White Rock wants version of Vancouver’s empty homes tax — but provincial rules stand in the way

Vancouver’s empty homes tax has proven successful enough that at least one other B.C. municipality wants its own version.

But Vancouver never had to face the provincial rules that bar those municipalities from imposing new taxes.

White Rock Mayor Darryl Walker wants to change that, and intends to bring up the issue at September’s Union of B.C. Municipalities (UBCM) annual meeting.

“It’s my hope we talk to a lot of other mayors who have the same position,” he said. “It’s only Vancouver who has this special rule, and the rest of us can use some more flexibility on how to deal with our community.”

The UBCM meeting is the place where B.C.’s nearly 200 municipalities can hope to spark change across the province — provided that members sign on.

Under the province’s Community Charter, municipalities don’t have the authority to impose taxes or fees beyond basic taxes on property, land and local services.

WATCH: (Aired Feb. 19, 2018) Growing opposition to empty homes tax

1:58 Growing opposition to empty homes tax

But Vancouver has its own, separate charter that allowed it to construct and impose its empty homes tax in late 2016 without provincial oversight or approval.

Walker wants to cut through that red tape, saying the number of empty homes in the seaside community exacerbates the lack of affordable housing.

“We’re a part of Metro Vancouver, and I think it’s an expectation that all of Metro Vancouver produce something for increased housing,” the mayor said. “We think some of the houses that are empty, that aren’t being used, should be either asked to make them available or be taxed.”

Many of the empty homes littering White Rock are also larger, expensive homes that Walker says are likely being used as investments — something Vancouver knows all too well.

Vancouver’s empty homes tax, the first of its kind in North America, applies an additional one per cent levy on residential properties that prove to be vacant for a majority of the year.

The city estimates it collected $38 million in the first year of the tax, plus an additional $6.2 million from hundreds of audited properties.

WATCH: (Aired April 23, 2018) City of Vancouver releases empty home tax revenue total

2:02 City of Vancouver releases empty home tax revenue total

All of that money goes toward affordable housing projects in Vancouver, which Walker says is a fund that White Rock also needs.

White Rock Coun. Anthony Manning introduced a motion for a vacancy tax in January, calling for a five per cent levy on commercial and residential properties.

The motion was sent for a review to city staff, who came back to say it wouldn’t be allowed under the Community Charter.

White Rock may want to be careful of what they wish for, however: Vancouver is now facing four lawsuits from homeowners and developers over its empty homes tax.

Walker knows he’ll also face pushback if White Rock ends up introducing a similar tax, but he says there’s a simple solution.

“If you don’t want to pay the tax, fill your home, have people living there, rent it out,” he said. “Then you won’t have to worry about it.”

—With files from Paul Johnson