What is Vancouver Vacant Home Tax?

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The Vancouver Vacant Home Tax (VHT), also known as the Empty Homes Tax, is a municipal policy introduced in 2017 to address housing shortages by discouraging property owners from leaving residential properties vacant. Here’s a detailed overview:

Key Features:

Tax Rate:
- Initially set at 1% of the property’s assessed taxable value, the rate increased to 3% in 2023 to strengthen its deterrent effect.
Declaration Requirement:
- Annual Declaration: All residential property owners in Vancouver must declare their property’s occupancy status each year, even if occupied. Declarations are typically due in February.
Tax Application:
- The tax applies if a property is vacant for more than six months in the previous year, unless it qualifies for an exemption.
Exemptions:
- Properties may be exempt if vacancy is due to:
  - Being the owner’s principal residence.
  - Major renovations (with permits) or redevelopment.
  - Transfer of ownership (e.g., recent sale).
  - Death of the owner or court proceedings affecting occupancy.
  - Owner hospitalization or long-term care.
  - Other specific circumstances (e.g., employment-related absence).

Purpose:

Increase Housing Supply: Encourage owners to rent out vacant properties.
Fund Affordable Housing: Revenue generated is reinvested into affordable housing initiatives.

Enforcement:

Penalties: Failure to declare results in the tax being automatically applied, plus fines for non-compliance. False declarations may lead to additional penalties.

Provincial vs. Municipal Tax:

Vancouver’s VHT is separate from British Columbia’s Speculation and Vacancy Tax (SVT), which applies province-wide (including Vancouver) at rates up to 2% for foreign owners and 0.5% for Canadian residents. Both taxes aim to reduce vacancy but operate independently.