City of Vancouver approves empty homes tax

Vancouver city council has voted to approve a tax on empty homes, the first of its kind in Canada.

Self-reporting owners willbe assessed a one per cent tax on homes that are notprincipal residencesor aren't rented out for at least six months of the year.

That means a $1-million home left vacant would be taxed $10,000.

The motion passed 8-3, with Vancouver MayorGregorRobertson and all Vision Vancouvercouncillorsvoting in favour.

GreenCoun.AdrianneCarr supported the motion, while allthree NPAcouncillorsvoted against it.

Addressing Vancouver'shousing crisis

Robertson has said the tax is a way to combat what he called the housing crisis in Vancouver, andjustified the measureas a "business tax" on owners he said were treating housing as an investment property.

Robertsonhas said the taxwill improve Vancouver's rental vacancy rate, which is currently around 0.6 per cent, by persuadingowners of thousands of empty apartments and houses to put them up for rent.

The city will conduct random audits to catch cheaters,and property ownerswho try to skirt the rules will face penalties.

The tax will be implemented in early 2017 with the first payments due in 2018.