B.C. Finance Minister Carole James and B.C. Green Party leader Andrew Weaver announce rate reduction for Canadian citizens paying new property tax on homes empty six months of the year or more. (Black Press files)

B.C. VIEWS: Fact-checking the NDP’s speculation tax on empty homes

Negative-option billing is still legal for governments

When the B.C. NDP government quietly announced its registration system for the new “speculation and vacancy tax” last week, it took a minute for me to realize that every homeowner in affected urban areas is required to register, every year.

If they don’t, they will be billed on their property taxes, not at the lower rate for Canadians, but at the full two per cent of 2018 assessed value. That’s the rate reserved for foreign buyers and “satellite families,” those Asian high rollers who are supposed to be driving our housing prices through the roof with their dirty money.

I called it “negative-option billing,” a term that jogged memories. Readers started asking me, isn’t that illegal?

It is indeed, but only for businesses. A federal law was passed in 1999 after an outcry over a cable company’s move to charge customers for a new service unless they contacted the company to decline it.

In this case, 1.6 million residential property owners in designated B.C. urban areas are to receive a letter, starting this week, instructing them to fill out a form declaring they are not real estate speculators. If you have a house or suite that isn’t occupied by a relative or rented out at least six months of the year, you get dinged, annually.

Premier John Horgan shrugged off the complicated form and negative-option billing, comparing it to the homeowner grant introduced by W.A.C. Bennett in 1957.

Horgan made a couple of obviously false statements. The B.C. Liberals didn’t raise concerns in the legislature, he said. Okay, so the tax revolt led by mayors of Kelowna and Horgan’s home town of Langford, and the fall legislature session with objections from the B.C. Greens as well as the B.C. Liberals, never happened?

RELATED: Mayor says Langford threatened over speculation tax

RELATED: Opposition battles ‘fake’ speculation tax in legislature

How about Finance Minister Carole James’ two humiliating retreats on this tax, the first on its overreach into rural vacation properties, and the second on applying the foreigner rate to Albertans and Ontarians? Did those un-happen too?

“The biggest challenge for B.C. Liberals is we’re trying to do something about speculation in the housing market, and they did nothing,” Horgan said.

It was Aug. 1, 2016 when the former government revealed its foreign buyer tax, applying only to non-Canadian purchasers in Metro Vancouver’s then-soaring real estate market. At 15 per cent of value, it actually worked. Foreign purchases went from 10 per cent of the Metro market to less than two per cent in two months.

The foreign buyer tax is still in effect, and the statistics B.C. began to collect showed how few foreign-buyers there were. In Greater Victoria, it was about 3.5 per cent.

Now the NDP version extends beyond Metro Vancouver to Victoria, Kelowna, West Kelowna, Nanaimo, Lantzville, Chilliwack, Abbotsford and Mission.

A fact-challenged government ad started running last week too. The speculation tax “makes sure everyone who uses services like hospitals, schools and transit pays their fair share,” the ad states. So, how many empty apartments go to hospital and school, or ride transit?

James merely stretches the truth. After caving in to B.C. Green Party leader’s final demand last fall to charge all Canadian owners the same rate, James lowered her estimate of what the tax will bring in to about $185 million a year.

But when asked how many vacant homes are expected to shift into the rental market to avoid the tax, Horgan, James and finance officials admit they don’t know.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press Media. Email: tfletcher@blackpress.ca


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Itty bitty art

VISAC Gallery is located in the basement of the Selkirk College building in downtown Trail

Free Family Day fun for Greater Trail

Public skating in Rossland and Trail are a few of the free offerings for families this weekend

Province announces $23 million for upgrades at Kootenay Boundary Regional Hospital

West Kootenay-Boundary Regional Hospital District Board has yet to review the provincial proposal

Tell the Times

Web Poll: Do you stay in town or leave for holidays like Family Day?

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

James says B.C. budget puts priorities on NDP’s poverty, environment plans

She said she expected the government’s poverty reduction and climate change strategies to be priorities in the budget

PHOTOS: Day 1 of the 2019 Canada Winter Games in Red Deer

Games kicked off in Red Deer this week

Ammonia leak shuts down curling club in Nelson

It’s not yet clear when the leak was detected

Pavelski’s 31st goal helps Sharks top Canucks 3-2

Vancouver one point out of second NHL wild-card spot

East Kootenay illicit drug overdose deaths lowest in B.C.

Local expert credits harm reduction efforts; declares support for legalization of opioids

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Ontario police field complaints over Amber Alert for missing girl, 11, found dead

Some said the Amber Alert issued late Thursday for Riya Rajkumar disrupted their sleep

Former B.C. premier Gordon Campbell accused of sexual touching

Accuser went to police, interviewed by Britian’s Daily Telegraph

Most Read