Owners of residential properties in the City of Vancouver have to pay the Empty Homes Tax. It is designed to increase the rental housing supply by motivating owners of empty homes and under-used homes to rent out their properties. Affordable housing initiatives will receive the revenue raised.
To determine if the property is subject to the tax, one owner of each property must submit a declaration year. As a result, principle residences or homes rented for at least 6 months of the year will not be subject to the tax.
Principle residences or homes rented for at least 6 months of the year will not be subject to the tax. However, to determine if the property is subject to the tax, one owner of each property must submit a declaration year. Declaration instructions were mailed out in November 2018 and the declarations were due February 4, 2019 for the 2018 calendar year.
Note that this tax is in addition to the Province’s speculation and Vacancy Tax.
How it works:
- Owners of residential property within the City of Vancouver must complete an annual declaration
- Each year one owner of each property must make a declaration for the previous year
- The declaration is due on February 4, 2019
- Claim any relevant exemptions
Exemptions include but not limited to:
- Principle residence
- Occupied by a tenant for at least six months of the year in periods of 30 or more consecutive days
- Residence is used as occupancy for full-time employment
- Residence is uninhabitable
- Owner in care
- Recent death of owner
- Transfer of property
- Undergoing redevelopment or major renovations
- Rental restrictions on property
- Court order
- Land under development
The tax rate:
- The tax rate is 1% of the assessed value of your residential property of July 1, 2018, as determined by BC Assessment
- There is a $250 penalty for failure to make a declaration by the due date
- False declaration may result in fines of up to $10,000 per day of the continuing offense in addition to the tax
- Payment is due by April 12, 2019
- Late and unpaid taxes are subject to the same non payment penalties as property taxes:
- 5% late payment penalty
- Daily interest on arrears
- Tax sale process