The B.C. government will be presenting legislation to introduce a new home-flipping tax this spring.
The proposed tax was announced as part of the 2024 budget and is designed to increase housing supply and discourage speculators from driving up prices.
If passed, the measure would take effect Jan. 1, 2025, putting a 20 per cent tax on any home sold within the first year of purchasing it.
The tax amount will decline the longer the property is owed, hitting zero after two years of ownership.
Revenue from the tax will go towards funding new homes.
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“Families shouldn’t have to compete with house-flipping investors when they’re trying to buy a home,” Premier David Eby said Monday. “This tax will deter speculators and give families looking for a place to live an advantage in our housing market.”
Exemptions to the home-flipping tax will be available to people who face unavoidable life changes, including death and divorce, job relocation or loss, and people who are adding to B.C.’s housing supply.
The province also recently expanded its speculation and vacancy tax to 13 more municipalities, including Kamloops, Penticton and Vernon.
The tax is already in place across Metro Vancouver, the Capital Regional District and Kelowna.
“There is a housing crisis across the country and it is creating economic challenges, including people feeling pushed out of their communities and labour shortages,” said Finance Minister Katrine Conroy in a statement last November.
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