Homeowners in B.C. are facing a Sunday deadline to claim their exemption from the speculation and vacancy tax.
Though the vast majority of homeowners have already claimed it, there are still tens of thousands of stragglers.
The Finance Ministry said Friday that more than 90 per cent of an estimated 1.6 million eligible homeowners have claimed an exemption from the tax, which applies to vacant homes in Greater Victoria, Nanaimo, Lantzville, Metro Vancouver, the Fraser Valley, Kelowna and West Kelowna.
An estimated 32,000 people, or about one per cent of homeowners, will have to pay the tax, which is aimed at properties that are left vacant for months at a time.
“The speculation and vacancy tax is an essential tool to help make sure people who live and work in B.C. have a place to call home,” said Finance Minister Carole James. “We’re asking people to help make housing more affordable by helping us identify vacant properties and ensuring foreign owners and satellite families are paying their fair share.”
The hope, when the government introduced the tax, was it would reduce the number of empty homes and help deal with B.C.’s shortage of affordable housing.
James argues it’s already having an effect.
“Our plan is working. Since May, the home prices in Greater Vancouver have dropped in all segments of the market. We’re doing exactly what people asked us to do — working to make sure British Columbians can find and afford a home,” she said.
The speculation tax rate varies depending on the citizenship and residency status of the property owners.
The tax rate for 2018 is 0.5 per cent of a property’s assessed value for all properties subject to the tax.
For 2019, it changes to two per cent for foreign owners and satellite families, but remains 0.5 per cent for Canadian citizens or permanent residents who are not members of a satellite family.
James laid the need for the tax at the feet of the previous Liberal government.
“We have a housing crisis on our hands. Decades of neglect by the former government left our province with near-zero vacancy rates and the most unaffordable housing prices in Canada,” she said. “They let foreign and domestic speculators fuel the housing market unchecked and the results have been devastating for British Columbians.”
Residential property owners should have received a declaration letter with declaration and identification codes. If owners have not received a letter, a call centre agent will be able to help them find the necessary information to complete their declaration.
Those requiring assistance can complete their declaration over the phone via the call centre at 1-833-554-2323 from 8 a.m. to 8 p.m. The government is expecting a spike in calls as the deadline approaches.
For homeowners who have their declaration letters, the fastest way of claiming the exemption is online at gov.bc.ca/spectax
— With Vancouver Sun
