Letter Minister Carol James

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200 - 1627 Fort St., Victoria, BC  V8R 1H8 
Telephone  (250) 405-5151    Fax  (250) 405-5155 
Toll Free via Enquiry BC in Vancouver 604.660.2421.  Elsewhere in BC 1.800.663.7867 
Email  information@islandstrust.bc.ca 
Web  www.islandstrust.bc.ca 
 
 
Bowen  Denman  Hornby  Gabriola Galiano  Gambier  Lasqueti  Mayne  North Pender  Salt Spring  Saturna  South Pender  Thetis 
March 23, 2018 
 
via e-mail: FIN.Minister@gov.bc.ca 
 
The Honourable Carole James 
Minister of Finance 
PO Box 9048 Stn Prov Govt 
Victoria, BC V8W 9E2 
File Number: 0420-20 
 
 
Dear Minister James: 
 
Re: Proposed Speculation Tax  
 
On behalf of the Islands Trust Council, I am writing to express concern about the potential impacts of the 
proposed B.C. speculation tax on island communities and landowners and to emphasize the need for 
affordable housing solutions tailored to the needs of island communities. There is a pressing need for 
additional information and clarity on the new tax. We were pleased to read recently that you are considering 
changes to the tax to address its potential unintended consequences. 
 
As you re-examine the tax we feel it is important for you to know that the tax would apply to the Gabriola, 
Galiano, Mayne, North Pender, South Pender, Salt Spring, and Saturna local trust areas as well as Bowen 
Island Municipality. Our preliminary assessment of land titles (residential and agricultural classes) for these 
islands shows that non-resident ownership ranges from 27% to 65%, with approximately 8% of properties 
owned by non-BC residents.  
 
We are fielding many calls and e-mails from concerned homeowners who have second homes in our region, 
seeking more information about the speculation tax. These homeowners are raising concerns such as having 
houses or cottages that may be subject to the tax but are in fact unsuitable for long-term rental because, for 
example, they are not suitable for year-round habitation, or they have only private boat access, or, are in an 
isolated location without services. We are also hearing concerns from British Columbians who have inherited 
a vacation property in the islands but have insufficient income to offset the proposed tax-exemption. That 
said, we are also hearing from islanders who hope the tax could result in more availability in rental housing 
and fewer seasonally vacant houses in their communities.  
 
The notion of “part-timers” is integral to the culture of the islands and it’s worth noting that many of our 
part-time residents make valuable contributions to their communities, with many of them planning to retire 
to their island community. By-and-large these part-timers, many of whom have a multi-generation 
connection to their island community, are not seen locally as ‘speculators’.  
 
 
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The Honourable Carole James 
March 23, 2018 
Page 2 
 
 
We would appreciate clarification from you or your ministry staff on how you see the proposed speculation 
tax being applied and administered to t

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