The Sea to Sky chapter of the Canadian Home Builders’ Association (CHBA) has joined its provincial and federal counterparts in opposing a proposed vacant land tax under consideration at both the provincial and municipal levels. The federal government announced the tax initiative in Budget 2024 and is now seeking consultation.
In a letter addressed to SLRD, Derek Venter, president of the Sea to Sky CHBA, outlined the association’s concerns and unique challenges.
“The Sea to Sky Corridor has unique challenges that have not been expressed in either the Provincial or Federal letters addressing the proposed tax,” Venter writes. However, Venter argues that the proposed policy fails to account for the variety of land types deemed “vacant” and the distinct housing dynamics in the Sea to Sky region.
“Federal documentation assumes all vacant land is suitable or intended to be developed as housing,” he writes, adding that this perspective overlooks the corridor’s reliance on small-scale residential construction rather than large-scale, high-density developments.
Venter explained that Squamish is the only Sea to Sky community with significant private land holdings designated for large-scale, high-density development. While Pemberton and the Squamish-Lillooet Regional District (SLRD) have a few rezonings underway to increase market housing, Whistler’s privately owned parcels are mainly limited to single-family zoning or employee housing developments.
He also noted that Bill 44 could expand housing options, though financing additional density remains a significant barrier for most residential landowners, he added.
Economic Impacts of Taxation
Venter warned that vacant land tax would worsen affordability and increase financial pressure on developers, landowners, and prospective homeowners.
“Any additional taxes while holding the land before development would only increase the cost of housing to the end user and further challenge the viability of a project,” he writes.
The letter also pointed out that vacant land in British Columbia is already subject to higher school taxes for properties valued above $3 million. Adding a further levy, Venter argued, would unfairly penalize landowners who have purchased lots for personal, recreational, or resort investment.
Ihor Zalubniak says
And yet, DOS denied the development of Dls 109 and 110 – effectively holding the owners hostage to this tax. If a company wishes to “land bank”that is at their prerogative, however if development permits are denied, for reasons other than environmental, then the developer should be held harmless from this tax.