Vancouver city council is expected to reverse an increase in the empty homes tax that was approved by the previous municipal government.
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The empty homes tax was introduced in 2017 as a way to prevent homes being left empty instead of being rented out. This required provincial government approval to amend the Vancouver Charter to allow the tax to be created.
The initial tax was set at one per cent of the assessed value of the home and has been since increased three times.
Between 2017 and 2022, the tax generated $115 million, which has been spent on affordable housing programs run by the city.
The most recent increase was approved by the former council in April 2022 to apply in 2023.
According to the city report, staff are recommending that increase be reversed and are also proposing a string of amendments to the Vacancy Tax bylaw, including an accounting for rezoning or building permit delays.
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The staff recommendations are based in part on a report from EY Consulting Services.
That report concludes that the empty homes tax rate should not be increased too quickly. Most vacant properties in Vancouver are condos in the West End and downtown core.
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