Lately, there has been a lot of talk about imposing a new ‘Vacant Home Tax’ to be able to deter a number of vacant homes sitting around in Vancouver, and to alleviate some of the pressure on the low vacancy rates. Vancouver has been sitting around a constant 1% vacancy rate, with rent prices continuing to rise. As this has caused much concern for everyone, the Mayor has suggested a tax for people that leave their homes vacant in hopes that if they do not want to get taxed, they will rent it out. People debate how we will be able to determine a house as ‘vacant’, and now they are considering asking owners to declare what they will use their house as and the city will also do audits to catch the people that aren’t as honest. Details on tax rates, exemptions, and penalties are still up in the air. With not much details, we can already think of loopholes that people will probably try to get away with, so how effective will this new tax be?
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