Speculation tax to be expanded to new communities in BC in 2023

The Province has announced that the speculation and vacancy tax will be expanded to additional communities next year, including on Vancouver Island.

Starting in January 2023, the tax will be put to use in North Cowichan, Duncan, Ladysmith, Lake Cowichan, Lions Bay and Squamish.

According to the Ministry of Finance, an independent review report of the speculation tax shows it is working in existing areas by helping to keep housing prices and rents lower than they would have been without the tax.

They also said that the tax, along with the 2% tax rate for foreign owners and satellite families, has encouraged the return of about 20,000 condo units to the long term rental market in Metro Vancouver.

“In 2018, we implemented the landmark speculation and vacancy tax that targeted speculators and quickly helped turn thousands of empty units into homes for people,” said Selina Robinson, Minister of Finance.

“After careful consideration and listening to people and community leaders on speculative real estate concerns in their communities, we’re expanding the tax to these additional areas that are facing intense housing pressures.”

The BC government anticipates that more than 99% of British Columbians will continue to be exempt from paying the tax.