You’ve probably heard Mayor Gregor Robertson is out there campaigning for a speculation tax.
I wrote about this a couple of weeks ago.
So, it seems, did every other journo in this town.
But all of us wanted to see the letter he sent to Premier Christy Clark in which he called for the tax. No, said his office staff, we can’t provide the letter until we receive a reply from the premier. They waited and waited and waited and no reply came.
So, on Wednesday, we received the letter.
It’s two pages and the mayor addresses more than a speculation tax. How about a hike to the property transfer tax "on the most expensive properties?"
Here’s what I figured you’d want to read:
· “The single biggest step the province could do to address the soaring housing costs in Metro Vancouver is to generate thousands of new housing units that are affordable for lower and middle income taxpayers. Even a sharp correction in the housing market won’t enable opportunities for people to rent or buy without an increase in supply of housing geared to low and middle incomes.”
· “Such a program could include a program to stimulate the creation of market rental housing across the province; increase provincial investments in social housing by building on the success of B.C. Housing’s partnership with the city on the 14 sites, to increase the stock affordable to families with lower household incomes; and stronger support for non-profit and co-operative housing operators to assist them to maintain, improve and expand their share of the housing market.”
The mayor goes on to say the city set aside $61 million in the city’s 2015 capital plan to invest in housing and support the new affordable housing agency. He said the city “would welcome the opportunity” to partner with the province on new affordable housing geared to families, first-time buyers and seniors.
And with a federal election this fall, Robertson suggested he and Clark collaborate to call for more housing from the feds.
Now to the speculation tax…
“In addition, we think it is timely for the province to ensure that B.C. taxpayers see some benefit from the remarkable rise in residential land values in many parts of the province. We believe there is a strong case for the province to curb unwarranted speculation through a series of measures…”
The measures include:
· An increased property transfer tax on the most expensive properties, with the proceeds invested into affordable housing.
· Taxation measures to discourage the quick resale or “flipping” of new housing, which would reduce speculation and help “level the playing field” for first-time buyers.
· Amendments to the Vancouver Charter and the Community Charter, if necessary, to strengthen the ability of municipalities to track property ownership and ensure timely occupancy of vacant units.
He ended with this:
“Our generation had the good fortune to enter the housing market at the beginning of a long, steady climb in housing prices. We have a responsibility to ensure that the next generation can share in the benefits, and have the opportunity to pursue their aspirations right here in B.C.”
I sent off an email to the premier’s press secretary Wednesday morning for a reply, but had not heard back before I posted this. I understand, though, Clark did say recently in the B.C. Legislature that the government was looking at what can be done on affordability.
According to a Hansard transcript of debate May 27 in the legislature, Clark told NDP leader John Horgan that "he should stay tuned as we continue to work our way through this issue, so that we can support those British Columbians who have trouble financing their way into the market today."
The premier said the government wanted to ensure that any changes made related to affordability "don't have unintended consequences and don't clobber people that already have homes, in the City of Vancouver, in particular." Clark elaborated, saying she didn't want people to see the government taking away a homeowner's equity.
Added Clark: "It's a beautiful place to live. It's the greatest place to live anywhere in the world. People understandably want to come here from all over the world. Many people who grew up in Vancouver and have made it their home all their lives would like to be able to stay there. That's a question of affordability, and it's something we are very much seized with."
Oh, and for the record, Robertson’s letter was dated May 22, the same day that condo marketer Bob Rennie pitched the idea in his annual address to the Urban Development Institute. And, yes, Rennie hosted a $25,000-a-plate luncheon in 2014 to help fund Robertson’s re-election campaign. And, yes, last time I checked Rennie was the Liberals’ chief fundraiser and is chummy with Clark.
Speculate away on those connections.
Update: I have since heard back from the premier's press secretary, Sam Oliphant. who said "our office will reply to the mayor's office directly soon." He also promised to get someone from the finance ministry to respond regarding the speculation tax.
When I wrote a story about this issue May 25, the emailed statement I received then from the ministry said that while the province recognizes home ownership in B.C. "can be challenging for some people, governments need to be careful that any tax would have the desired effect, without undermining the equity that people may have built up in their homes."
@Howellings
