Own property in B.C.? You could be on the hook for a massive tax hike next year

An Alberta couple who own a home on one ofBritish Columbia's Gulf Islands say B.C.'snewly announced speculation tax is going to cost them thousands ofdollars in additionalproperty tax per year.

Mark and Debra Hunterbought their one-bedroom home on Pender Island in 2012 for $211,000.

In 2019, the B.C. speculation tax rate will start at two per cent of the assessed value on properties in the Lower Mainland,Nanaimo,Kelowna andVictoria's Capital Regional District. Pender Island falls under the latter jurisdiction.

"We will be still be paying the normal property tax [so]this is a penalty after the fact for being out of province," said Mark, whosefive children also make several trips a year from their home in Red Deer to theisland getaway.

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Their annual property tax is currently $1,800dollars.With the government's newly imposed tax increase, he saidit will balloon to nearly $9,000.

Debrais an artist who makesknitwearand paintings out of their Pender Island home, whichshe says the family visits every four to six weeks.

"They've enclosed the fine so that it creates financial hardship on any owner that isn't a B.C. resident," said Debra."By doing that they're forcing people to sell. So essentially it's a deportation policy of financially ruining people so they have to sell their properties."

'Complete violation'

The B.C. budget, which was released earlier this week, introducedthe taxin an effort to cool the province'shot housing market.

The Hunters saythe tax is discriminatory.

"We're going to have to find a way for everyone in this situation to unite," Debra said. "We will take it to the Human Rights Commission because it is a complete violation."

Tax hits Alberta's oil and gas sector

In Kelowna, the new tax could hit the region hard. Many Albertanshave vacation homes in the area, while others work for several weeksin Alberta's oil patch and commute back to the region for their time off.

According to the Okanagan Mainline Real Estate Board, Albertans made up 10.2 per cent of home buyers last year.

"We're hearing it from remote workersthey live here but work in the oil patch," said Dan Rogers, executive director of theKelownaChamber of Commerce.

"We have some 3,000 employees in the Okanagan area that make their living off the oil and gas sector. We're intricately tied to the economy of Alberta."

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Rogers said everyone from property ownersto investors have been phoning his office to find out what this tax increase willmean.

"These taxes are being implemented to try and cool the real estate market but we see absolutely no evidence that these new taxes will achieve that outcome and make housing more affordable," he said.

The Hunters are also hearing from the public via email at issuesBC@outlook.com.Mark Hunter tells CBCthat people who own property in B.C. have written to share their concern, while others saythey are putting plans to buy property on hold as they waitto see how the B.C. government handles this issue.