The government expects 99 percent of British Columbians to be exempt from the tax, said Minister of Finance Carole James. The ministry estimates 32,000 people, about one percent of homeowners, will have to pay the tax, which targets properties left vacant for months at a time.
Through the tax, the province collected $115 million in the 2018-19 fiscal year that ended March 31, 2019. The ministry forecasts revenue of $185 million in 2019-20
The speculation and vacancy tax rate varies depending on the owner’s tax residency. In addition, the tax rate varies based on whether the owner is a Canadian citizen or permanent resident of Canada, or a satellite family.
For 2019 and subsequent years, the tax rate is:
- 2% for foreign owners and satellite families
- 5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family
The speculation and vacancy tax applies based on ownership as of December 31 each year.
B.C. owners are eligible for a tax credit of up to $2,000 on secondary properties to offset their tax payable. The credit is limited to $2,000 per owner and $2,000 per property (in the case of multiple owners) per year.
The speculation and vacancy tax applies based on ownership as of December 31 each year.
If a residential property has multiple owners, tax is divided among each owner based on their ownership share. For example, if you and your spouse are equal owners of a residential property in a taxable region, you’ll each owe tax on 50% of the home’s assessed value.
Exemptions are based on how each person uses each residential property. If you’re the co-owner of a residential property in a taxable region and are exempt, but the other owner isn’t exempt, the other owner will have to pay tax based on their percentage ownership of the residential property as listed with the Land Title Office.
All owners on title of a property must complete the declaration in order to claim an exemption or to determine eligibility for a tax credit. Owners are exempt from the tax if it is their principal residence, they rent it at least six months of the year, they are disabled, the property was just inherited, it’s valued at less than $150,000, or a person was away and it was vacant due to medical reasons, residential care, work or spousal separation.