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B.C. reports high returns on speculation tax forms, 99 per cent will not pay tax

A character home in Vancouver's Dunbar neighbourhood. Global News

The Ministry of Finance says more than 97 per cent of people in British Columbia who received speculation and vacancy tax notices have filed their declaration forms.

The ministry says about 1.6 million property owners received the tax declaration forms and as of Friday it estimates more than 99 per cent of British Columbians do not have to pay the tax.

WATCH: (Aired Jan. 17) Premier responds to criticism over the ‘opt out’ approach to speculation tax

Click to play video: 'Premier responds to criticism over the ‘opt out’ approach to the Speculation Tax'
Premier responds to criticism over the ‘opt out’ approach to the Speculation Tax

The ministry says property owners who didn’t file the declaration by the March 31 deadline will receive a tax assessment notice by the end of May reminding them to complete the declaration to claim an exemption or determine eligibility for a tax credit.

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Owners not exempt from the tax must pay their assessed amount by July 2.

The ministry says foreign property owners, Canadians living outside of B.C. and satellite families – those who live in B.C., but pay income taxes elsewhere – make up more than 80 per cent of people who will pay the tax.

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For 2018, the tax rate is 0.5 per cent of the assessed value for all properties subject to the tax and next year it increases to two per cent for foreign owners and satellite families.

The speculation and vacancy tax is part of the government’s plan to improve housing affordability and increase the availability of rental properties.

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