Speculation Tax - Correspondence
Date Description
March 2018 Ministry of Finance (Information Fact Sheet – B.C. Speculation Tax) March 23, 2018 Email from Victoria Residential Builders Association March 26, 2018 Email from Mary-Ann George April 4, 2018 Email from Ron Myers March 31, 2018 Email from Eamonn & Karol Campbell March 28, 2018 Email from Gary Wilkie March 28, 2018 Email from Catherine Kraft-Urkow March 22, 2018 Email from Peggy McConnell (Wayne Whitlock)
Ministry of Finance Tax Information Sheet
ISSUED: February 2018 REVISED: March 2018 Information Sheet 2018-001
gov.bc.ca/propertytaxes
B.C. Speculation Tax
Urban centres throughout the province are in a housing crisis. Rents and home prices have surged past local incomes and, in many communities, vacancy rates sit close to 0%.
Speculation has contributed to runaway prices and made it difficult for British Columbians to find a home they can afford. This is hurting people, businesses and communities.
The speculation tax works to ensure that British Columbians can afford to live in their own province. It will push speculators out of the housing market, and help turn vacant and underutilized properties back into homes for people who live and work in our province. The tax will work to increase the supply of available housing in designated urban centres, helping to ensure our teachers, carpenters and small business owners can live where they work.
The tax is designed to capture foreign and domestic speculators, satellite families who live in B.C. but do not pay their share of income taxes, as well as homeowners who hold vacant property in designated urban centres. Over 99% of British Columbians are estimated to be exempt, because they will not have a vacant second home in the affected areas.
Implementation details:
Focus on urban centres:
The speculation tax applies to residential property in British Columbia’s largest urban centres facing the housing affordability crisis. These are regions with low vacancy rates that are facing severe affordability challenges in which home prices drastically exceed local incomes.
The tax applies in the Metro Vancouver Regional District (excluding Bowen Island and Electoral Area A, except the part of the electoral area that is the UBC and University Endowment Lands), the Capital Regional District (excluding the Gulf Islands and
PO Box 9427 Stn Prov Gov Victoria BC V8W 9V1
Juan de Fuca), Kelowna-West Kelowna, Nanaimo-Lantzville (excluding Protection Island), Abbotsford, Chilliwack, and Mission. Most islands are excluded.
Map of areas the speculation tax applies to: https://news.gov.bc.ca/files/2018_SpeculationTax_Map.jpg
Exemptions:
Primary residences of British Columbians are exempt from the tax.
Properties that are used as qualifying long-term rentals are exempt from the tax. Homes will need to be rented out for at least three months to qualify for an exemption in 2018. Starting in 2019, homes will need to be rented out for at least six months, in increments of 30 days or more, to qualify for an exemption.
Over 99% of British Columbians will be exempt, because the vast majority of homes owned by British Columbians in the province’s urban centres will either be owner- occupied or will be rented long-term.
Rate design:
In 2018, the tax rate for all properties subject to the tax is 0.5% on the property value.
In 2019 and subsequent years, the tax rates will be as follows: • 2% for foreign investors and satellite families; • 1% for Canadian citizens and permanent residents who do not live in British Columbia; and • 0.5% for British Columbians who are Canadian citizens or permanent residents (and not members of a satellite family).
Credit design:
British Columbians who are Canadian citizens or permanent residents, and not part of a satellite family, will be eligible for a tax credit that is immediately applied against the speculation tax. This credit will offset a total of $2,000 in speculation tax payable. For homeowners with multiple properties, the tax credit will only apply to one property.
This tax credit will ensure that British Columbians do not pay tax on a second home valued up to $400,000. For more expensive vacant properties, the credit ensures that tax only applies to the value of the property above $400,000.
Speculation Tax Page 2 of 4
Who doesn’t pay the tax:
The vast majority of British Columbians:
Over 99% of British Columbians are estimated to be exempt from the speculation tax because they own a home and live in it, rent a home, have a second property that is outside of a designated urban centre, have a second property that is valued below $400,000 or have multiple urban properties that are rented out long-term.
People whose homes and cottages are outside the designated urban centres:
The speculation tax uses a targeted approach. It is purposefully designed to help bring housing stock onto the market in B.C.’s urban centres hit hardest by the housing crisis. People with homes and cottages outside the designated area do not pay the speculation tax.
Homeowners with properties in designated urban centres, but who rent them out long-term:
People who hold properties in designated urban centres will also be exempt from the tax if they rent the properties out at least six months a year.
Those eligible for special exemptions:
There will be exemptions to accommodate special circumstances, including: • The owner or tenant is undergoing medical care or residing in a hospital, long- term care or a supportive-care facility • The owner or tenant is temporarily absent for work purposes • The registered owner is deceased and the estate is in the process of being administered
Who pays the tax:
Foreign speculators and satellite families:
Foreign demand and capital continue to put pressure on B.C.’s housing stock. Foreign owners and satellite families — households with high worldwide income that pay little income tax in B.C. — will be captured by the tax and will not be eligible for a primary residence exemption.
Speculation Tax Page 3 of 4
Foreign owners and satellite families can avoid the tax by renting their property. They will be able to offset a portion of the speculation tax with a non-refundable tax credit if they report income in B.C.
Domestic speculators:
British Columbians deserve to be able to afford a home, whether renting or owning, in their own province. The speculation tax primarily targets non-residents who own properties in designated urban centres and who do not rent them out at least six months a year.
Canadians who keep their primary residence in another province can avoid the tax by renting out their B.C. property for six months of the year. They will be able to offset a portion of the speculation tax with a non-refundable tax credit if they report income in B.C.
Those with multiple properties in B.C.’s designated cities that are vacant most of the year:
When a property owner holds onto vacant homes and benefits from rising property value, that is speculation. This behaviour is taking homes out of the housing market, driving vacancy rates lower, and making it harder for British Columbians to find a place to live.
Those who own multiple properties in urban centres that they opt to not rent out or live in will be captured by the tax. British Columbians with vacant property in urban centres will be eligible for a non-refundable tax credit that offsets a total of $2,000 in speculation tax payable and is immediately applied against the speculation tax owing. For homeowners with multiple properties, the tax credit will only apply to one property.
Speculation Tax Page 4 of 4
Community Builders…
Building Communities
March 22, 2018
Dear Mayor and Council,
RE: Speculation Tax
VRBA would like to advise you of our concerns regarding the new speculation tax that is eroding the homebuilding business and skilled jobs. The proposed tax has created uncertainty among out-of-province Canadians and British Columbians with vacation homes, and is now impacting homebuilding projects and employment in our region.
