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South Okanagan residents react to B.C. speculation tax expansion

Click to play video: 'South Okanagan officials reaction to speculation tax'
South Okanagan officials reaction to speculation tax
Two South Okanagan communities are among the 13 new municipalities joining the province's speculation tax. Global News spoke to the mayors of both those communities in a bid to gauge what kind of impact could have moving forward. Taya Fast reports. – Nov 23, 2023

Summerland, B.C., resident Linda L’ Abbe has lived beside a vacant home for over 17 years.

According to L’ Abbe, there were residents living in the home almost two decades ago, but it has sat empty ever since they moved out and the owner lives out of the country.

“I had to put up with a few little things. Trees overgrown in my yard, just the unsightliness of the house, just kind of concerned about rodents, there had been a couple of times where the roof shingles fell off,” she said.

“I just feel it’s just a shame when there’s so many people that can’t get housing, and it would just be nice to have a family next door.”

Click to play video: 'Speculation tax expanded to more B.C. communities'
Speculation tax expanded to more B.C. communities

In an effort to create more affordable housing options, the B.C. provincial government has expanded its Speculation and Vacancy Tax to 13 new municipalities, including Penticton and Summerland.

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L’ Abbe says she is ‘all for’ the expansion of the tax but says it might not be enough to help solve this issue.

“I think it’s a start, but I think they have to really monitor it closely and, you know, if it needs to be increased if vacant owners are not coming up to doing anything about their vacancy, I think it should be raised,” said L’ Abbe.

“I just would like to see neighbours next door and the property taken care of.”

The tax will now apply to empty homes in Vernon, Coldstream, Lake Country, Peachland, Courtenay, Comox, Cumberland, Parksville, Qualicum Beach, Salmon Arm and Kamloops, as well as Penticton and Summerland.

The tax was already implemented in Kelowna and West Kelowna.

Summerland’s mayor, Doug Holmes, believes it is a step in the right direction.  And the District has received complaints before from residents regarding empty homes in the community.

“I think it’s important that we have consistency throughout the Okanagan. So, when you have it was just Kelowna and West Kelowna, all you’re doing is kicking the speculation down the highway,” said Holmes.

“It’s a problem. Our bylaws are very limited in what we can do, and how we can deal with them. So, you know, anything like this helps, people should be living in these houses.”

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Click to play video: 'New rules could force Penticton short-term rental to shut down'
New rules could force Penticton short-term rental to shut down

Meanwhile, Penticton Mayor Julius Bloomfield said the city was surprised to be included and has concerns that there may be unintended consequences for the city of Penticton.

“We fully support the idea of creating more affordable housing and the initiatives that are coming through. I think that we need to have the ability to have a consultation with the provincial government to make sure that we’ve got all the bases covered when it comes to all the different aspects of everything that’s coming through,” said Bloomfield.

“We understand the intended consequences, which is to create more housing, and like I say, we support that. But we have to make sure that we’re dealing with the unintended consequences, which is threatening the viability of some of the development projects that are planned for Penticton and how that’s going to affect the overall supply of residential homes in the city.”

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The tax is two per cent on the property’s value for those who don’t pay taxes in B.C., and 0.5 per cent for those who do but have another primary residence.

Click to play video: 'Groundbreaking for new housing development in Penticton'
Groundbreaking for new housing development in Penticton

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