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British Columbia real-estate and foreign buyer taxes


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#721 tjv

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Posted 16 January 2019 - 01:16 PM

I just want to confirm this only applies to people who own 2 or more residential properties in the designated "zones"?

 

and as Lanforod stated this is stupid, just add a line in when people apply for the Homeowners Grant on their property taxes.  Pure government waste!



#722 Victoria Watcher

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Posted 16 January 2019 - 01:20 PM

if 

 

I just want to confirm this only applies to people who own 2 or more residential properties in the designated "zones"?

 

and as Lanforod stated this is stupid, just add a line in when people apply for the Homeowners Grant on their property taxes.  Pure government waste!

 

if you rent a house in nelson where you live and own a sometimes-empty vacation condo in victoria it applies.


Edited by Victoria Watcher, 16 January 2019 - 01:20 PM.


#723 spanky123

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Posted 16 January 2019 - 01:20 PM

Maybe I am dumb but how does the speculation tax differ from the proposed vacancy tax that the City wants to impose? 

 

Edit: Answered my own question. https://www2.gov.bc....and-vacancy-tax

 

In a nutshell they target the same properties, it is just that one tax goes to the Province and the other to the muni.


Edited by spanky123, 16 January 2019 - 01:23 PM.


#724 spanky123

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Posted 16 January 2019 - 01:21 PM

there already is a form primary homeowners have to fill out if they want a tax discount on property tax. Why the heck can't they piggyback on that one?

 

Because then the NDP wouldn't be able to hire one of their buddies to oversee the new business unit. :-)



#725 jonny

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Posted 16 January 2019 - 01:25 PM

I haven't gone through all the exemptions, but I think it basically applies if the house is empty for more than 9 months of the year. It's more an empty homes tax than a speculation tax.  

 

You can be a Mexican who owns 100 homes in Greater Victoria and not pay any speculation tax if all of the homes are rented out for at least 3 months of the year. 



#726 DavidSchell

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Posted 16 January 2019 - 04:34 PM

there already is a form primary homeowners have to fill out if they want a tax discount on property tax. Why the heck can't they piggyback on that one?

 

Guess they never heard of the home owner's grant , such a waste of taxpayer money to go in this direction.



#727 Jackerbie

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Posted 16 January 2019 - 04:57 PM

I haven't gone through all the exemptions, but I think it basically applies if the house is empty for more than 9 months of the year. It's more an empty homes tax than a speculation tax.  

 

You can be a Mexican who owns 100 homes in Greater Victoria and not pay any speculation tax if all of the homes are rented out for at least 3 months of the year. 

 

6 months, right?



#728 Victoria Watcher

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Posted 16 January 2019 - 05:19 PM

For owners to be eligible for a tenancy exemption, tenants must occupy the residence for at least six months of the year (three months for 2018).

https://www2.gov.bc....cy-requirements

Edited by Victoria Watcher, 16 January 2019 - 05:20 PM.


#729 Mike K.

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Posted 17 January 2019 - 07:15 AM

So what happens if you own a primary residence in Victoria but spend the winter RVing south of the US border and are unreachable for long periods of time until your return after March 31?


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#730 sdwright.vic

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Posted 17 January 2019 - 07:20 AM

Then you download the form online?
Predictive text and a tiny keyboard are not my friends!

#731 Victoria Watcher

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Posted 17 January 2019 - 07:28 AM

So what happens if you own a primary residence in Victoria but spend the winter RVing south of the US border and are unreachable for long periods of time until your return after March 31?

 

you have up to 6 years to make back-adjustments.  what happens if you are south of the border today and until after march 31 and your house burns down today?  i imagine you cope.


Edited by Victoria Watcher, 17 January 2019 - 07:29 AM.


#732 Cassidy

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Posted 17 January 2019 - 07:34 AM

Negative opt-outs are always ridiculous, and this is no exception.

My guess is that the outcry will increase over the next few weeks, and will result in the NDP dropping this process, and coming up with a different process, likely still pissing off a huge swath of B.C. homeowners. 

On a strictly personal level, I'm more interested in making sure the entire Southwest corner of the province doesn't become an unaffordable place for my kid to live ... and this kind of taxation is a step in that direction.

