Vancouver Mayor Proposes Imposition Of Tax On Owners Of Vacant Homes

In a move to make housing more affordable, Vancouver’s mayor stated that the city will place a tax on property owners who don’t live in their residences. However, Gregor Robertson admits that his council will need to discover a way to bypass a provincial government that has turned down previous steps to tax empty houses.

Following months demanding action from provincial and federal governments on affordability issues, Mr. Robertson mentioned on Tuesday that he lacks faith in the province to intervene. According to him, the city employees are looking at all options and for ways to go around the province which has control over such taxes.

Based on data released by the city staff in March, Mr. Robertson seeks access to about 10,000 vacant homes in Vancouver. He is still contemplating on how high the tax ought to be in order to push homeowners to rent their houses.

The mayor is also unaware as to how the tax will work, saying that he is relying on the city staff to produce a detailed plan.

Talking to reporters at City Hall, he said, “We’re looking at what we might be able to do here at the city without the province’s help. There might be more limited options.”

He placed a deadline for action to be taken, claiming that it’s “imminent” because Council will be taking a break from July ending to September.

About a year ago, B.C. Premier Christy Clark received a letter from the Vancouver mayor requesting the province to place a tax on luxury housing and steps to fine property owners who do not live in their owned houses. Ms. Clark turned down the requests, saying that the city could find better solutions to promote land-use planning.

A statement released by the B.C. Finance Ministry on Tuesday failed to mention specifically Mr. Robertson’s vacancy-tax proposal but claimed that the B.C. government is reviewing a wide range of policy options to aid British Columbians in accessing “appropriate housing in the short term” and that when such task is fulfilled, a plan will be presented.

“It’s good to see Vancouver is considering what action it can take within its authority,” the statement said.

Representing the Non-Partisan Association Party, the council dominated by Mr. Robertson’s Vision Vancouver party,  one of three councilors said the NPA sees the vacancy-tax idea as a good idea, supportive of the details but not on the timeline imposed by the mayor.

Melissa De Genova said “I’m not sure we will be able to move forward by summer break,” adding that “This is a huge issue. It’s an issue that needs to be approached cautiously. We need to consider the ramifications.”

She went to question Mr. Robertson’s eagerness to move forward so soon…  “If the mayor is fired up and ready to go, I question why he hadn’t moved forward on this sooner.”

Representing her NPA colleagues, she stated that there may be benefits to a regional rather than a City of Vancouver approach.