Vancouver's Empty Homes Tax Could Climb to 5%

Owners of vacant properties in Vancouver could soon have to dish out a lot more cash, should the city decide to increase its empty homes tax.

Vancouver council will decide at the end of the month whether to increase the empty homes tax -- which currently sits at 3% of the assessed value of the vacant home -- to 5%.

The empty homes tax was introduced in 2017 to aid in returning empty and under-utilized properties to the market as long-term rental homes for people who live and work in the notoriously pricey city. It was introduced at 1%, but climbed to 1.25% in 2020 before jumping to 3% in 2021.

Vancouver homeowners are required to submit a declaration each year to determine if their property is subject to the inevitably controversial tax.

Aerial image of the West Shore, Vancouver, BC, Canada

Like with Toronto’s vacant home tax -- which was passed this past fall but won’t take effect until 2023 -- certain exemptions apply. Toronto’s vacant home tax is considerably lower, however, at just 1% of the assessed value of the empty property.

According to Vancouver's most recent empty homes tax report, the number of vacant homes fell by more than 25% from 2017 to 2020. In 2020, Vancouver charged $37.9M in taxes and penalties and collected $27.9M. Since the program’s launch, $86.6M raised as a result has been allocated to affordable housing initiatives.

With a municipal election just six months away, Vancouver’s Major Kennedy Stewart -- much like he did in 2018 -- is turning to the tax as part of his campaign strategy. He has a goal to increase audits by 50% to determine if a home is considered vacant.

“We still have hundreds of homes declared vacant, and thousands more empty homes claiming exemptions,” Stewart said in a City-issued press release. “While boosting the rate to five per cent should get more empty homes occupied by residents, we must increase audits and inspections to further clamp down on speculators.”

Vancouver City Council will debate the proposal at meetings scheduled for April 26 and 27.

In other empty home news, Ontario’s Peel Region announced yesterday that it would consider a 1% vacant home tax and encouraged its residents to offer insight on the topic via an online survey.

Vancouver

Vancouver's Empty Homes Tax Could Climb to 5%

Owners of vacant properties in Vancouver could soon have to dish out a lot more cash, should the city decide to increase its empty homes tax.

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Duck Island, located along the Fraser River and leased to the Richmond Night Market, was set for redevelopment by Jingon International Development Group.