Vacant home tax not needed in Burlington, says mayor

Putting a special tax on occupied homes won’t solve the housing crisis, says Burlington Mayor Marianne Meed Ward.

In a bulletin on her website, the mayor explains that after initially supporting the concept of a vacant home tax (VHT), she now believes it is not worth the trouble of pursuing the idea.

Last week Burlington council voted against implementing the VHT.

“While the idea behind such a tax is to help address the housing affordability and supply issue, the data shows this type of tax does not compel the majority of owners to sell or rent,” the mayor said pointing out that only 265 in Burlington fall into the category of vacant. “The vacant home tax would cause about 20 per cent of those homes to come on the market, thus not adding to the housing supply in a meaningful way.”

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.

Also, the mayor said, that because of the low number of vacant homes adding a tax would not be a significant revenue generator for the city. As well, she said the tax would become an administrative burden on the 70,000 homeowners who live in their properties, as everyone would have to annually declare their home is not vacant.

The mayor said there are already measures implemented by senior levels of government to address concerns about vacant homes. These include a federal tax targeting foreign investors, and by-laws regarding the appearance and maintenance of vacant properties.