Speculation tax gets a rough ride at W. Kelowna council
West Kelowna city councillor Rick de Jong sounded a lot like his older brother when he criticized the NDP government last week.
At a council meeting, de Jong used unusually strident language as he denounced the NDP’s new speculative real estate tax.
He called the tax “disgusting,” and said sarcastically “Well done, Carol James,” referring to the NDP Ànance minister whose budget last week included the controversial speculation tax.
De Jong is the younger brother of Mike de Jong, a long-time Liberal MLA and Ànance minister who ran unsuccessfully for the party’s leadership last month.
After de Jong’s comments, West Kelowna Mayor Doug Findlater tried to dial down the rhetorical intensity.
“I hope we can proceed in a non-partisan way,” Findlater said. “We do need to work with these guys (the NDP government) in other forums as well.”
The tax will apply in Kelowna and West Kelowna, but not the other Central Okanagan communities of Lake Country and Peachland. Findlater said he was concerned the tax will slow down development in West Kelowna: “This is going to distort the local housing market.”
That was a sentiment shared by West Kelowna city administrator Jim ZafÀno, who said: “I anticipate Lake Country growing even faster now.”
West Kelowna city staff will prepare a report on the possible impact of the speculation tax in the municipality and present it at the next council meeting.
Coun. Duane Ophus said the tax was “really bad” and Coun. Carol Zanon suggested it would run counter to a section in the Charter of Rights and Freedoms that protects the mobility rights of Canadians.
The tax will apply to properties, owned by foreigners and Canadians who do not have income in B.C., which are left empty for long periods of time throughout the year.
The owner of a $700,000 home on which the speculation tax is applied will pay an additional $3,500 taxes this year. The rate will quadruple next year, with the payment rising to $14,000.