VANCOUVER (NEWS 1130) – Empty Vancouver homes may soon face a one per cent tax, as the city unveils more details about its property tax strategy to tackle a dwindling vacancy rate.

City council is set to vote on the new empty homes tax next week. If approved, the tax, which would be one per cent of the property’s assessed value, would take effect January 1st, 2017 and payments would be due the following year.

The tax will apply to homes or residential land that sit empty for six or more full months in a year. The onus is on property owners to declare, on their property taxes, their primary residence, whether they are renting out the property or meet one of the other exemptions, otherwise, the tax will apply by default.

Those exempt include snowbirds, people doing major renovations, registered owners undergoing medical care, properties in probate or under court order and registered owners who uses the property for six months of the year for work purposes but claims principal residence elsewhere.

Long term rentals of 30 days in a row for a minimum of six months will also be exempt, even if the six months are not consecutive.

Using 2014 data from BC Hydro, the city estimates there are 10,800 year-round vacant homes. They do not believe there are many vacant lots, but do not want people to think that if they demolish their home the tax won’t apply.

“Vancouver is in a rental housing crisis. The City won’t sit on the sidelines while over 20,000 empty and under-occupied properties hold back homes for renters struggling to find an affordable and secure place to live,” says Mayor Gregor Robertson. “In a rental housing crisis, it’s unacceptable for so much housing to be treated as a commodity when people are desperate for an affordable, secure place to live. Housing is for homes first, and as investments second.”

Property owners who fail to declare their property’s status will be charged the tax while failure to pay will tack on an extra five per cent late penalty. Making a false declaration will result in a $10,000 per day fine.

The tax program, along with auditing processes, is expected to cost $4.7 million to set up and then $1.5 million annually, however the city expects to take in enough money to offset the costs.

Full list of properties exempt from the empty homes tax: