BC expands spec tax to include Kamloops and most of the Okanagan
The province's tax on housing speculators just got a massive expansion and now covers most of the Okanagan and Kamloops.
First launched to curb BC's housing crisis, putting a pinch on homeowners that refuse to live in or rent their homes, the BC government's expansion now goes well beyond its original Lower Mainland and Central Okanagan focus.
The Ministry of Finance announced in a media release today, Nov. 22, the expansion is coming to 13 more cities. Starting in 2025 residential property owners will have to declare how they used the home in 2024.
"There is a housing crisis across the country and it is creating economic challenges, including people feeling pushed out of their communities and labour shortages," Finance Minister Katrine Conroy said in the release.
"With so many people struggling to find secure housing, we have to keep taking action - we can't afford to pull back. The speculation tax is one of the ways we can help increase affordable housing options for people and communities."
The speculation and vacancy tax already applied to Kelowna and West Kelowna, but it's now expanded to Coldstream, Vernon, Penticton, Summerland, Lake Country and Peachland.
"The expansion of the speculation and vacancy tax does not come as a surprise to us in Lake Country. 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," Lake Country mayor Blair Ireland said in a news release.
It will also affect Salmon Arm and Kamloops, along with five Vancouver Island communities.
"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," Housing Minister Ravi Kahlon said in the release.
The City of Penticton called the move "extremely disappointing," adding that it was done with "zero consultation."
The change will come into effect in January 2024, applying a 2% tax to foreign homeowners and 0.5% to Canadian or permanent resident homeowners.
Residential property owners will need to declare for the first time in January 2025 based on how they used their property in 2024, the ministry said, to give owners time to decide how to meet exemption requirements before the tax takes effect. Exemptions include primary residences, properties with a long-term tenant and life events, such as separation or divorce.
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