The B.C. government has unveiled changes to the speculation tax announced in their budget last month.
Finance Minister Carole James says the principles of the tax remain the same -- but the rates and geographic areas where the tax will apply have been refined:
"Over 99% of British Columbians will not pay the tax. Only those who hold multiple properties and leave them empty in our province's major cities will be asked to contribute. Our tax on speculators focuses on people who are tying up housing stock in BC's overheated housing market and taking that housing stock out of the communities."
Properties worth less than $400,000 are exempt, as are long-term rentals, rented at least 6 month of the year. Smaller centres have been excluded -- which will benefit those with seasonal or vacation properties. And B.C. residents with second homes outside of high-cost urban areas will be exempt.
On the island the tax will apply the Capital Regional District (except for the Gulf Islands and Juan de Fuca) and in Nanaimo-Lantzville. Parksville and Qualicum are no longer included. It will also apply in Metro Vancouver, Kelowna, West Kelowna, Abbotsford, Chilliwack and Mission.
As for the rates -- BC residents with second homes in urban centres will pay 0.5% on the property value in 2018. Out-of-province owners will pay 0.5% in 2018 and increase to 1% in 2019 and beyond. Foreign investors and satellite families starts at 0.5% in 2018 and increases to 2% in 2019.