Taxing unoccupied homes not considered an option for Burlington

Burlington doesn’t believe it is worth the time and effort to impose a vacant home tax (VHT).

A report that will be presented at an upcoming city committee meeting indicates there are few benefits and not enough vacant homes in Burlington to justify the cost of maintaining a program to collect the funds.

A VHT is a fee imposed on those who own homes that are not being lived in. These homes are often owned by speculators or foreign investors. Some cities have implemented the VHT in the hope it will encourage residency which is needed to meet housing shortages in Ontario.

Cities such as Hamilton, Toronto and Ottawa have implemented the VHT while others — Guelph, Kitchener and London — have decided not to.

The report goes on to indicate of the homes in Burlington that are considered vacant, a large percentage are expected to be sold or occupied within the next 10 years.

In Burlington’s case, it is estimated there are just 265 vacant homes, a number that won’t solve the housing crisis, according to the city’s tax department.

“The VHT feasibility assessment has not demonstrated to have a material effect on the key policy objectives to materially increase the supply of housing or enhance affordable and assisted housing program,” the report reads. “As well, uncertainty exists regarding the financial sustainability of the program with the risk associated with the anticipated revenue that could be generated and costs to administer the VHT program.”

The report will be presented to city councillors next week.