Special Levy

A special levy is a one-time charge approved by the strata corporation under the Strata Property Act, SBC 1998, c. 43, to pay for major repairs, upgrades, or expenses not covered by the operating budget or contingency reserve fund. The Strata Property Act requires that special levies be approved by the owners in accordance with the strata's bylaws and the Act. Common examples include building envelope repairs, elevator replacement, or emergency structural work. Verify current approval thresholds and procedures with a BC lawyer or notary before acting.

Under the Strata Property Act, SBC 1998, c. 43, a special levy generally requires a resolution passed by a 3/4 vote at an annual or special general meeting (as of 2026-07-27 — verify current). The resolution must specify the purpose and total amount of the levy. The strata corporation must provide owners with notice of the meeting and the proposed levy in accordance with the Act and regulations. Verify specific voting thresholds and notice requirements with a BC lawyer or notary, as they may vary depending on the strata's bylaws.

Under the Strata Property Act, SBC 1998, c. 43, when a special levy is approved before a unit is sold, the incoming buyer assumes responsibility for any unpaid portion of the levy. This liability transfers automatically upon completion of the sale. Buyers should review the strata's Form B (Information Certificate) and confirm whether any approved or proposed special levies exist. Verify the exact liability and payment obligations with a BC lawyer or notary before completing a purchase.

The Property Transfer Tax Act, RSBC 1996, c. 378, does not directly reduce the property transfer tax calculation for an existing or approved special levy; PTT is calculated on the fair market value of the property at the time of transfer. However, the existence of a large approved special levy may be reflected in the negotiated purchase price or market value. Verify current PTT rules and any exemptions with a BC lawyer, notary, or the BC Ministry of Finance before acting.

Yes, under the Strata Property Act, SBC 1998, c. 43, a strata corporation may borrow money by obtaining a loan or line of credit, typically secured against future strata fees or a special levy, subject to owner approval by a 3/4 vote (as of 2026-07-27 — verify current). Some strata corporations use financing to spread the cost of major repairs over time instead of charging a large one-time levy. The decision to borrow requires compliance with the Act's approval and disclosure requirements. Verify current approval thresholds and financing options with a BC lawyer or notary before acting.

For a principal residence, special levies paid to a strata corporation are generally not deductible for income tax purposes under federal tax law (Income Tax Act, RSC 1985, c. 1). If the unit is a rental property, special levies for capital improvements may be added to the adjusted cost base of the property or capitalized, while those for repairs may be deductible as an expense, depending on the nature of the work. Verify current federal and provincial tax treatment with a licensed tax professional or accountant before acting.

Yes, under the Strata Property Act, SBC 1998, c. 43, and the Strata Property Regulation, a strata corporation must disclose approved special levies in the Form B (Information Certificate) provided to a prospective buyer or the buyer's representative. The Form B must include details of any approved levies and the amount remaining unpaid. Buyers should request and carefully review the Form B and all strata financial documents. Verify disclosure obligations and Form B contents with a BC lawyer or notary before acting.

Under the Strata Property Act, SBC 1998, c. 43, an owner may apply to the British Columbia Civil Resolution Tribunal (CRT) to challenge a strata corporation's decision, including the approval of a special levy, on grounds such as significantly unfair conduct or failure to follow proper procedures. The CRT has jurisdiction over most strata disputes (as of 2026-07-27 — verify current). Challenges must be brought within applicable limitation periods. Verify dispute resolution options and deadlines with a BC lawyer or notary before acting.

Under the Strata Property Act, SBC 1998, c. 43, the contingency reserve fund (CRF) is funded by regular monthly contributions from owners and is intended for major repairs and replacements. A special levy is a one-time charge approved when the CRF and operating budget are insufficient to cover a specific expense or emergency. CRF contributions are ongoing and mandatory, while special levies are approved as needed by owner vote. Verify current requirements for CRF planning and special levy approval with a BC lawyer or notary before acting.

The Strata Property Act, SBC 1998, c. 43, does not impose a statutory maximum dollar limit on the size of a special levy (as of 2026-07-27 — verify current). The amount is determined by the cost of the repair or project and must be approved by the required owner vote (typically 3/4). In practice, special levies can range from a few thousand dollars to $50,000 or more per unit for major building envelope or infrastructure work (as of 2026-07-27 — verify current). Verify approval procedures and owner voting rights with a BC lawyer or notary before acting.