B.C. Provides Deadline For Exemption From Speculation Tax
Homeowners who live in their properties are exempt from paying the tax, but must complete an exemption form by 31 March. The Ministry of Finance expects that more than 99% of British Columbians will be exempt. Notices will be sent to homeowners in the Lower Mainland, Greater Victoria, Kelowna, and Nanaimo in the coming weeks. The tax was introduced to help alleviate an overheated housing market by turning vacant properties into rentals.
The tax rate is 0.5% of the property’s assessed value for all properties subject to the tax in 2018. For 2019 and subsequent years, the tax rate is 2% for foreign owners and satellite families, and 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family. Satellite families are those families where the majority of the combined income is earned outside of Canada.
The Langley Mortgage Brokers of the Coastal Mortgages Team.