Response Regarding Speculation and Vacancy Tax

Extracted text (beginning)

From: Timothy Peterson 
Sent: Thursday, December 21, 2023 10:51 AM 
To: Salt Spring Island Local Trust Committee 
Subject: Fw: Letter from Ministry of Finance 
Attachments: Speculation and Vacancy Tax 
 
 
 
 
From: Minister, FIN FIN:EX <FIN.Minister@gov.bc.ca> 
Sent: December 21, 2023 10:46 AM 
To: Timothy Peterson 
Subject: Letter from Ministry of Finance  
  
Ref: 504543 
  
  
Timothy Peterson, Chair 
Salt Spring Island Local Trust Committee 
tpeterson@islandstrust.bc.ca 
  
Dear Timothy Peterson: 
  
Thank you for your letter dated October 30, 2023, regarding BC’s Speculation and Vacancy Tax 
(SVT) and Salt Spring Island. We appreciate your feedback on behalf of the Salt Spring Island 
Local Trust Committee. 
  
Making life more affordable is one of the key commitments this government has made to 
British Columbians. Our 30-point housing plan, Homes for B.C., and our refreshed housing 
strategy, Homes for People, lay out the many actions being taken to meet that commitment. We 
hope you will take a moment to review the plans and learn more about the steps we are taking to 
help tackle BC’s housing crisis: 
http://bcbudget.gov.bc.ca/2018/homesbc/2018_Homes_For_BC.pdf; 
https://news.gov.bc.ca/files/Homes_For_People.pdf. 
  
The SVT was introduced as part of Government’s 30-point housing plan in February 2018. The 
SVT is designed to prevent housing speculation and help turn vacant and underutilized properties 
into homes for people who live and work in BC. When choosing where to apply the SVT 
originally, the government focused on urban centres with low vacancy rates and affordability 
challenges in which house prices and rents exceeded local incomes.  
  

An independent review report of the SVT released in 2022 shows the tax is working as intended. 
As part of the Homes for People plan, the Province is committed to expanding the SVT in a 
phased and measured way to help more people find homes they can afford. The expansion of the 
SVT into communities facing low vacancy rates and disproportionately high housing prices, 
including those near existing taxable areas, will help reduce the risk of speculators taking 
advantage of these exempt communities. 
  
For 2023, the tax was expanded to six additional municipalities, including North Cowichan, 
Duncan, Ladysmith, Lake Cowichan, Lions Bay and Squamish. People in these communities will 
declare for the first time in 2024 based on how they used their properties in 2023.  
  
Starting in 2024, 13 additional communities will be included in the SVT specified 
areas.  Property owners in these 13 communities will declare for the first time in 2025 based on 
how they used their properties in 2024: Vernon, Coldstream, Penticton, Summerland, Lake 
Country, Peachland, Courtenay, Comox, Cumberland, Parksville, Qualicum Beach, Salmon 
Arm; and 
Kamloops. 
  
As you mention in your letter, we have received requests to apply the SVT to Salt Spring Island. 
There are a number of factors that are taken into c

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