Eby vows to increase B.C. tax on empty homes under NDP government

B.C. NDP leader David Eby waves as he gets back on his bus after a campaign stop at a supporter's farm, in Surrey, B.C., on Friday, September 20, 2024. THE CANADIAN PRESS/Darryl Dyck

NDP Leader David Eby is vowing to raise British Columbia's speculation and vacancy tax on empty homes if re-elected premier this month.

The NDP's proposed plan would double the tax on empty homes that are owned by Canadians from 0.5 per cent to one per cent of the property's assessed value.

For foreign owners, the tax would rise to three per cent of the property's value, up from the current two per cent.

Speaking at a campaign event in Vancouver on Friday, Eby said the tax increase, which is aimed at turning vacant second homes into rental properties, would help alleviate the shortage of affordable housing in the province.

The New Democrat leader accused B.C. Conservative Leader John Rustad of siding with real-estate speculators and foreign investors, saying the Conservatives would repeal the tax, which the NDP claims has put 20,000 empty housing units onto the rental market in Metro Vancouver alone.

"John Rustad wants to let real estate speculators buy up much-needed housing in B.C. and drive up costs for people. That’s just wrong," Eby said in a statement accompanying his campaign appearance.

"If you're a billionaire or in the one per cent who have an extra empty home, John Rustad is your guy. If you’re struggling with housing costs, our plan will crack down on those looking to make a quick buck to get even more homes back on the market for people."

The speculation and vacancy tax is paid annually on residential properties that are empty for more than six months a year.

"Letting wealthy investors buy homes and leave them empty is part of what got us into the housing crisis in the first place," Eby said.

"Only John Rustad, and the powerful interests he’s listening to, think repealing the spec tax is a good idea. But that’s what he’ll do if he gets the chance."

The B.C. Conservative campaign did not immediately respond to a request for comment on the speculation tax Friday.

The Conservative campaign has vowed instead to introduce the "Rustad Rebate," which would exempt $3,000 a month of rent or mortgage interest costs from personal income taxes.

In a September 2020 social media post, Rustad panned the speculation tax, calling it "simply a tax grab and a way to collect data on the residents of B.C."

The tax was first introduced in 2018 under the NDP government of former premier John Horgan and later expanded to communities across the province.

The government says the revenues collected through the tax support the development of affordable housing in the communities where it is applied.