Statement on speculation and vacancy tax legislation
Today in the BC Legislature the BC NDP introduced Bill 45: Budget Measures Implementation (Speculation and Vacancy Tax) Act, 2018. This 104 page bill fleshes out the government’s intentions with respect to their now termed Speculation and Vacancy Tax.
Below I reproduce the press release my office issued in response to the tabling of this bill. Clearly I have not had a chance to go through the detailed legislation. I’ll be providing a more thorough assessment once I have had a chance to digest it.
Media Release
For immediate release
Weaver statement on speculation tax legislation
October 16, 2018
VICTORIA, B.C. – Andrew Weaver, leader of the B.C. Green Party, is reviewing the government’s speculation tax legislation before determining his next steps on the issue. Weaver has raised three main concerns with the speculation tax to date, namely that the tax should treat all Canadians equally, that local government need to have a more direct role, and that the tax shouldn’t unfairly target homeowners who aren’t speculators.
“I still have concerns that Canadians are not being treated equally and that there is an insufficient role for local governments in determining what happens in their communities,” said Weaver.
“Addressing the affordability crisis is a key shared priority between our Caucus and the government. We also agree that tackling speculation in our housing market is one of the best ways we can make a difference. However, I have been clear that the government’s approach on this particular piece of legislation is not the one I would have taken.
“I have been raising numerous examples of homeowners who are not speculators who are being unfairly impacted by this tax, and I will be looking to see whether government has addressed these concerns. In addition, I have raised concerns about the impact of this tax on land under development and its implementation in stratas with no-rental clauses.
“Now that the bill is before the house, I am able to review it in detail and determine a path forward. My office is in ongoing discussions with government and will explore how my concerns can be addressed.”
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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca
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7 Comments
Dear Mr. Weaver,
I have written to you on several occasions to ask you to stand by your words of not supporting the speculation tax in it’s form. You did exactly that! You were able to push to get a small discount, but with the scope of power you held, more – absolutely more could have been done for fellow Canadians who own properties in BC. This 1% is still money that will be taken directly out of the communities it would have been spent in and given to the NDP and their abyss! I very much doubt that an annual meeting with individual local governments will garner any action. The NDP didn’t listen to them prior to creating this legislation, so how can it be trusted that they will do something different in the future. The NDP policy of taxing Canadians who work hard, paid taxes, invested into their country and want to live in a happy retirement is awful! Shame on you for not standing by your word. Or should I say, mincing your words as a typical politician. Not working for the people at all but your own personal agenda!
Hello Colleen, actually most of the changes I advocated for were included in the bill that was eventually tabled. You can compare that bill to what the BC NDP said was going to happen back in the early spring. But there were still a few things that I pushed hard to get.
Dear Andrew Weaver, MLA
Are you sick out of your mind or you are just jealous/hate people who have accumulate wealth through hard working.
As a 70 year old man I have been working hard for the last 40 odd years and paying my share of taxes and never claimed a penny of employment benefits.
In my age of retirement you come around and tax me on my second property which I purchased years ago for the sole enjoyment of my family. Do you call that fair or greed??? Imagine I have to pay capital gain on it too if I ever sell that property.
Your so call “tax credit” is nothing but a scam. I am retired and live off my pension and OAS and I don’t pay any income taxes because of my income, please tell me how I am going to claim that so call “TAX CREDIT”????
You may be a good scholar BUT you are definitely not a good representative of the general citizens, especially the seniors.
Think about it!!!
Good day Andrew,
I came to Canada 9years ago, my written English may look wired or different from native Canadian,but I hope you could understand what I want to say.
Supply and Demand detemine the price. The demand of the real estate market is great and growing. The Spec TAX will increase the risk and cost for developers. In short term, the supply will be even lower, which will push the price to be even higher. This is simple to understand, and any student taken economics 101 knows that.
This tax hurt rich and upper middle class but will not benefit lower middle class and poor. Homes price become not affordable is an appearance during the process of economic development. While Canada needs a bigger poluplation to secure the development in the future(100 million people at the end of this century)and open gate to welcome immigrants, a balance is broken. That’s why the home price goes up.
To rebalance that, BC needs a more active economy, a higher GDP, higher profits, higher salaries, and lower taxes. To make home price be affordable, we need increase people’s income by produce more value in the economy but not drop the price. One developer used to tell me the material and labor cost to build a single house is $250 per sf. This is not include the land price and developer’s profit. For example, I want a 2000sf home. The cost of built is 500k. The land is not free, and the developer needs profit. All readers of this comment can calculate is that possible for the price to drop? People need a better economy and better pay and lower tax to buy a home.
The only and real purpose of this tax is covering up govt’s mistake and overstated promise. The NDP promised remove MSP, but why they introduce a EHT? Maybe EHT is not enough to cover up, so there is Spec Tax.
Thanks
Han Ge
I purchased a condo in Vancouver several years before the City of Vancouver decided to imposed the Vacant property tax. I also own a home in Alberta but I have travelled to Vancouver monthly for past 5+ years and use my condo on a regular basis, I don’t want to rent it out because I wouldn’t be able to utilize it personally for myself and family as I had originally intended.
I am a Canadian Citizen and was born and raised in the prairies, I am insulted on claims I don’t contribute BC taxes, what about federal transfer funds that BC have received from personal income taxes I have paid for past 50+ years.
Now the province wants another 1% because it is considered not my primary residence according to their guidelines even though in fact I will live in my Vancouver condo moving forward at least 6 months of the year. So I am now being double dipped and there was no grandfathering by both the City and the Province on this tax grab.
I am not a speculator or an overseas investor, I am also not an owner that I believe the City of Vancouver or the Province of BC should be targeting.
I have many other personal friends who are Canadian citizens from Alberta who also own a second home throughout the province and likewise have contributed to the local economy and are now being financially discriminated upon with this tax, many of them have indicated should the Provincial government proceed with their legislation to formally impose this tax they will sell their second homes.
I too am looking forward to your detailed response on the above.
This NDP stalwart agrees with your take on this punishingly discriminatory legislation. Speculation tax? Yes. Assault on fellow Canadians who live half the year in BC? No. NDP serms to relish fomenting anti-Canadian xenophobia. It’s ugly.
Look fwd to your detailed response.
Dear Andrew
My circumstances are that we are Canadian citizens brought up and spent most of life BC. Own only one property – house in Vancouver. Job finished 18 months ago so gone away to do some travelling and rent condo in Mexico. Mexico condo now our principal residence.
While away 2 family members and a friend permanently occupy our Vancouver home. All 3 are Canada citizens work and pay Canada and BC tax.
I am terrified that as Vancouver house not our primary residence and the occupants are not in a formal tenancy agreement we will be forced to pay this tax. On fixed income. Would be impossible. Would be forced to sell only property own. Occupants would also be made homeless.
I am totally confused by this tax. I cant believe this would be the intention but I do not think it has been thought through properly. we are Canadian citizens why would they do this to us? Why treated differently? House is not empty so exempt from Vancouver tax.
Please stop or at least amend it so only genuine ‘speculators’ are affected. Many thanks.
In the early 1980’s the Greens were the first party I voted for. Were just starting out in BC. I know not relevant but interesting. Now can actually help us.
Thanks
Sarah