BC's Speculation and Vacancy Tax applies to residential properties in certain designated areas. Which of the following owners would be exempt from this tax?
Correct Answer
D) A BC resident using it as a principal residence who files an annual declaration
A residence that is the owner's principal residence is exempt from the Speculation and Vacancy Tax for the year (s. 29), but only if the owner files the annual declaration; an owner who fails to declare is taxed at 3% (s. 18). The rates are 3% for foreign owners and untaxed worldwide earners (satellite families), and 1% for BC residents and for Canadian citizens and permanent residents who are not untaxed worldwide earners.
Why This Is the Correct Answer
This answer is correct. Under s. 29 a residence that is the owner's principal residence for the year is exempt, and filing the annual declaration is what secures it; without a declaration, s. 18 applies the 3% rate.
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