By Victor Kaisar

New Housing Taxes

Speculation tax declarations due in Kamloops; new B.C. home flipping tax begins Jan. 1

Dec 31, 2024 | 12:06 PM

KAMLOOPS — The speculation and vacancy tax will officially kick in in Kamloops when the calendar flips over to 2025.

It means residential property owners will need to declare how they used their property in 2024, and if they don’t qualify for an exemption they’ll be subject to the tax.

Those declarations are due by March 31.

Exemptions include properties being used as primary residences, properties with a long-term tenant, and life events like separation or divorce.

“There’s something wrong when people are buying up investment homes and keeping them empty while others are living in vehicles and can’t find housing,” BC Housing Minister Ravi Kahlon said in November last year, when the tax was first announced.

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“Homes are meant to be lived in by people in our communities, not used for speculation.”

The speculation and vacancy tax rate is two per cent for people who don’t 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.

The B.C. Government also says more than 99 per cent of people living in the province are exempt from paying this tax.

New home flipping tax to kick in Jan. 1

Also kicking in this year is the new home flipping tax that the B.C. Government says is aimed at speculators looking to turn a quick profit in the housing market.

“Buying a home is one of the biggest decisions and milestones in people’s lives, whether it’s their first apartment or a new home to make space for the growing family, and we don’t think families should have to compete against speculators when they’re making such an important decision,” former Finance Minister Katrine Conroy said in April.

The home flipping tax rate starts at 20 per cent of the profits if a property sold within 365 days, falling to zero at 730 days when the tax no longer applies.

Exemptions include divorce, job loss or other changes in household membership (e.g. a new baby), or a threat to personal safety.

The Province expects around 4,000 properties to be subject to the tax in 2025, which they say will generate $43 million in its first full fiscal year.

Some experts argue that the tax may not generate as much revenue as the government expects it will as only impact a small number of properties will be impacted