Empty Homes Tax facts for kids
The City of Vancouver has a special rule called the Empty Home Tax. This tax is for homes that are empty for more than six months of the year. If a home is lived in by its owner or a renter for at least six months, it does not have to pay this tax.
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What is Vancouver's Empty Home Tax?
The Empty Home Tax is a charge that the city of Vancouver puts on homes that are not lived in for a long time. It was started to help with the housing situation in the city. The idea is to encourage owners to rent out their empty homes. This can help more people find a place to live.
Why did Vancouver create this tax?
Vancouver is a popular city, and many people want to live there. This means that homes can be very expensive. Sometimes, homes are bought but then left empty. This can make it even harder for people to find affordable places to live or rent. The city created the Empty Home Tax to try and solve this problem. They hoped it would make more homes available for people to live in.
How does the tax work?
The tax rate is one percent of the home's assessed value. The assessed value is how much the city thinks the home is worth. For example, if a home is worth $1,000,000, the tax would be $10,000. Owners must declare if their home was empty or occupied each year. There are some reasons a home might be empty and still be exempt from the tax. These include if the owner is getting medical care or if the home is being renovated.
What happened after the tax started?
A report from the CBC looked at what happened after the tax began. It found that the number of empty homes available to rent only went up a little bit. It rose by 0.1 percent. The report also said that the tax was expected to collect about $38 million for the city. However, the city spent about $10 million in 2018 to set up and manage this new tax.
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