Finance Minister Carole James has faced questions for weeks about the effect of a new property tax on vacation homes. (Tom Fletcher/Black Press)

Pressure on Carole James to ease B.C. speculation tax

Vacation home owners plead for relief from vacant home levy

As B.C. Finance Minister Carole James prepares changes to the speculation tax she announced in her February budget, protests continue to come forward from people hit with steep new costs for their vacation homes.

Dave Pentland of Surrey says he is looking at a 500 per cent increase on his share of a Salt Spring Island vacation property he and his brother inherited. He calculates that his tax bill for the property would go from $1,849 to $9,284, which is nearly a quarter of his retirement income.

He says he and his brother are not speculators, and want to keep the property in the family.

“The NDP’s speculation tax has really left me with one option,” Pentland said. “Pay the tax until the next election and hope for a change in government. If the government does not change then I cut my losses, hand the keys to my brother and walk away.”

Retirees Tom Stewart and his wife sold their “modest home” in Ontario and bought a condo there and an apartment in Oak Bay where they spend half the year. Stewart says the proposed two per cent surtax on the apartment will cost at least $5,000 a year, which they can’t afford on their retirement income.

The couple has relatives in Ontario and don’t want to try to find a new doctor if they move to B.C. full time to avoid the tax. And the strata corporation that runs their Oak Bay apartment doesn’t allow rentals.

“It is frustrating that our retirement dream is being quashed almost from the outset,” Stewart said. “We are pretty far removed from the alleged target of the legislation.”

RELATED: Arizona snowbirds ‘pushed out’ of summer homes

James is expected to announce changes to the tax Monday afternoon.

As originally announced in the B.C. budget Feb. 20, the speculation tax would be charged to out-of-province residents who inherited a family summer or ski cabin, if it is in Metro Vancouver, the Fraser Valley, Nanaimo or Capital Regional District, or the municipalities of Kelowna and West Kelowna.

It is to begin at 0.5 per cent of property value, rising to two per cent later. People who pay income tax in B.C. would receive a tax credit, but some say they don’t have enough income to cover the cost of the speculation tax.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Couple selling fake jewelry in Fraser Lake, say RCMP

A man and woman have been defrauding local residents, offering fake jewelry for sale

Gitxsan forming cross-sector salmon management team

Nation again declares closure of fishery in territory for 2019

Editorial: The Speaker shouldn’t be an MLA

Time to re-evaluate the Speaker position

Column: condition of cows after winter feeding

The protein content of winter feed is important, says rancher David Zirnhelt

Concept designs for Vanderhoof’s new CNC campus unveiled

Community was invited to provide feedback at a public engagement session Dec. 6

Lawyer for Chinese exec detained by Canada says it’s ‘inconceivable’ she would flee

Meng Wanzhou was detained at the request of the U.S. during a layover at the Vancouver airport

BCHL player lifts Canada West to second win at World Junior A Challenge

Chilliwack Chiefs player has a a three-point performance

Well-known B.C. snowmobile guide killed in rollover accident

Shuswap sledding communty mourns loss of experienced Sicamous snowmobiler

B.C.’s skyrocketing real estate market will ‘correct’ in 2019: analyst

Housing prices in Vancouver are set to rise just 0.6 per cent

Climate change, receding glaciers increase landslide risk on B.C.’s Mount Meager

Climate change is causing glaciers atop Mount Meager, in British Columbia, to shrink increasing the chances of landslides and even a new eruption, says one expert.

UK’s May lobbies EU leaders in fight to save Brexit deal

Top European Union officials ruled out Tuesday any renegotiation of the divorce agreement with Britain.

Former Canadian diplomat detained in China amid rising tensions: reports

A former Canadian diplomat has been arrested in China, according to media reports and the international think tank he works for.

In depth: Simple falls causing serious injuries to people over 65

Kelowna’s high population of seniors puts it in the spotlight for how it deals with seniors’ issues

Time magazine’s 2018 person of the year

The group is made up of four journalists and are the “guardians and the war on truth”

Most Read