The Speculation and Vacancy Tax (SVT) is an annual tax paid by some owners of residential properties in designated areas of BC. It’s intended to discourage housing speculation and owners leaving second homes vacant that could represent housing for others.
The program has been in operation in the Lower Mainland, Squamish, Lions Bay, Kelowna, West Kelowna and on the Island since 2018, and will be expanded next year with 13 new municipalities including Salmon Arm and Kamloops. Unfortunately, at time of writing, there is no word as to whether rural Salmon Arm, such as CSRD electoral areas, will be affected by this.
In 2024, the SVT will be applied for the first time to homes in these 13 additional municipalities that are not occupied for more than 6 months per year. Canadian citizens or permanent residents will be taxed 0.5% of the home’s assessed value, foreign owners and satellite owners will pay 2%, annually. An annual online declaration regarding usage of every home in these areas will need to be filed by March of the following year. Those who choose not to pay the tax may have Crown liens filed against their homes.
The BC Government says this tax will not apply to 99% of homeowners because of the many exemptions. Exemptions are available for: principal residence, previous principal residence, tenant-occupied residences, uninhabitable residences, secondary residences close to a medical treatment facility, recently bought or inherited properties, separation or divorce, bankruptcy, recent death of owner, property is in a trust for a minor or a charity, property is a strata hotel, licensed daycare facilities, water-only accessible properties, and others. For more information, please see the BC Government website pages on this topic.