Whereas the availability of safe and affordable housing is an ongoing crisis in Canada that is worsening and which requires urgent and bold action; And whereas secondary suites are often not built with permits or registered with local governments because owners may wish to avoid paying income tax on the suite revenues, resulting therefore in some secondary suites not being built or being built unsafely without permits: Therefore be it resolved that UBCM request the provincial government provide tax exemptions for all income derived from the rental of secondary suites as a measure to encourage the provision of safe and affordable housing.
Ministry of Finance Safe and more affordable housing is a priority for our government as evidenced by our 30-point housing plan and our work throughout the province with municipalities to create the types of homes people can afford to rent or buy. The design of the tax system balances fairness, competitiveness, efficiency, administrative simplicity, and economic objectives. Under the federal Income Tax Act Canada, rental income is considered income from property and is included in an individuals taxable income for the purpose of calculating income tax. The Income Tax Act Canada makes no distinction between rental income from secondary suites and rental income from other types of housing. Under the Canada-BC Tax Collection Agreement, BC agrees to use the same tax base as the federal government, including the inclusion of rental income for the purpose of calculating an individuals income. Therefore, you may wish to share your suggestions regarding tax exemptions for income derived from secondary suites with the Department of Finance Canada for their consideration. Contact information can be found online at: https:www.canada.caendepartment- financecorporatecontact-us.html.