The day has finally come and the speculation and vacancy declaration period begins. Starting January 18, 2019 people who own residential property in areas subject to the speculation and vacancy tax will receive a letter with clear instructions for how to complete a declaration and registration exemption. Please note that every home owner in the subject areas will receive this letter, so be sure to fill this out and send it back in. Please feel free to reach out to me if you have any questions about this or if you are having any problems with filling out your form. I am always here to help you if I can.
Your friend and realtor,
*Please enjoy the informative article below from Mike Kozakowski with Citified.ca*
Homeowners in B.C.'s spec tax zones required to declare property usage by March 31 or face fees.
The implementation of the NDP government’s speculation and vacancy tax (SVT) will require all homeowners within the areas subject to the tax to declare and register an exemption, the province has announced.
Homeowners in the Capital Regional District’s thirteen municipalities of Greater Victoria, Metro Vancouver and the cities or districts of Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo and Lantzville will be required to submit a declaration confirming their home is a primary residence and that any secondary homes or vacation properties within the coverage areas are rented at least six months of the year. Failing to declare the status of each property by the end of March will yield a levy under the new tax regime regardless of the home’s usage or status.
The province confirms letters should begin to arrive within the SVT coverage areas by January 18th through February 28th. The estimated time to complete a declaration will range from 10 to 20 minutes.
Properties not declared by March 31, 2019 or which qualify for the tax will receive a special tax notice of assessment payable by July 2, 2019.
The new tax, as it pertains to real-estate owned by Canadians who do not reside in British Columbia full-time and who do not rent their home, will be levied to the tune of 0.5% of the home’s assessed value starting in 2018 and each year thereafter. Foreign owners and their satellite families will be assessed at a rate of 0.5% in 2018 and 2% each year thereafter.
A vacation property is described as a residence used sporadically by non-resident owners, or one that is otherwise not considered a full-time residence. If a property is occupied by a renter the speculation tax will not apply. If the owner pays taxes in British Columbia, the tax will also not apply.
At 0.5%, costs to homeowners will amount to $2,500 in 2018 for a home valued at $500,000 and $10,000 in 2019. The new tax and will be levied in addition to property taxes.
The NDP rolled out the SVT in early 2018 as a means of turning empty homes into housing for British Columbians and raising revenues to build affordable housing. The tax will also generate revenues from foreigners who do not pay provincial income taxes.
To read this article on the Citified.ca website -Click Here
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