BC's Speculation Tax Has Added 20K Rental Units to the Market

from British Columbia’s Minister of Finance examines the effectiveness of the province’s speculation and vacancy tax .The first tax of its kind implemented in Canada, the Speculation and Vacancy Tax Act was announced as part of the provincial Budget 2018 to encourage property owners to turn empty homes into housing for British Columbians, and ensure foreign owners and those with primarily foreign income contribute fairly to the province’s tax system.

Since 2019, the SVT rate has been 0.5% for Canadian citizens or permanent residents, and 2% for foreign owners and satellite families. Notably, the report found that for the 2018, 2019 and 2020 tax years, the Province collected approximately $230M in SVT revenues. Foreign owners and satellite families paid an average of five times more SVT than B.C. residents. Data from the SVT has shown that the tax has helped to add over 20,000 much-needed units to B.C.’s long-term rental market and encourage owners who were previously keeping their homes empty to either rent them out or to sell.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

B.C. speculation tax brings 20,000 units back to rental marketExperts say that while the B.C. speculation and vacancy tax initiative has created a better environment for first-time buyers and renters, it may not have improved affordability Good start! Now restrict Airbnb to maximum two properties per host, and one must be in their primary residence. This is stupid, the only units subject to this tax are those that will be unaffordable for those who really need a place to live. What is the point? BAN AIRBNB except for sharing space in your own residence.
Source: globeandmail - 🏆 5. / 92 Read more »