B.C. Liberal finance critic Shirley Bond. (Hansard TV)

B.C. Liberal finance critic Shirley Bond. (Hansard TV)

Condo rental bans may be on way out with B.C. empty home tax

Many exemptions to tax, but annual declarations required

Forcing B.C. strata councils to remove restrictions on rentals is part of the B.C. NDP government’s speculation tax that is taking effect this year, opposition critics say.

The move was not formally announced, but guidelines for the imposition of the vacant home tax say strata councils won’t be able to restrict rentals after 2019. B.C. Liberal finance critic Shirley Bond said the change was recommended last year by the government’s rental housing task force, and “just happens to coincide with the tax taking effect.

“It certainly looks like the NDP have been planning all along to eliminate the rental restriction powers of strata councils,” Bond said Wednesday. “The NDP have been creating tax policy on the fly and the so-called speculation tax is a perfect example of that. It looks like strata property owners are next on the hit list.”

Finance Minister Carole James said Wednesday the final decision isn’t made yet on existing strata bylaws, after a two-year exemption period from the tax for owners who aren’t allowed to rent their vacant condo. The government’s rental task force recommended in December that rental restrictions be scrapped to allow empty apartments to be rented and ease the housing shortage in urban areas.

The finance ministry announced Tuesday that all residential property owners have to file a declaration to claim an exemption to the tax. Letters are to go out starting this week with instructions on how to claim an exemption, and those who don’t will be billed for the new tax.

RELATED: Letters going all homeowners in B.C. speculation tax communities

VIDEO: Carole James unmoved by mayors’ speculation tax concerns

The government says 99 per cent of B.C. residents won’t have to pay the speculation tax, although all registered property owners in affected urban areas will have to file a declaration every year to qualify for exemptions.

Even if owners miss the March 31 deadline to file a declaration and get a tax notice to pay the extra, there will be time to apply for the exemption before payment is due in early July or even after payment is due.

Among the exemptions is for a condo property where a strata bylaw prevents rentals, but finance ministry tax guides say that is only for the 2018 and 2019 tax years.

“When a covenant or strata bylaw prevents the property from being rented out in a manner that would allow a rental exemption, all owners of the property are exempt for the 2018 and 2019 tax years only, as long as the rental restriction was in place on or before Oct. 16, 2018,” the ministry guide says. “The owner must have purchased the property before that date.”

Other exemptions to the vacant home tax include properties that house an operating licensed daycare, and those that are vacant because of a separation, divorce or death of an owner, and if it is occupied by an approved tenant at least six months of the year.

After protests from urban municipalities and extended negotiations between the NDP government and the B.C. Green Party, the property tax now applies only to Metro Vancouver, Greater Victoria and the municipalities of Nanaimo, Lantzville, Abbotsford, Chilliwack, Mission, Kelowna and West Kelowna. The rate was reduced to 0.5 per cent for all Canadian owners at the insistence of B.C. Green leader Andrew Weaver, who earlier objected to it being applied to vacation homes in the Gulf Islands.

For foreign owners and “satellite families,” where much of the household income is not taxed in Canada, the rate is two per cent of the assessed value.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislaturespeculation tax

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

Just Posted

Abbotsford’s Chase Claypool celebrates with teammates after scoring a touchdown on Sunday. (Karl Roser/Pittsburgh Steelers)
Abbotsford’s Chase Claypool scores 10th touchdown

First wide receiver since 1960 to record 10 touchdowns in 10 games, Steelers still unbeaten

Former BC Lion Angus Reid was the keynote speaker at the 10th annual National Philanthropy Day lunch in Abbotsford on Nov. 16.
Three awards presented at National Philanthropy Day lunch

Event in Abbotsford honours those who have made a difference

web
Two Mission dental offices among only 5 in B.C. to purchase expensive new air-filtration invention

‘My patients can’t wear masks … There’s no other way around it,’ Dr. Stephen Chow said

Black Press file photo.
COVID-19 exposures recorded at 5 more Abbotsford schools

4 public schools and 1 private school had exposures from Nov. 9 to Nov. 12

An employee at a Chilliwack McDonald’s location tested positive for COVID on Nov. 21 (File photo by The Associated Press)
Employee tests positive for COVID-19 at McDonald’s restaurant in Chilliwack

One case was detected at the Vedder Road location, which briefly closed its doors

Kyle Charles poses for a photo in Edmonton on Friday, Nov. 20, 2020. Marvel Entertainment, the biggest comic book publisher in the world, hired the 34-year-old First Nations illustrator as one of the artists involved in Marvel Voice: Indigenous Voices #1 in August. THE CANADIAN PRESS/Jason Franson
VIDEO: Indigenous illustrator of new Marvel comic hopes Aboriginal women feel inspired

Kyle Charles says Indigenous women around the world have reached out

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, November 9, 2020. THE CANADIAN PRESS/Darryl Dyck
COVID-19: What do rising positivity rates mean for B.C.? It’s not entirely clear

Coronavirus cases are on the rise but the province has not unveiled clear thresholds for further measures

A rider carves a path on Yanks Peak Saturday, Nov. 21. Two men from Prince George went missing on the mountain the next day. One of them, Colin Jalbert, made it back after digging out his sled from four feet under the snow. The other, Mike Harbak, is still missing. Local search and rescue teams went out looking Monday, Nov. 23. (Sam Fait Photo)
‘I could still be the one out there’: Snowmobiler rescued, 1 missing on northern B.C. mountain

As Quesnel search and rescue teams search for the remaining rider, Colin Jalbert is resting at home

More than 70 anglers participated in the bar-fishing demonstration fishery on Sept. 9, 2020 on the Fraser River near Chilliwack. DFO officers ticketed six people and seized four rods. A court date is set for Dec. 1, 2020. (Jennifer Feinberg/ Chilliwack Progress file)
Anglers ticketed in Fraser River demonstration fishery heading to court

Sportfishing groups started a GoFundMe with almost $20K so far for legal defence of six anglers

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Care home staff are diligent about wearing personal protective equipment when they are in contact with residents, but less so when they interact with other staff members, B.C. Seniors Advocate says. THE CANADIAN PRESS/Chris Young
More COVID-19 testing needed for senior home staff, B.C.’s advocate says

Employees mingling spotted as virus conductor in many workplaces

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

This 2019 photo provided by The ALS Association shows Pat Quinn. Quinn, a co-founder of the viral ice bucket challenge, died Sunday, Nov. 22, 2020, at the age of 37. (Scott Kauffman/The ALS Association via AP)
Co-founder of viral ALS Ice Bucket Challenge dies at 37

Pat Quinn was diagnosed with Lou Gehrig’s disease, also known as amyotrophic lateral sclerosis, in 2013

Most Read