The British Columbia government has introduced a new Speculation Tax that will effect Kelowna and West Kelowna. The tax will be 0.5% for British Columbians, 1% for Canadian citizens who do not live in British Columbia and 2% for foreign owners. The new tax will be payable on December 31 of each year and is calculated based on assessed value. There is an exception if the property is your primary residence that you live in or if your property is rented for at least 6 months of the year then the tax is not applicable. There is a tax credit if you live in British Columbia and your second home is worth less than $400,000.