Deadline for speculation and vacancy tax declaration is next week

Attention B.C. homeowners: the deadline to make your declarations for the speculation and vacancy tax is almost here.

Owners of residential properties in designated communities have until March 31 to complete their declarations to avoid paying the tax.

The province says you do not have to pay the tax if you use your property as your primary residence or rent it out for at least six months of the calendar year, but you still need to declare.

The tax was implemented as an incentive to have homeowners turn vacant residences into housing and to ensure foreign owners contribute to the province’s tax system, the government says. As well, it is intended to discourage people from using the housing market as a means of making a profit.

Those not exempt from the tax will need to pay an assessed amount by July 2, with potential penalties if it isn’t paid by then.

Beyond using the home as a main residence, there are other circumstances that exempt a homeowner from paying the tax, the B.C. government says — including in situations of divorce, bankruptcy, or death of an owner — but again, the declarations must still be completed in these cases.

This tax is separate from both Vancouver’s empty homes tax and the federal government’s Underused Housing Tax.

The provincial government says 82 per cent of all revenue from the tax in 2023 came from foreign owners, untaxed worldwide owners, Canadians who live outside of B.C., and “other non-B.C. resident owners.” 2024 is the seventh tax year the tax has been in effect.

Owners in relevant communities were mailed declaration letters earlier this year. Declarations can be made online using the Letter ID and Declaration Code from the top right corner of the letter.

— With files from Maria Vinca.