As we approach the end of 2023, the B.C. Government recently announced its plan to expand the speculation and vacancy tax to THIRTEEN (13) additional municipalities in B.C. This expansion will bring the total number of communities subject to the tax to 59.
The speculation tax, sometimes called the vacancy tax, is an annual tax based on how owners use residential properties in areas in B.C. affected most by the current housing crisis and shortage. It was introduced by the B.C. government in 2018.
Finance Minister Katrine Conroy and Housing Minister Ravi Kahlon announced this change at the end of November 2023.
The speculation and vacancy tax will be newly applied to the following municipalities:
Coldstream, Comox, Courtenay, Cumberland, Kamloops, Lake Country, Parksville, Peachland, Penticton, Qualicum Beach, Salmon Arm, Summerland, and Vernon.
Residential property owners in these newly affected communities will need to declare in January 2025 as to how they used their property in 2024 (for example whether it was rented, vacant, etc.).
Exemptions exist in a few circumstances including for primary residences, properties with a long-term tenant, and life events such as separation or divorce.
