Robert Simpson and Denise Pettersson Simpson on the porch of their Mitchell Street home. The couple has spent their retirement between two houses in Texas and Greater Victoria. They believe the speculation tax should have been introduced with a grand-parented clause that doesn’t target people such as themselves, who are longtime homeowners and retirees. (Travis Paterson/News Staff)

B.C.’s speculation tax under fire in first major legal challenge

Group petition filed Thursday in B.C. Supreme Court

A group of B.C. homeowners filed a petition to the Supreme Court of B.C. on Thursday to challenge the new speculation and vacancy tax.

While the province introduced the speculation and vacancy tax (SVT) as a measure to mitigate ballooning real estate costs in the midst of a housing crisis in B.C.’s bigger urban centres, some feel it is unfair.

Many are Canadians who have lived in their B.C. homes for a long time. The petition seeks an injunction from their new taxes, through an order from the court declaring the SVT is unconstitutional and infringes Section 7 of the Canadian Charter of Rights and Freedoms.

Two of the petitioners include Greater Victoria’s Denise Pettersson Simpson and Robert Simpson, who were issued a $6,000 speculation tax bill for their Mitchell Street house. Denise, 72, was raised in the house as a child and inherited it in 1996. The two have split their lives between there and their U.S. residence for more than 20 years.

Her husband is an American citizen and because of that, they are deemed to be a “satellite” family and are therefore ineligible for exemptions under the spec tax legislation. Next year, as a non-Canadian citizen, Robert will be assessed the full two per cent for 2019 and his bill will jump to approximately $12,000.

The couple live off their pensions, Robert’s being the same one he’s received most his life for career-ending injuries he suffered in war, they said.

“The home is the last connection I have to my family, they have all passed away,” Denise added.

Kailin Che, one of the Vancouver lawyers on the case, said “the implication of the tax will force homeowners to move out, sell or rent out their homes … It limits homeowners’ Charter protected liberty rights to choose to reside, without state interference.”

READ MORE: Speculation tax forces sale of Oak Bay’s tulip house

Other petitioners include a Canadian mother who resides in a home with her two children, taking care of her family with her retired, non-resident spouse.

The house is never vacant and has always been used as the family’s residence. The petition claims the family will have to move out of their home as neither spouse can afford to pay a $5,000 tax bill with their after-tax retirement income.

Che said it is a tax grab and a form of indirect taxation that falls outside the powers of the provincial government.

“The tax is arbitrary and divisive and quite frankly, misses the mark,” Che said. “It taxes many homeowners who are neither speculators nor leaving their homes vacant. Even if it doesn’t affect you today, it may affect you tomorrow.”

READ ALSO: Speculation tax has generated $3.74 million

Another one of the petitioners is a recently retired medical doctor who has limited vision. She lives in a small condo in Richmond that she purchased two years ago to be close to her work and her volunteer activities. Her spouse continues to reside in their previously purchased Surrey townhome. While there are exemptions for spouses living in separate residences for work purposes, the distance between their two residences falls below the 100-kilometre requirement.

The petition is funded by the Canadian Institute of Legal Reform, a grass-roots organization that is supporting and fundraising for legal challenges in respect of the SVT at saynotospectax.com.

reporter@oakbaynews.com


Like us on Facebook and follow us on Twitter

speculation tax

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Northern Health saw 14 cases in one day earlier this week, the highest in one day since the beginning of the pandemic. (Image courtesy CDC)
Northern Health sees highest number of new COVID-19 cases in one day

Oct. 27 saw the highest number of new cases in the Health Authority since the start of the pandemic

Members of the Sipekne’katik First Nation load lobster traps on the wharf in Saulnierville, N.S., after launching its own self-regulated fishery on Thursday, Sept. 17, 2020. When Jaime Battiste was in his early 20s, cable news channels were full of images of Mi’kmaq fishermen in New Brunswick battling federal fisheries officers over seized lobster traps. (THE CANADIAN PRESS/Andrew Vaughan)
Nisga’a Lisims Government calls on Prime Minister to act in N.S. fisheries dispute

NLG President: “We are shocked by what’s happening in Nova Scotia”

A nurse prepares a flu shot. The public vaccine for the 2020-2021 flu season is now in pharmacies in Terrace. (AP Photo/David Goldman, File)
Private flu vaccines scarce at Terrace pharmacies

Public flu vaccines still available for those with greatest need

“We have to make a call out to address this now so our people don’t have to feel fearful,” said Tribal Chief Mina Holmes. (Carrier Sekani Tribal Council Facebook photo)
Carrier Sekani Tribal Council seeks Indigenous-led task force in northern B.C. hospitals

Request made in an open letter to federal minister Carolyn Bennett

A woman wears a face mask and plastic gloves while browsing books as a sticker on the floor indicates a one-way direction of travel between shelves of books at the Vancouver Public Library’s central branch, after it and four other branches reopened with limited services, in Vancouver, on Tuesday, July 14, 2020. (THE CANADIAN PRESS/Darryl Dyck)
B.C. reports 234 new COVID cases, 1 death of senior who had attended small birthday party

Roughly 5,700 people are isolating due to being exposed to a confirmed case

A study by SlotsOnlineCanada notes there is at least 88 hours of top-rated horror movies for Canadians to consume this Halloween. (Unsplash)
Spooks and Chill study reveals Canada’s favourite horror flicks

88 hours of top-rated horror movies can fill COVID-19 Halloween

Burnaby RCMP responded to a dine-and-dash suspect who fell through a ceiling in March 2020. (RCMP handout)
VIDEO: Suspected dine-and-dasher falls through ceiling of Burnaby restaurant

A woman believed to be dashing on her restaurant bill fell through the kitchen ceiling

A can of Canada Dry Ginger Ale is shown in Toronto on Thursday Oct. 29, 2020. The maker of Canada Dry Ginger Ale has agreed to pay over $200,000 to settle a class-action lawsuit launched by a B.C. man who alleged he was misled by marketing suggesting the soda had medicinal benefits. THE CANADIAN PRESS/Joseph O’Connal
B.C. man’s lawsuit over marketing of Canada Dry ginger ale settled for $200K

Soda’s maker, Canada Dry Mott’s Inc., denied the allegations and any liability

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Vancouver Island-based Wilson’s Transportation has expanded to fill some of the routes left unserviced by Greyhound as of Nov. 1, 2018. (Black Press files)
B.C. bus companies say they need help to survive COVID-19

Like airlines, motor coaches have lost most of their revenue

A deer was spotted in October 2020 in Prince Rupert, B.C., with a bright pink yoga ball stuck in its antlers. (Kayla Vickers/Chronicles Of Hammy The Deer Official Page)
Hammy 2.0? Prince Rupert deer spotted with bright pink yoga ball stuck in antlers

The BC Conservation Officer Service is aware of the deer roaming around the city

RCMP. (Phil McLachlan - Black Press Media)
Kelowna Mountie hit with 2nd lawsuit in 2 months for alleged assault

Const. Julius Prommer is accused of breaking a woman’s knee during while responding to a noise complaint

Hirdeypal Batth, 24, has been charged with sexual assault and forcible confinement in relation to an incident in August 2020. (VPD handout)
Man, 24, charged with sex assault after allegedly posing as Uber driver in Vancouver

Investigators believe there could be more victims outside of the Vancouver area

Most Read