CRD communities are favourite destinations for many out-of-province Canadians planning to retire. Their retirement/vacation homes and the summer homes of many British Columbians will see taxes jump by thousands of dollars annually. By simply proposing this tax, homebuilding projects in the CRD are being cancelled.
From 2003 to 2005, housing prices increased 41% after a period of stagnation. Nobody blamed out-of-province Canadians and retirees. Historically, prices jump after economic stagnation, experienced again from 2009 – 2015. The Speculation Tax may start another period of economic decline, which in turn reduces employment and tax for your municipality.
Municipalities like Kelowna, West Kelowna, and Nanaimo are asking to be exempted from the Speculation Tax and we hope you will join their voices. The City of West Kelowna has produced a document (attached) outlining their concerns.
Thank you for considering this request to send a strong message to the provincial government that this poorly developed tax policy does not accomplish their goals. More consultation with municipalities and industry is necessary to avoid unintended consequences impacting our economy and jobs. . Yours sincerely,
Casey Edge Executive Director
#1–3690 Carey Road, Victoria, BC V8Z 4C2 ● Tel: 250.383.5044 ● Fax: 250.383.9423 ● Email: [email protected] ● Twitter: @VicBuilders www.vrba.ca ● www.careawards.ca
Speculation Tax Impacts on West Kelowna
Speculation Tax Impact on West Kelowna
2 Speculation Tax Impact on West Kelowna
Introduction
West Kelowna Council respectfully requests that the Province of British Columbia exclude West Kelowna from the proposed Speculation Tax which will seriously impact municipal revenues and derail the city’s objectives to upgrade to an urban standard. West Kelowna requests exclusion from the tax for the following reasons:
Significant concerns and objections voiced by West Kelowna property owners, business people and developers since the announcement of the tax.
Questions as to why West Kelowna is included and not other, similar communities. The creation of an unfair and competitive advantage for neighbouring communities not subject to this tax. The risks to affordable and rental housing in West Kelowna. The clear threat to the City of West Kelowna’s economic landscape and its ability to fund community infrastructure. The tax will likely not produce the intended results.
BACKGROUND
Council Resolution Page 5
Executive Summary Page 6
Public Opinion Page 8
Why West Kelowna? Page 9
Uneven Playing Field Page 10
Risks to Affordable and Rental Housing Page 11
Economic Threats Page 13
Tax’s Intention Won’t Be Realized Page 19
Further Considerations Page 20
3 Speculation Tax Impact on West Kelowna
4 Speculation Tax Impact on West Kelowna
Council Resolution
West Kelowna Council Meeting March 13, 2018
Provincial Government New Speculation Tax (Non-Resident Owner Tax)
It was moved and seconded:
THAT Council direct the Mayor and the CAO to meet with the Premier of the Province of BC and MLA Weaver as soon as possible (within the next two weeks) requesting that the announced speculation tax not include the City of West Kelowna; and West Kelowna Mayor and Council: (from left) Coun. Bryden Winsby, Coun. Rusty Ensign, THAT this decision be made immediately; and, Coun. Duane Ophus, Mayor Doug Findlater, Coun. Rick de Jong, Coun. Carol Zanon, THAT if the Province maintains the tax as announced, Coun. Rosalind Neis. Council direct the Mayor to request that the Province provide an economic impact report before the tax is implemented; and
THAT the Mayor be authorized to write a letter on behalf of the City of West Kelowna to the Minister of Finance expressing our concerns over this tax and that this report including letter submissions be submitted with the letter.
CARRIED UNANIMOUSLY
5 Speculation Tax Impact on West Kelowna
Executive Summary
The City of West Kelowna (incorporated in December 2007) has tackled many significant challenges within its first 10 years, not the least of which was the onset of major global recession during the new municipality’s initial, critical period of transition from a rural to an urban government from 2008 through 2010.
Before incorporation, the community had a hodge-podge governance—land use regulation and some services were provided by the Regional District of Central Okanagan; the Ministry of Transportation and Infrastruc- ture administered the community’s roads/ drainage infrastructure and provided subdivision approvals; two irrigation districts, built by community farmers, provided water to thousands of residents. With no dedicated, holistic oversight, the community’s infrastructure fell into serious disrepair and was not meeting the needs of this growing area. The City of West Kelowna inherited considerable infrastructure deficit with no financial reserves or replacement plans in place—a Regional District cannot collect DCCs.
While the City of West Kelowna is currently one of the fastest growing communities in BC, this growth remains fragile and very sensitive to market influences. West Kelowna has recorded 5.7% population growth since the 2011 Census.
Based on past building and development stats, the City of West Kelowna is concerned that a misbalancing of market conditions will be counter-productive to the creation of the affordable types of housing that the municipality wants and needs. The city is only just now, Affordable multi-family housing in the City of West Kelowna is highly sen- seeing a renewed interest in the construction of sitive to market conditions. After projects already in queue were complet- multi-family developments including purpose-built rental ed in 2009, it took the market more than seven years to recover to levels seen prior to the 2008 global economic downturn. units. Negative market conditions, such as those that could be created by the Speculation Tax, could set back affordable, multi-family development in West Kelowna.
In addition to the loss of affordable housing, would be the impacts on city and provincial revenues. Over 1,650 businesses operate in the City of West Kelowna in industries such as agriculture, construction, light industry, lumber manufacturing, retail, services, tourism and wineries. Such enterprises rely heavily on population growth for their customer base and skilled labour inventory. These businesses collect provincial gas, payroll and sales taxes and are supported by West Kelowna’s 32,655 (2016 Census) residents, who live in nearly 12,500 private dwellings. If growth is encouraged, an additional 200 to 600 residents will continue to move to West Kelowna each year to find jobs and buy goods and services in support of local businesses. In sharp contrast, the last market downturn reversed the City of West Kelowna population by 330 people over two years.
6 Speculation Tax Impact on West Kelowna
And since West Kelowna does not have the direct, large, provincially subsidized economic generators that Kelowna enjoys, which employ thousands of people and generate population growth, such as Kelowna General Hospital, UBC Okanagan, and Okanagan College, market conditions that support growth, rather than hinder it, are more vital.
Furthermore, the City of West Kelowna does not believe a fair comparison can be made among housing market conditions seen here and those in the Fraser Valley and Greater Vancouver regions, where the proposed tax is also being considered. Between 2007 and 2017 housing sale prices in the Okanagan Mainline Region rose from $387,523 to $497,60. The net increase in housing price is 28.4%, compared to the Fraser Valley, which saw a 65.6% jump, from $423,761 to $701,842, and Greater Vancouver, where prices soared 80.7%, from $570,795 to $1,031,546. Finally, as a young municipality, attempting to replace rural amenities with more expensive urban services, the means of funding new infrastructure is of great concern. Like the Province of BC, the City of West Kelowna is forever aiming to achieve a delicate balance between the burden of taxation, the need to borrow and the requirement to build reserves to meet ongoing infrastructure needs. Transit, waste management, parks and water and waste water treatment are worthwhile, but the networks of infrastructure are expensive to maintain, operate, upgrade and replace. Growth has enabled the affordable provision of these services, while simultaneously allowing the City of West Kelowna to accomplish some of its infrastructure improvement goals, maintain affordable tax increases and borrow less than what otherwise may have been required. If a Speculation Tax is implemented and growth is impacted, this delicate exercise will be put off balance.
