The new tax in British Columbia – Speculation Tax
In 2018 the tax rate is based off 0.5% of the assessed value. In 2019 the tax rate changes and gets more complicated.
Canadian Citizens in 2019 who are subject to the tax will pay 1% tax on assessed value. Non-Canadian will have to pay 2% of the assessed value.
How do you know if you’re exempt?
- This is your primary home (Principal residence)
- If the property is rented out for 1 month or longer for a minimum of 6 months total in a year: Must have a written tenancy agreement in place under the Residential Tenancy Act and the tenant resides at the property.
- If the owner passes away during taxation year – tax exempt in the year of death and following tax year, owners’ representative is also exempt.
- Homes that are used as licensed daycares
- Owners that don’t reside in their principal residence for a medical reason or hazardous properties.
- Couples going through separation
- Property that is under construction or substantial renovation is exempt
- Exemption for properties with rental restrictions (2018 & 2019 tax year only) If rental restriction was in place on or before Oct 16, 2018.
- West side of Pitt Lake* See Metro Vancouver Electoral Area A MAP
If the Owner is Non-Canadian or doesn’t reside in Canada, exempted if they meet all following criteria:
- A family member living there is Canadian or Permanent resident.
- A family member living there is a resident of BC for income tax purposes.
- Live in for a minimum of 6 months.
- NOT a member of a satellite family.
- AND “tenant” income must equal or greater than 3 times the annual fair market rent for the entire house: This means, oversea parents buying for the kids to live in do NOT qualify for an exemption.
These are not all the exemptions, to see the full list please visit the link to the government website
These are the cities that apply. Maps are available on the government website.
All 21 cities in Metro Vancouver
- West Vancouver
- North Vancouver
- New Westminister
- White Rock
- Port Coquitlam
- Port Moody
- Pitt Meadows
- University Endowment Lands (UBC)
Does not include Bowen Island, the Village of Lions Bay and Electoral Area A, but includes UBC and the University Endowment Lands
- West Kelowna
All 13 Cities in the Captial Regional District
- North Saanich
- Central Saanich
- Oak Bay
- View Royal
Does not include Salt Spring Island, Juan de Fuca Electoral Area, and the Southern Gulf Islands
To claim an exemption from the tax you must register by March 31, 2019
Daniel Warren 778 938 8577 Danielwithremax@gmail.com