B.C. Resident Confronts New Property Liens After Vacancy Tax Reversal
Tony Chan, a long-time Richmond resident, finds himself embroiled in a perplexing property tax dispute with the British Columbia government. After previously having three speculation and vacancy tax liens removed from his home, Chan now faces two new government liens totaling approximately $125,000, leaving him exasperated and questioning the government's motives.
From Resolution to Renewed Conflict
Chan's ordeal began in 2021 when he received a $14,920 bill under British Columbia's speculation and vacancy tax program. The tax, introduced by the B.C. NDP government in 2018, targets empty or underutilized residential properties in major urban areas with the stated purpose of discouraging speculation and reducing vacant homes in an overheated housing market.
Chan, who purchased his Richmond home in 2000 and has lived there for 25 years, argued that he shouldn't be subject to the tax despite his wife living and working in the United States. He emphasized that he bought the property with money earned during his career in British Columbia's investment sector, where he has lived for 62 of his 64 years and paid taxes since age 16.
In 2022, after going public with his case, Chan spoke with Joshua McCarthy from the Ministry of Finance, who agreed that Chan shouldn't be subject to the speculation tax. McCarthy subsequently removed three government liens that had been placed against Chan's property for non-payment of the tax.
The Unexpected Return of Government Liens
Just when Chan thought his tax troubles were behind him, the situation took an unexpected turn in 2024. The government reinstated its position that Chan qualified as a speculator because his "global income" didn't originate primarily from British Columbia.
In July 2024, the government placed a new lien on Chan's property for nearly $100,970. Then, just last month, another active lien was added for just over $24,000. These two liens combined create a financial burden that Chan says he cannot easily manage.
"It's insane. Seems vindictive," said Chan, expressing his frustration with the renewed government action. "Why, I have no idea. Is it just overzealous clerks? Not surprisingly, I don't happen to have an extra $125,000 to throw around, which means I would have to sell my house and move out of B.C."
Seeking Political Assistance
Faced with this renewed financial pressure, Chan contacted his Member of the Legislative Assembly, Teresa Wat, for assistance. In a statement, Wat confirmed that she has raised the issue in the legislature and attempted to appeal directly to the finance minister, but has received no response to her inquiries.
The situation highlights ongoing challenges with British Columbia's speculation and vacancy tax implementation, particularly regarding how the government defines and identifies "satellite families" and determines what constitutes sufficient local economic ties to qualify for exemptions.
Land title documents confirm that McCarthy cancelled the three original liens in August 2022, only for new liens to appear two years later. This reversal has left Chan feeling trapped in what he describes as a "merry-go-round" of government tax enforcement that contradicts previous determinations about his eligibility.
As Chan contemplates the possibility of selling his home and leaving British Columbia, his case raises questions about:
- The consistency of tax enforcement decisions
- The appeals process for property owners caught in similar situations
- The long-term impact of such tax policies on residents with international family connections
- The communication between different government departments handling tax enforcement
The Ministry of Finance has previously stated that the speculation tax's "main purpose was not to bring in revenue" but rather "to help root out speculation and discourage empty homes in an out-of-control housing market." However, cases like Chan's illustrate how the implementation of such policies can create significant financial uncertainty for long-term residents who don't fit neatly into the tax's intended targets.
