CHBA BC action on the speculation tax and development lands exemption

The speculation tax was first introduced in the provincial budget on February 20, 2018. CHBA BC immediately observed that there was a potential impact that was not addressed: residential land under development—either in the approval or construction stages—would be subject to the annual speculation tax as there would be no units to rent or own during that time.

CHBA BC shared these concerns to the Ministry of Finance from February to October 2018 in a series of submissions, meetings, and follow-up discussions. The submissions included the concerns about the land exemption, but also general concerns about the tax itself, including the unintended consequences of restricting access to vacation or secondary home, and the impact on local home building companies and the trades they employ.

Working closely with members around the province, the concerns about the impact of the proposed speculation tax were delivered to decision-makers at all levels of the provincial government.

In addition, CHBA BC produced an education campaign for consumers to provide information on the speculation tax legislation and our concerns. Some of the highlights of the September and October 2018 campaign include media articles and op-eds, Facebook Ads that reached over 1,000,000 people with 950+ comments, 14,500 unique link clicks, almost 500 petition sign-ups on the stopthetax.ca website, and 500 postcards distributed at local events.

The legislation was introduced on October 16, 2018. It was a significant and positive step to see a development lands exemption in the legislation. This exemption was a direct ask of CHBA BC and several of the CHBA BC recommendations are included. These include projects under construction, exemptions for up to one year for vacant completed units for sale, and recognition of phased developments. An amendment was also made to decrease the tax percentage paid by Canadians to match the percentage paid by British Columbians, and the tax on Canadians dropped from 1 percent to 0.5 percent.

CHBA BC continues to follow up with members on the impact of this tax in its infancy. CHBA BC also drafted specific FAQs to help members applying for the land exemption. While the tax was not removed, the advocacy efforts of CHBA BC to seek a land exemption have significant benefits for industry, their home buyers, and housing affordability.