The BC Government has introduced legislation for its speculation tax.
The first-of-its-kind tax, which was first proposed earlier this year, targets homeowners with more than one primary residence, and is calculated at a rate of 0.5 to 2 percent, depending on the property value and where the homeowners are from.
Finance Minister Carole James says it's all part of the effort to remedy the province's housing crisis.
"We believe the people who live and work in B.C. should be able to afford a place to call home. Right now, British Columbians are faced with some of the highest housing prices in the world and there is widespread support for government's plan to moderate the housing market," says James. "We are supporting a strong economy and supporting businesses who can't find employees because they can't afford housing. That is our job as government and we are going to get it done."
99 percent of British Columbians will be exempt from the tax, as it excludes primary residences, rental properties, and some other special exceptions. All revenue from the tax will go straight into funding affordable housing and boosting the province's rental supply.
But not everyone is happy about this tax.
West Kelowna Mayor Doug Findlater has been a longtime opponent of the speculation tax, and says it's already had an adverse effect on West Kelowna's development sector.
"Six months after the government started talking about doing it, we've had a drop in housing in our community," says Findlater. "Our single-family development has dropped 40 percent, and multi-family, which is an even more affordable option for families, has dropped 45 percent."
With the municipal election coming up this weekend, Findlater will not be running for Mayor again, but he still plans on going out swinging against the tax.
"I'll be devoting my time in the next two or three weeks that I have left to contact the two opposition leaders," says Findlater. "I met with both Andrew Weaver and Andrew Wilkinson, who both have similar concerns that this is inequitable treatment for all Canadians."
Findlater and West Kelowna City Council have attempted to reach out to the Provincial Government several times regarding the speculation tax, but have received very limited responses.