Vancouver hikes empty homes tax by 25 per cent
Credit to Author: Scott Brown| Date: Thu, 28 Nov 2019 03:04:23 +0000
Vancouver city council has approved a 25 per cent increase to its empty homes tax.
The vacancy tax, which was set at one per cent when approved in 2016, was brought in as a measure to return empty or underused properties to boost the city’s rental housing stock.
During his 2018 election campaign, Mayor Kennedy Stewart supported tripling the tax rate to three per cent, arguing the city needed to take tough measures to fight speculation and protect the Vancouver housing market from global financial forces and speculators.
On Wednesday, however, the mayor and council approved a much more modest increase, boosting the tax rate to 1.25 per cent in 2020.
In a report to council, city staff advised against a big tax hike.
“Experts also strongly cautioned that an increase in EHT rate at this stage would likely increase the potential for noncompliance and evasion, particularly for properties that are also paying the new provincial speculation tax,” the report said.
Stewart’s motion to amend the vacancy tax bylaw did contain a provision for additional 25 per cent increases in both 2021 and 2022.
“I’m pleased that council supported my call for a phased increase to the empty homes tax of 25 per cent each year for the next three years,” Stewart said in a news release. “While the ultimate goal is to add more pressure on empty homes to be filled, any additional revenues will now be used to provide housing for Vancouver’s most vulnerable residents.”
Since the empty homes tax was launched in the 2016, city hall has collected nearly $40 million in tax revenue to fund several affordable housing initiatives.
According to council’s 2018 empty tax report, there were 1,989 properties declared vacant last year, compared to 2,538 in 2017.