In conclusion, the City of West Kelowna believes:
That its economy is more in line and as equally fragile as those of the similarly sized municipalities of Vernon and Penticton; and,
That the implementation of a Speculation Tax may actually hurt efforts to bring affordable housing to West Kelowna; and,
That the resulting market conditions will reduce growth in the municipality, thereby hurting business, stemming the flow of goods and services and reducing municipal and provincial revenues.
7 Speculation Tax Impact on West Kelowna
Public Opinion
With the announcement of the proposed Speculation Tax, the City of West Kelowna issued a call for comments from the public on March 1, 2018. By March 13, the City had received 239 letters with the vast majority of commenters opposed to the tax.
Of 239 letters received, only 19 commenters supported the tax. Comments were received from:
West Kelowna residents Out-of-province owners who are planning to retire in Out-of-province residents who own West West Kelowna Kelowna property West Kelowna residents with two properties Realtors Overseas workers whose properties are Developers mostly vacant Property Managers Renters
SUMMARY OF COMMENTS EXPRESSING DISAPPROVAL OF THE NEW TAX
Delay in purchases/projects due to uncertainty of tax Will cause unfair competition in relation to other BC Targeting Canadians living in other provinces, who do municipalities contribute to local economy Lacks vision Agree with penalizing foreign buyers but not to do so Discourages people from making prudent and needed to Canadians near-retirement financial decisions Unfair to many long-time property owners from out of Needs more discussion to make sure there are no province unintended consequences Will result in a destabilization of real estate market Undermines trust in BC as a place to invest Will diminish economic growth in region and deplete Seemingly arbitrary application to some municipalities house values substantially Rates are very high Business owner who lost contract to out of province Will drive up rental prices owner due to tax Not a true speculation tax – tax should be on those who buy and sell properties for profit Will not accomplish affordable housing Vacationers regularly support local economy Lack of consultation
SUMMARY OF COMMENTS EXPRESSING APPROVAL OF THE NEW TAX
Don’t mind tax on foreign homeowners, this is needed Second home buyers have inflated housing market in Love seeing people pushed out of the market; houses West Kelowna and should pay more should not sit empty Needs to be done to send a message Homes are for living in, not vehicles for investment
Please note, this is a synopsis of submitted correspondence. The City has also received significant input via its social media channels; for example, the City’s post on Twitter seeking comments on the proposed Speculation Tax generated the most comments it has ever received.
8 Speculation Tax Impact on West Kelowna
Why West Kelowna?
If the Province simply looks at the average assessed value of property within the City of West Kelowna, the numbers appear artificially high. That’s because West Kelowna has a large number of waterfront properties and they skew the average house price in the City. The typical house price is in fact quite different and is achieved when taking waterfront properties out of the picture. When including water- front homes, the average property value is $634,422. If multi-million- dollar properties, many that are non-owner occupied and subject to the Speculation Tax, are excluded, the typical home value in the City of West Kelowna then averages out to only $515,711.
Given the community’s attraction as a vacation destination, many of the City of West Kelowna’s non-resident property owners purchased these properties many years or even several generations ago. Such owners are not speculators and contribute to the economy faithfully each year as they return on their vacations. Vacation home owners also pay annual property taxes in West Kelowna.
Other owners are planning for retirement and purchasing their future homes with careful consideration.
As shown in the adjacent tables, the majority of properties impacted by the tax in West Kelowna are not foreign-owned nor are they out-of-province purchased. In reality, the vast majority of non-resident property owners are BC residents; and therefore, this tax is in fact negatively impacting British Columbians. What Is The Speculation Tax Risk?
The intended target of the tax, foreign and out of province owners, is not reached by implementing the Speculation Tax in West Kelowna.
9 Speculation Tax Impact on West Kelowna
Uneven Playing Field
Since the tax applies only to Kelowna and West Kelowna in the Okanagan, the two cities will be put at an economic disadvantage as compared to other communities in the region that are not subjected to the tax.
Non-market growth will decrease significantly as developers avoid areas where the tax is applied. Job opportunities will be impacted.
The City of West Kelowna is further impacted because the tax does not apply to properties within the Westbank First Nation (WFN). The WFN is a self-governing First Nation with many shared boundaries with West Kelowna (see map). Most commercial and residential growth on the west side of Okanagan Lake, in the past 10 years, has happened in WFN, where often developers found building expenses and related costs to be lower. Similar Communities Not Targeted
West Kelowna and Kelowna are seemingly, arbitrarily singled-out with this tax since other communities are not targeted. For instance, Lake Country, adjacent to Kelowna, had the highest average home value in 2017 in the Okanagan at $727,000. Peachland, adjacent to West Kelowna, had an average home value of $612,000. Summerland, Penticton and Coldstream had averages over $500,000.
Steady Growth
The tax implies West Kelowna is unaffordable. If that were true, growth would be stagnant in comparison to other areas when in fact, West Kelowna’s growth has been steady for 10 years, at rates similar to the ones in other Okanagan communities, including those not facing the prospect of the Speculation Tax.
What Is The Speculation Tax Risk?
West Kelowna’s population and economic growth will decrease while neighbouring communities will experience continued and possibly accelerated growth as a direct result of not being targeted by the tax.
10 Speculation Tax Impact on West Kelowna
Risks to Affordable and Rental Housing
In 2016, eight years after the 2008 economic downturn, City of West Kelowna finally began seeing significant increased development activity, particularly in multi-family and purpose-built rental projects.
In 2017 the City saw further strong growth, administering building permits with a record construction value of more than $131 million. Of the 490 dwellings units that were approved, 247 were multi-family units.
If the Speculation Tax is implemented, it will negatively affect sensitive market conditions in West Kelowna, reversing the existing fragile trend towards the creation of affordable multi-family and purpose-built rental housing.
