Earlier in the year the BC Government proposed a speculation tax, in their opinion, to mitigate rising real estate prices in certain sectors of the provinces (Nanaimo, Kelowna, Great Vancouver and Greater Victoria). The tax affects home owners who own a second property in one of the four areas that was not their primary resident. The proposed tax had three values based on home owner citizenship in conjunction with where they resided in Canada. If you are non Canadian and do not have permanent residency status the tax is 2% on the assessed value of the property. If you are a Canadian or have permanent residency status who is a non BC resident the tax is 1% and for BC Residents who are Canadian the tax is 0.5%.
This past October the BC Government table the legislation to implement the tax. Andrew Weaver and the BC Green Party was originally against the tax, but with a couple amendments the Greens gave their support to the government and I suspect the new tax will pass. The main change in the tax is to reduce the non BC Resident’s taxable amount to equal that of BC residents of 0.5%. The 2% tax rate still applies to non-Canadians.
For more information on how this tax may affect you and how you may qualify for exceptions to the tax feel free to give us a call or send us an email. As well here is the link the BC Government website for all the details on the tax.
BillAll Articles More Like This