B.C. Finance Minister Carole James presents her first budget, February 2017. (Chad Hipolito/Canadian Press/pool)

James continues to defend housing speculation tax

Removed from vacation homes, it still targets mostly B.C. homeowners

Finance Minister Carole James continues to defend the remaining properties targeted by her government’s speculation tax on vacant homes, after revealing that the majority that will pay the tax are B.C. residents.

Introduced in the February budget as an extension of the empty home tax imposed by the City of Vancouver to target mainly foreign real estate investors, the area affected by the tax was whittled down to major urban centres after an outcry from people with vacation homes.

RELATED: Rural cottages exempted from speculation tax

It now captures about 32,000 properties, 20,000 of which are owned by B.C. residents, James confirmed in debate on her ministry’s budget this week. This prompted a renewed attack by opposition MLAs, who say it still isn’t a speculation tax but rather an asset tax on people with second homes.

James stressed that 99 per cent of B.C. residents won’t pay the tax, and it is needed to promote rentals.

“One per cent who have second or third or fourth homes that they own in the regions that we’ve targeted will pay the speculation tax, if they choose not to rent their place out,” James said Thursday. “We’re in a housing crisis.”

James rolled back the extent of the tax in March after protests from vacation homeowners, exempting the Gulf Islands, Parksville, Qualicum Beach, the Juan de Fuca region in Premier John Horgan’s constituency and rural areas of the Fraser Valley and Central Okanagan.

It currently applies to Metro Vancouver, Greater Victoria and the municipalities of Nanaimo, Lantzville, Abbotsford, Chilliwack, Mission, Kelowna and West Kelowna. It is to take effect based on 2018 assessed property values, at 0.5 per cent for B.C. residents and two per cent for foreign owners and “satellite families” who don’t pay income tax in B.C.

Albertans and other Canadians whose principal residence is outside B.C. will pay 0.5 per cent in 2018 and one per cent in 2019 and later.

Just Posted

Victoria Day Parade returns to celebrate 120 years

F18 Hornets to honour #HumboldtStrong with first ever fly past, kicking off parade

Sidney fundraiser helping kids fight diabetes

Nicola Politano organizing May 26 dance at the air cadet hall

‘ALR golf courses should return to farming,’ says ex-ALC chair Frank Leonard

Former mayor says Saanich could appeal Cedar Hill Golf Course application

Is Steve Nash Vancouver Island’s best athlete of all-time?

As Captain Canada gets ready to enter basketball’s Hall of Fame it’s time to debate his legacy

Who is Vancouver Island’s greatest athlete ever?

We want to know, you get to choose in a 64-athlete tournament bracket

VIDEO: Canadian Forces help flood-ravaged Grand Forks residents heal

Sgt. Bradley Lowes says the military is used to dealing with traumatic times

Friends and family playing huge role in search for Vancouver Island man

Volunteers from the public join forces with SAR crews

Chilliwack Chiefs make history with first RBC Cup win

In front of a huge and noisy crowd, the Chiefs claimed their first-ever national junior A title.

Central Vancouver Island man dies in single-vehicle collision

Pickup truck with three occupants went off the road near Port Alberni

Watch: Saved from highway harm, ducklings waddle into Swan Lake

Saanich Pound rescue, release ducklings in cute video

UPDATED: Majority of flood evacuees in Kootenay-Boundary allowed to return home

Officials hope to have all 3,000 people back in their homes by Monday night

B.C. Lions bring back 6-time all-star offensive lineman Jovan Olafioye

He was acquired by the Montreal Alouettes last year.

Whitecaps rally for 2-2 draw with FC Dallas

Vancouver climbed out of a two-nil hole to tie FC Dallas 2-2

B.C. VIEWS: Making sense of climate policy

Flood and fire predictions have poor track record so far

Most Read