A new Kamloops-based movement is underway to try to get federal tax breaks to help build affordable houses across Canada.
Colin O’Leary, co-chair of the Business Advisory Committee with the Kamloops Chamber of Commerce says he wants to see changes which will address issues with the tax systems that land trusts are governed under.
Under the existing tax rules, he says those who donate land to a trust are hit with a capital-gains tax that exceeds the tax benefit they would get — meaning they lose money.
“So what happens is, somebody gives up land, so they are giving up the land for free, and they get dinged with this capital gains tax bill on top of it so nobody makes any land donations to the land trust in Canada.”
O’Leary argues if this is changed, more and more people will realize the benefits of donating land to a trust — and free up more land for housing.
“Using this model, we can create housing that is Co-Op rentals, we can do seniors affordable housing, we can do supportive housing.”
To back the plan, O’Leary currently has a petition circulating via the House of Commons website to try to convince Ottawa of the changes he wants.
“What it’s trying to do is look at mirroring what’s called the Ecological GIFT program in Canada. It’s saying if people want to donate land to Community Land Trust for affordable housing, they are not dinged with the tax bill for doing that,” he said. “There’s no downside. We’re mobilizing private wealth for the public good at no cost to taxpayers.”
He says the petition mirrors a Kamloops and District Chamber of Commerce policy that has been in the works for a few years now.
“Three and a half years of work have gone into this and we have support from the Land Trust right across Canada,” he said. “We’ve had to defend the policy provincially and nationally; it’s on the Canadian Chamber of Commerce policy book right now.”
Additionally, O’Leary says they are doing a concentrated effort before they pitch this before they meet with the finance committee or federal government.
“The more petitions we get like more signatures the more power we’re going to have to bring this forward and affect change.”
Furthermore, O’Leary says he has personally reviewed the entire Income Tax Act to propose all of the changes needed for this initiative to go through.
“We’ve already done the work for them. It’s been reviewed by multiple lawyers and it’s very robust. They just have to legislate this into law,” he said.
“That’s the strategy all along it’s just to make it as easy as possible for them to sign on.”
O’Leary’s petition already has the backing of Kamloops-Thompson-Cariboo MP Frank Caputo.
The Kamloops Chambre of Commerce is pushing for new solutions to affordable housing. This change could be a game-changer in #Kamloops #Thompson #Cariboo. Thanks to our local chamber for this exciting initiative. Check out the e-petition & sign if you agreehttps://t.co/2hFIPVqCxu
— Frank Caputo MP (@FrankCaputoKTC) November 3, 2022
Beyond that, O’Leary says they have letters of support from individuals to corporations that want to donate land for affordable housing as well as support letters from nonprofit organizations, Co-Op housing, corporations, etc.
–With files from Paul James
