Council Proceeds With Resolution to Opt-out of Speculation and Vacancy Tax

FOR IMMEDIATE RELEASE
February 26, 2020

West Kelowna Council has passed a resolution that will be sent to the Ministry of Finance as part of continued efforts to have the city removed from the Speculation and Vacancy Tax (SVT).

In fall 2019, Council and staff met with the Minister of Finance to provide the justification for allowing West Kelowna to opt-out of the SVT. City staff also provided the Minister with comprehensive facts that demonstrated why the City of West Kelowna does not fit the criteria and objectives of the SVT.

The City evaluated the SVT statistics and revenue information from the Ministry of Municipal Affairs and Housing and the Ministry of Finance in fall 2019. This information, along with the City’s supporting documents, provided to the Province of BC, reaffirmed that the SVT does not align with the provincial objectives specifically applied in West Kelowna. In 2018, the vacancy rate in the Kelowna Census Metropolitan Area (CMA) was at 1.9 per cent and increased to 2.7 per cent in 2019, higher than the provincial average of 1.5 per cent. This increased vacancy rate is, in part, attributed to the hundreds of new rental housing units provided in West Kelowna. Further, the significant funds collected from those subjected to the SVT in West Kelowna have not yet been received or reinvested into the West Kelowna housing market.

The City carefully assessed the Ministry’s objectives, the pillars of their Home for BC 30-point Plan and the key consultative priorities specifically as it applies to West Kelowna. The City’s rationale demonstrates that the significant negative impacts outweigh any marginal and unquantified gains that may or may not be applied in West Kelowna in future.

“Council remains committed to be removed from the SVT, which continues to be damaging to our community,” says Mayor Gord Milsom. “We are awaiting justification from the Ministry of Finance as to why West Kelowna remains mandated into this tax. We are also requesting a meeting with the Minster this spring as we continue to seek an opt-out option from the SVT.”