On Monday, the BC government announced changes to the Speculation Tax which was proposed earlier this year.
“The speculation tax is intended to improve housing affordability in areas where the need is most acute, while exempting rural cabins and vacation homes”, Finance Minister Carol James said. These statements come after heavy criticism from many BC Homeowners and according to James, the changes will exempt 99% of British Columbians from the tax.
- Areas the Speculation Tax will Apply
- Metro Vancouver
- The Capital Regional District (excluding the Gulf Islands and Juan de Fuca)
- Kelowna and West Kelowna
- Abbotsford, Chilliwack and Mission
- Tax Rates 2018
- 0.5% of the property value for all properties subject to the tax
- Tax Rates 2019 and subsequent years
- 2% for foreign investors and satellite families
- 1% for Canadian citizens and permanent residents who do not live in British Columbia
- 0.5% for British Columbians who are Canadian residents or permanent residents (and not members of a satellite family)
- People who rent out their second property for at least six months of the year
- B.C. residents with second properties are eligible for tax credits valued up to $400,000
I BELIEVE THIS POLICTICAL CARTOON SUMS UP OWNERSHIP OF RECREATIONAL PROPERTIES FOR BC RESIDENCE.
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