THE TAX WILL HURT INROADS TO AFFORDABLE HOUSING IN WEST KELOWNA
In recognition of community growth and affordability concerns, West Kelowna has undertaken a variety of recent housing initiatives which could be hurt by the Speculation Tax. These initiatives include: Adopting zoning regulations to permit secondary suites and carriage houses Enabling smaller parcel sizes in residential zones to facilitate infill subdivisions Implementing developer incentives to target increased density within the urbanized Westbank Centre closer to existing amenities and services Collaborating with government organizations such as BC Housing to identify land and resources available for transitional and supportive housing Streamlining the development application process to ensure new housing options are processed efficiently so dwellings are delivered to market in a timely manner.
The local development industry has recognized the need for additional rental projects in West Kelowna; approximately 500 such units are in various stages of development or planning.
If the Speculation Tax is implemented, and affordable, multi-family development applications cease, recent efforts to encourage such development in West Kelowna will suffer years of set backs or will potentially be replaced with lower risk, lower density developments.
THE TAX MAY NOT ACHIEVE RENTAL MARKET GOALS
As stated in the 2018 Provincial Budget, one of the key intentions of the tax is to encourage homeowners to add vacant properties to the local rental housing stock.
Based on 2017 property tax data, the City of West Kelowna has 12,284 private dwellings, plus about 2,000 unregistered secondary suites units.
Approximately 2,541 of the legal housing units are non-owner occupied or unoccupied. Of the 2,541 residential units, the majority, 1,935 (76%) are owned by BC residents and may be affected as the proposed non refundable income tax depends on the income of the owner and they may not have enough income to be able to claim the full amount.
Only 576 residential units are owned by Canadians living outside of BC and another 30 units by people living outside Canada.
Based on this information, implementing the tax in West Kelowna may not achieve the level of income the Province of BC intends.
Since the tax may be penalizing existing out of town homeowners in West Kelowna who are renting their homes, and not make owning the rental home worth their while, they may divest themselves of the properties thereby further reducing the available rental inventory. The tax may not achieve the Province’s intended rental outcomes. 11 Speculation Tax Impact on West Kelowna
RENTAL MARKET CONDITIONS
Government intervention may not be required in the West Kelowna market if the objective is to achieve more rental and affordable housing, based on CMHC market analysis.
The development industry is responding to the market need, according to the Rental Market Report of CMHC. The report identifies a 0.2% vacancy rate in the Central Okanagan. CMHC says once in-stream rental units are built, the vacancy rate should climb to 2.5 per cent.
Furthermore, the stats are based on vacancies of purpose built rental accommodation, and do not include single family house rentals or sec- ondary suites, which the City of West Kelowna has been encouraging through various policy amendments and updates over the past few years.
It should be noted that CMHC stats apply to the Central Okanagan as a whole, not just the cities of Kelowna and West Kelowna.
In West Kelowna, where the market is more sensitive to change, the speculation tax may in fact stall efforts to create affordable and rental housing and the city should be excluded from the implementation of the tax. What Is The Speculation Tax Risk?
Concerning affordable housing, developers with projects in-stream or new projects may cancel their projects and choose to move to areas that are not impacted by the tax, having a damaging effect on affordable multi-family and rental develop- ment in the City of West Kelowna.
Concerning rental housing, the tax may create a double edged sword. It may scare potential rental home owners out of the market, reducing inventory and it may not achieve the increased affordable housing opportunities or the level of income the Province of BC intends.
12 Speculation Tax Impact on West Kelowna
Economic Threats
West Kelowna experienced property devaluations in 2008-2009 that have only since recovered in the last two years. This recovery and transition from a buyer's to seller's market has also resulted in a more favourable shift from predominately single-family housing to a greater mix in housing types. Multi-family housing out-paced single-family starts in 2017 for the first time in 10 years. So far, this transition has resulted in the positive development of one 240 unit purpose-built rental apartment complex.
DEVELOPMENTS AT RISK
The city has three additional purpose built rental projects at the Development Permit stage as well as several other market townhomes and apartments. These larger, higher financial risk developments like townhouses and apartment buildings tend to cease in West Kelowna when uncertainty or volatility enter the market based on stats from 2010 to 2015.
What Is The Speculation Tax Risk?
The proposed tax may actually stop development of much-needed purpose-built rental dwellings in the community.
LIMITED RESERVES; RELIANCE ON DCCS
Only 10 years old, West Kelowna has not had time to build its reserves to a healthy level, yet infrastructure demands are mounting. The City relies on Development Cost Charges (DCCs) to meet infrastructure needs. An integral $8.7 million multimodal transportation upgrade to be built this year is funded in large part (63%) by DCCS (see chart).
WESTBANK CENTRE REVITALIZATION
Council placed a focus on improving the City’s downtown core, Westbank Centre, offering a development incentive through the reduction of Development Cost Charges. An apartment project benefited from the reduction; additional projects have been proposed. The City’s investment in revitalizing its downtown is finally beginning to pay off; however, market uncertainty created by the speculation tax will undermine these efforts. What Are The Speculation Tax Risks?
Proposed projects in Westbank Centre may be cancelled due to the tax and Westbank Centre revitalization will be stalled.
If projects are cancelled, and non market growth does not occur, the City of West Kelowna’s ability to increase services to a urban level will not materialize. Our reserves cannot increase at the required level and required DCC revenues will not be realized. Key infrastructure improvements that are required due to past growth, and waiting to collect the required funds cannot proceed. For example, City Hall operates out of a temporarily converted community hall, which was to be turned back to the community after ten years. It is hoped, based on projected growth levels, that in 2027 the community will be able to afford to construct a City Hall and return the community centre to affordable recreational uses for residents. 13 Speculation Tax Impact on West Kelowna
Economic Threats Continued
LAND USE IMPLICATIONS
More than 515 hectares of vacant and under- utilized lands exist in West Kelowna. The vast majority of these lands are residential.
Using the average annual growth rate from the past decade (1.92%), City of West Kelowna’s population will exceed 62,000 by 2050, or nearly double the 2016 census population of 32,655. Under current conditions (number of parcels, lot sizes, zoning, etc.), vacant lands in West Kelowna can accommodate about 845 new single family units and 876 multi-family units. With the current growth rate, these roughly 1700 new units will be able to house West Kelowna’s growing population for the next five to six years.
Lands slated for residential use that have the potential to be rezoned, subdivided into single family lots, or redeveloped into multi-family units through infill are anticipated to house the growing population for another 15 to 20 years.
Between 2030 and 2050, accommodations will be required for an additional 15,000 new West Kelowna residents. Therefore, it is crucial to stimulate multi-family development now and ensure that the City’s of West Kelowna’s growing population can effectively be accommodated without expanding into greenfield lands for development.
Aside from containing future sprawl, additional multi-family unit development over the next 10 to 20 years ensures will de- crease the environmental footprint of growth and development and enable a more compact and efficient provision of gov- ernment services.
What Are The Speculation Tax Risks?
