SPECULATION AND VACANCY TAX

January 14, 2019
All Tax Articles

As you are most likely aware British Columbia’s NDP Government has implemented a Speculation and Vacancy Tax effective 2018. The following excerpt from the Provincial Government’s website will give you a brief overview of this new tax. Please also be aware that in some cases, certain short-term rentals may preclude you from claiming an exemption. All residential property owners in the designated taxable regions will have to complete an annual declaration to claim any relevant exemptions. Where there are multiple owners of a home, a declaration must be completed for each owner. Further information on how to declare will be mailed to all owners of residential property within the taxable regions by mid-February.

The speculation and vacancy tax rate varies depending on the owner’s tax residency and whether the owner is a Canadian citizen or permanent resident, or a member of a satellite family.

For 2018, the tax will be levied at:

  • 0.5% of the property’s assessed value for all properties subject to the tax

For 2019 and subsequent years, the tax will be levied at:

  • 2% for foreign owners and satellite families
  • 0.5% for British Columbians and other Canadian citizens or permanent residents who are not members of a satellite family

The tax will be levied on owners who own the property on December 31 of each taxation year.

Please do not hesitate to contact us if you have questions and for full details visit:

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax

Please do not hesitate to contact us if you have questions about how these changes might apply to your situation.
Sandy J. Lee

Hello my name is Sandy Lee, I am a partner at Lee & Sharpe.

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