BC Speculation Tax – North Okanagan Update
April 4, 2018
The BC Government announced their proposed speculation tax just over a month ago in the now tabled BC Budget, and while there have been plenty of questions, there have been very few answers. This has caused a lot of unnecessary anxiety in the market and caused home sales to dip in those affected markets. The good news for the North Okanagan is that homes in this market remain exempt from the speculation tax.
Here is what we currently know about the proposed speculation tax:
- Affected regions stay the same (Lower Mainland, Fraser Valley, Victoria, Nanaimo, Kelowna and West Kelowna)
- Tax rate will be 0.5% of assessed value for 2018 tax year
- Tax rate will climb in 2019 tax year as follows:
- BC residents 0.5%
- Canadian residents 1.0%
- Non-Canadian residents 2.0%
- BC Residents hit by the tax will be able to claim a non-refundable $400,000 tax credit (meaning homes valued at under $400,000 will be exempt)
- Special exemptions will be available for BC residents (medical issues, temporary job placement, property is in estate proceedings)
- Rental properties are exempt in 2018 if they are:
- Rented for a minimum of three months during the year
- Rental properties are exempt in 2019 if they are:
- Rented for more than six months per year
- Multiple rentals are allowed but each tenancy must last at least 30 days
Since this won’t be official until the fall, it bear some watching. As a result, we recommend buyers and sellers in the North Okanagan keep their eyes out for any additional changes. However, this is must certainly be considered good news for the secondary property market here in the North Okanagan!
For more information check out the Vancouver Sun.
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