Advertisement

Details on B.C.’s new home-flipping tax released

Click to play video: 'B.C. government presents legislation to introduce new home-flipping tax'
B.C. government presents legislation to introduce new home-flipping tax
The province will present legislation to introduce the new home-flipping tax this spring, designed to increase housing supply and discourage speculators from driving up prices. Legislative bureau chief Keith Baldrey has more on the province's plan. – Feb 26, 2024

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.

Click to play video: 'B.C. Budget 2024: New house-flipping tax to crack down on speculators'
B.C. Budget 2024: New house-flipping tax to crack down on speculators

The tax amount will decline the longer the property is owed, hitting zero after two years of ownership.

Story continues below advertisement

Revenue from the tax will go towards funding new homes.

“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.

Click to play video: 'B.C. finance minister announces expansion of speculation and vacancy tax'
B.C. finance minister announces expansion of speculation and vacancy tax

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.

Advertisement

Sponsored content

AdChoices