We have previously look at T1FF tax data which is an extremely rich annual administrative data source. The cansim tables have a range of variables to inform about incomes of individuals, families (sliced by number of children, including zero children), low income statistics, and just statistics about the number of taxfilers and dependants by age. It’s available on cansim for Canada overall, the provinces and CMAs/CAs. That’s great, but sometimes it’s nice to have finer geographic detail.
(Joint with Nathan Lauster and cross-posted at HomeFreeSociology) Property Tax Snacks Residential Property Taxes have been rising in Vancouver. As always, we’re seeing a lot of sturm and drang about the rise. But we think it’s ultimately a good thing. Why? Here’s three perspectives. From a fiscal perspective, property taxes pool our resources to enable our government to pursue projects and provide for the common good. They’re a big component of how we take care of each other and set priorities.
(Joint with Nathan Lauster and cross-posted at HomeFreeSociology) The province has released (via press release) the first data on its Speculation and Vacancy Tax (SVT)! Huzzah! Previously, we’ve speculated on what this data would show. In particular, we estimated that around 8,800 dwellings would show up as empty in a way likely to be taxed by the speculation tax. How close were we? Well, the speculation tax has so far identified 8,738 owners of empty properties.
(Joint with Nathan Lauster and cross-posted at HomeFreeSociology) BC has introduced the Speculation and Vacancy Tax and instructions for filling out the declarations are in the mail. The tax targets homes in major urban centres that are left empty, or that are owned by “foreign and domestic speculators” that “don’t pay [income] taxes” in BC. The tax rate is 0.5% of the assessed value in 2018. From 2019 onward rates increase to 2% for foreigners (not permanent residents nor Canadian citizens) as well as citizens or permanent residents that are deemed members of “satellite families.
Vancouver has low property taxes and high income taxes. Seattle is the opposite. What would it look like if British Columbia was more like Washington State? If we got rid of personal provincial income tax and recovered the revenue by raising the provincial portion of the residential property tax, a.k.a. the “school tax”. The tax policy of British Columbia, when compared to Washington, is sending the message that it’s a great place to come and invest in property with it’s low property tax rate, but not such a great place to live and work with it’s higher income tax rate.