The City of Vancouver is introducing a new tax on it’s resident. This tax is their response to the rental shortages in Vancouver. This tax could have significant impact on you as a homeowner.
Starting November 2017, a declaration will be sent out to all homeowners in Vancouver. This declaration has to be completed and sent to the city by February 2018. It will state the use or vacancy of your property. If your declaration is not sent back by the due date in February the tax will automatically be triggered.
You will be subject to a 1% tax on your property’s value if your home is empty or rented out for less than 6 months a year.
There are some exemptions from this new tax. You do not have to pay the tax if you have completed the declaration for the city and:
-the owner is deceased
-you have a permit for renovation or redevelopment on the property
-your strata has bylaws (from Pre-November 2016) prohibit rentals on your condo or townhouse unit
-if you occupy the property for more than 180 days for work
The city will be conducting audits and penalties will result due to false declarations
Check out the video below for more information from the city about this new tax.