Speculation Tax Expanding To New Communities To Deliver More Homes

The Province is  expanding the speculation and vacancy tax to 13 new municipalities, a move intended to ensure more empty homes are made available for the people who work and live there.

“There is a housing crisis across the country, and it is creating economic challenges, including people feeling pushed out of their communities and labour shortages,” said Katrine Conroy, Minister of Finance.

“With so many people struggling to find secure housing, we have to keep taking action – we can’t afford to pull back. The speculation tax is one of the ways we can help increase affordable housing options for people and communities.”

That includes Courtenay, Comox, Cumberland, Parksville, and Qualicum Beach; along with Vernon, Coldstream; Penticton, Summerland; Lake Country, Peachland; Salmon Arm; and Kamloops.

Expanding the speculation tax is part of B.C.’s Homes for People plan that includes actions to fight speculation, deliver more homes within reach for people, and speed up delivery of new homes.

Ravi Kahlon, Minister of Housing says homes are meant to be lived in by people in our communities, not used for speculation.

An independent review released in 2022 found that the tax had helped deliver more than 20,000 homes in Metro Vancouver alone.

The report included recommendations that the government considers taking a phased approach to expanding the speculation and vacancy tax to additional communities to build on the success of the measure and deliver more homes for people.

Residential property owners in the newly added communities will need to declare for the first time in January 2025 based on how they used their property in 2024.

This gives owners in the new areas time to decide how to meet exemption requirements before the tax takes effect. Exemptions include primary residences, properties with a long-term tenant and life events, such as separation or divorce.

More than 99% of people living in B.C. are exempt from paying the tax.

Courtenay Mayor Bob Wells  says the city will continue to make the approval of new housing a priority and share the provincial government’s commitment to the development of new housing options for all residents.

Cumberland Mayor Vickey Brown says the move isn’t just about property, but about ensuring each community has strong neighbourhood connections instead of empty houses and turning houses into homes instead of a collection of assets.

With the addition of the latest 13 communities, the tax will apply to a total of 59 communities throughout British Columbia.

To see the full release, visit Government of British Columbia.