Property owners are receiving declaration forms this month for the B.C. speculation and vacancy tax, but fewer than one out of 100 will actually have to pay. (Black Press Media files)

Property owners are receiving declaration forms this month for the B.C. speculation and vacancy tax, but fewer than one out of 100 will actually have to pay. (Black Press Media files)

B.C. speculation and vacancy tax a big job with small returns

Declaration letters on the way for Nanaimo, Victoria, Kelowna

Every property owner in B.C.’s largest urban regions should receive a declaration letter by the end of February for the speculation and vacancy tax that almost none of them will have to pay.

The B.C. government says more than 99 per cent of owners now qualify for one of the exemptions, mostly because they don’t have a second residence. But they must declare their property status each year to avoid being billed, with payment due by July 1.

It’s the third year for the tax, which took in $88 million last year based on being vacant for at least six months of 2019. That’s about half of the revenue that was projected when the tax was imposed, which the finance ministry says is a sign it is working, as vacant homes are being sold or rented to avoid paying it. About 12,000 owners were forced to pay in the first year.

What does it cost to mail out hundreds of thousands of letters, process the responses and bill for the tax? That information is not available, because finance staff and call centres to handle the work are also dealing with other tax issues as well.

“Cost to administer the SVT program are not broken down on a program-by-program basis,” the finance ministry said in a statement to Black Press Media Feb. 9. “We put the necessary staff in place to ensure property owners have the information and support they need, and that people have access to information in multiple languages to complete declarations, seek tax information and claim exemptions.”

Whatever the cost of administering it, the NDP government’s legislation requires that all of the SVT revenue be spent on rental housing for the regions where it is collected. Finance Minister Selina Robinson has carried on her predecessor Carole James’ position that the tax is not for revenue but to maximize rental stock available. The ministry says the urban rental vacancy rate increased slightly in 2019, but by the second half of 2020, the top three most expensive rents in Canada, after Vancouver and Toronto, were Burnaby, Victoria and Kelowna.

RELATED: Speculation tax doesn’t cool B.C.’s hot housing market

RELATED: Strata condo rental bans lose exemption after 2021

Condo owners are allowed to escape the tax if their strata council doesn’t allow rentals, but that exemption expires after this year. For the 2019 property tax year, 331,520 condo properties in all SVT regions declared for the tax, and 3,603 had an owner who claimed a strata rental restriction as the reason for its vacancy.

The ministry cites Capital Regional District results to show the tax is working. The region had 1,036 property owners who had to pay in 2018, and 22 per cent of those owners claimed a tenancy exemption in 2019, with the formerly vacant unit rented for at least half of the year.

The last places to receive declaration letters this year are West Kelowna, Nanaimo, Lantzville, Sooke and the Capital Regional District around Victoria, with mailing dates set for this week. Vancouver mailings are to go out next week, Feb. 12 to 17, while most people in Abbotsford, Chilliwack and Metro Vancouver suburbs should have received them by now. Kelowna and West Kelowna are the only urban areas outside southwestern B.C. that are subject to the tax, which is based on low urban rental vacancy rates.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureBC politics

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Free Reformed Church is seen as people attend service, in Chilliwack, B.C., on Sunday, Feb. 21, 2021. Lawyers for the British Columbia government and the Justice Centre for Constitutional Freedoms are back in B.C. Supreme Court today, squaring off over the legality of COVID-19 rules that prohibit in-person religious services. THE CANADIAN PRESS/Darryl Dyck
B.C. top doctor has power to restrict access to a place during health hazard: lawyer

Under B.C.’s Public Health Act, Jacqueline Hughes says, Henry can restrict or prevent entry to a place

Photo by Dale Klippenstein
Two men taken to hospital after fight on Keeping Road in Abbotsford

One of the men suffers serious injuries in incident on Thursday night

....
‘Basmodi Wave’ Indian farmers protest coming to Abbotsford on Sunday

200 pairs of shoes being placed outside Abbotsford city hall to represent deaths during protests

