Thousands of B.C. residents have yet to fill out a declaration form to avoid the provincial government’s speculation and vacancy tax.
As of the Mar. 31 deadline, about 96,000 people had yet to fill out the required form.
Minister of Finance Carole James said that, as of Apr. 2, more than 94 per cent of property owners had completed their declarations and those who have not already claimed their exemption will receive a reminder letter.
She also said that all British Columbians exempt from the speculation and vacancy tax will not have to pay the tax, even if an owner declares late.
Declarations were still being accepted as of Apr. 3, although a government employee did not know the cutoff date.
Billed as a key measure in tackling the housing crisis, the government has put the onus on homeowners to complete an annual declaration.
According to the government website, the new tax is designed to target foreign and domestic speculators who own residences in the province. The speculation tax revenue will go directly towards supporting affordable housing.
“The speculation and vacancy tax is an essential tool to help make sure people who live and work in B.C. have a place to call home,” said James.
“Our plan is working. Since May, the home prices in Greater Vancouver have dropped in all segments of the market,” she added.
Pitt Meadows resident Patricia Gordon raised the speculation tax issue at the April 2 council meeting in Pitt Meadows, asking that a letter be written to the province on behalf of citizens expressing concern about the tax.
Gordon is not only concerned about the thousands of homeowners who “will receive a notice to pay a tax they should not be paying,” but also those who own or have inherited cabins or summer homes, which are not exempt.
Pitt Meadows Mayor Bill Dingwall agreed with her, saying the implementation of the tax is unfair.
“I think it’s completely the wrong way to go about trying to dealing with an important issue but then putting it on the backs of the rest of the citizens,” he said.
Council endorsed a letter to the ministry of finance outlying its concerns.
“It is not a speculation tax, it is an asset tax,” said B.C. Liberal and former finance minister Michael De Jong.
“The government has tried to dress up yet another new instrument of taxation as something that it isn’t,” adding that it also assumes the worst about British Columbians, presuming that every owner of a home is a speculator.
“Any law, any initiative by government that begins from the perspective that British Columbians are dishonest or presumed that they are doing something bad enforces people to prove otherwise is destined to be problematic and this one certainly is.”
