The Comox Valley is among the targets as the provincial government announced it is expanding the speculation vacancy tax to 13 municipalities, including tourism-friendly Courtenay, Comox and Cumberland.

The tax effective Jan. 1, 2025, Housing Minister Ravi Kahlon and Finance Minister Katrine Conroy announced on Friday, Nov. 24.

鈥淭he speculation and vacancy tax is working. We鈥檝e seen thousands of empty condos return to the rental market in Metro Vancouver alone,鈥� said Conroy. 鈥淲hile some would cancel the speculation tax altogether and let speculators back into our housing market, we will be expanding it to additional communities next year, and we鈥檒l continue to strengthen it to help provide much-needed homes for people and families.鈥�

Exemption eligibility is based on how owners use their property during the year. For example, if a property owner uses their unit as a principal home, rents it out for more than six months of the year or meets other rental exemption criteria, they are exempt from paying the tax.

鈥淚n the wake of soaring prices and record migration, we鈥檙e taking on important work to help people find good homes in B.C., and the speculation tax is one of the ways we鈥檙e ensuring people have access to much-needed homes in their communities,鈥� Conroy said. 鈥淭he expansion is just the beginning. We will continue to look at ways to build on the benefits of the speculation tax to keep houses as homes for people and not revenue generators for speculators.鈥�

Courtenay Mayor Bob Wells was happy with the announcement.

I welcome the news. Our council has identified housing as its number-one priority鈥� and this is just another tool that has been proven in other jurisdictions to actually convert empty dwellings into homes for people,鈥� he said. 鈥淪o it is really about hopefully taking what some people consider maybe a simple financial investment and allowing that to not just be that, but also be a home to either an individual or to a family, which is obviously going to mean the world to those that aren鈥檛 able to find a place to live eight now.鈥�

According to the most recent census, there are 422 homes sitting vacant in Courtenay, accounting for 3.1 per cent of all residential properties.

鈥淚f those numbers are (still accurate), that is hundreds of houses that can be converted into homes,鈥� said Wells.

The 2021 census identified 230 vacant homes in and 78 vacant homes in .

鈥淲e are currently in a housing crisis, both locally and across the country. In my opinion, any solution that brings additional housing to an individual or a family in our community is a step in the right direction,鈥� said Comox Mayor Nicole Minions. 鈥淲e know that our neighbouring municipalities were advocating for this tax; and, as a region we will all benefit together. Time will tell if it efficiently adds the potential two-t-three per cent of housing inventory back onto the rental or for sale market, which it is projected to do. While this could affect a couple hundred local homeowners in this current and evolving crisis, an 鈥榓ll hands on deck鈥� approach is needed. Although I am leary of any new and additional taxation for residents, this has more pros than cons.鈥�

Cumberland Mayor Vickey Brown said the village has long been a supporter of the speculation tax, which was first introduced by the province in 2018.

鈥淐onnection is paramount to healthy communities and empty houses create a void in neighborhoods,鈥� said Brown. 鈥淥ur hope is that this tax will incentivize people to fill their empty houses with community members desperate for a place to live.

鈥淲hen the speculation and vacancy tax was first introduced our council expressed interest in being included, so we are happy to see it come to Cumberland. As you know, we have an extremely low vacancy rate of less than one per cent, so it is frustrating to see property owners sitting on housing that could be providing a home. The income raised through the tax is spent on affordable housing in the regional districts where the tax is applied, which aligns with the goals of council to build our affordable housing reserve.鈥�

Throughout the (again, according to the 2021 census) there were 2,473 vacant homes in the region in 2021.

The provincial government introduced the speculation and vacancy tax in 2018 as an annual tax paid by some owners of residential properties in certain parts of B.C. It aims to discourage housing speculation and people from leaving homes vacant.

The tax currently sits at two per cent of the property鈥檚 assessed for people who do not pay the majority of their taxes in Canada or 0.5 per cent for Canadian citizens or permanent residents who pay the majority of their taxes in Canada. Monies raised through the tax support affordable housing and 99 per cent of homes in B.C. are exempt.

According to the provincial government, the tax has raised more than $313 million for affordable housing in regional districts where it applies since 2018. Citing an independent review, the tax has created more than 20,000 homes in Metro Vancouver alone.

wolfgang.depner@blackpress.ca
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