There have been a number of changes made by the British Columbia government for the proposed speculation tax that it announced in the budget presentation on February 20th, 2018.
The new changes will bring down the speculation tax amount as well as the number of people from British Columbia that will be paying this tax.
The first proposed speculation tax for vacant property assessed value was fixed at 0.5% in 2018 and at 2% in 2019.
The Finance Minister of British Columbia, Carole James, said that the tax of 0.5% will remain for the vacant properties owned by British Columbians. There will only be a rise of 1% for the Canadian residents out of the province. The speculation tax will be 2% for the foreign investors.
The properties in the rural Fraser Valley, Gulf Islands, Qualicum Beach and Parksville do not have to pay any tax. Tax credit exemption can be enjoyed by British Columbians who construct their homes under $400,000. Also, those houses that are rented for more than 6 months in a year need not pay any tax credit.
FM James said that they have taken time to work out the details and come out with a responsible approach for the speculation tax.