Vancouver homeowner says Empty Homes Tax is hurting those with second homes

A high angle view of high-rise condominium towers crowded together on the North shore of downtown Vancouver's False Creek in Vancouver, B.C. on Friday, May 5, 2017. THE CANADIAN PRESS IMAGES/Bayne Stanley

The Unfair Vancouver Vacant Homes Tax Coalition describes its purpose in the name. The group is calling on the city to do something as the Feb. 2 deadline for the empty home tax declaration approaches.

Rainer Borkenhagen says the group is made of members that are mostly retired and live across the country, but still own homes in Vancouver.

Borkenhagen himself lives in Gibsons, but owns a condo in Vancouver.

READ MORE: 11% of Vancouver homeowners haven’t filed empty home tax declaration as deadline looms

Read next: U.S. shoots down suspected Chinese spy balloon over Atlantic ocean

He said he tried to rent his condo once, but it turned out it was more practical to keep it and use it whenever his family needed it.

“We come in to babysit, our other kids use it when they come into town, we use it for social reasons, we use it for medical reasons,” he said.

Story continues below advertisement

Borkenhagen said that even if they tried to rent it again, the rent would be too high to actually help younger people looking for a home.

“What Vancouver is trying to do is loosen up the rental housing for the millennials and the average rent for a millennial is somewhere between $900 and $1,200 a month that they can afford,” said Borkenhagen. “I have a $2,400 rental condominium.”

WATCH: Resident who lives part of the year in Vancouver calls empty homes tax unfair

Click to play video: 'Vancouver empty home tax'
Vancouver empty home tax

He said the group sees the tax more like a penalty than anything else, noting they are not getting anything in return.

“Many of the people our age are thinking, in the long run, to keep our ties with our kids, we’ll probably have to move back into Vancouver.”

Story continues below advertisement

He said most members of the group have owned their homes in Vancouver for decades and still use them throughout the year. Members of the group say the new tax is discriminating against older residents, said Borkenhagen.

READ MORE: Vancouver’s rental vacancy rate is near zero. Here are 7 ideas to help lift it

Read next: Object with balloon ‘characteristics’ flew over Colombia, air force confirms

He said that if the city wants to create more affordable housing, it should tax everybody, not just those who own second homes.

Empty home declaration

But if you’re thinking about trying to get around the tax, be warned. Vancouver lawyer Kyla Lee says those providing false information, or failing to declare are taking a big risk.

Failure to submit will result in an automatic assumption that the home is vacant and will be subject to the tax, which is one per cent of the assessed home value. Homeowners will also be subject to a $250 penalty for not declaring on time.

WATCH: Victoria councillors push for empty homes tax

Click to play video: 'Victoria councilors push for empty homes tax'
Victoria councilors push for empty homes tax

As for providing false information, Kyla warns it could lead to charges.

Story continues below advertisement

“You can end up with a criminal record if you’re charged with fraud and convicted, it’s a very, very, serious offence, it’s considered a crime of dishonesty. So the consequences for it tend to be more severe,” she said.

READ MORE: From 2001 to 2016, over 12,000 more Vancouver homes were left ’empty’: city report

Read next: Looking for a used car? Everything to know about Canada’s cooling market

The city created an audit program to make sure homeowners are compliant with the new tax. Some homes may be selected for an audit and can be asked to provide evidence to support their declaration as part of an audit program set up by the city.

Vancouver has one of the lowest rental vacancy rates across Canada.

READ MORE: Vancouver woman being charged Empty Homes Tax for land with no home on it

Read next: Skateboard legend Tony Hawk to donate proceeds to Tyre Nichols fund

Sponsored content