BC’s speculation tax has brought in $231M in revenue over its first 3 years

Now in its third year, the Speculation and Vacancy Tax (SVT) continues to rack up revenue for the five regions of British Columbia where it’s in effect.

The SVT is expected to raise $81 million for the 2020 fiscal year, which brings the three-year total revenue to $231 million.

Selina Robinson, minister of finance, says BC residents have been through a lot over the past two years and recognizes that no one is immune to the challenges facing BC’s housing market.

"In BC and across the country, a combination of factors, including low interest rates, changing preferences, and low supply have added fuel to an already volatile housing market,” she explained.

“Through measures like the speculation and vacancy tax we are taking action and turning empty houses into rental homes for people, while making sure that we continue to build a record level of homes as part of our 10-year housing plan.”

While the SVT has raised $231 million over the past three years, the provincial government has invested around $2.8 billion in housing in that same period for the five regions covered by the tax.

Each year, the ministry of finance also consults with mayors from areas where the tax applies and collects data and analysis generated from the tax.

Here’s what the 2020 SVT declarations indicate:

• More than 99% of British Columbians are exempt from paying the tax for the third year in a row.
• Foreign owners and satellite families are paying the majority of the tax for the third year in a row.
• The SVT continues to generate revenue for affordable housing; SVT revenue is projected to be $81 million for this calendar year.
• An increasing number of property owners who are subject to the tax, particularly those at the highest rate, are selling or renting their properties.
• Behavioural changes from a variety of measures are adding homes to the market.

The Province added that the SVT is also delivering on its goal of ensuring that housing is used for homes and not speculation.

A report from the CHMC showed that various policies, including the SVT, helped encourage the owners of 7,137 condos in Metro Vancouver to rent them out in 2020.

For more information on the SVT, click this link.