The provincial government has published updated information about the BC Speculation and Vacancy Tax Act.
Many people are focusing on the published increase in the tax to 2% from 0.5% in 2019 for foreign owners and satellite families, however, this is just a reiteration (or perhaps a gentle reminder from the government) of the tax as it was originally announced.
The updates published this week are comprised of three parts: Clarification of existing exemptions, the announcement of new exemptions and the phasing-out of other current exemptions. Here are some highlights:
- Clarification on how spouses declare exemptions.
- Clarification on the 10 year period for other exemptions falling under principle residence exemption.
- Clarification on exemptions for spouses (including common-law) going through separation or divorce.
- New exemptions for members of the Canadian Armed Forces.
- Exemptions for properties only accessible by water or air.
- The phase-out of exemptions for strata properties with rental restrictions has been extended for two more years.
- Strata hotel exemptions have been extended for another year.
- Vacant land exemptions end in two weeks.
Feeling confused, overwhelmed? Reach out and contact us, we’d be happy to help, no obligation. Happy Holidays!