Vancouver increases Empty Homes Tax and doubles audits

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Written on May 11th, 2022

On April 26 and 27, Vancouver council passed a motion by Mayor Kennedy Stewart to increase the Empty Homes Tax (EHT) rate to five percent and increase compliance audits.

The EHT will increase to five per cent effective for the 2023 vacancy tax reference year.

In 2020 (most recent data), the city collected more than $32 million from the EHT which went to creating affordable housing. 

“By further strengthening the tax rate to five percent and doubling the number of audits, we will make it tougher for speculators and make sure housing in Vancouver works for all of us,” said Stewart who expects unanimous support from council.

The current EHT is three per cent.

City staff were also directed to investigate what effects doubling it again to 10 per cent could have, and to assess changes to current exemptions to improve fairness so that people with legitimate reasons for vacancy are not penalized. Staff were also tasked with probing how the tax could be used to crack down on short-term rental properties and how to counteract tax avoidance.

Vancouver’s empty homes tax first took effect in 2017 at one per cent of a home’s assessed value, and was tripled to three per cent in the 2021 tax year.