Tony Chan grew up in Vancouver, got married and later raised his two sons in a Richmond, B.C., townhome he bought in 2000.
He says he has paid taxes in B.C. all of his adult life. Now 64 years old, the retiree was shocked to get hit with a $15,000-a-year bill in the province’s speculation and vacancy tax.
“When I first got the letter I thought, well, obviously there has been a mistake so I’ll just write them a letter and let them know that there’s been an error in their calculation of my circumstances, and I thought that would be the end of it,” he said.
“Certainly, that hasn’t been the case, and here we are almost two years later and I’m still battling the government on this thing.”
The tax was set up to discourage housing speculation and vacant homes in urban areas.
Most people are exempt from the tax. Those who aren’t exempt are normally foreign owners, Canadians living outside B.C. and satellite families with the bulk of their income coming from outside Canada.
Chan said he is anything but a real estate speculator.
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“I’ve been living in this same residence for over 20 years,” Chan said. “I have no other piece of real estate. I’ve never purchased another piece of real estate since then. And as far as the empty home aspect of it, obviously, the home is not empty.
“I’m living here full time. I’ve raised my kids here. I’m part of the strata council, have been all this time. I don’t know how they can consider me either a speculator or an empty home person.”
In 2005, he married a woman who lives and works in the U.S., making her the breadwinner and the pair a satellite family. The home isn’t in her name and they don’t have shared accounts.
“I think that anyone who looked at this with an objective eye can see that, clearly, I don’t fall under the circle of what they were trying to achieve,” he said.
“I understand they’re trying to keep offshore people away from buying homes and driving up prices. I’m certainly not doing that. It’s clear. So it’s not even a fine grey line.”
B.C. Finance Minister Selina Robinson said the intent of the tax is to ensure that more housing is available to British Columbians.
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“The tax has done, I think, a tremendous job in making sure to deliver housing for British Columbians,” she said. “And like with all taxes, we review to make sure that they continue to work and that they continue to deliver for British Columbians.
Chan spent the past two years appealing the tax to no avail. He now owes $30,000 plus interest, with another $15,000 bill for next year. He fears he may be forced to sell the home he planned to live in with his wife.
“Selling my place, I would have to buy another place away from my entire family,” he said. “I’ve lived my entire life here. So it doesn’t make any sense.”
Chan says he is exploring other avenues to fight the tax.
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