Critics question effectiveness of B.C.’s flipping tax [Video]

The B.C. NDP government has introduced legislation that will tax home-flipping – starting next year.

But some critics are already questioning whether it will make much of a difference.

The tax is aimed at people who buy homes and sell them within two years.

Initially announced in February’s budget, the tax will impose a 20 per cent tax on profits of homes sold within a year of purchase. That slides to 10 per cent if sold after 18 months – and if an owner sells after two years, there’s no penalty.

“We don’t think families should have to compete against speculators when they’re making such an important decision,” B.C. Finance Minister Katrine Conroy said Wednesday. “So we’re making profiteers think twice about their flipping behaviour.”

The Condominium Homeowners Association of B.C. is welcoming the levy, arguing speculators have caused problems for long-term homeowners living in condos.

“Simply put, speculators are …