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Short Term Rentals Accommodations Act In The Okanagan
Here is some important information and useful links to understanding the new regulations regarding the Short Term Rentals Accommodation Act:
The provincial Short Term Rentals Accommodations Act was introduced with the intent of bringing more houses into long term rental stock. All of the requirements in this act will apply regardless of local zoning bylaws. The new legislation contains the following provisions:
General Provisions
• The provincial legislation applies to rentals with durations of 90 days or less. Municipalities will still be able to define a different time period (e.g. 30 days) for municipal bylaws. This would apply to municipal bylaws only the provincial legislation would still apply at 90 days or under.
• While some municipalities may allow short-term rentals in specific zones, the provincial residence requirement is not zone specific. This means the provincial principal residence requirement will apply regardless of if a municipality has zoned a specific area for shortterm rentals use.
• Provincial requirements will apply (and essentially override) municipal short-term rental rules if they do not abide by the provincial requirements which are a “floor”.
Municipalities can make bylaws that are more restrictive than the rules outlined by the province but not less restrictive.
Principal Residences Only
• As of May 1, 2024, all short-term rentals in communities with populations 10,000 or over will be limited to principal residence and /or a secondary suite only.
• This regulation is a “floor”, municipalities may make stricter requirements but must abide by this rule as a minimum.
• In the interior of the province the communities included under this principal residence rule will be:
- Kelowna
- Kamloops
- Vernon
- Penticton
- West Kelowna
- Fort St. John
- Cranbrook
- Salmon Arm
- Lake Country
- Dawson Creek
- Summerland
- Coldstream
- Nelson
- Pouce Coupe (adj.) Fine Increases
• Fines for short-term rentals owner/operators breaking local municipal by-law rules will increase to $3000 per infraction, per day. • Like municipalities, Regional Districts will be given the power to set the maximum penalty of $50,000 for severe contraventions of by-laws.
Exemptions
Some exemptions from the principal residence rule will apply. The following property types are exempt:
• Hotels and Motels
• Timeshares
• Lodges (accommodation provided by an operator of outdoor recreational activities such as hunting, fishing, etc.)
• Designated Resort Municipalities (these municipalities may choose to opt-in to principal residence rule):
- Fernie
- Golden
- Invermere
- Kimberley
- Osoyoos
- Radium Hot Springs
- Revelstoke
- Sun Peaks
- Mountain Resorts – to see full list, get in touch!
Links and Resources
Press Release on Legislation – Legislation introduced to reign in short-term rentals, deliver more homes for people
The Short-Term Rental Regulations can be found here – OIC-679: Order in Council 679/2023 (gov.bc.ca)
Provincial Speculation and Vacancy Tax Expansion
The Speculation and Vacancy Tax is a tax levied on vacant properties in designated communities with a significant shortage of housing. The tax is 0.5 % of the properties assessed value for Canadian citizens or permanent residents and 2% of the properties assessed value for nonCanadian citizens or satellite families. The province requires owners of properties in these areas to declare their status annually.
The province has expanded this tax to include 13 new municipalities. In our board area this expansion includes the following communities:
- Vernon
- Coldstream
- Penticton
- Summerland
- Lake Country
- Peachland
- Salmon Arm
- Kamloops
These newly included communities will need to fill out a declaration for 2025 based on their 2024 use. The cities of Kelowna and West Kelowna have been subject to this tax since 2018 and continue to be subject to the reporting requirements.
Spec Tax Map:
A mapping tool that allows you discern whether a property is subject to speculation and vacancy tax can be found here
https://map-spec-tax-areas.apps.gov.bc.ca/
The map will be updated to include all new communities in spring 2024. There are numerous exemptions to the speculation and vacancy tax. A full list https://www2.gov.bc.ca/gov/content/taxes/speculation-vacancy-tax/exemptions-speculation-andvacancy-tax/individuals
Fall Economic Statement 2023 – https://www.budget.canada.ca/fes-eea/2023/home-accueilen.html
To avoid unexpected costs, be sure to check with me about the newest updates if you’re moving to the Okanagan or making the decision to invest in a property here. Your accountant can give you the best advice.