B.C. Minister of Finance Carol James has provided some clarity to the province's speculation tax plan.
While the Government looks to crack down on speculators, 99% of B.C. residents will not have to pay the new tax.
Both Kelowna and West Kelowna voiced their disapproval over the new tax and requested to be excluded, but it turns out that they, along with other major housing markets in the province, will in fact participate in the new tax.
The tax would target home owners who don't live in their properties full time, in an effort to keep up with an increasingly expensive market.
Essentially, those treating the housing market like the stock market will be affected by the tax, because of them owning multiple vacant homes. However, a homeowner with a second residence valued up to $400,000 will not have to pay the speculation tax.
Additionally, if a homeowner is vacant from their home due to medical or work reasons for an extended period of time, they will not be targeted for the speculation tax.
Currently, B.C. homeowners pay a 0.5% tax of their property value. Starting next year, the tax rate will be 2% for foreign investors and satellite families, 1% for Canadian citizens living out of province, and 0.5% for all B.C. homeowners.