B.C.’s Speculation and Vacancy Tax (Province-wide), were both designed to offset some of the strain placed on the housing market by foreign investors and those who own property within the region but live elsewhere for the majority of the year. The tax was introduced in the February 2018 budget with the hope it would reduce the number of empty homes and help deal with B.C.'s shortage of affordable housing by encouraging owners of vacant units to put them into the rental market or sell them.
Owners are exempt from the tax if it is their principal residence, they rent it at least six months of the year, they are disabled, the property was just inherited, it's valued at less than $150,000, or a person was away and it was vacant due to medical reasons, residential care, work or spousal separation.
All registered owners of a residential property in a designated taxable region must complete a declaration each year to declare their residency status and how their property has been used. Declarations must be made each year because circumstances may change during the year. Every year the declaration is due on March 31st.
In the package mailed for homeowners is an informational brochure and letter, along with the suggestion of the quickest way to fill it out. If you chose to declare online go to the BC Government site here.
For up-to-date information and details about the speculation tax please visit the British Columbia governments website here.