NDP promises to double speculation and vacancy tax

David Eby says if the NDP is re-elected, it would double the speculation and vacancy tax for homeowners who leave their homes vacant. 

The tax, which is applied to a home's assessed value, would rise to one per cent from 0.5 per cent for Canadians and to three per cent, from 1.5 per cent, for non-Canadians. 

Eby accused B.C. Conservative Leader John Rustad of promising to cancel the tax, saying Rustad is on the side of speculators. 

"We're taking the side of the average British Columbian who works hard, plays by the rules, deserves a decent home, deserves a reasonable income," Eby says. 

"If you are a billionaire like Chip Wilson, I understand I might not be your guy."

Eby was referring to the sign erected in front of the multimillion waterfront home of the Lululemon founder that calls the NDP a "communist" party. 

"John Rustad is on the side of the one per cent, the billionaires, and it's very clear — they're literally putting signs on their property to say that's the case."

Rustad hasn't seen that sign, but during a news conference in Kelowna about child care, he quipped: "I don't disagree with him when he calls David Eby a communist."

However, Rustad wasn't clear on what he would do with speculation and vacancy tax, 

"It's certainly something we need like to look at but we have not made a commitment to that one way or another at this stage."

Brendon Ogmundon, the chief economist with the B.C. Real Estate Association, is skeptical of the tax's ability to address housing affordability. 

"It applies to a very, very small share of the housing stock, so it's odd to expect it would have a large impact," Ogmundon says. 

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"It hasn't really had any significant impact —  in a positive way — on affordability. Home prices are up about 30, 40 per cent since its implementation; rents are about the same. Vacancy rates are at one per cent. So doubling a tax that has largely been ineffective, if the goal is to improve affordability, isn't going to have much of an impact."

Eby claims the vacancy tax has brought 20,000 homes onto the market in Metro Vancouver, pointing to the figures released in an independent review from 2022. 

The tax has brought in $390 million in revenue since it came into effect in 2018. It applies to homes in 59 communities — areas in B.C. identified by the government as being most affected by the current housing shortage.