Whereas the provincial Speculation and Vacancy Tax was introduced to address housing affordability in communities facing housing challenges by discouraging property speculation and vacant homes; And whereas each community experiences unique housing challenges, including a limited rental market, housing affordability, seasonal property use, and the economic reliance on part-time residents, which makes a one size fits all model inappropriate in many of our communities: Therefore be it resolved that UBCM petition the provincial government to ensure all local governments have the authority to opt in to the Speculation and Vacancy Tax program based on housing availability and community needs.
Ministry of Finance The Speculation and Vacancy Tax SVT was introduced as part of BCs 30-point housing plan in November 2018. The SVT is designed to prevent housing speculation and help turn vacant and underused properties into homes for people who live and work in BC. The Province initially applied the SVT to urban centres with low vacancy rates and affordability challenges, where house prices and rents exceeded local incomes. Rather than providing all BC communities with the ability to opt in to the SVT, an independent review released in 2022 recommended a phased and measured approach to expanding the SVT. BC added six new municipalities as SVT specified areas in 2023, and 13 in 2024, for a total of 59 province wide. To select expansion communities, the Province considered a number of factors, including assessed values of residential property, vacancy rates, population, requests for inclusion, proximity to other SVT specified areas, and whether the community is primarily a vacation area. The Province also considered input from local governments. The Province is carefully monitoring housing data moving forward to ensure the desired results of the SVT are achieved and will continue to work with local governments to address housing affordability issues in BC.