On November 27, 2018, the British Columbia provincial government
enacted Bill 45, the
Budget Measures Implementation (Speculation and Vacancy Tax)
Act (the "Act").
Unless otherwise exempted, all owners of residential property in
designated regions in British Columbia are required to pay the
speculation and vacancy tax ("SVT") for
the calendar year 2018 and beyond. The SVT is a part of the
provincial government's plan to minimize speculation in the
residential housing market and turn vacant and underused properties
into homes for residents of British Columbia.
To give effect to these objectives, the provincial government
also introduced an extensive list of exemptions, certain of which
are applicable to developers in their capacity as owners of
residential properties. These exemptions are intended to address
concerns over the potential cost increases of developing
residential projects due to the imposition of the SVT and the
resulting negative impact on housing
