VICTORIA (NEWS 1130) – Cottages and rural properties may be safe from the province’s proposed housing speculation tax.

It’s part of a suite of reforms unveiled this afternoon as the province deals with criticism of the new tax. The first is that the province is narrowing the scope of the tax to target housing in urban areas.

“Our government wants to make sure people who live and work here are able to find and afford a good home in their community,” says Finance Minister Carole James.

The tax will apply to properties in urban housing markets that have been hardest hit by the housing crisis. People with homes outside of these high-cost urban areas will not pay the tax. #bcpoli pic.twitter.com/tgp1vL9Pee — Carole James (@carolejames) March 26, 2018

James says Parksville, Qualicum Beach, many Gulf Islands, and the Juan de Fuca areas that has originally been included will be exempt.

“The speculation tax focuses on people who are treating our housing market like a stock market,” says James. “So people in smaller communities, those with cottages at the lake or on the islands, will not pay this tax. People with second homes outside of high-cost, designated urban areas will not pay the tax. We are going after speculators who are clearly taking advantage of the market, leaving homes vacant and driving up prices.”

The City of Kelowna and West Kelowna will still be included. Both municipalities have vocally opposed the tax saying it will impact vital development.

Only homes over $400,000 will be subject to the tax.

The province is also reducing the amount of tax Canadians living outside BC will pay for a second home from two to one per cent, which is likely to impact the amount of money the province brings in from the tax.

Green Party leader Andrew Weaver is backing the adjustments made by the NDP, saying “it’s a positive sign that this government is willing to listen to British Columbians” in a statement.

The Green’s Adam Olsen, MLA for Saanich North and the Islands, says he is also pleased as many of his constituents’ concerns were addressed in the changes.

The Liberals meantime aren’t so excited. In a statement, leader Andrew Wilkinson says, “This tax ‘change’ won’t solve speculation or affordability, not one home will be built because of these changes. The NDP are telling British Columbians to give government part of their hard-earned savings and investments. These continued flip flops create uncertainty, not affordability, and British Columbians deserve better than that.”