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West Kelowna mayor talks speculation tax with finance minister in ‘cordial’ meeting

Click to play video: 'Backlash to proposed B.C. speculation tax grows'
Backlash to proposed B.C. speculation tax grows
WATCH: Backlash to proposed B.C. speculation tax grows – Mar 18, 2018

West Kelowna’s mayor has met with B.C.’s finance minister to voice his concerns over the NDP government’s planned speculation tax.

The tax, once fully phased in, would apply a two per cent levy on vacant or seasonally vacant homes in six regions of the province, and was designed as one of the NDP’s housing affordability measures.

But the tax has been met with significant pushback, and a particularly fierce criticism from West Kelowna Mayor Doug Findlater, who wants his city exempted.

On Wednesday, Findlater and Finance Minister Carole James sat down for a 30 minute face-to-face meeting that he described as “cordial.”

However, while he said James listened to his concerns, Findlater said she made no promises about the tax.

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WATCH: Kelowna city council takes action against the speculation tax 

Click to play video: 'Kelowna city council takes action against the speculation tax by drafting letter to the provincial government and proposing an alternative to a tax it believes will be detrimental to the local economy'
Kelowna city council takes action against the speculation tax by drafting letter to the provincial government and proposing an alternative to a tax it believes will be detrimental to the local economy

“No, there’s no concrete action offered other than that she and her department are looking at all of the issues, they’re hearing from many stakeholders, many municipalities and they are working on changes that they will announce in the coming weeks.”

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Findlater argues that the tax will unfairly penalize West Kelowna, which has been incorporated for just 10 years. He said the young city has a large amount of infrastructure in need of upgrades, and that it needs development dollars to do that.

Read More: West Kelowna and Regional District of Nanaimo want out of B.C.’s speculation tax 

“We’d like to be exempted from it completely, that’s all I can say. Anything that impacts on our bottom line takes away from a very ambitious 20-year infrastructure program we have.

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“We simply don’t want to see it.”

Principal residences and those that are rented out long-term are exempted from the tax, and the government has promised tax credits for other properties when the owners pay income tax in B.C. However, the details of where those credits would apply and whether they would fully cover the tax remain unclear.

WATCH: B.C. finance minister addresses affordable housing in budget speech

Click to play video: 'B.C. finance minister addresses affordable housing in budget speech'
B.C. finance minister addresses affordable housing in budget speech

West Kelowna has not been alone in its revolt against the tax. The opposition BC Liberals have branded the measure as a “cabin tax,” and say it will unfairly target British Columbians and other Canadians who own recreational properties.

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The City of Kelowna voted earlier this week to send a letter to the province asking to be exempted from the tax, which it says won’t actually target speculators and could hurt tourism and development.

And on Vancouver Island, both the Regional District of Nanaimo and the City of Parksville have said they want out as well.

On Wednesday, Premier John Horgan said his government had heard concerns about the tax and would “have something to say in the days ahead.”

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