Vacant Home Tax???

Do you own a home in BC?  Are you aware of the Vacant Home Tax?

As we roll into 2019, I have had several people ask me about the Provincial Speculation and Vacancy Tax that takes effect this year. Depending on your status as Canadian/BC resident and whether or not your home is occupied or vacant, you may have to pay an additional tax between 0% – 2% of the assessed value. Using the average sale price of a home in the Nanaimo area, you could get a bill for as much as $11,000.

The Province will mail a declaration to all registered owners as of December 31^st 2018 of residential (not commercial) property in designated taxable regions of BC sometime in mid-February.  Locally this is the City of Nanaimo or District of Lantzville. This declaration must be completed, and any exemptions claimed, by March 31^st 2019.  If a declaration is not completed, and any exemptions claimed, by March 31^st 2019 then the Province will go after the individual shown as the registered owner as of December 31^st 2018 personally.  They will not place a lien on the property for unpaid taxes (which I understand is what the City of Vancouver does).

The potential problem that can arise is all those people who have sold their property since January 1^st 2019 and haven’t received a declaration yet.  It is still those people’s responsibility to complete the declaration and claim any exemption before March 31^st 2019.  It is not the new owner’s responsibility. If these people are not having their mail forwarded, they may not receive the declaration.

Properties on the Gulf Islands and with a value of less than $400,000 are exempt.

The link below leads to the BC Government site with further details:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax

This map that shows an overview of the vacant home tax areas: