Vancouver city council to decide on decreasing empty homes tax – BC | 24CA News
Vancouver metropolis council is reviewing a employees report Wednesday recommending a lower of the empty houses tax first established in 2017.
Council upped the tax from three per cent of a vacant property’s worth to 5 per cent in 2022, however now employees is recommending it shift again to 3 per cent.
A report from the town’s director of finance recommends the discount, together with quite a few new exemptions to the tax.
The tax was designed to show empty houses into housing and to make sure overseas homeowners, and people with primarily overseas incomes, contribute to B.C.’s tax system.
The tax targets properties which were unoccupied for greater than half a yr.
“The significant tax rate increase from 3% to 5% effective in 2023 may possibly support further conversion of additional homes from empty to occupied,” the report states.
“It can also result in a higher risk of tax evasion and consequently, requiring more resources for performing compliance work and increased impact of unintended consequences.”
The report states that vacant properties within the metropolis fell by 20 per cent in 2020-2021 and once more in 2021-2022, each underneath the three per cent tax, however provides the drop could also be associated to the COVID-19 pandemic.
The metropolis mentioned it has devoted greater than $115 million in income from the tax towards inexpensive housing for the reason that measure was first carried out.
It suggests permitting for a longer-term remark of whether or not the decreases had been associated to the pandemic or the tax.
It additionally recommends the town discover a graduate tax charge, with increased tax charges focusing on properties that stay vacant for a number of years.
The report additionally recommends quite a few new exemptions to the empty houses tax.
Current exemptions for the tax embody properties underneath renovation, property switch and strata rental restrictions.
The report suggests including an exemption for properties with a constructing allow, growth allow, rezoning inquiry, rezoning utility or coverage inquiry issued within the tax reference yr.
Other advisable exemptions embody properties that may’t be occupied resulting from hazardous circumstances, properties getting used as a second residence nearer to medical therapy, and a one-time exemption in 2023 for properties with strata rental restrictions.
Council shall be reviewing the report throughout Wednesday’s assembly.
— with information from Global News’ Simon Little
© 2023 Global News, a division of Corus Entertainment Inc.