A major concern with the speculation tax is that it will be challenging to raise the capital necessary to fund large multi- family projects if out-of-town investors are dis-incentivized.
14 Speculation Tax Impact on West Kelowna
Economic Threats Continued
URBAN DEVELOPMENT IMPACTS Since the creation of West Kelowna’s Official Community Plan in 2010 and the Westbank Centre Revitalization Plan in 2011, garnering interest from the development community to invest in multi-family has been challenging. A robust economy, has finally created a climate for more high-density, multi-family and mixed- use developments in Westbank Centre in line with the City’s goals.
Westbank Centre is at a pivotal point in time where opportunity exists to construct upwards of 400 multi-family residential units in the downtown, in addition to the 479 units planned under current development permits (See map below). Integrating these developments with the surrounding commercial environment to achieve the mixed-use vision in the Westbank Centre Revitalization Plan will also be required to reverse the economic downturn created by the construction of the Highway 97 couplet Above: Carrington Ridge – A 240 mul ‐family residen al development in the Westbank that bisects the City’s downtown core. Centre neighbourhood with purpose‐built rentals. Below: Westbank Centre area map. What Are The Speculation Tax Risks?
The speculation tax is expected to create financial roadblocks for higher risk, mixed use and multi-family projects in Westbank Centre, the City of West Kelowna’s urban core. The outcome would be a housing supply that fails to meet the City’s projected population needs and does not address the need for affordable housing or rental opportunities.
More pressure could be placed on the City to accept single family subdivision applications. Single family residential subdivisions pose lower financial risks for developers but create urban sprawl, and inefficient service provision for local governments compared to more compact forms of urban development. 15 Speculation Tax Impact on West Kelowna
Economic Threats Continued
WATER AND SEWER INFRASTRUCTURE
The Community Charter requires that municipalities within British Columbia must complete FIVE year operating and capital budgets. West Kelowna Council recognized early after incorporation, that it was in a challenging position as a new city with little start up reserves and a material amount of work required. With this challenge Council maintains TEN year operating and capital budgets.
Summaries of the City of West Kelowna’s General, Sewer and Water Fund Capital Projects follow. These projects are to be funded from current and future reserves. What Is The Speculation Tax Risk?
These projects are currently affordable based on the projected non-market growth; if this growth does not occur because of the speculation tax’s impact on the market, our budget will have to be reduced to reflect the lower available funds.
16 Speculation Tax Impact on West Kelowna
Economic Threats Continued
The following graph depicts the anticipated percentage of tax-funded transfers to reserves. Reserves are based on current projections and will be able to fund the projects in the ten-year capital plan.
A total of 344 capital projects are funded over a ten year period, through reserves and DCCs.
17 Speculation Tax Impact on West Kelowna
Economic Threats Continued
PROJECT CANCELLATION IMPACTS
Let’s illustrate the Economic Impact of just one large project being cancelled in the City of West Kelowna as a result of changes created by the implementation of the Speculation Tax.
Economic Impacts have been estimated using the BC Statistic’s Economic Multipliers (Input- Output Model).
BC’s Provincial Economic Multipliers and How to Use Them – March 2008 states, “...economic impacts are not the only reason for undertaking projects or developing specific policies, those impacts are often important considerations and their estimation should play some part of any review of those projects or policies.”
As such, the City uses these multipliers from time to time to consider the economic impacts to the local economy when considering a project or opportunity.
Definitions:
Direct Impact: Economic activity directly associated with a given project/activity (i.e. money spent by the developer).
Indirect Impact: Economic activity generated within the supply chain to support the activity (i.e. Suppliers of good and services, sub- contractors, etc.).
Induced Impact: As a result of direct and indirect economic activities, subsequent economic activities generated by households within the economy (i.e. Grocery Store, Salons, retail, etc.).
18 Speculation Tax Impact on West Kelowna
Tax Intention Won’t Be Realized
OPPOSITE EFFECT POSSIBLE
Limiting speculation, and thereby increasing the availability of affordable housing is the indicated goal of the proposal, but in West Kelowna the tax may have the opposite affect. For instance, The tax may result in a sell off, which may result in less rental units and higher rents. Some owners who must pay the tax may try to pass the tax expense on to their tenant. Home owners may have to sell at a loss to avoid the annual Speculation Tax. The new tax will affect true speculators relatively little. lf purchasers intend to flip the property in a short period, it would be to make a quick profit. As they would only be responsible for the new tax within that short period, the tax would probably be included in the sale price, and do little to deter speculators. Long-term, non-resident owners who are not speculating on the housing market, simply own the home, and would have to pay that same tax year after year. This category of purchaser will occur for various reasons, including those purchasing future retirement homes. It’s common for Canadians and some foreign buyers to purchase a second home with the intention of moving to West Kelowna once they retire. Until they retire, the residence may be used to rent to students or used as short-term rental until the residence is needed. This new tax may increase the rental cost, as the owner would try to recoup some of the new tax.
ABILITY TO PAY TAX IMPACTED
An online survey, conducted by Marketing Research and Intelligence Association for the Bank of Montreal, polled 1,002 Canadians 18 years of age and older and found that: Canadians on average have $41,694 in emergency savings, up from an average of $35,237 in 2014. 24 per cent of respondents had hardly anything set aside and 56 per cent reported having less than $10,000 in available emergency funds; Christine Canning, head of everyday banking at BMO, describes the ideal emergency savings fund as one that can replace three to six months of income. By region, those in Atlantic Canada had the lowest average amount of emergency funds set aside at $20,152, with only eight per cent having more than $50,000 available and 27 per cent with between $10,000 and $49,900. B.C. residents had the most set aside, an average $70,364, with 21 per cent having $50,000 or more and 14 per cent between $10,000 and $49,900. Elsewhere, the average amount set aside totaled $24,671 in Quebec, $41,088 in Ontario, $67,605 in Manitoba and Saskatchewan and $40,341 in Alberta.
The proposed Speculation Tax on residential property in BC will be 0.5% of assessed value, starting in 2018. This tax will increase to 2.0% of assessed value in 2019.
Besides other measures, the 2018 BC Budget introduces a non-refundable income tax credit to offset the new property tax to provide relief to persons who may not otherwise qualify for an up-front exemption, but otherwise pay income taxes in B.C.
The table to the right provides a break down of the income levels that would be required to recover the Speculation Tax at the proposed rate of 2%, beginning in 2019.
19 Speculation Tax Impact on West Kelowna
Further Considerations
A CTV News Insights West survey is being touted as a good gauge on the sentiment of the public related to the Speculation Tax.
The question does not accurately reflect the true nature of the proposed tax. Rather than specifying all people, including BC residents who will be negatively impacted by the tax, the question focusses opinion around those who do not pay tax in BC, which skews the results. As shown in this document, the majority of non- resident homeowners in West Kelowna ARE BC TAXPAYERS.
Insights West staff indicated that the survey was scientifically accurate and polled mostly Lower Mainland residents.
With no uniform polling conducted across the province, and specifically no proper sampling of the Okanagan, Insights West admitted that the numbers could not be used for the Okanagan area.
In addition, the question does not mention that the tax is charged annually; and the question seems to indicate that the tax is applied to non-residents rather than speculators.
If Implemented, Monitoring Needed
If the Province of BC chooses to deny or disregard West Kelowna’s request to be excluded from the proposed Speculation Tax, West Kelowna Council strongly recommends the Province undertake close monitoring of the economic impacts from the tax on affected communities.
20 Speculation Tax Impact on West Kelowna
NOTES
21 Speculation Tax Impact on West Kelowna
NOTES
22 Speculation Tax Impact on West Kelowna
NOTES
23 Speculation Tax Impact on West Kelowna MAYOR DOUG FINDLATER City of West Kelowna 2760 Cameron Road West Kelowna, BC V1Z 2T6 Phone: 778-797-2210 [email protected] www.westkelownacity.ca Jennifer Royer Collard
From: Sharon Evans Sent: April 5, 2018 10:11 AM To: Jennifer Royer Collard Subject: FW: BC Speculation Tax
Sharon Evans District of Sooke 2205 Otter Point Road Sooke, BC V9Z 1J2 Phone (250) 642‐1634 Fax (250) 642‐0541 web: http://www.sooke.ca Rethink Reduce Reuse Repair Recycle Please consider the environment before printing this e-mail
From: f_scott f_scott < Sent: Monday, March 26, 2018 7:02 AM To: Info
Dear Mayor Tait and Members of Council:
I am writing to you to ask what your position is on the proposed new provincial Speculation Tax on vacation homes in the CRD. My husband and I are the owners of a vacation/retirement home in Sooke, which we built for ourselves to use, not to speculate for profit. We have already expressed our great concern with the extreme unfairness of this tax to Premier Horgan directly, but we want to know what position Sooke is taking on this.
We have worked for almost 40 years, saving diligently for our retirement, which enabled us to afford to purchase land in Sooke and build our dream house for our vacations and retirement, and to leave to our children. We are not rich enough to be able to afford to pay the new Speculation Tax and will be forced to sell our home in Sooke if it goes through. We thought long and hard about where to commit our retirement funds, and we chose Sooke because we love it there. It's just that simple. Forcing us to sell is crushing the dream that we worked all our lives for.
We spend as much time in Sooke as we can, but we pay our income taxes in Ontario for the following reasons:
Our daughter has chronic medical issues and requires $4000 of medication every month, which is paid for by the Ontario government; My brother, for whom I am responsible, is developmentally disabled and lives in a Group Home in Toronto, which is funded by the Ontario government;
1 I am battling cancer, which is funded through a combination of my employer benefits and the Ontario government health care.
Making BC our primary residence to avoid the Speculation Tax would require moving these costs to BC as well, which would put more pressure on provincial services than we currently do as secondary residents, not to mention the utter upheaval associated with the move of these services. We don't use BC provincial services, so why should we be forced to pay as if we do?
We are not speculators, nor are we leeching off of locals. We pay our way and have always done so, including paying federal income tax, some of which ends up in BC through federal programs and transfers. But we are being treated like unwelcome foreigners in our own country. We support the local community in many ways: we purchased the property using local realtors, we built the house using a Sooke builder and tradespeople, we use local businesses for property maintenance, insurance, furnishing, services, etc. We attend the Sooke Fine Arts Show every year and have purchased art for the last 3 years. We shop at the local shops, eat at the local restaurants and coffee shops, and donate to the Food Bank. We spend 100% of our vacation dollars in Sooke. We pay undiscounted property taxes. We encourage our friends to come to Sooke for visits so they can spend their money there too. Because we consider ourselves to be part of the Sooke community, it only hurts more to be told we are no longer wanted. If we are forced to sell because of this poorly‐thought‐out tax, our sense of being so unfairly treated will be such that we will never set foot in BC again, and we will encourage others to stay away as well.
I have noted that many other municipalities, including Nanaimo, Kelowna, West Kelowna, Langford, Parksville and the Gulf Islands have spoken out against the tax and publicly documented that they want their communities to be exempt from it because they recognise the negative impact on their ability to attract business, investment and growth. These mayors and Councils have stood up for their secondary residents because they know how important they are and because they know they pay their way.
Through all this, I have heard and read nothing from Sooke about this tax. Will you stand up for us or are we on our own? If hardworking taxpayers and Canadian citizens like us are still welcome in Sooke, then I ask that Sooke oppose this tax and request that the province exempt it from the tax. Please let us know where you stand on this...so we know where we stand in Sooke. Thank you for your consideration.
Sincerely,
Mary‐Ann George
Toronto:
Sooke:
2 Jennifer Royer Collard
From: Carolyn Mushata Sent: April 4, 2018 3:50 PM To: Jennifer Royer Collard Subject: FW: BC Speculation Tax
From: Maja Tait Sent: April 4, 2018 3:24 PM To: Carolyn Mushata
For the upcoming meeting.
From: Ron Myers Sent: Wednesday, April 04, 2018 3:23 PM To: Maja Tait
Hi Maja ‐ yes, please share this with Council at your upcoming meeting. I would also be interested in hearing about the outcome if you are able to share it.
Thanks, Ron
Sent from my iPhone
On Apr 4, 2018, at 2:09 PM, Maja Tait
Thank you for your email Mr. Myers, Council will be discussing the tax and its impact on our community at the upcoming Regular meeting on April 9th. I would like to share your email with our Council – please note in doing so that it will form part of our public agenda. By doing so, then everyone will be able to receive your perspective on this matter. Please advise me if you are okay with me passing on this email.
Thank you, Maja
Maja Tait Mayor District of Sooke Ph: (250) 642-1634 Cell: (250)514 6466 Fax: (250) 642-0541 Please consider the environment before printing this e-mail This email message, including any attachments, is for the intended recipient(s) only, and contains confidential and proprietary information. Unauthorized distribution, copying or disclosure is strictly prohibited. If you have received this message in error, or are obviously 1 not one of the intended recipients, please immediately notify the sender by reply email and delete this email message, including any attachments. Thank you.
