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Metro Vancouver’s development sector is asking the B.C. government for an exemption to the new real estate speculation tax for bare land.

Anne McMullin, CEO of the Urban Development Institute, said an unintended consequence of applying the new tax and additional school levies to bare land being stockpiled for future development is to increase the cost of new housing.

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McMullin said the UDI asked government for clarification on its concern last week, but hasn’t had a response.

McMullin said it is common for developers to hold residentially zoned sites worth $10 million or more for future use, as it can take several years to get through the development process. These appear to be subject to the new taxes, which start at 0.5 per cent of assessed value, even when there is no housing on the land to be lived in.

“It’s capturing land slated for development, which adds additional costs, which makes it also difficult to build what we call that ‘missing middle’ product that is at a lower price,” McMullin said.