A provincial housing tax, which drew the wrath of West Kelowna residents, would be abolished immediately by a new liberal government, says candidate Ben Stewart.
In an election on Saturday, a liberal government would end the speculation and vacancy tax, which puts a surcharge on properties that are vacant for much of the year.
“It’s insidious. It’s a tax that is really designed to appeal to people who have some form of wealth,” Stewart said during an election debate on Tuesday.
“And there’s no going back to the city of Kelowna or the city of West Kelowna,” Stewart said. “The promised money was not returned.”
However, NDP nominee Spring Hawes and Green nominee Peter Truch said they both support the tax, which is 0.5 to two percent of the estimated value of a vacant house and is paid primarily by people whose primary residence is is outside of BC
Community leaders in both Kelowna and West Kelowna have appealed unsuccessfully since the tax was lifted by their communities in 2018.
They say it has slowed development and thereby reduced local tax revenues, is unfair to other Canadians who already pay regular property taxes on homes they may own in BC, and not necessary because apartment vacancy rates are moving from historic lows to long-term averages have risen.
A report from the City of West Kelowna to the council contained 200 pages of letters from tax adversaries originally estimated at approximately 2,400 properties in Kelowna and West Kelowna.
“I know the speculation has been controversial,” said Hawes. “And I think it’s important to consider feedback from local governments because they know their communities best.
“The speculative tax has affected affordable housing. It has allowed us to build more housing. That money has been reinvested in the community,” said Hawes.
Hawes added that the tax may require some changes but did not provide any information on what those could be.
The previous NDP administration said the tax raised $ 115 million across the province. West Kelowna City officials say none of this money has been returned to their community.
Truch said he supported the tax. As with Hawes, he also said he would like to see some changes to the tax but did not provide any specifics on what changes would be desirable.
“Overall, I can say that I support the tax,” said Truch. “Getting people into apartments is important. This is one possible way to bring more real estate to market.”
