The BC government announced last October that a new “Speculation and Vacancy Tax” will apply to people who own second and vacant homes in the taxable areas of BC including Metro Vancouver as of December 31, 2018.
The “Speculation and Vacancy Tax” is a new tax introduced by the NDP in an attempt to curb the high prices of real estate. It is different from the City of Vancouver’s Empty Homes Tax effective on January 1, 2017 that only applied to homes in the City of Vancouver.
Vanoucver “Empty Homes Tax” and BC “Speculation and Vacancy Tax” are two separate taxes.
Each owner who has residential property in affected area in BC will receive a letter in the mail by the end of February with instructions on how to complete the annual declaration and to claim any relevant exemptions. The declaration must be completed by March 31, 2019 and each owner must complete an declaration.
The BC government promised that most homeowners in BC will be exempted (please see below link to see if you are exempted). If you have a special situation, please contact your tax professionals and accountants to verify.
IMPORTANT LINKS:
- Individuals Exemptions for Speculation and Vacancy Tax
- Frequently Asked Questions About Speculation and Vacancy Tax
News articles about the new tax:
Two taxes have B.C. property owners scratching their heads
BC speculation and vacancy tax declarations due at the end of March