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91ƵFinal warning91Ƶ given B.C. house flippers, Eby says new tax not about revenue

But BC United says new new flipping tax is 91Ƶprimarily a political announcement91Ƶ
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Premier David Eby, here seen with Housing Minister Ravi Kahlon Monday in Vancouver, says a new flipping tax will give a families a 91Ƶleg up91Ƶ in the search for housing. (Screencap)

B.C.91Ƶs main opposition party supports the principle of a flipping tax, but wonders whether B.C.91Ƶs new flipping tax will make a difference.

91ƵI think it91Ƶs primarily a political announcement as opposed to an announcement that91Ƶs going to be effective in lowering the cost of housing,91Ƶ Karin Kirkpatrick, BC United91Ƶs shadow minister for housing, childcare, autism and accessibility, said Monday afternoon in the legislature.

Kirkpatrick said BC United (formerly the BC Liberals) has been calling for ways to curb speculation since 2018.

91ƵSo we are glad to see something, but the devil is in the details on this.91Ƶ

She expressed among other concerns that the administration of the tax might be difficult and create extra costs, without having a tangible effect.

91Ƶ(We) already have a federal flipping tax that is meant to modify some of this behaviour,91Ƶ she said.

Kirkpatrick made those comments after Premier David Eby and Housing Minister Ravi Kahlon held an announcement in Vancouver.

91ƵWe need to give folks a leg up in the real estate market if they are looking for a place to live for themselves and their family and that91Ƶs exactly what the flipping tax does,91Ƶ Eby said. 91ƵIf you are buying a property to sell it within two years, you will pay extra tax. That91Ƶs makes the economics more challenging for flippers and it gives families an advantage over those who are buying homes for the exclusive purpose of selling it again down the road.91Ƶ

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Projections peg estimated revenues from the tax at around $43 million for the first full year of its existence, with the money going toward affordable housing projects, but Eby said raising money is not the tax91Ƶs main goal.

91ƵWe want the revenue from this to be zero, (because) we don91Ƶt want people to be flipping homes,91Ƶ he said. 91ƵSo if you own a home right now that you are planning on flipping, this is your final warning.

91ƵThis tax is coming in. Make that home available for someone, who is actually going to live in it. Make it available for a family, make it available for an individual who is looking for their first place to live.91Ƶ

The tax 91Ƶ first formally presented in last week91Ƶs provincial budget 91Ƶ applies to profits from the sale of residential properties held for less than two years. The rate will be 20 per cent for properties sold within one year of purchase, then decline on a graduated scale before hitting zero after two years.

The tax will kick in on Jan. 1, 2025 with legislation to be tabled this spring, It includes exemptions for life events such as separation or divorce. The addition of another housing unit (like turning a duplex to a triplex, or adding a secondary suite) to the property will also trigger an exemption.

Eby acknowledged that the flipping tax isn91Ƶt the 91Ƶfull solution to the housing crisis91Ƶ, framing it as yet another response to the complex problem of housing.

91ƵIt91Ƶs important to note that every single one of those efforts has been opposed in some way or another by the opposition parties and we are not afraid to say this is an important distinction between us and the other guys for British Columbians,91Ƶ he said, prior to describing the tax in more detail.

The flipping tax has the support of the Union of British Columbia Municipalities.

Art Kaehn, UBCM91Ƶs vice-president, said the tax will help dampen the speculative aspect of housing demand.



Wolf Depner

About the Author: Wolf Depner

I joined the national team with Black Press Media in 2023 from the Peninsula News Review, where I had reported on Vancouver Island's Saanich Peninsula since 2019.
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