#speculation tax

[allthecanadianpolitics]

Speculation tax increased long-term rentals in B.C., raised $88 million: ministry

A statement from the ministry says details collected from speculation and vacancy tax returns submitted in 2019 reveal the levy encouraged owners to “repurpose” formerly vacant properties into long-term rentals.

The Ministry of Finance says data from British Columbia’s tax targeting property speculators shows it has helped increase the number of long-term rentals in the province.

A statement from the ministry says details collected from speculation and vacancy tax returns submitted in 2019 reveal the levy encouraged owners to “repurpose” formerly vacant properties into long-term rentals.

The statement says region-specific details of the 2019 tax declarations have been forwarded to mayors of communities where the measure applies, to help them work with the ministry on any changes.

The tax, in place since 2018, covers most residential properties in the Metro Vancouver and Capital regional districts, the districts of Mission and Lantzville and the cities of Abbotsford, Chilliwack, Kelowna, West Kelowna and Nanaimo.

Only a fraction of B.C. owners must pay and the ministry says 92 per cent of the $88 million raised in 2019 was collected from foreign owners, Canadians from outside B.C., other non-B.C. resident owners or so-called satellite families who make most of their income from outside Canada.

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Tagging: @politicsofcanada

[allthecanadianpolitics]

B.C. speculation tax figures show foreign owners hardest hit as expected take soars

Preliminary data shows far fewer than estimated 32,000 homes have had to pay the tax, but revenue higher than expected due to high value of real estate taxed

The B.C. government is earning more money than expected from its new speculation tax, even though fewer B.C. homeowners are getting hit with the fee, new figures show.

The tax brought in $115 million from 12,029 homeowners during a 15-month period in the 2018-19 fiscal year that ended March 31.

That’s higher than the $87 million projected, and the figure could rise because about 23,000 homeowners did not return declaration or exemption forms by the July 2 deadline.

“I’ve said all along it’s important we take a look at the tax and the impact on communities and the impact on affordable housing and housing for people in the province,” Finance Minister Carole James said Thursday. “That’s the reason the tax is there. It’s not put in place to bring in huge resources for government.”

James attributed the extra revenue to high real estate values — the speculation tax ranges from 0.5 per cent to 2.0 per cent on the assessed value of the property — and three extra months in the first reporting year of data.

Also, the homes hit by the tax were on average 46 per cent more expensive than those exempted, suggesting some expensive luxury homes and mega-mansions were among those taxed.

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[allthecanadianpolitics]

Majority of speculation tax paid by foreign owners, Canadians living outside B.C., declarations show

Forms submitted so far show 99% of British Columbians are exempt from tax, Ministry of Finance says

The B.C. Ministry of Finance says the vast majority of those paying the speculation and vacancy tax are the people it was intended for — foreign owners, satellite families and Canadians living outside the province — according to the declaration forms submitted so far.

The tax, introduced to target foreign and domestic speculators who own homes in B.C., is part of the government's plan to increase housing affordability in the province.

Any owner of title — including spouses, family members or individuals who hold a piece of estate property — in a major urban centre in B.C. was required to complete a declaration by March 31 to claim an exemption from the tax.

The government says nearly all the declarations have been submitted, and that 99 per cent of British Columbians were exempt from the tax.

It said foreign owners, satellite families and Canadians living outside of B.C. make up 80 per cent of those paying the tax.

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[allthecanadianpolitics]

B.C. government tables legislation on speculation tax

“If people choose to leave their homes vacant where the housing crisis is the deepest we are asking them to pay their fair share and all that revenue will be returned to British Columbians in the form of affordable housing,” said James.

B.C.’s finance minister is charging ahead with the NDP government’s speculation tax, while dismissing calls from local mayors for exemptions.

Carole James introduced enabling legislation on the tax Tuesday, though it did not appear to contain any major changes municipal governments had called for.

James said that while she’s heard the concerns of mayors that the tax might deter local development projects, the speculation tax remains a critical part of her government’s plan to improve housing affordability by levelling surcharges on owners of multiple properties who leave them vacant.

“When you face a major provincial crisis like this it’s the responsibility of the provincial government to act, not to let municipalities pick and choose whether they want to address affordable housing,” said James. “Affordable housing is a crisis and it’s our responsibility as government to act on that.”

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[allthecanadianpolitics]

Cabins and other vacation homes in rural areas will be exempt and British Columbians will pay a reduced rate

The B.C. government has made a number of changes to its proposed speculation tax which will reduce both the number of British Columbians paying the tax and the amount they'll pay.

The tax, first announced during February's budget, was to be assessed at 0.5 per cent of a vacant property's assessed value this year and two per cent in 2019.

On Tuesday, B.C. Finance Minister Carole James announced the tax would remain at 0.5 per cent for properties owned by B.C. residents but would now only rise to one per cent for out-of-province Canadian residents and still remain at two per cent for foreign investors.

The NDP government also said the tax would no longer apply to properties in the Gulf Islands, Parksville, Qualicum Beach or rural Fraser Valley.

The tax will still apply in the following areas:

-Metro Vancouver, Chilliwack, Abbotsford and Mission (excluding Bowen Island). -The Capital Regional District (excluding the Gulf Islands). -The municipalities of Nanaimo, Lantzville, Kelowna and West Kelowna.

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[danielgreenhalghenm-blog]

The Speculation Tax Roll-Out

As we’ve pointed out before, the tax that was actually passed and is now on the books isn’t really a “speculation tax” per se – it’s a “non-resident owner tax” that will most likely do little to keep those greedy foreign speculators away.

Our co-founder, Daniel Greenhalgh, believes that of the 5-7% of B.C. homes that sit empty, a big portion of them are owned by permanent residents who need to maintain their status. This may be an exploitation of the immigration system, but it’s not a distortion of the housing market.

[woofan06-blog]

The Pros and Cons of the BC’s Speculation Tax on Real Estate | Woofan

The BC’s speculation tax on real estate is one of the hottest issues on the property and real estate in British Columbia today. As a potential owner of a secondary property, it helps to know how it can affect you and your family.

The many issues that surround the BC’s speculation tax on real estate are far from over, but it helps for us to keep tabs on the pros and cons that may affect you and your family.

[theseatonpost]

Sanders proposes $19.6 TRILLION in tax hikes

Sanders proposes $19.6 TRILLION in tax hikes

January 19, 2016

Sanders proposes $19.6 TRILLION in tax hikes

Sen. Bernie Sanders’ populist message has put him in the position to potentially win Democrat nomination contests in both Iowa and New Hampshire, shaking the sense of inevitability that has surrounded Hillary Clinton. As the socialist senator from Vermont gains traction in polls, Clinton has more aggressively attacked his policy…

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