From: Ron Myers Sent: Monday, April 02, 2018 5:13 PM To: [email protected]; [email protected]; [email protected]; mayorandcouncil@esquimalt.ca; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; jranns@metchosin.ca; Maja Tait
Dear Mayors Young, Desjardins, Price, Atwell, Screech, Finall, Hamilton, Jensen, Ranns, Tait, Williams and Windsor:
Please find below a copy of a note which I recently sent to Mayor Helps of Victoria. I thought I should send this to you as well since the proposed speculation tax will negatively impact your communities as well and affects non‐resident Canadian home owners who contribute to your communities. As highlighted below, this tax is un‐Canadian and will do little or nothing to reduce real estate prices while hurting individual Canadians as well as the communities where the tax will be imposed. I urge you to strongly oppose this ill conceived and unfair tax proposed by the NDP government.
Thank you for your consideration of this important issue.
Sincerely yours, Ron Myers
Sent from my iPhone
Begin forwarded message:
From: Ron Myers Date: March 31, 2018 at 4:36:01 PM PDT To: [email protected] Cc: [email protected], [email protected], Jeffrey Myers
Dear Mayor Helps:
It was a pleasure chatting with you on the bridge this afternoon. Thank you for letting me impose on your time. As we discussed, my family and I are quite distressed with the proposed speculation tax. We believe it unfairly targets fellow Canadians who have in many cases contributed to the communities in which they have vacation homes often for many years and even decades. This speculation tax is effectively running fellow Canadians out of town. Let me summarize some of the points we discussed as follows: ‐ while I understand the desire to slow down rising real estate costs, part‐time Canadian
2 home owners have not caused this problem. Low interest rates for the last 15+ years, off shore money and more recently a migration from Vancouver are I (and most economists) believe the main causes. ‐ we are not speculators; we have owned a condo in Victoria for 15 years and have contributed to the community through good times and bad during that time. For example, we have purchased furniture, art, bicycles, kayaks and even a car. We have hired trades, bought groceries and supported local businesses like bakeries, pubs, restaurants, shops, etc. My wife and I play bridge at the local bridge club when we are here, I cycle with groups from the local bike shops and we patronize the theatre when we are here. ‐ we are retired and our longer term plan was to move here permanently when our family situation permitted; this plan is now in jeopardy as our taxes will increase from just over 6k$/year in 2018 to over 17k$/year with a speculation tax at 1% of assessed value. ‐renting our condo is not a viable or practical solution. We generally spend 2 months here in the spring and in the fall, as well as up to a month during the rest of the year. The property must be rented full time in order to be exempt from the tax in which case we might as well sell since we would no longer be able to enjoy it. ‐ since our return to Victoria in early March we have discussed this with friends, neighbours, small business owners and average Victorians and everyone without exception is horrified that the NDP government is attempting this. They don’t believe it should be targeting fellow Canadians.
I urge you and your council to clarify your position and speak out against this ill conceived and unfair tax and join other cities in B.C. who also strongly oppose it. It unfairly targets fellow Canadians, it will have little effect on housing prices and more importantly it will hurt the communities where it is imposed. I would be more than happy to meet with you and/or the Victoria city council to discuss this further.
Sincerely yours, Ron Myers
Sent from my iPad
3 From: Maja Tait To: Carolyn Mushata Subject: FW: Speculation Tax Date: April 4, 2018 1:54:28 PM
For the upcoming Agenda.
-----Original Message----- From: Eamonn < > Sent: Saturday, March 31, 2018 10:28 AM To: Maja Tait
To Mayor and Council, This letter is to express our concern and disappointment over the proposed B.C. government Speculation Tax that will potentially effect homeowners like ourselves in Sooke. We currently live in The Yukon and have purchased a townhouse in SunRiver estates two years ago with the intention of transitioning to it as our retirement home in the next four to five years, and in the interim using it as vacation home until such time that we can fully relocate. As like other Canadians we explored several options and opportunities throughout Canada, the U.S. and Mexico before deciding that we were happiest retiring in our own country and have fallen in love with Sooke. Sadly we may be backed into a corner and must make a decision as to wether we can actually afford to keep our retirement home in our chosen community.
Our home was not purchased on a speculative basis, but now we may have to consider our options to sell or rent as we feel it is presumed we are speculators. Our property taxes are currently $2,900. per year and with the addition of new Tax of 1% we are looking at an additional burden of roughly $4,300.per year as our unit was assessed last year at just over the 400K benchmark for exemption. We purchased our home for 354K( before taxes) two years ago and now we may be facing an increase in tax, based on an assessment we have no control over.
We essentially have 3 options. Number 1 would be to sell as we cannot afford the additional 400.00 per month for a home we use 5-6 weeks a year. We would relocate to another community exempt from the tax. Number 2 would be to rent our home for the minimum requirement of 6 months to fall into the other tax exemption bracket. Our strata does allow rentals, but for us to rent out our home, pack up all our furnishings, transfer them to storage, then return and unpack everything in our home does not make financial sense. We have also no desire to subject our home or our neighbours to the abuse and turnover of tenants. Number 3 we can stay for the first year at the lower tax rate of .5% and wait for the government hopefully to make further adjustments and consider cases such as ourselves. We feel that the effect this tax is going to have on homeowners like ourselves will bring a negative impact to the real estate market as it goes through a price adjustment (which is being predicted). We can claim a victory, unhappily, if our property value falls below the 400k benchmark and we hit the exemption mark and pray that it stays below it until we can relocate permanently. I don't think our neighbours will be happy with any of the above options, especially the thought of their property values going down. We're going to appear like the bad guys, no matter which option we decide on. Each time time we make a trip to Sooke to enjoy our home, which is generally only for a week or two at a time, we estimate an expenditure of approximately 2000.00 which goes into the grocery stores, restaurants and various upgrades for our home. Based on 5 to 6 trips a year we are willingly spending approximately 10-12k a year . Is this tax of 1% going to offset the loss of money that we and other seasonal homeowners inject into the BC economy? We have made a personal investment, not financial, into Sooke and we do not want to move, but we are once again, having to explore some options. We would ask that you take a stand against this tax as the City of Sidney has done. We are not foreign speculators that are gambling on real estate and we ask for your support to obtain some form of exemption for current residents such as ourselves that have made Sooke their second home. We don't want to move up Island to another community outside the reaches of this unfair tax, but we may have no other choice. Thank you for your time in reviewing this letter. We will be at our home in Sooke from April 6th to 14th if you wish to contact us. Kindest regards, Eamonn and Karol Campbell
, Sooke, B.C.
Sent from my iPad From: Maja Tait To: Carolyn Mushata Subject: FW: Sooke and the Speculation Tax Date: March 28, 2018 12:36:20 PM Importance: High
For Council discussion at the next meeting.
