By Spencer Sterritt

New housing taxes questioned when B.C. finance minister visits Nanaimo

Mar 2, 2018 | 5:06 PM

NANAIMO — The highly-touted foreign buyers and speculation tax, which will soon apply to the Nanaimo region, were top topics at a visit from B.C. finance minister Carole James.

She spoke to community leaders and representatives during a relatively brief roundtable discussion on Friday, March 2 at the Coast Bastion Hotel.

“We know there will be issues raised,” she assured Nanaimo Chamber president and CEO Kim Smythe after he asked about how the taxes will impact those looking to move to the area.

The province is raising the tax on foreign home purchases from 15 to 20 per cent and expanding it from Metro Vancouver to both Nanaimo and Victoria, as well as part of the Interior.

Smythe said he’s heard of families specifically buying homes outside of the Nanaimo area, down in Ladysmith in a particular instance, but still working in Nanaimo.

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James said it’s an unfortunate but anticipated issue, which she said will be fixed by tweaking the tax over the first year.

“These are new, these are bold, we’re learning as we go,” she said of the first full budget put forth by premier John Horgan’s NDP government.

She was also asked about the speculation tax, designed to stop out of province buyers from purchasing houses in B.C. and then not living in them or keeping them out of the rental pool.

James said it’s a reasonable tax which will boost housing when owners start renting more of their empty houses, apartments or vacation homes.

“They certainly benefit from our roads, our parks and the recreation in the community. We just want everybody to pay a little bit to contribute to the benefits they all gain.”

The speculation tax starts at .05 per cent and then rises to two per cent in 2019.

James said they specifically kept the number low in the first year to finesse any issues which might arise.

spencer@nanaimonewsnow.com

On Twitter: @spencer_sterrit