B.C. NDP retreats again on empty-home tax for urban areas

Rate reduced for all Canadians, dissident mayors to get annual meeting

The B.C. government has made last-minute changes to its “speculation and empty homes tax,” halving the rate to 0.5 per cent for all Canadian owners of second homes and promising the revenues will be spent for housing initiatives in the area where taxes are collected.

Finance Minister Carole James announced the changes Thursday, along with B.C. Green Party leader Andrew Weaver, two days after tabling legislation that would have imposed the tax at one per cent on Albertans and other Canadians with second homes in B.C.

Foreign property owners and “satellite families” whose family income is mostly reported outside Canada will pay two per cent of the assessed value.

(See full video of James and Weaver’s news conference at bottom of story.)

James first rolled back the extent of the tax in March after protests from vacation homeowners, and Weaver. The first overhaul exempted 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.

The property tax now applies only 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, with notices to go out early in 2019.

Mayors of affected communities protested loudly about the tax, reporting cancelled housing projects and questioning the assumption that affordable housing would result from people being forced to rent out or sell their vacation homes.

RELATED: Carole James unmoved by mayors’ tax concerns

James said the latest change is expected to reduce revenue from the tax by up to $30 million from the original budget estimate of $200 million in revenue.

B.C. Liberal leader Andrew Wilkinson said the NDP government’s tax policy is “collapsing,” with major changes after the government tabled legislation running to more than 100 pages to implement the tax. He said simple arithmetic shows that the repeated slashing of the tax will cost much more than $30 million in revenues.

Wilkinson also questioned the new rule that revenue would go toward new rental housing in the areas where it is collected, an apparent move to placate local governments who want to decide their own vacant-home tax the way Vancouver did.

“Remember, the specific regions hit by the tax are places like Oak Bay, West Vancouver, West Kelowna,” Wilkinson said. “Is that where we need our affordable housing money spent? This is a way to try to pay off the mayors to keep them quiet.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

 

Just Posted

Nathan Cullen named Parliamentarian of the Year

Skeena-Bulkley Valley MP won the top-title Nov. 5

Province not doing enough for forestry sector, say Liberals

Although Minister of Forests says government working to diversify industry, rural economies

Column: how to bring young blood to ranching

A Young Agarians program seeks to partner new ranchers with old

Stolen truck involved in fatal collision on Highway 16

Wednesday’s two-vehicle crash killed one man, 23, and injured two others

Local company Northern Homecraft wins big at Northern B.C. awards

Vanderhoof company won in two categories for homes built in Fort St. James area

Six students arrested, charged in sex assault probe at Toronto all-boys school

The school’s principal, Greg Reeves, described the video of the alleged sexual assault as ‘horrific’

Laine scores 3 as Jets double Canucks 6-3

Injury-riddled Vancouver side drops sixth in a row

Deportation averted for Putin critic who feared return to Russia

Elena Musikhina, a vocal critic of the Kremlin, has been granted a two-year visitor’s permit in Canada

B.C. to allow Uber-style ride hailing services to operate in late 2019

Fee will be applied to fund options for disabled people

Auditor general takes aim at Liberals’ fighter-jet plan

Suditor general Michael Ferguson is about to release a new report on Canada’s attempts to buy new fighter jets

B.C. couple converts ambulance into a traveling home

The Revelstoke couple plan on touring B.C. ski hills then driving to Mexico

Cyclist defecates, throws own poop at car following B.C. crash

Man defecates in the street before throwing it at a driver locked in her vehicle

Jamie Koe, other curlers kicked out of bonspiel for being too drunk

‘You don’t kick around other players’ bags, it’s disrespectful and we expect better of our players’

Terrace man killed in Highway 16 hit-and-run

Police ask for public’s help in their investigation

Most Read