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Victoria councillors push for empty-homes tax, following Vancouver lead

Some Victoria councillors are looking for the authority to levy special taxes on vacant and derelict properties, similar to what is being done in Vancouver.
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Coun. Ben Isitt wants Victoria to ask the province to give municipalities the authority to levy a tax on vacant properties, with the goal of making more housing available.

Some Victoria councillors are looking for the authority to levy special taxes on vacant and derelict properties, similar to what is being done in Vancouver.

Councillors Ben Isitt and Jeremy Loveday want the city to ask the province to give municipalities the authority to levy a tax on vacant properties, with the goal of making more housing available.

Canada Mortgage and Housing Corp. has estimated the rental vacancy rate in Victoria hovers about 0.6 per cent, but there is no firm data on the number of housing units being left empty in Victoria.

Isitt said he has heard that there are hundreds of vacant condo units.

“We also hear anecdotally from residents, particularly from strata councils, that they find that these vacant units basically detract from the vibrancy and the community in those buildings.”

Isitt said that in some cases ,vacant units have been purchased by out-of-town buyers looking to retire at a future date. Some are speculative buys and some are bought for use as short-term vacation rentals.

As well, Isitt said, there are about two dozen buildings in the city that have sat vacant for years.

“So from a housing affordability standpoint, those two dozen buildings won’t make a big impact, but that would help. But certainly for people residing in the vicinity of those buildings there is a negative impact in terms of public safety and also the appearance in the neighbourhood.”

In what is being called a Canadian first, Vancouver this year began levying an Empty Homes Tax of one per cent of a property’s assessed value on homes deemed to be vacant. Revenues are to go to affordable housing initiatives.

The Vancouver tax does not apply to principal residences or homes rented on a long-term basis of at least six months.

Isitt and Loveday have suggested sending their idea to the Association of Vancouver Island and Coastal Communities and the Union of B.C. Municipalities for support.

In a related issue, Coun. Geoff Young is seeking council support to ask the province to restore municipalities’ authority to introduce a land-value tax as an incentive to improve a property for housing and other development, but act as a disincentive to holding property vacant for speculation.

“Once you start thinking that it’s logical to tax a house that’s sitting empty, why isn’t it equally logical to tax a lot that doesn’t have a house on it at all,” Young said.

“So it is a policy that is consistent with the idea of using land to its full potential and also with the idea that land isn’t something that is held idle for long-term speculation.”

The ideas are to be discussed by councillors today.

Isitt and Loveday earlier proposed seeking support for having the province impose a 15 per cent foreign buyers tax in the capital region as it has done in Vancouver. Council instead decided to monitor the local real estate market for three months before making a decision.

bcleverley@timescolonist.com