Strata exemption limits potency of Vancouver’s empty homes tax

VANCOUVER (NEWS 1130) – Vancouver’s empty homes tax is well on its way to getting the green light from city council, but it might not free up as much housing as expected thanks to a rule that exempts some strata buildings.

The one per cent tax will apply to all homes that are not designated primary residences, rented out or meet a specific set of exemptions. One exemption says if a strata owner’s building doesn’t allow them to rent by the time the tax comes into effect, they won’t have to choose between paying or selling even if they don’t live in the condominium.

“I am concerned that we don’t really know how many of the current empty homes that are identified as condos, which is 95 per cent of the 10,800 empty homes are actually currently under rules where the strata council has said there’s only very limited or no rentals allowed,” Councillor Adriane Carr says.

Mayor Gregor Robertson says council asked the province to make it illegal to ban renting strata units, opening every owner up to the tax.

“We have asked the province to consider changing that in provincial laws so it is possible for everyone, regardless of a strata, to rent their units,” he says.

The exemption will not apply to strata that bring the rule in after the tax goes into effect, meaning some groups may rush to approve the rule and save their owners from the tax. It’s unclear exactly how long groups have to pass such laws.

If approved by council, possibly by Wednesday, the tax would come into effect Jan. 1, 2017 and would apply to 2018 property taxes. Residents will need to declare the status of all their properties or face fines.

The city’s strata vacancy rate is 0.8 per cent, just above the rest of Vancouver’s 0.6 per cent.

The city hopes the new tax will prompt many to either sell or rent out their extra homes and rooms and increase the vacancy rate to between three and five per cent, a number unseen for at least the last 20 years.

During Tuesday’s meeting, councilors also expressed concern about the number of new landlords that will emerge because of the tax and how they will find all the information they need to be in line with BC laws. City workers said they will add resources to the Vancouver website for new landlords.

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