Commercial tenants who have been forced to pay the speculation and vacancy tax by their landlords may get some relief.
Provincial Finance Minister Selina Robinson announced Thursday that tenants whose landlords added the cost of the tax to so-called triple-net lease agreements, where tenants are responsible for property taxes, insurance and maintenance as well as rent and utilities, can now apply to have the speculation and vacancy taxes scrubbed.
鈥淲e don鈥檛 believe that tenants should have these costs passed on to them by landlords. We will temporarily remove the speculation and vacancy tax liability for 2020 for property owners that meet certain conditions,鈥� said Robinson. 鈥淏oth property owners and tenants can now apply for the remission to ensure the people we are trying to help, the tenants, don鈥檛 have to wait for the owner to apply.鈥�
Robinson said fewer than 65 properties, most of them in Vancouver, are affected by the new measure, which targets landlords who were able to classify their commercial properties as residential, with the understanding they would be developing a residential component in the unbuilt airspace above the buildings.
Robinson said those landlords were taxed at a lower rate because residential unites were to come, but it seems many of them are not continuing with the development process.
鈥淭he purpose of the speculation and vacancy tax is to bring much-needed residential housing supply to the market,鈥� said Robinson. 鈥淲e encourage property owners who have reclassified their properties with unbuilt airspace as 鈥榬esidential鈥� to continue in the development process to deliver needed housing supply in dense, urban areas.鈥�
To be eligible, the lease must be entered into prior to April 29, 2021, and be valid at the time of application.
The property must contain residential land that is vacant and may not contain a residence or any portion of a residential improvement.
Robinson said the province will continue working with the Union of sa国际传媒 Municipalities and stakeholders to find a permanent solution to the concerns of businesses around property assessment and taxation 鈥渢hat won鈥檛 create sudden shifts in tax burden to other businesses already challenged by COVID-19.鈥�
To apply for the tax break, eligible owners or tenants should contact the Ministry of Finance at 1-833-554-2323.
