Robert Simpson and Denise Pettersson Simpson on the porch of their Mitchell Street home. The couple has lived their retirement between two houses, in Texas and Oak Bay. They believe the speculation tax should have been introduced with a grandfathered clause that doesn’t target people such as themselves, who are longtime homeowners and retirees. (Travis Paterson/News Staff)

Oak Bay couple paying $6,000 for 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, Texas.

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 two 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

Peninsula organizations fund food bank ahead of ‘looming crisis’

Saanich Peninsula Lions Food Bank receives more than $5,000 from local organizations

Saanich teen earns $100,000 commerce scholarship to the University of Calgary

Matias Totz is graduating from St. Michaels University School

Traffic impacted on the Malahat near Goldstream Park

Reported crash in northbound lane of highway

Barbecue thief leaves hat behind at Victoria residence

Anyone who recognizes the hat is asked to call VicPD or Crime Stoppers

COVID-19: Saanich police respond to calls about skatepark gathering, group volleyball game

‘Some people are still not taking this seriously,’ officer says

‘Hold our line’: 29 new cases of COVID-19 announced in B.C.

Saturday’s number of new cases marks the lowest in weeks.

Critic, workers’ group ‘disappointed’ Trudeau chose Amazon to distribute PPE

Amazon Canada said in an email to The Canadian Press that it is working with Canada Post, Purolator

Full World COVID-19 update: National Guard collect ventilators in New York; Spain, Italy improve

Comprehensive coronavirus update with news from around the world.

Nanaimo’s Harmac mill works to fill doubled pulp order for medical masks and gowns

Mill’s president says extra cleaning in place and workers are social distancing

Two people fined after B.C. police spot online ads re-selling 5,000 surgical, N95 masks

Police confiscated the masks, being sold at inflated prices, and now working with Fraser Health

Unclear if Cowichan couple refusing to self-isolate will face penalty

No fines or charges have been laid to date, including Cowichan couple who won’t self isolate

POLL: Will you be able to make your rent or mortgage payment this month?

With the COVID-19 delivering a devastating blow to the global economy, and… Continue reading

COVID-19: Postponed surgeries will be done, B.C. health minister says

Contract with private surgical clinic to help clear backlog

Black Press Media ad sparks discussion about value of community newspapers

White Rock resident hopes front-page note shines light on revenue loss during COVID-19 crisis

Most Read