This fact sheet provides guidance on the classification of home-based Bed and Breakfast (B & B) properties.
What is a Bed and Breakfast?
For the purposes of this fact sheet, B & B properties are single-family dwellings occupied by the owner or a manager as their principal residence, where one or more rooms are offered for rent for short-term overnight accommodation. (Short term is less than seven days).*
Is my B & B in a residential or business class?
BC Assessment classifies all properties in British Columbia based on the use of the property.
Typically, properties where people live are classified as residential property and properties that are offered as rentals on a nightly basis (e.g. hotels and motels) are classified as business property. B & Bs are used for a mixture of these purposes.
B & B properties may be entirely in Class 1 (Residential) or split between Class 1 and Class 6 (Business and Other), depending upon the number of rooms offered for rent as short-term overnight accommodation and the percentage of the year that those rooms are rented.
As an example, the following B & B properties fall entirely in Class 1:
• Those with fewer than four rooms rented or offered for rent on a short-term basis;
• Those offering any number of rooms for rent, but only for periods of seven or more days (i.e. weekly or monthly rentals);
• Those offering any number of rooms for rent on a short-term basis but only for periods of less than 50%, or six months, of the year. (This percentage is calculated as of October 31 each year for the prior 12 months and is used for the upcoming tax year, e.g. as of October 31, 2012 for the 2013 assessment roll and tax year.)
What if my B & B offers four or more rooms for rent for short-term rentals for at least half the year?
If your B & B offers four or more rooms for short-term overnight accommodation rentals for more than half of the year, a portion of the land and improvements will be placed in Class 6 (Business and Other).
* Note that these provisions only apply to B & Bs in homes also occupied by the owner or manager as their principal residence.
Disclaimer: Where information presented is different from legislation, legislation shall prevail.