The BC Government’s new Speculation and Vacancy Tax in now in effect. Every owner with properties in the regions affected by the governments new Speculation & Vacancy Tax MUST make declarations annually to not be charged the new tax.
For example, if an individual owns just one property, which they reside in themselves, they are exempt from paying the new tax (owner occupied) – that being said, that owner will have to declare, in writing (on the prescribed form) that they are not real estate speculators, and if you do not file those declarations, you will be charged the maximum amount of the tax, which is payable in early July.
Every property owner will start receiving their declaration forms in the mail starting this week and the deadline to file your declarations is March 31, 2019, DON’T FORGET TO FILE OTHERWISE YOU WILL BE CHARGED THE MAXIMUM TAX.
For 2018 the maximum tax is 0.5% of the assessed value of the property, for 2019 the maximum tax is 2% of the assessed value. Note that even if you are not a foreign resident, or not a satellite family, if you fail to make your declaration, you will be charged the maximum amount that foreign residents are subject to in 2019, which is 2% (on a $750,000 house that would amount to a $15,000 bill, annually).
This has been picked up by the media today, see further details in the Times Colonist article by clicking here.
Please contact us for further details on the new Speculation and Vacancy Tax, and all the exemptions, or for any of your real estate needs in Victoria, BC.