Letter re: Speculation Tax from Victoria Residential Builders Association

March 22, 2018

Dear Mayor and Council,

RE: Speculation Tax

VRBA would like to advise you of our concerns regarding the new speculation tax that is eroding the homebuilding business and skilled jobs. The proposed tax has created uncertainty among out-of-province Canadians and British Columbians with vacation homes, and is now impacting homebuilding projects and employment in our region.

CRD communities are favourite destinations for many out-of-province Canadians planning to retire. Their retirement/vacation homes and the summer homes of many British Columbians will see taxes jump by thousands of dollars annually. By simply proposing this tax, homebuilding projects in the CRD are being cancelled.

From 2003 to 2005, housing prices increased 41% after a period of stagnation. Nobody blamed out-of-province Canadians and retirees. Historically, prices jump after economic stagnation, experienced again from 2009 – 2015. The Speculation Tax may start another period of economic decline, which in turn reduces employment and tax for your municipality.

Municipalities like Kelowna, West Kelowna, and Nanaimo are asking to be exempted from the Speculation Tax and we hope you will join their voices. The City of West Kelowna has produced a document (attached) outlining their concerns.

Thank you for considering this request to send a strong message to the provincial government that this poorly developed tax policy does not accomplish their goals. More consultation with municipalities and industry is necessary to avoid unintended consequences impacting our economy and jobs.

Yours sincerely,

Casey Edge Executive Director