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It will be up to homeowners to apply for exemptions, with a deadline of March 31, 2019

Letters should have now arrived outlining speculation tax fees and the exemption processes for Greater Victoria, Nanaimo, Kelowna and Metro Vancouver (excluding Bowen Island and Lions Bay, but including Abbotsford, Mission and Chilliwack) in Owners mail boxes.
It will be up to all homeowners to apply for exemptions by phone or online, with a deadline of March 31. Those who don’t apply, or qualify, will be sent tax bills due to be paid by July 2. The opt-out process will become an annual event for property owners under the new speculation tax rules. People who pay mistakenly can get a rebate within six years, according to the ministry.

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The NDP government’s speculation tax was announced in the February 2018 budget and described as a way to encourage owners of empty residences to put them onto the rental market, or sell, in areas where housing is unaffordable and rental vacancy rates are low.
Because the tax is retroactive, the first letters will actually be for taxes incurred in the 2018 calendar year — before the tax rules were even finalized.

The tax rate is 0.5 per cent of a home’s assessed value in 2018, which would be $5,000 a year for a property assessed at $1 million. Starting in 2019, the rate rises to two per cent for out-of-province owners, foreigners and satellite families (households where more than 50 per cent of income comes from outside Canada).

Owners are exempt from the tax if it is their principal residence, they rent it at least six months of the year (only three months is required in 2018), they are disabled, the property was just inherited, it’s valued under $150,000, or a person was away and it was vacant due to medical reasons, residential care, work or spousal separation.

ondos and apartments in buildings where stratas ban rentals are also exempt, but only for 2018 and 2019, to give stratas time to change their bylaws, according to the ministry. Exemptions are available for First Nations, local governments, charities, co-ops, some not-for-profit organizations, anddevelopers working on construction or renovation of property.

British Columbians with second homes who aren’t exempt will still get a credit intended to cover the tax on the assessed value up to $400,000, with the remaining value of the property then taxed at the full rate.

Exemptions

The following exemptions are available for individuals:

1. Principal residence exemptions
2. Occupied by a tenant
3. Can’t live in the residence because it’s uninhabitable
4. Secondary residence close to medical treatment facility
5. Just bought or inherited the property
6. Separation or divorce
7. Bankruptcy
8. Recent death of owner
9. Property is in a trust created by a will for a minor
10. Property has rental restrictions
11. Property is a strata hotel
12. Property includes a licensed child daycare
13.  No residence on the property
14.  Other exclusions from the tax

What Does This Mean?

Have Any Questions? Contact the BC Government for help with your inquiries about the speculation and vacancy tax:

Toll Free:
1 (833) 554-2323
Email: spectaxinfo@gov.bc.ca
Website: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax

Detached: Overall sales and inventory have remained steady, keeping us at a 3.6 months supply and in a Seller’s market. By area, Oak Bay slowed down the most and supply increased from 4.8 months last week to 6.8 months this week; I expect these numbers to revert somewhat in 2 weeks after the effects of spring break are behind us. Westshore saw higher sales and only a few more listings so the supply reduced from 3.8 months to 3.5 months. By price, the market is remaining strong and supply low for anything under $1.5M with only 2.9 months supply and averaging 23 days on market; the slow down continues for anything over $1.5M with a supply of 22 months now for homes up to $4M and as before, the market for homes over $4M is unique but sales have slowed significantly. Listings were averaging 73 days on market a year ago and the current listings are now on market an average of 135 days. 2 sales in the last 6 months and a total of 10 sales in the last 12 months.

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Condo: The 1 week trend is showing a slow down overall for condos but these numbers are being biased by condos over $650k, where sales slowed. Under $650k we are still at a 2.4 month supply, which is a tough market to shop in and a great market to sell in. Again I think the spring break vacations are temporarily impacting luxury sales. There were no significant changes to any one geographic area.
Townhouses and Duplex: Townhouses bucked the trend this week; more sales and steady listing count led to a reduction in supply down to 3.4 months from 4.1 (259 listings and 76 sales in 30 days); we are definitely in a Seller’s market now. 

The June numbers are in and the market looks to be strong and steady but with further weakening in the luxury segment.

Overall: market demand was slightly lower with 3.4 months of supply vs. 2.9 last month; there were 2108 active listings and 626 units sold. Prices remained relatively unchanged. Sales volume was down 14% from last month but still 4.5% higher than June 2018. Average days on market is up to 39 days vs. 32 last month. Sold units also took longer at 27 days vs. 20 days in May.

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Detached: sales down 13% vs. last month but sales were 12% higher compared to last June. Detached home supply is up slightly to 3.6 months vs. 3.2 last month. Listing volume is similar to last month. Victoria and Vic West saw the larger decrease in demand, dropping to 3.8 months vs. 2.7 last month. Demand in most other core areas remained steady or saw an increase in demand. Westshore demand dropped to 3.9 months supply vs. 3.0 last month and Sooke really dropped with a 4.8 month supply vs. 3.0 last month. By price, under $1M is still hot with only a 2.6 months supply and only a 3% drop in sales vs. May. Even $1M-$1.5M is still very much in demand at 4.2 months supply vs. 5.0 last month. Sales over $1.5M continue to slow with no decrease in inventory. Oak Bay homes only seem to be in demand under $1.5M and are at a 2.5 month supply, above $1.5M we are at 18 month supply at the moment with only 4 sales and 73 listings.

Condo: demand remains strong with 3.1 months supply vs. 2.8 last month. Sales volume is down 11% over last month and was similar to a year ago. Demand in the core remained strong with only 2.8 months supply. Peninsula sales dropped significantly and now have a 5.6 month supply (balanced market). Westshore sales were very strong last month with a 30% increase in sales and supply is down to 2.9 months now vs. 4.3 a month ago. By price, condos under $500k are still in extreme demand at 2.3 months supply; volume was slightly lower but listings are down too so the ratio is similar. $500k-$650k sales increased and demand is still strong at 3.8 months supply. Sales over $650k were down significantly (25%) and we are moving towards a Buyer’s market with 6.8 months supply.

Townhomes and half duplex: demand dropped to 3.3 months vs. 2.4 last month but the 1 week trend is strong so I expect to see continued strong sales in July. Victoria Core demand saw the largest decrease from 1.9 months supply last month to 3.0 months; Peninsula saw an increase in sales and demand is up with 3.4 months supply vs. 4.1 last month.