration.

“What we’ve done is give owners just over a year to make a decision so they can rent-out on a part-time basis, as long as it’s a minimum of six months, they can rent out on a permanent basis if they so choose, they can sell if they so choose or they can pay the tax,” Conroy stated.

The tax aims to have speculators either rent-out or sell their properties rather than face a monetary penalty, which Conroy said has so far been successful.

“It’s added more than 20,000 home units to the long-term rental market in the Metro Vancouver area,” Conroy stated.

“It’s helping people in our communities find homes. Homes for desperately needed workers like nurses, firefighters, teachers; homes for young people who feel stuck in their parents’ homes; homes for seniors on fixed incomes; and homes for families who can’t find a home they can afford.”

Conroy added the tax has also brought in over $313 million, which she said has been used to build affordable housing projects across the province.

“There’s something wrong when people are buying up investment homes and keeping them empty while others are living in vehicles and can’t find housing,” Minister of Housing Ravi Kahlon said. “Homes are meant to be lived in by people in our communities, not used for speculation. While some would cancel the speculation tax – giving a handout to speculators and turning homes back into empty condos – we know that people can’t afford that. We’re taking action to make more homes available for people throughout the province.”

The speculation and vacancy tax is two per cent for people who don’t pay the majority of their taxes in Canada, and 0.5 per cent for Canadian citizens or permanent residents who don’t reside in the community where they own property but still pay the majority of their taxes in Canada.

by Liam Verster

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