B.C. government exempting vacation homes from speculation tax
As a result of backlash from the B.C. property speculation tax, the government is reducing where the tax applies by focusing on primarily urban centres and exempting rural areas where lakeside cabins and vacation homes are common. It was also announced that the rate of tax will change. Starting in 2019, British Columbians with multiple homes, which are kept empty, will pay 0.5 percent tax on the value of their home. Canadians living outside B.C. will pay 1 percent tax, and non-residents will pay 2 percent. The speculation tax was initiated to deal with the issue of housing affordability for British Columbians, and the focus of the tax was to deter those people who are treating the housing market like a stock market.