Properties in North Saanich subject to the Speculation and Vacancy Tax (SVT) generated $959,000 in revenue in 2020, followed by Central Saanich with $223,000 and Sidney with $182,000.
These figures appear in the the SVT Declaration Information that the provincial government released Thursday along with other documents around the tax. Other notable figures for Greater Victoria communities include $1.85 million for the City of Victoria, $1.19 million for the District of Saanich and $636,000 for Oak Bay.
The provincial government introduced the tax to curb speculation and encourage empty homes to return to the market in urban areas with near-zero vacancy rates. The tax applies to vacant properties used as occasional homes or held as investments, as well as occupied by owners who do not pay income tax in the province but benefit from B.C.’s services and amenities.
RELATED: Report finds speculation tax not working in North Saanich as intended
Since 2019, the provincial government assess non-exempted properties 0.5 per cent of their assessed values if the owners are Canadian citizens and 2 per cent if the owners are foreign owners and satellite families.
According to the provincial government, the province collected approximately $230 million through the tax in the 2018, 2019 and 2020 tax years, with all money invested into affordable housing
The introduction of the STV in 2018 caused considerable controversy including within the CRD, with municipal leaders expressing concerns about its effects on real estate and tourism. Municipalities have also asked for a direct share of the funds, while questioning the effectiveness.
A North Saanich report released in early 2021 found that the tax “may not be having a large impact on turning empty homes into affordable or rental housing stock” in the community. The report also makes a case for the district receiving a share of the revenues raised by properties in the community for affordable housing projects, an idea gaining support among members of council.
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