Sigh of Relief – Empty Homes Tax to Remain at 3%

Vancouver City Council voted on May 10, 2023 to hold the Empty Homes Tax (“EHT”) rate at 3% for 2023; rejecting a bid to increase the rate to 5%.

Additional exemptions to the EHT were also introduced. New exemptions include properties:

• with an issued building or development permit;
• whose owners have submitted a rezoning inquiry, rezoning application or policy inquiry;
• which have been developed but not sold to their first owners;
• uninhabitable due to hazardous conditions;
• which are underused but act as a secondary residence for the purposes of receiving medical treatment; and
• subject to strata rental restrictions (2023 only).

The City will now also accept late declaration filings up to five years from the vacancy reference year (upon payment of a late filing penalty).

Council has also directed City staff to explore the implications of a gradated tax rate which increases the penalty for property owners whose homes remain vacant for multiple years. No timeline has been announced with respect to this policy initiative.

For more information, please contact Hamish Gray or any of the members of our Real Estate Practice Group.