‘A move in the wrong direction’: Vancouver council to vote on decreasing Empty Homes Tax

Vancouver’s Empty Home Tax could come down from five per cent to three per cent, after city staff recommended council bring it down.

The reduction would be for the 2023 vacancy reference year, with the overall goal of improving “the fairness and effectiveness” of the tax.

But OneCity Coun. Christine Boyle says, “It’s a move in the wrong direction.”

“It’s about getting the balance right and making sure we’re setting the Empty Homes Tax at a rate that incentivizes homeowners to be renting out their spaces…and we’re making sure we’re not unduly penalizing people who have a particular reason or exception for needing to leave their home empty for a short period of time.”

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Vancouver created the tax in 2017 to help turn under-utilized or empty properties into long-term homes for people who live and work in the city — and to keep more properties from being empty while many residents struggle to find affordable housing.

But one East Vancouver renter is questioning if the change will impact him.

“If we’re talking about renters, people like myself who are priced out and are, frankly, never going to be able to afford a home despite the fact that I work in tech – I don’t really understand where the fairness is,” Zakir Suleman said.

Renter Zakir Suleman speaks with CityNews. (Kier Junos, CityNews Image)

Since the tax was put in it has generated over $115 million in revenue for affordable housing projects in the city.

City staff say taxing the homes higher could spur more tax evasion, but also make more rental housing available.

“They’ve resulted in more homes coming back into the long-term rental market and that’s what we need in Vancouver. People are desperate for a place to live,” Boyle said.

Vancouver’s Empty Home Tax could come down from five per cent to three per cent, after city staff recommended to council to bring it down. (Kier Junos, CityNews Image)

The tax was previously increased to three per cent over the COVID-19 pandemic, and staff say the early findings show a 20 per cent decline in properties declared empty between 2020 and 2021.

“It seems to me that the solution shouldn’t be cutting taxes for people who already own homes, or who are in a position to invest in multi-million dollars of real estate. But instead, to try and create opportunities for people like myself who are born and raised here, to actually be able to afford [living] in my community,” Suleman added.

Council is expected to vote on the matter on Wednesday.

With files from Hana Mae Nassar