After the province announced a new speculation tax in this yearB次元官网网址檚 budget, Central Saanich council received letters from the Greater Victoria Real Estate Board and the Victoria Residential Builders Association, and both groups were critical of the new tax.
Over two council meetings, the regular council meeting on April 3 and the Committee of the Whole on April 9, councillors discussed the issue, but not for very long.
The provinceB次元官网网址檚 speculation tax is for non-primary homes occupied less than six months out of the year in certain hot real estate markets like Greater Victoria (minus the Gulf Islands) and Metro Vancouver (excluding Bowen Island).
It is set at 2 per cent for non-Canadian buyers, 1 per cent for Canadians from outside B.C., and 0.5 per cent for B.C. residents. B.C. residents will also get a tax credit that effectively eliminates the tax on a second home valued up to $400,000 (tax is payable on every dollar beyond that).
In a letter from the Greater Victoria Real Estate Board, president Kyle Kerr asked if the mayor could write the province and ask them to halt the speculation tax as defined. The GVREB believes that while the Gulf Islands exemptions announced March 26 were good, the tax is still a B次元官网网址渢hreat to our local economyB次元官网网址� and that B次元官网网址渁ttempts to devalue the housing market in our area are dangerous and will further undermine economic confidence in a market that has already begun to slow down.B次元官网网址�
A letter from the Victoria Residential Builders Association called the speculation tax a B次元官网网址減oorly developed tax policy that does not accomplish their goals.B次元官网网址� In the letter, president Casey Edge said it created uncertainty for out-of-province Canadians and B.C. residents with vacation homes. B次元官网网址淏y simply proposing this tax, homebuilding projects in the CRD are being cancelled.B次元官网网址� As with the GVREB letter, the VRBA wants Central Saanich to ask for an exemption from the tax.
Coun. Niall Paltiel made a motion to support a request for exemption to the province, which was seconded by Coun. Carl Jensen.
In discussion, Coun. Zeb King said he wanted to see other reasons and perspectives on the tax. He wanted to send it to a committee meeting with more information to answer some questions, B次元官网网址渂ut as it stands, weB次元官网网址檙e only hearing from one side of equation, I think.B次元官网网址�
Coun. Alicia Holman said she didnB次元官网网址檛 understand the reasons why Central Saanich should be exempt.
B次元官网网址淚f thereB次元官网网址檚 a pressing need to exclude, IB次元官网网址檇 like to understand what that is,B次元官网网址� she said.
Jensen said in light of the Gulf Islands exemption announced March 26, he said it was worth a try.
B次元官网网址淚 donB次元官网网址檛 see the harm in throwing Central Saanich in the ring,B次元官网网址� he said.
King reiterated that a letter in favour of the speculation tax was not received by council, and so that side was not being represented. He added, B次元官网网址淚 just wanted to make the perhaps obvious point that, would [the tax] be a benefit to residents? Because in fact, there are homeowners, but there are also renters, and they are all residents of Central Saanich.B次元官网网址�
At this point, Paltiel referred this to the following weekB次元官网网址檚 Committee of the Whole meeting for further debate and discussion, which passed. When the subject came up the following week, three hours into their meeting, the mayor asked to postpone this item indefinitely. He leaned back in his chair, and Holman looked up from her notes.
King asked, B次元官网网址淗ow do we handle that?B次元官网网址� As chair, Jensen asked Windsor to explain his intent.
Windsor said that in RobertB次元官网网址檚 Rules of Order, items could be set aside and if no one chooses to bring it back, it does not return.
B次元官网网址淕ood idea,B次元官网网址� said Holman.
The motion to set it aside passed with Paltiel and Jensen in opposition.
reporter@peninsulanewsreview.com
