Vacancy Tax – UDI questions for City of Vancouver
Vancouver staff will be addressing a list of questions (below) submitted by UDI regarding the vacancy tax. UDI is in discussions with City staff and will provide answers as soon as they are available.
- In what circumstances would the tax apply (or not apply) to class 1 residential vacant land? Does the parcel need to be 100% class 1 residential for the tax to apply? How does the tax apply to phased development and/or master planned communities?
- Will the tax be applied to unsold product? If so, how will the tax be applied and how will the date of occupancy impact the tax?
- What is meant by having “all permits in place” in order to qualify for an exemption? For example, if a site has been rezoned will the tax be exempt?
- How does the tax impact land assembly? For example, if a developer assembles homes and some of the homes are not in a condition to rent (or needs upgrades) would there be an exemption from the tax? Who would make this decision and what would the criteria be for the tax to apply? How quickly could a developer receive a decision from the City on this matter?
- How does the tax relate to the tenant relocation policy? Is there a conflict between these policies? How does this differ for rental vs ownership projects and for different property types?
- How does the tax impact CACs negotiations? Can the tax, if applied, be used to offset CACs?