From: Gary Wilkie > Sent: Wednesday, March 28, 2018 11:40 AM To: [email protected]; [email protected] Cc: [email protected]; [email protected]; Maja Tait
Hello Premier Horgan and Ms. James: I would like to thank the government of British Columbia for reconsidering and specifying some of the terms of the proposed speculation tax as announced in the recent Budget 2018. The announcement of these details on March 26, 2018, provides some clarification concerning this tax. However, I still find the intent and scope of the tax confusing. I am writing this note to explain my situation with the hope that it will generate additional clarification, consideration of new factors and focus thinking on possible negative versus intended outcomes of this tax. At this time, our primary residence is in Alberta. We, also, own a home in Sooke which we currently live in several months of each year. We bought this home in 2006 for vacation accommodation and with the possible intent of permanently moving to British Columbia upon our retirement. Please consider the following factors concerning this property:
· Since we bought it in 2006, its assessed value has fluctuated, remaining flat on average, declining through 2009 to 2015. So, it, like other Sooke property, is not a speculative goldmine.
· Our home is in a strata complex of sixteen units. Our strata bylaws prohibit the rental of any unit other than by an initial owner. We are the third owner of our residence, so we are prohibited from renting it. This is true for nearly all of the current owners in the complex.
· We currently pay higher property tax than permanent B.C. residents as we do not qualify for the Home Owners Grant. Penalizing Canadian, non-permanent residents twice is unfair. Sooke is part of the Juan de Fuca electoral district of the Capital Region District of Vancouver Island. The Juan de Fuca district is excluded from the tax. However, scrutiny of the map of the areas to which the tax applies indicates that Sooke has been carved out of the excluded area. Sooke is a growing town, but it is not an urban centre. It is about a fifty-minute drive to Victoria on Highway 14. It is widely known that several factors limit the potential of Sooke, including:
· It is accessible only via the narrow and twisty Highway 14,
· The limited healthcare facilities in Sooke, and · The lack of shopping and employment opportunities in Sooke.
Sooke should be excluded from the speculation tax as it is not an urban centre, the above factors limit its accommodation growth potential, and it is not an area of high speculative ownership.
Please consider adding some grandfathering provisions to the application of this tax (for Canadian citizens), as follows:
· Both B.C. and non-B.C., Canadian residents who have owned their B.C property for a lengthy time (say, at least ten years) should be excluded from the tax.
· Both B.C. and non-B.C., Canadian residents who are prohibited from renting out their B.C. home by existing strata bylaws (bylaws in existence before the implementation date of the tax), should be exempt from the tax. We are not property speculators as evidenced by:
· The length of time we have owned our property,
· The location of the property in a non-speculative area like Sooke, and
· Our intention to move to British Columbia in the future permanently.
It is interesting that the Columbia Valley, most of the Okanagan and Whistler, as examples, are excluded from the tax yet these areas are much more prone to speculation and absentee ownership than is Sooke. If the tax intends to penalize speculation, then it seems that these areas should be included. We are contributing already to the economy of Sooke and British Columbia by paying higher property tax than B.C. residents, by paying strata fees which contribute toward jobs for people around Sooke (for gardening, disposal, hydro, etc.), and by our consumption in area stores and restaurants. The outcome of this tax will likely mean that we will be forced to sell our Sooke residence. This is a situation of loss for both British Columbia and us. B.C. will lose because:
· Our property cannot be rented so the intent of the tax will not be fulfilled,
· The higher property tax will no longer be collectable, and
· Our consumption dollars will no longer continue to fuel the Sooke economy.
We will lose because we will no longer be able to enjoy this area and our dream to permanently move to B.C. will end. Please reassess whether this tax will reach its intended purpose and whether it will affect those that it is intended to penalize. Specifically, please revise both the areas to be included in and excluded from this tax, such as Sooke, and make the suggested grandfathering provisions. Thank you for your consideration, and I welcome your comments. Respectfully submitted, Gary Wilkie From: Maja Tait To: Carolyn Mushata Subject: FW: Sooke and Speculation tax Date: March 28, 2018 12:33:08 PM
Upcoming Council agenda please, starting to receive such as Council should discuss and formulate a position on this.
-----Original Message----- From: Catherine Kraft-Urkow Sent: Wednesday, March 28, 2018 12:20 PM To: Maja Tait
Dear Mayor Tait,
I write to you at this time to share our story.
We are a middle class Canadian family supporting Canadians. We have two homes. One in Alberta where we spend approximately 8 months, and one in British Columbia, where we spend the remainder.
We have family in BC that we choose to stay connected with. Specifically, my brother passed away at a young age leaving his wife and three boys, with whom we value our relationships. We have owned our home in Sooke BC for almost four years now, and with our recent assessment our property is over the 400, 000 benchmark.
While we applaud your governments stance regarding supporting your constituents in terms of supplying affordable housing, we are not sure how being forced to sell our home will give families affordable living. Our property does not sit empty in hopes to flip it and drive up the market. We are not speculators! We are Canadians supporting Canadians.
We are not rich, this is a family choice, and we owe a significant mortgage on this property. We live here. We contribute to the economy. It is confusing how East Sooke is exempt, yet Sooke is not.
Sadly, we will meet with a realtor tomorrow to see about listing our property, as there is no way we can afford another 4-5 extra thousand dollars a year to live here.
We would appreciate the Sooke council supporting Sooke exemptions from the speculation tax.
I look forward to your perspective and feedback Respectfully, Catherine Kraft-Urkow
Sent from my iPad From: Maja Tait To: Carolyn Mushata Subject: FW: British Columbia Housing Tax Date: March 23, 2018 2:48:06 PM Attachments: image001.png Housing Tax.PDF
I’m starting to receive queries about the speculation tax - something to discuss at an upcoming Council meeting? Thanks!
From: Peggy McConnell > On Behalf Of Wayne Whitlock Sent: Thursday, March 22, 2018 3:02 PM To: Maja Tait
I am a resident of Silver Spray subdivision in Sooke and I have built a house. I also reside in Calgary. The speculation tax has been quite troublesome to Canadians such as myself. I am also a senior and, therefore, would not likely have any income tax payable from a British Columbia corporation. Also I know Mr. Thornton is building a project in Silver Spray which will be of interest to other Canadians who are not permanent residents of British Columbia.
As you will see in the attached Globe & Mail article, numerous jurisdictions, The City of Kelowna and Nanimo are asking for exemptions from the tax. We would hope that Sooke would add its voice to these requests for exemptions and contact the necessary provincial MLAs.
Wayne R. Whitlock, Q.C. Partner, Bennett Jones LLP
4500 Bankers Hall East, 855 - 2nd Street SW, Calgary, AB, T2P 4K7 T. 403 298 3331 | F. 403 265 7219 | M. 403 870 1246 E. [email protected] BennettJones.com
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