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Speculation Tax Update

SPECULATION TAX UPDATE:

The BC government has updated their speculation tax information, it is now in effect and the question that has been on the minds of most is:

If my home is in a designated taxable region, will I have to pay the speculation and vacancy tax?

In 2018, most British Columbians will be exempt if they either live in their home as their principal residence or rent out their home for at least 3 months of the year. Short-term rentals for periods of less than one month do not count towards the 3-month total.

In 2019, most British Columbians will continue to be exempt. A home that is not a principal residence must be rented for at least 6 months per year to be exempt from the speculation and vacancy tax. Short-term rentals for periods of less than one month do not count towards the 6-month total. 

Principal Residence Exemption you must reside for a longer period in a calendar year than any other place.

There is a large list of exemptions and most homes will be exempted under a) PRINCIPAL RESIDENCE EXEMPTION or c) RENTAL EXEMPTION.

For 2018 if you are not exempt the tax the amount is  0.5% of the property’s assessed value. In 2019 foreign families will rise to 2%  

Every person in a taxable area (GVRD, Victoria, Nanaimo, Kelowna and West Kelowna) will need to make a declaration in FEBRUARY 2019, which must be received back by the Province by MARCH 31, 2019.  This is required whether exempt or not.

**IMPORTANT **If you don’t complete your declaration, you will receive a tax notice charging you the tax at the maximum tax rate.

If you don’t receive a declaration letter by late February:

Toll Free: 1 (833) 554-2323
Outside North America: 1 (604) 660-2421
Email: [email protected]

For full details visit this government site; 

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax

The government still seem to be figuring out a few things and we don’t have all the answers, especially with regards to Strata property,  however, if you have questions please feel free to call any time.