Vacancy Tax

Year
2020
Number
NR69
Sponsor(s)
White Rock

Whereas the City of Vancouver has authority through the Vancouver Charter to implement an Annual Vacancy Tax; And whereas other municipalities are governed through the Community Charter where there is no current authority to implement a Vacancy Tax: Therefore be it resolved that UBCM work with the Province of British Columbia to amend the authority given to municipalities through the Community Charter permitting municipalities the authority to impose, by bylaw, an annual vacancy tax on taxable residential properties.

Provincial Response

Ministry of Municipal Affairs and Ministry of Finance The Province is committed to working with our local government partners to address affordable housing issues in BC. The Province has taken a number of tangible steps, including implementing the 30-Point Plan for Housing Affordability and working with the federal government to develop a National Housing Strategy. Designing an authority for a vacancy tax for local governments would require amendments to the Community Charter. As local governments vary greatly in resources and needs, further discussion is required before considering legislation beyond what was granted to the City of Vancouver in 2016 as implementation of a similar authority could be administratively burdensome and not cost-effective for many communities. While enabling legislation would not necessarily be used by every community, it would have be feasible for use across the broad range of communities throughout the province. The Province will also continue to monitor the impacts of the provincial speculation and vacancy tax, the Vancouver Empty Homes Tax, and the federal Budget 2021 intention to impose a property tax on foreign owners before considering providing all local governments in BC the authority to impose their own similar taxes. Those measures have the same policy intent as a local vacancy tax and their effectiveness in areas where they apply is being monitored. We note that in 2018, affordable housing was added as a permissible use of Municipal and Regional District Tax MRDT funds, and that 12 local governments are currently using a portion of MRDT revenues for affordable housing initiatives. Interested local governments can learn more by contacting Destination BC or visiting: https:www.destinationbc.cawhat-we-dofunding-sourcesmrdt

Convention Decision
Not Considered - Automatic Referral to Executive
Executive Decision
Endorsed as Amended