Couple billed $6K in B.C. speculation tax, believes retirees targeted unfairly

Retiree has lived in Mitchell Street home for 67 years

Denise Pettersson Simpson has been living in the bright yellow house on Mitchell Street since she was five.

The 72-year-old took the house over when her mom died in 1993 and has since lived in it, off and on, with her husband Robert Simpson, 93.

Simpson is a U.S. citizen and retired U.S. Army veteran, while Pettersson Simpson worked her entire life in the U.S. on permit and now retains her Canadian citizenship. The two have split their retired lives between their Mitchell Street home and San Antonio, Tx.

This year the couple was served a $6,000 bill for speculation tax due in part to their U.S. residency and to Simpson’s name on title. They live off of retirement pensions, including a tax free pension that Simpson receives for suffering career-ending injuries in battle.

READ MORE: Taxes force sale of Oak Bay’s ‘Tulip House’

They told the Oak Bay News they don’t know how they’ll be able to afford the house, especially if the speculation tax increases to 2 per cent, which foreign owners pay (both names are on the house title).

“The speculation tax doesn’t go far enough,” Pettersson Simpson said. “I imagine there are a lot of retired people who can’t afford this tax, people who are on retirement income. Unless you’re really wealthy, then it doesn’t matter.”

In other words, the speculation and vacancy tax squeezes the middle class out of their retirement plan but not the upper class who can afford it.

“Our mortgages are paid off,” Pettersson Simpson said. “There’s no reason we can’t own two houses. We paid for them. I want to keep my childhood home.

“It’s telling Americans that they are not welcome unless they spend a whole ton of money.”

The most prominent solution to the speculation and vacancy tax is to rent out the house. Not only do the two not rent out their house, at this stage in their life, they can barely comprehend the idea. They tend visit for about four to eight weeks at a time.

If they wanted to, they would have planned for it decades ago. The house is full of their personal effects — Pettersson Simpson regularly boxes and sells or donates things from the house — and they’re not in a position in their life to start new, Pettersson Simpson said.

READ ALSO: New B.C. residents not exempt from speculation and vacancy tax

“It doesn’t prevent speculation, people with money can still speculate,” she said.

The house and land are valued at $1.2 million by B.C. Assessment, yet the house is only valued at $218,000.

“If I tore it down I wouldn’t have to pay the tax,” she said.

In her eyes, that would be speculation.

“There’s a lot of retired people who are in similar situation. We can’t rent it now, there’s nowhere to put everything, we have to start getting rid of stuff. This is not what we had planned on.

Simpson pointed out they’ve already weathered 25 years of rising property taxes.

“I hope others who are retired and in this position can speak up,” she said.

reporter@oakbaynews.com

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

VIDEO: Internet famous Yukon-based bhangra dancer explores Vancouver Island

Gurdeep Pandher spreads joy through dance, forms cross-cultural connections amid pandemic

Oyster River department battles Black Creek house fire

UPDATED: House suffers extensive damage, no one inside at time

Campbell River fruit tree project carries on despite pandemic

More volunteers wanted for Greenways’ initiative

Downtown storm drain repair will begin on August 10 in Campbell River

Starting Monday, drivers and pedestrians will expect minor delays between 7 a.m. and 6 p.m

What does the nearly $10 million RCMP contract get the people of Campbell River?

Despite discussion around police funding, response techniques and use of force, the… Continue reading

53 new COVID-19 cases, no new deaths cap off week of high infection rates in B.C.

Roughly 1,500 people are self-isolating because they either have COVID-19 or have been exposed to it

Unofficial holidays: the weird and wonderful things people celebrate around the world

On any given day of the year, there are several strange, silly or serious holidays to observe

Missing teen visiting Courtenay found safe

She had last been seen going for a walk on Aug. 6

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

Gene editing debate takes root with organic broccoli, new UBC research shows

Broccoli is one of the best-known vegetables with origins in this scientific haze

U’mista Cultural Centre will host a native art contest to raise funds for artists

All artists of Kwakwa̱ka̱’wakw descent are being called to participate in the contest to be held on August 28

VIDEO: U.S. Air Force pilot does fly-by for B.C. son amid COVID border separation

Sky-high father-son visit plays out over White Rock Pier

3 Vancouver police officers test positive for COVID after responding to large party

Union president says other officers are self-isolating due to possible exposure

Most Read