NOTHING LEFT TO TAX EXCEPT AIR

VRBA believes everyone benefits from a more knowledgeable public regarding the housing industry.

For example, the BC government’s Speculation and Vacancy Tax is charged on the air above small retailers, based on the land’s potential for higher density such as condominiums.

In other words, the province is taxing unbuilt homes.

The landowners/developers will have to recoup those taxes, if or when, the land is developed. This is accomplished by adding the costs to the sale prices of the units.

When the government claims to support housing affordability, remember this absurd, less-thantransparent addition to rising prices.

Also in the news, Victoria is proposing a $14,000 security deposit for house demolitions, refundable based on recycled materials.

For years builders have been recycling materials through the Built Green program and often donate materials to Habitat for Humanity.

Instead of another deposit, Victoria could offer a discount on building permit fees based on builders showing invoices from recycling companies.

This discount would be affordable for municipalities because, like a tax, permit fees are often based on the value of construction, (eg rising cost of labour, materials) not the cost of municipal inspections.

That’s why municipalities generate big surpluses in building departments.

Ironically, Victoria is also adding more unrecyclable waste to landfills, such as insulation, through its Step Code regulation despite the negligible benefit.

The city now wants to add costs to housing for both construction and demolition.

Municipal councils need to work with industry to incentivize environmental goals, rather than the usual expensive regulations/edicts.

The above examples are small drops in an ongoing tsunami of government costs driving up home prices.

Politicians rarely change, but knowledgeable voters can change politicians at election time, which may benefit us all.