13 Dec Changes to the BC Speculation and Vacancy Tax
The government of British Columbia introduced several changes to the Speculation and Vacancy Tax (SVT) in 2023. These revisions, aimed at addressing housing concerns, reflect an ongoing effort to reshape property taxation policies.
About the SVT
The speculation and vacancy tax is also known as the empty homes tax and was first introduced in 2017.
The SVT tax rate is calculated as follows:
- 2% for foreign owners and satellite families
- 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family
The speculation and vacancy tax applies based on ownership as of December 31 each year.
Initially the SVT applied to specific regions, called taxable areas, affected by the housing crisis. These regions are:
- The Capital Regional District (Victoria, Saanich, etc.)
- The Metro Vancouver Regional District (Vancouver, Surrey, etc.)
- The City of Abbotsford
- The District of Mission
- The City of Chilliwack
- The City of Kelowna
- The City of West Kelowna
- The City of Nanaimo
- The District of Lantzville
However, in various subsequent announcements the government of British Columbia has expanded the taxable areas to which the SVT applies. Some of these new taxable areas come into effect in 2023 while others come into effect in 2024.
Changes Coming into Effect in 2023
The following taxable areas are new for the 2023 tax year. Residential property owners in these new areas will declare for the first time in January 2024, once they have received their declaration letter:
- City of Duncan
- District of North Cowichan
- District of Squamish
- Town of Ladysmith
- Town of Lake Cowichan
- Village of Lions Bay
Changes Coming into Effect in 2024
The following taxable areas are new for the 2024 tax year. Residential property owners in these new areas will declare for the first time in January 2025, once they have received their declaration letter:
- Vernon
- Coldstream
- Penticton
- Summerland
- Lake Country
- Peachland
- Courtenay
- Comox
- Cumberland
- Parksville
- Qualicum Beach
- Salmon Arm
- Kamloops
Late payment comes with consequences. In this case, if you do not declare your property on time, you will be penalized 10% of the unpaid tax and interest on the pending taxes and the penalty amount. This is because failing to make the declaration leads to the assumption that your house is vacant.
If the residential property owners fail to submit their declaration, they are sent a tax notice that charges them the vacancy tax at the maximum rates.