Chris Isfled (left) of Abbotsford and friend Shawn Bjornsson of Winnipeg ran 30 kilometres across Lake Winnipeg in 2020, raising $20,000 for the Save Your Skin Foundation. This year’s event is being held virtually and invites participation from the public.
Abbotsford cancer survivor holds virtual run fundraiser for Save Your Skin Foundation

Chris Isfeld, a survivor of late-stage melanoma, holds A Viking’s Challenge on March 6 and 7

Pamela Chatry drops off a bag of books for a 91-year-old reader as part of The Book Bags program in Abbotsford. (Submitted photo)
Volunteers deliver books and puzzles in Abbotsford to seniors and shut-ins

The Book Bags provides monthly free home delivery to those who can’t get out

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry head for the B.C. legislature press theatre to give a daily update on the COVID-19 pandemic, April 6, 2020. (B.C. government)
B.C. nears 300,000 COVID-19 vaccinations, essential workers next

564 new cases, four deaths, no new outbreaks Thursday

A vial of some of the first 500,000 of the two million Oxford-AstraZeneca COVID-19 vaccine doses that Canada has secured through a deal with the Serum Institute of India in partnership with Verity Pharma at a facility in Milton, Ont., on Wednesday, March 3, 2021. THE CANADIAN PRESS/Carlos Osorio - POOL
B.C. dentists and bus drivers want newly-approved Oxford-AstraZeneca vaccine

BC Dental Association says dentists and their teams cannot treat patients remotely,

Surrey Pretrial in Newton. (Photo: Tom Zytaruk)
B.C. transgender inmate to get human rights hearing after being held in mostly male jail

B.C. Human Rights Tribunal member Amber Prince on March 3 dismissed the pretrial’s application to have Makayla Sandve’s complaint dismissed

President of the BC Teacher’s Federation (BCTF) Teri Mooring is calling for teachers to be vaccinated for COVID-19 by summer. THE CANADIAN PRESS/Chad Hipolito
Why it’s ‘urgent’ B.C. teachers get vaccinated from COVID-19 before summer

President Teri Mooring says not enough is being done to prevent virus transmission in schools

FILE - In this Jan. 18, 2014, file photo, endangered orcas from the J pod swim in Puget Sound west of Seattle, as seen from a federal research vessel that has been tracking the whales. A new study from federal researchers provides the most detailed look yet at what the Pacific Northwest's endangered orcas eat. Scientists with the NOAA Fisheries Northwest Fisheries Science Center spent years collecting fecal samples from the whales as well as scales from the fish they devoured. They say their data reaffirm the central importance of Chinook salmon to the whales. (AP Photo/Elaine Thompson, File)
Study reinforces importance of Chinook to Pacific Northwest orcas

Data confirms how central the big salmon are to the orca’s diet year-round

Shiromali Krishnaraj arrives from India and receives a mandatory COVID-19 test at Pearson International Airport during the COVID-19 pandemic in Toronto on Monday, Feb. 1, 2021. B.C.’s approved rapid tests also use a nasal swab, with a machine to scan for COVID-19 antibodies. THE CANADIAN PRESS/Nathan Denette
B.C.’s rapid COVID-19 tests have produced only two positive results

Tests deployed for exposures in schools, outbreaks in care homes, jails

BC Emergency Health Services confirmed that a call was received just before 10 a.m. Ground paramedics, as well as an air ambulance, are on the way to the area. (SUSAN QUINN/ Alberni Valley News)
UPDATED: 2 people in serious condition after helicopter goes down on Bowen Island

Unclear how many passengers aboard and unclear where the helicopter was going

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The Nanaimo bar display at the Nanaimo Museum. (City of Nanaimo Instagram)
City of Nanaimo points to correct recipe after New York Times botches batch of bars

City addresses ‘controversy’ around dessert square’s layers

Most Read