 

I'm actually a fan of what New Zealand has done (and therefore the Greens, for whom I don't agree with much of their platform) ... which is to ban foreign ownership of property. If you want to own a home in B.C., then come and live and work in B.C.

If you don't want to live and work in B.C., then go purchase property someplace else.

 

A billionaire in Hong Kong jumping up and down in protest because he can't buy property in B.C. couldn't resonate any less than it already does with me.


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#733 Victoria Watcher

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Posted 17 January 2019 - 07:43 AM

negative option is the only way to introduce a new tax, if you think about it.   only 1% of homeowners are affected (that's why it's a stupid tax to begin with).



#734 Mike K.

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Posted 17 January 2019 - 07:54 AM

Considering something as simple as a referendum cost BC taxpayers $14.5 million, how much of this tax will go towards the development of affordable housing, and how much into the bureaucratic nightmare of managing hundreds of thousands of properties within the tax zones?


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#735 rjag

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Posted 17 January 2019 - 08:16 AM

Negative opt-outs are always ridiculous, and this is no exception.
My guess is that the outcry will increase over the next few weeks, and will result in the NDP dropping this process, and coming up with a different process, likely still pissing off a huge swath of B.C. homeowners.
On a strictly personal level, I'm more interested in making sure the entire Southwest corner of the province doesn't become an unaffordable place for my kid to live ... and this kind of taxation is a step in that direction.

I'm actually a fan of what New Zealand has done (and therefore the Greens, for whom I don't agree with much of their platform) ... which is to ban foreign ownership of property. If you want to own a home in B.C., then come and live and work in B.C.
If you don't want to live and work in B.C., then go purchase property someplace else.

A billionaire in Hong Kong jumping up and down in protest because he can't buy property in B.C. couldn't resonate any less than it already does with me.


You may want to research the NZ and Aus rules further. It’s not a ban. It’s a restriction to new builds only which is a fantastic idea as it encourages employment funded by foreign investment. When they sell it is now ‘used’ so is restricted to domestic purchasers.

A domestic purchaser is a citizen of either NZ or Aus. They can buy unrestricted in either country.

Further just an fyi, Canadians are the largest buyers by volume of foreign property in the US and I believe Aus

#736 Mike K.

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Posted 17 January 2019 - 08:18 AM

I wouldn't be surprised if we're also a major player in Mexican real-estate, but isn't there a regulation that if you buy within X-miles of the coastline you're buying via a Mexican proxy?


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#737 rjag

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Posted 17 January 2019 - 08:19 AM

negative option is the only way to introduce a new tax, if you think about it. only 1% of homeowners are affected (that's why it's a stupid tax to begin with).


Only the NDP could overthink this!

But I also believe that it is a way of building a database of single unit rentals that they can track and cover under new legislation.
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#738 Wayne

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Posted 17 January 2019 - 08:24 AM

Mike K., on 17 Jan 2019 - 07:15 AM, said:

So what happens if you own a primary residence in Victoria but spend the winter RVing south of the US border and are unreachable for long periods of time until your return after March 31?

 I called the Speculation tax office because I fall into this situation (Mexico/condo though).

 

Their answer, was that I would be assesed that tax and would have to apply to get it back. Or have someone fill it out on my behalf.

 

So I called my MLA, Lana Popham's office. They said to apply for the exemption upon return (Mid Apr) and hope the tax department is backlogged and it wont matter if it is a few weeks late.

 

Too many what ifs!



#739 Victoria Watcher

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Posted 17 January 2019 - 08:31 AM

why don’t you just have somebody forward the envelope?

#740 tjv

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Posted 17 January 2019 - 08:34 AM

I wouldn't be surprised if we're also a major player in Mexican real-estate, but isn't there a regulation that if you buy within X-miles of the coastline you're buying via a Mexican proxy?

Officially foreigners are prohibited from owning Mexican real estate within x-miles (I think its 100) PERIOD.  However, all you do it have the Mexican bank own it on your behalf and pay them ~$400 a year for it

 

Same could apply here if someone wants to introduce more stupid laws like that.  bank owns the property.  Oh you need a tenant, some company will offer you a "tenant".  How is the government going to police vacant houses anyway?  Can the government just enter onto my property without my consent, I doubt it


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