Vancouver Mayor Gregor Robertson. (Facebook)

Vancouver to rake in $30 million in empty homes tax in first year

The tax is the first of its kind in Canada, and was intended to address the city’s near-zero vacancy rate

The city of Vancouver’s new empty homes tax is expected to bring in $30 million in revenue in its first year.

Vancouver Mayor Gregor Robertson said $17 million has already been collected from owners of almost 8,500 properties that were determined to be vacant or under utilized for at least six months of the year.

“For those who didn’t rent their empty property and chose to pay the empty homes tax, I just want to say thank you for contributing to Vancouver’s affordable housing funding and making sure we can invest more in affordable housing,” Robertson said at a news conference Monday. “For those who did rent their empty homes, thank you very much for adding to the rental housing supply here in Vancouver. It’s desperately needed.”

The tax is the first of its kind in Canada, requiring homeowners who do not live in or rent out their properties to pay a one per cent levy based on the assessed value of the home.

Robertson said the tax was intended to address the city’s near-zero vacancy rate.

The most recent figure from the Canadian Mortgage and Housing Corporation puts the city’s rental vacancy rate at 0.8 per cent, up slightly from the previous year, the mayor said.

It’s unclear yet if the tax has increased the availability of rental accommodation, Robertson said, adding that the city is developing better data collection methods to monitor the impact of initiates like the tax more closely.

The city previously said about 60 per cent of properties affected by the tax are condominiums.

The tax on the properties where owners said their home was empty ranged from $1,500 to $250,000, Robertson said, noting the highest tax bill came from a $25-million home.

The funds will support the city’s affordable housing initiatives and residents can provide feedback on exactly where the money should be spent.

Robertson said increasing capacity at homeless shelters or adding to the city’s rent bank, which provides one-time interest-free loans to low-income residents in a financial crisis, are among the possible initiatives that could benefit.

The median tax due is just under $10,000 and Robertson said anyone who doesn’t pay up will face fines and have the bill added to their property taxes next year.

“Those who are not playing ball here and who are skirting the system, we will get you,” the mayor said.

Nearly 99 per cent of homeowners completed an empty homes tax declaration.

The tax cost the city $7.5 million to implement and annual operating costs for the first and subsequent years are pegged at $2.5 million.

Audits are underway and the city said just under 1,000 complaints or disputes have been filed that need to be addressed in the coming months.

Robertson said it will be up to city council to decide whether the tax is having the desired effect, and that will likely take a few years of data to determine.

“I would say at this point it looks like some signs of success,” he said.

The Canadian Press

Just Posted

Courtenay man arrested after fleeing police twice

A 33-year-old Courtenay man is facing charges including obstructing a police officer… Continue reading

Compass Adventure sails into tourism market

The Comox-based sailing school is offering two-hour guided tours for sailing newbies

Lake Trail to be seismically upgraded

The project is a partial replacement that will ensure the entire school will be seismically safer

Comox Valley Accessibility Committee hosting an event at Lewis Centre

If you’ve ever been stumped by how to get into a business… Continue reading

Volunteers needed for annual Mile of Flowers planting project

May 29 the date for this year’s community plant-in

Monster trucks bring the noise at Black Creek’s Saratoga Speedway (video)

Thousands of racing fans were in Black Creek on Saturday and Sunday… Continue reading

Police release video on how to ‘run, hide, fight’ if there’s an active shooter

Vancouver police offer video with input from E-Comm, BC EHS, Vancouver Fire and Rescue

RCMP caution boaters after two kids pass out from carbon monoxide poisoning

Both children were given oxygen and taken to hospital

B.C. invests $115M to create 200 new nurse practitioner jobs

Health Minister says 780,000 B.C. residents don’t have a family doctor

Supreme Court rules social housing residents in B.C. deserve rights too

Tenants trying to stabilize their living situations should not face less legal rights than those paying market rates: Judge

Union calls on prime minister to step into ‘stalled’ Phoenix compensation talks

For more than two years, thousands of federal workers have been affected by Phoenix system

Judge: President Trump can’t block critics on Twitter

The judge had suggested that Trump mute rather than block some of his critics

NFL owners adopt new policy to address anthem protests

Commissioner Roger Goodell said the change was approved unanimously by owners

Hot action at Saratoga

Saratoga Speedway saw some hot action on the May long weekend with… Continue reading

Most Read