Whereas some municipal councils in jurisdictions have the authority to set tax rates on vacant land at a higher rate than non-vacant land such as the authority provided for in the s. 616 vacancy tax provision of the Vancouver Charter; And whereas some municipal councils with the requisite authority choose to set tax rates on vacant land at a higher rate to encourage owners of vacant property to either develop the property or sell the land which may result in the development of the property under new ownership: Therefore be it resolved that UBCM request the Province of British Columbia conduct a review of the Community Charter to amend the legislation to grant municipal councils authority to add a vacant land property tax.
Ministry of Municipal Affairs The Ministry of Municipal Affairs is actively engaged in supporting new development and affordable housing in British Columbia. Any solutions to challenges in property development must be consistent with fundamental principles of tax policy as well as being practical, fair and effective. Creating a new property class for vacant land would not be optimal in that regard. For example, the reasons for land being vacant can be many and varied. In many cases, property owners do not fully control the timing of new development, as it may depend on factors that are beyond the control of the property owner, like approvals and permitting. It would be unfair to levy a potentially punitive tax on a landowner because of development delays that are beyond the owners control. British Columbia already has more property classes than most other jurisdictions in Canada; additional classes would further complicate the assessment and tax system. The Vacancy Tax authority in the Vancouver Charter is specific to vacant residential properties e.g., empty homes which are in most cases, different from vacant land. That tax is intended to encourage more residential rental accommodation availability by encouraging the rental of existing vacant residential accommodation units or properties, although in certain circumstances it will be applicable to vacant land. The vacancy tax authority was intended to address a specific circumstance identified by the City of Vancouver in relation to a shortage of available residential rental accommodation. The Province will continue to monitor the situation. The Province is also looking at other means to improve the development process by focusing on development approvals and development finance through the Development Approval Process Review DAPR.