BC Government expands on Speculation and Vacancy Tax program, though Northwest BC remains off Minister Ravi Khalon's radar for now

The British Columbia government continues on with their range of initiatives towards improving on the affordability and availability for housing in the province, announcing on Wednesday that they will be expanding on the speculation and vacancy tax program adding 13 new municipalities to the list of those where the tax will be in effect.

The program is focused on investment homes which remain vacant in areas of high vacancy rates.

“There’s something wrong when people are buying up investment homes and keeping them empty while others are living in vehicles and can’t find housing, Homes are meant to be lived in by people in our communities, not used for speculation. While some would cancel the speculation tax – giving a handout to speculators and turning homes back into empty condos – we know that people can’t afford that. We’re taking action to make more homes available for people throughout the province.” -- Ravi Kahlon, Minister of Housing.

Communities to be included in the program are split between the Okanagan, Interior and Central Vancouver Island, all are areas which are seeing significant growth as people relocate or move to the regions listed. 

In their statement introducing the expansion the Province provided some additional notes on how the program will roll out.

Residential property owners in these communities will need to declare for the first time in January 2025 based on how they used their property in 2024. This gives owners in the new areas time to decide how to meet exemption requirements before the tax takes effect. 

Exemptions include primary residences, properties with a long-term tenant and life events, such as separation or divorce. 

More than 99% of people living in B.C. are exempt from paying the tax.

How the taxation is assessed is explained here.

The Northwest for now remains outside of the Speculation Tax provisions, that despite high vacancy rates and in Prince Rupert at least a volume of empty houses that sit unused.

More notes from the Legislature can be reviewed here.

A look at the Housing sector in Prince Rupert can be explored through our archive page.

Cross posted from the North Coast Review.