Pending federal tax reforms targeting Airbnb hosts encouraging, B.C. minister says
The crackdown on short-term rentals continues.
CTV News has learned the federal government will announce new tax reforms on Tuesday that target Airbnb and other short-term rental hosts.
Under pressure to increase long-term housing supply and ease the country's housing crisis, the government is set to alter tax rules to no longer allow short-term rental hosts to write off rental expenses in cities where restrictions are in place, including Vancouver.
For example, if a host makes $120,000 in income and has $120,000 in expenses, they'd have to pay $33,000 in federal taxes.
"Early indication is it sounds like a pretty good proposal that they're putting forward to help us not only in British Columbia, but really across the country to address this growing challenge," said B.C. Housing Minister Ravi Kahlon.
Last month, the province introduced new legislation to crack down on illegal operators.
"I feel as though it's low hanging fruit, a scapegoat," said Jordan Deyrmenjian, founder of Artin Properties.
Deyrmenjian's company manages over 150 short-term rentals in the Metro Vancouver area. He said he understands people's frustration with the housing market, but believes targeting short-term rental hosts is not the solution.
"I think it would be more worthwhile of the federal government, provincial government, all ranges of government just to commit to providing more supply of housing and also non-market housing,” he said.
In October, the province said there were around 28,000 short-term rental listings in B.C.
"When I look at what government’s doing, I don't think it's an attack on short-term rentals so much as saying let's try and put short-term rentals in its appropriate place, rather than allow the excesses that have occurred, particularly in metropolitan areas," said Tsur Somverville, a UBC professor who specializes in housing issues.
The federal tax reforms are expected to be in place Jan. 1, 2024.
CTVNews.ca Top Stories
B.C. serial killer Robert Pickton dead following prison attack
Convicted B.C. serial killer Robert Pickton, who preyed on women he lured from Vancouver's Downtown Eastside to his rural pig farm, has died.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Ex-husband charged with murder in death of Lumby, B.C., woman
The ex-husband of Tatjana Stefanski – the woman whose disappearance and death set the small town of Lumby, B.C., on edge last month – has been charged with her murder.
Oilers beat Stars, one win away from Stanley Cup berth
Ryan Nugent-Hopkins scored two power-play goals as Edmonton smothered the Dallas Stars 3-1 to take a 3-2 lead in the NHL's Western Conference final on Friday.
Baby dead after being delivered via emergency C-section to woman who was in police custody
A newborn is dead after being delivered via emergency C-section to a woman in police custody.
Jennifer Lopez cancels summer tour: 'I am completely heartsick and devastated'
Jennifer Lopez has cancelled her 2024 North American tour, representatives for Live Nation confirmed to The Associated Press.
This Calgary home has a giant tree in the middle, and it's for sale
There's a luxury 'tree home' for sale in Calgary.
DND moving 1,000 employees out of Ottawa office building due to safety concerns
The Department of National Defence is moving approximately 1,000 employees out of an office building in Ottawa's Lowertown neighbourhood, citing safety concerns for its employees.
Man convicted of killing Toronto cop in 1980 granted day parole
A man convicted of murdering a Toronto police officer more than four decades ago has been granted day parole for six months.