The proposed new B.C. speculation tax is concerning for many Albertans who own vacation property in B.C. Brought up in early 2018 by B.C.'s provincial government, the speculation tax is expected to apply to non-residents who own property in Metro Vancouver, the Fraser Valley, the Victoria and Nanaimo regional districts, and Kelowna and West Kelowna.
According to the B.C. government, non-residents are driving up property prices and depleting the rental market. Vacation properties aren't fully utilized and the thinking is that owners should either contribute more money to the Province or rent their property out when it's not in use to ease the shortage of rental properties.
If the government proceeds with the tax the way it has been proposing it will, in 2018, the speculation tax will be 0.5 per cent of the assessed value of the property. By 2019, it will be one per cent of the assessed value for Canadians who do not live in B.C. This is in addition to the regular property tax that must be paid. For some Albertans, the B.C. speculation tax may mean paying thousands of dollars more in annual tax going forward.
Selling B.C. Property Due to the Speculation Tax
If you're thinking of selling your B.C. property as a result of the proposed speculation tax, we can help. We're one of the few B.C. lawyers in Alberta and we stay on top of changing legislation in that province to help our clients here in Alberta.
Using a B.C. lawyer practicing in Calgary, Alberta can save you time and money because you don't have to make a trip to B.C. to sign documents. If you're also a Calgarian, you can come into the office and meet us rather than work with someone you've never met.
MERGEN LAW is a member of the Law Society of British Columbia and has done hundreds of B.C. residential real estate deals. Our team is familiar with all the common issues that arise, and can anticipate any potential problems, resulting in friendly, affordable, and time-saving service.
If you already have a Calgary or Alberta lawyer you prefer to use, that's no problem. Simply let your lawyer know that we'll handle the B.C. part of the deal for you.