Vancouver considers applying vacancy tax to Airbnb properties

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VANCOUVER (NEWS 1130) – You could soon be paying a tax on your condo in Vancouver if no one is regularly living in it. City Council has voted to approve the proposed vacancy tax on empty or underused homes, and send it to public consultation. If approved, the levy is expected to be implemented next year.

What’s new today is the staff at city hall is considering applying the tax to properties that, as of now, are being used exclusively for temporary vacation rentals through Airbnb.

The mayor says the vacancy tax will include exemptions for snowbirds and people who work or study abroad.

“The main goal of the Empty Homes Tax is to put homes back into the rental market, at a time when Vancouver’s dangerously low vacancy rate is putting renters in crisis,” says Mayor Gregor Robertson. “Ultimately, the city’s proposed tax will affect a very small number of people using Vancouver’s 10,000+ empty and underutilized homes as business holdings; with near-zero rental vacancy and skyrocketing house prices, the City needs to take action on bringing these empty homes back into the rental market, helping to ensure the best use of all our housing.”

The city says in the near future every homeowner will get a letter outlining the tax and the process of a public consultation which will include a series of open houses and an online survey.

LISTEN: NEWS 1130 reporter Martin MacMahon speaks live with anchors Jim Bennie and Amanda Wawryk

 

City of Vancouver tax facts

  • The City of Vancouver was given the authority to implement this tax by the Province of British Columbia in July of 2016 through amendments to the Vancouver Charter
  • Due to privacy protection legislation, the city is not authorized to use data from BC Hydro to identify empty homes
  • Profit generated from the tax will be reinvested into affordable housing initiatives
  • Most homeowners in Vancouver will not be subject to the tax, including homes that were the principal residence of an owner, a long term tenant, or a permitted occupant, such as a family member, for the past year

 

The city says people are exempt from the tax in the following situations

  • Owner is recently deceased and estate is in probate
  • Home is undergoing major renovations with permits
  • Owner is in residential care with reasonable expectation of return
  • Property underwent a change in ownership
  • Property is in a strata subject to rental restrictions
  • Owner or tenant uses home for the majority of the year for work or study purposes, but claims principal residence elsewhere

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