March 27, 2018
New Speculation Tax Information
On March 26, the BC Government announced that the proposed speculation tax will now focus on urban centres. Here’s a map.
Exemptions remain for principal residences and long-term rentals (rented for at least six months, in increments of at least 30 days). And exemptions have been added for specific circumstances, including death and long-term medical care. The government is considering temporarily grandfathering strata units where rentals aren’t allowed, but there’s no firm decision on that, yet.
The tax rate has also been adjusted. In 2018, it will be 0.5 per cent for all applicable properties. Here’s how it will apply in 2019:
- for British Columbians with second homes in the affected urban areas: 0.5 per cent (though, homes valued up to $400,000 will be exempt),
- for Canadians outside BC, 1 per cent,
- for non-Canadians and “satellite” families, 2 per cent.
BCREA continues to ask questions and help shape the tax.