Speculation tax: BC party leaders scrap over housing policy

It’s the tale of two leaders, and one issue: BC’s Speculation and Vacancy Tax.

BC Liberal leader Andrew Wilkinson announced he’d scrap all the NDP’s 23 property taxes, if elected.

“It’s time for a review of property taxation because the NDP has layered on 23 new taxes. And people are saying they just can’t afford to run their small business anymore.  That was before Covid came along,” Wilkinson said at a news conference in Vancouver.

He said the solution is targeting condo flippers with a real speculation tax.

“A tax on people who flip paper condo contracts before the building’s even gone up and it’s something that needs to be addressed.”

NDP Finance Minister Carole James introduced the Speculation and Vacancy Act in 2018, with the aim of cooling off B.C.’s then super-heated real estate market.

“It starts by taking action to stabilize the market and curb demand. We will introduce a new, annual speculation tax, starting in B.C.’s urban areas,” James announced during the BC Budget 2018 presentation.

The NDP introduced the tax to prevent housing speculation and limit the growing number of vacant homes in B.C.’s major urban centres.

The tax applies to foreign and domestic speculators who don’t pay income tax in BC and properties are taxed at two percent of their assessed value.

A political scientist at the University of Victoria, Dr. Kimberly Speers, said the tax was meant to ease the housing crunch in B.C.’s urban centres.

“It was designed to make the housing market, especially urban areas, more affordable and also available by encouraging homeowners to rent out their homes and not make them vacant.”

Today, NDP Leader John Horgan took aim at Wilkinson’s proposal.

“Turning back on the Speculation and Vacancy Tax says to the 99% of British Columbians that are not affected by that, that we’re going to take $150 million out of your pocket. Just like we used to do,” Horgan said.

The cost of real estate continues to rise, with the price of a single-family home in Greater Victoria topping out at more than $1 million.

READ MORE: Liberals reach deal with NDP on COVID-19 aid bill, likely averting federal election

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