Findlater welcomes news of changes
West Kelowna mayor says he hopes speculation tax changes promised by premier amount to more than ‘minor tweaking’
Pending changes to B.C.’s controversial speculation tax should be wholesale revisions rather than minor tweaks, says West Kelowna Mayor Doug Findlater.
After meeting with Finance Minister Carole James on Wednesday, Findlater reacted with cautious optimism to Premier John Horgan’s comment that changes to the tax are coming “in the days ahead.”
“That is very good news that they are going to announce some changes,” Findlater said.
“My hope would be the changes go a very long ways to fixing some of the problems with this tax and don’t just amount to some minor tweaking.”
Findlater and West Kelowna city manager Jim Zaffino met with James and Finance Ministry officials to make their case against the speculation tax, which they say could cause a significant economic downtown, trigger job losses and deprive the municipality of badly needed development revenues.
“We’ll have to wait and see what changes they do make to the speculation tax,” Findlater said. “Hopefully, those changes will go far enough that we don’t have to come back here to have another go at them, which we are prepared to do.”
Findlater described his meeting with James as “cordial and friendly,” with the finance minister saying the government was receiving and considering a range of feedback on the speculation tax.
“The government does seem to have an open mind on this,” Findlater said.
The tax is aimed primarily at out-of-province owners of homes that are left empty for most of the year in certain areas of the province, including Kelowna and West Kelowna.
It will be charged next year at the rate of two per cent of assessed value, meaning an Albertan who owns a vacant home in West Kelowna worth $600,000 would pay an extra $12,000 in taxes, on top of regular property taxes.
In a week, the City of West Kelowna received more than 220 letters from people opposed to the speculation tax, with many describing it as unfair to other Canadians.
Developers have told Findlater they are reconsidering already approved projects, and municipal officials calculate a possible blow to the municipal treasury equal to a two per cent general municipal tax increase.
Representatives of other communities, such as Nanaimo, have also asked not to be included in the speculation tax impact area, Findlater noted.
“I don’t think the tax will end up being the same as what’s on the table now,” he said. “I don’t know if it’ll go away entirely, but hopefully there will be some significant changes.”
In an emailed statement from the Ministry of Finance, James is quoted as saying: “I was pleased to meet with Mayor Findlater today to discuss the speculation tax. Addressing the housing crisis in our communities is a shared priority for the province and local governments.
“The tax will target speculators who are driving up prices in our communities and taking critical housing stock out of the market. British Columbians living in their own homes or renting them out will be exempt,” James said.