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

The platanthera dilatata is the fragrant white bog orchid whose perfume on a hot August day is one of the unforgettable delights of a summer hike in Strathcona Park. Photo supplied
Strathcona Wilderness Institute AGM upcoming

The Strathcona Wilderness Institute (SWI) will hold its 2021 annual general meeting… Continue reading

An Island Health nurse prepares a dose of COVID-19 vaccine. (Photo courtesy Island Health)
Health authority opening 19 clinics to immunize Vancouver Island residents

Health authority anticipates more than 40,000 people will be immunized over the next month

Cumberland council is backing the business association again. File photo
Cumberland backs homeless veteran count

Briefs: Council continues support for business association

Courtenay Nissan’s Matthew Bourassa, Geoff Piper and Sean LaFleur join YANA’s Ashley Smith, Kelly Rusk and Lisa Wilcox for the 4x4x48 event to raise funds. Photo by Mike Chouinard
Courtenay Nissan eats and runs for YANA

Dealership realized non-profit groups need new ways to raise funds during COVID

Rev. Sulin Milne at St. Peter’s Anglican Church in Comox is part of those helping distribute food to those in need within the town. Photo by Jim Peacock
Comox church serving the community with food through COVID-19

“We knew there were so many people who were facing economic challenges …”

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
‘It’s been a good week’: Tam hopeful on vaccines as pandemic anniversary nears

Tam says the addition of two new vaccines will help Canadians get immunized faster

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

Const. Allan Young. Photo: Abbotsford Police Department
Manslaughter charge laid in Nelson death of Abbotsford police officer

Allan Young died after an incident in downtown Nelson last summer

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

Pictures and notes in from friends and classmates make up a memorial in support and memory of Aubrey Berry, 4, and her sister Chloe, 6, during a vigil held at Willows Beach in Oak Bay, B.C., on December 30, 2017. THE CANADIAN PRESS/Chad Hipolito
Mother of slain daughters supports recent changes to Canada’s Divorce Act

Sarah Cotton-Elliott said she believed her children took a back seat to arranging equal parenting

The Port Alice pulp mill has been dormant since 2015. (North Island Gazette file photo)
Parts recycled, life returning to inlet as as old Port Alice mill decommissioned

Bankruptcy company oversees de-risking the site, water treatment and environmental monitoring

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Most Read