Today the provincial government announced the much anticipated changes to the speculation tax. Here are some initial responses to the removal of the Southern Gulf Islands from the tax. There is a lot more to analyze and I will be commenting further in the future.
“Since the government announced the speculation tax, I heard from many concerned Gulf Islanders who were worried about how this might impact them and I pressed government to make changes,” said Adam Olsen, MLA for Saanich North and the Islands.
“My office received hundreds of emails, letters and phone calls on the speculation tax. It was your stories that allowed me to better understand the challenges with government applying this tax in the Southern Gulf Islands. In addition, your stories significantly strengthened the advocacy of our office,” said Olsen.
“I’m glad that the government has listened to these concerns and recognized that this tax doesn’t make sense for rural areas like the Gulf Islands. The diversity of concerns in my riding demonstrates the need for a nuanced approach to the housing crisis. We have serious housing challenges in the Gulf Islands that need to be addressed, while recognizing that seasonal residents are valuable members of the community who contribute to the local economy. I will continue to work closely with the communities in my riding to bring locally-appropriate solutions to the table.”
Adam, my family is very relieved that the Gulf Islands are excluded from the application of the proposed Speculation Tax. We thank you for providing a means of expressing our concerns about the Tax and listening to those concerns. Your representations to the Government on our behalf was clearly heard. Your efforts are greatly appreciated.
I called your office and strongly voiced my concerns regarding this poorly communicated and ridiculous speculation tax. Thanks to you and your staff for voicing my concerns.
I feel for the rest of the province and our neighbours in other provinces and states as I feel this tax should not be burden on them.
Offshore is the issue…period.
Dear Adam, The speculation tax is an ill-conceived tax proposal because it tries to address many different issues, namely speculation, affordable housing and rental stock. Unfortunately, it will fail to stop speculation much like the Property Transfer Tax which was brought in to curb speculation has failed. But, it will have unintended consequences, namely (1) a perverse jurisdictional taxation of Canadians who spend time in BC (2) an invitation for similar provincial responses and possibly a danger to the federation (3) the creation of different classes of BC residents based on the location of their family cottage (4) the curtailment of housing development in the areas most in need (5) the re-evaluation of property assessments at the targeted area borders and (6) the proliferation of no-rental policies in strata corporations. Little consideration in developing the tax has been given to other factors, namely the impact of municipal bylaws on housing costs, the lack of transportation, the insidiousness of overseas pre-sales, the non-regulation of short-term rental technology (Airbnb, etc), the elimination of First time buyer programs and the lack of basic public housing policy. Instead a staggered tax upon various classes of owners will have serious consequences on BC residents and Canadians, on local economies, on BC’s GDP and international reputation. A fairer solution to speculation (adopted in many countries) is simply to apply a surcharge on the sale or the purchase of property by non-Canadians or simply to restrict property ownership for non-residents. A speculation tax is not a substitute for policies on public housing, transportation, municipal development or affordable housing – which are issues to be addressed by government. The speculation tax as currently conceived is a shotgun approach to a myriad of social problems, hoping that the buckshot will make enough noise and cause enough damage that something will happen. Something will happen – but the consequences will be unintended and destructive. Gerald Backeland , Sidney, BC