The BC government’s record deficits may be the cause of more aggressive enforcement of the Speculation and Vacancy Tax.
Several years ago, a Vancouver homeowner was charged thousands of dollars in tax for a home he owned for decades and was living in. His spouse is American and earns income in the U.S. which the BC government decided was reason to charge the tax.
The Vancouver Sun reported, ”Occupancy of a home may not be enough to secure an exemption from BC’s speculation and vacancy tax, according to one tax expert, who warns of the ‘often odd, harsh rules underlying the new generation of housing taxes.’”
The homeowner appealed the unfair tax to BC’s Ministry of Finance, which agreed with the homeowner and removed the tax and liens.
Four years later, the Province newspaper reports the BC government has again charged the tax on the same homeowner, adding liens of more than $100,000.
What has changed? Since the Speculation Tax was removed from the Vancouver homeowner’s property, Premier Eby’s government has posted record deficits – predicted at $13.3 billion this year – and expanded the Speculation Tax to more BC regions. Previously, under Premier John Horgan, the government posted a $5.7 billion surplus.
Revenue sources such as the Speculation and Vacancy Tax may be an attempt to compensate for the government’s lack of fiscal restraint.
In the budget speech, Finance Minister Brenda Bailey says, ”The housing market has cooled.” In fact, BC is at a 35 year high for unsold new inventory. So why is Bailey boosting the Speculation Tax and School Tax on homes?
The government already collects billions in property transfer tax, plus a myriad of other taxes, including municipal and federal taxes on housing.
Clearly, the Speculation Tax’s “odd, harsh rules” don’t create more housing affordability – just more government revenue, hardship for homeowners, and erosion of property rights for British Columbians.
This column appears Wednesdays in the Times Colonist.
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