Finance Minister Carole James has faced questions for weeks about the effect of a new property tax on vacation homes. (Tom Fletcher/Black Press)

Pressure on Carole James to ease B.C. speculation tax

Vacation home owners plead for relief from vacant home levy

As B.C. Finance Minister Carole James prepares changes to the speculation tax she announced in her February budget, protests continue to come forward from people hit with steep new costs for their vacation homes.

Dave Pentland of Surrey says he is looking at a 500 per cent increase on his share of a Salt Spring Island vacation property he and his brother inherited. He calculates that his tax bill for the property would go from $1,849 to $9,284, which is nearly a quarter of his retirement income.

He says he and his brother are not speculators, and want to keep the property in the family.

“The NDP’s speculation tax has really left me with one option,” Pentland said. “Pay the tax until the next election and hope for a change in government. If the government does not change then I cut my losses, hand the keys to my brother and walk away.”

Retirees Tom Stewart and his wife sold their “modest home” in Ontario and bought a condo there and an apartment in Oak Bay where they spend half the year. Stewart says the proposed two per cent surtax on the apartment will cost at least $5,000 a year, which they can’t afford on their retirement income.

The couple has relatives in Ontario and don’t want to try to find a new doctor if they move to B.C. full time to avoid the tax. And the strata corporation that runs their Oak Bay apartment doesn’t allow rentals.

“It is frustrating that our retirement dream is being quashed almost from the outset,” Stewart said. “We are pretty far removed from the alleged target of the legislation.”

RELATED: Arizona snowbirds ‘pushed out’ of summer homes

James is expected to announce changes to the tax Monday afternoon.

As originally announced in the B.C. budget Feb. 20, the speculation tax would be charged to out-of-province residents who inherited a family summer or ski cabin, if it is in Metro Vancouver, the Fraser Valley, Nanaimo or Capital Regional District, or the municipalities of Kelowna and West Kelowna.

It is to begin at 0.5 per cent of property value, rising to two per cent later. People who pay income tax in B.C. would receive a tax credit, but some say they don’t have enough income to cover the cost of the speculation tax.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Community dinner set to honour responders who handled Q.C. explosion

Potluck-style dinner set for Friday, Oct. 5 at the Queen Charlotte Community Hall

Work begins to remove cargo from grounded Haida Gwaii barge and fishing lodge

Westcoast Resorts’ Hippa Lodge broke from its moorings and ran aground early this month

Tlell Farmers’ Market is open every Sunday until Thanksgiving

The Observer mistook the final day for the farmers market – don’t miss the harvest!

Masset dodges empty-ballot bullet

After an extended deadline, Masset now has enough candidates for council

Sunny skies for Terry Fox Run

Queen Charlotte and Masset runs raise nearly $3,000 for cancer research

Canning sockeye by hand in North Coast B.C.

Arnie Nagy teaches the Northern View how to can salmon in Prince Rupert

Wet weather means all types of burning, forest use OK in Coastal region

Campfires, open fires no larger than two metres by three metres, and all types of forest use allowed

Young people need us to act on climate change, McKenna tells G7 ministers

Catherine McKenna led off the three-day Halifax gathering Wednesday

B.C. woman facing animal cruelty charges after emaciated dog seized

Kira, a Rottweiler, had kidney and bladder infections

Kim agrees to dismantle main nuke site if US takes steps too

Kim promised to accept international inspectors to monitor the closing of a key missile test site and launch pad and to visit Seoul soon.

Dozens speak at Vancouver hearing that could see duplexes replace single homes

The city clerk says 73 people signed up to speak at the hearing that began early Tuesday evening and adjourned hours later with 34 speakers still waiting.

North Carolina gov pleads with storm evacuees to be patient

The death toll rose to at least 37 in three states Tuesday, with 27 fatalities in North Carolina.

North and South Korea say they plan to bid for 2032 Olympics

Moon and Kim announced a sweeping set of agreements including a vow to work together to host the Summer Olympics in 2032.

Russia’s reinstatement after doping scandal goes to a vote

The World Anti-Doping Agency is due to vote Thursday Sept. 20, 2018, on possible reinstatement of Russia.

Most Read