Vancouver To Triple Empty Home Tax To 3% In 2021

Posted by BetterDwelling

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Vancouver is doubling down on the success of its vacant home tax…well, tripling down, technically. The Vancouver Empty Homes Tax (EHT) will be tripled from its original rate for the 2021 assessment year. The tax, which places a penalty on underused homes, was put in place to help encourage more efficient use.

Vancouver Empty Homes Tax (EHT)

Vancouver real estate’s notoriously low property tax rate made it ideal for carrying vacant property for a long period of time. In order to discourage this kind of behaviour, the City joined other places like Paris, in taxing vacant homes. The tax reduces the cost effectiveness of vacant speculation, forcing owners to decide if they really want to carry the empty home. There’s some notable exceptions, like if the home is a principal residence or rented for 6 months. However, generally it helps to close the inefficiency created by the low rates that attract yield chasing…CLICK for complete article