Rental Corner: Are You Subject to the Speculation & Vacancy Tax?

Has your investment unit been vacant for over 6 months?  If the answer is yes, you will be subject to the Speculation & Vacancy Tax in BC.  It is a provincial tax that you are required to pay even if you are a resident of BC when leaving your unit vacant for over 6 months. The tax assessment is based on the assessed value of the property of the previous year.

Currently, for residents, it is 0.5% of the assessed value of your property.  For foreign owners: you have to pay 2% of the assessed value of your property. It is an expensive tax as the purpose of the government is to make any vacant units available for occupancy for the general public due to short supply of rental housing. It is a deterrent for the ownership to keep their investment units vacant.

The declaration of whether the unit is vacant for the prescribed period is mandatory upon receipt of a letter issued by the assessment office around mid-January. The declaration can also be filed online. Filing deadline is the end of March, and if you are assessed, the Speculation & Vacancy tax is to be paid with the property tax in the beginning of July.   

Please ensure your investment unit is rented to prevent the additional tax levied. We have a team of experienced licensed Property Managers who can assist you with the day-to-day management of your investment unit. 

Please contact RHOME at 604-591-6060 or visit us online at www.rhomepm.ca if you are interested in managing your investment units.