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It looks like the speculation tax is here to stay.
Today, the Government of B.C. introduced official legislation for a speculation and vacancy tax in an effort to help turn empty properties into homes for people.
This morning, I had the honour of tabling the Speculation and Vacancy Tax Act. Housing affordability is at a crisis point and our government is taking decisive action because people who live and work in BC should be able to afford a place to call home. https://t.co/zaQIQ2EpVT
— Carole James (@carolejames) October 16, 2018
“We believe the people who live and work in B.C. should be able to afford a place to call home,” said Carole James, finance minister. “Right now, British Columbians are faced with some of the highest housing prices in the world and there is widespread support for government's plan to moderate the housing market."
"We're tackling this housing crisis head-on and the speculation and vacancy tax is an essential piece in our plan."
The tax aims to prevent people from using the province’s housing market as a resting place for both foreign capital and other speculative investments.
It’ll also ensure satellite families and people who use local services without paying B.C. income taxes contribute their fair share.
All revenue raised by the speculation and vacancy tax will be used to fund affordable housing for British Columbians.
The province also hopes the tax will boost B.C.’s rental supply by introducing incentives to make vacant homes available for rent.
In 2019, the tax will be levied at 0.5% for British Columbians, 1% for Canadian citizens who aren’t residents of B.C. and 2% for foreign owners and satellite families.
Owners of the property will be hit with the tax each year on Dec. 31.