Owners of second homes in Vancouver have lost their legal challenge to the city's Empty Homes Tax. The British Columbia Supreme Court dismissed the bid to quash the tax, which targets properties that are not occupied as primary residences.
Court Upholds City's Authority
The ruling affirmed Vancouver's right to impose the tax as a measure to increase housing availability. The plaintiffs argued the tax was unconstitutional, but the court disagreed, stating it falls within municipal jurisdiction.
Impact on Property Owners
Second-home owners now face continued levies unless they rent out or occupy their properties. The tax applies to homes left empty for more than six months per year, with rates increasing annually.
The decision is seen as a win for housing advocates who argue the tax helps free up housing stock in a tight market. Vancouver's vacancy rate remains below 1%, contributing to high rental costs.
City officials welcomed the ruling, emphasizing their commitment to using the tax revenue for affordable housing initiatives. The legal challenge was led by a group of homeowners who claimed the tax was punitive and overstepped municipal powers.
