The site of One Water high rise in Kelowna, May 15, 2018.
(JOHN MCDONALD / iNFOnews.ca)
July 03, 2018 - 5:00 PM
KELOWNA - Local politicians have savaged the provincial speculation tax introduced in February’s budget but the predicted collapse of the construction industry has yet to appear halfway through the year, at least as measured by building permits in the City of Kelowna.
Doug Patan, building inspection services manager, says Kelowna is on track to blow past last year’s stupendous record of permitting $696 million worth of construction.
“I think it will come in at around $720 million, maybe $730 million for the year,” Patan added. “We’re sitting $15 million over already at the same time as last year.”
Last year’s record was an astonishing $160 million more than 2016 when the city issued permits for $537 million worth of construction of all types.
Patan said the city issued $109 million worth of construction permits in May, the most ever issued in one month.
For budget purposes, Patan said the city has only estimated permitting and development cost charges revenues based on $440 million worth of construction, a number he calls conservative.
Extra construction revenues are usually brought forward for later consideration in the budget cycle before council adopts its final budget.
The provincial speculation tax is set to become legislation this fall. Owners of properties that do not live in them for more than half the year or rent them out must pay a tax of 0.5 per cent of assessed value.
Read more stories about the speculation tax.
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