Update: March 1â2:55 p.m.
The City of West Âé¶čAV wants to hear what the public thinks about the provinceâs new Speculation Tax.
In the recent B.C. budget, the province announced the new tax, effective this year, which targets foreign and domestic speculators in certain areas of B.C. including West Âé¶čAV and Âé¶čAV in the Interior.
A non-refundable income tax credit will be levied on non-owner occupied, vacant and short-term rental properties in West Âé¶čAV, Âé¶čAV, Metro Vancouver, the Fraser Valley, and the Capital and Nanaimo Regional Districts on Vancouver Island that are owned by individuals who do not live in BC.
West Âé¶čAV council will receive a report on tax at its March 13 meeting and city staff are requesting residents and non-residents submit their opinions by 9:30 a.m. March 13 in order to be included in the report to council.
Send comments to info@westkelownacity.ca.
For more information on the Speculation Tax, go to and search âSpeculation Tax.â
Original story:
West Âé¶čAV and Âé¶čAV are both worried about the effect the provinceâs new speculation tax will have not only on their housing markets but also their local economies.
And at least one West Âé¶čAV city councillor had choice words for B.C. Finance Minster Carole James when the issue came up at Tuesday nightâs council meting.
âWe were blindsided by this,â said Councillor Rick De Jong. âWe found out about this with the general public when it was announced by the finance minister (in this weekâs provincial budget). Itâs disgusting.â
And he added sarcastically âWell done Carole James.â
Several other councillors voiced their concern, describing the tax as being very bad for the city. James said the new tax will only be applicable in the Metro Vancouver, the Fraser Valley, the Capital and Nanaimo Regional Districts on Vancouver Island and the cities of Âé¶čAV and West Âé¶čAV in the Interior
âItâs a total market distortion,â said Coun. Rusty Ensign. âItâs unfair.â
Meanwhile, Âé¶čAVâs mayor, Colin Basran, said heâs concerned about what he called the âunintended negative consequencesâ the tax could create in his city.
âInvestment from other parts of the country is a good thing,â said Basran, adding it helps stimulate the economy through development, tourism, job creation and helps small business. But that could all be impacted by the implementation of the new tax here.
Both Basran and his West Âé¶čAV counterpart Doug Findlater questioned why other Central Okanagan municipalities were not included, such as Lake Country, one fastest growing municipalities in the province and the one with the highest house prices in the area.
âWhy were Âé¶čAV and West Âé¶čAV singled out?â asked Basran.
The new tax imposes a $5 levy for every $1,000 of assessed value this year and will rise to $20 per $1,000 of assessed value in 2019. It targets what the province calls foreign and domestic âspeculatorsâ but could catch Canadians from other provinces who own homes here, either vacation property or homes they intend to retire to in the future.
Long-term rentals, even if owned by out-of-province residents, are not affected by the tax.
West Âé¶čAV Coun. Carol Zanon questioned if the tax was even constitutional, saying mobility rights are guaranteed in the Canadian Charter of Rights and Freedoms and to her, the tax appears to limit that.
Coun. Duane Ophus and Bryden Winsby agreed with their colleagues that the tax is bad news for West Âé¶čAV, with Winsby saying the city needs to get serious with its reaction to the provinceâs move. He moved a motionâsupported unanimously by councilâthat a report be prepared immediately by the city on the impact of the tax to West Âé¶čAV.
City chief administrative officer Jim Zaffino said he will have that report in councilâs hands next week. Basran said Âé¶čAV city staff are also preparing a report on the potential impact of the tax on the city.
In the meantime, Findlater said West Âé¶čAV will raise its concerns at the upcoming Southern Interior Local Government Association convention.
Âé¶čAV will look at âtweaksâ and alternatives that can be used to achieve the same goalsâmaking housing more affordable for mid- and low-income earnersâsaid Basran.
