p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 14.0px Arial; -webkit-text-stroke: #000000}span.s1 {font-kerning: none}

(November 22, 2016 )

The City of Vancouver has approved a tax on homes that are deemed empty. Homes that are deemed empty will be subject to a tax of 1% of the property’s assessed value.

Only homes that are not principal residences or homes rented on a long-term basis will be subject to the tax. The tax will also apply to vacant residential land.

The goal of the tax is to encourage investment properties to be rented out for a minimum of 6 months a year (180 days) in 30-day minimum increments, instead of remaining vacant.

What does this mean to (future) property owners in Vancouver?

  • If your principal residence is left vacant, you will not be subject to the tax.
  • If your property is being used as a principal residence by a family member, you will not be subject to the tax
  • If you own an investment property and it's rented out on a long-term basis (minimum 180 days/year), you will not be subject to the tax. 
  • If you own a vacation property that’s not your primary residence and not rented out for at least 180 days a year, it will be subject to the tax.
If you meet the criteria for one of the permissible exemptions, you won’t pay the tax.


Exemptions

There are various permissible exemptions to the Empty Homes Tax. A few are listed below:
  • The property is subject to strata rental restrictions as of November 16, 2016
  • The registered owner uses the property for at least six months of the year for work within the City of Vancouver but claims a principal residence elsewhere
  • Ownership of the property changed during the year
  • The property's use is limited to vehicle parking, or the shape, size, or other aspect of the property precludes the ability to construct a residential building

Self Declaration:

All owners of residential property in Vancouver will be required to make a property status declaration. The Empty Homes Tax will come into effect in January 2017, but it will not be assessed and payable until 2018.


Enforcement and penalties

Late and unpaid empty homes taxes and false declarations are subject to the same remedies for non-payment as property taxes, including:
  • A late payment penalty of 5%
  • Daily interest on arrears
  • The tax sale process


False declarations:

 Will result in fines of up to $10,000 per day of the continuing offence, in addition to payment of the tax.

For more details & the source of this information, please visit:
http://bit.ly/EmptyHomeTax