If a property has joint owners, is each owner required to make a property status declaration?
An Empty Homes Tax property status declaration is required for each parcel of Class 1 residential property and only one registered owner can submit the declaration. Any additional owners will not be able to submit a second property status declaration.
When do owners get instructions and an access code to make a declaration?
Owners of Class 1 residential property will receive instructions on how to make a declaration with their advance property tax notice each year. Access codes are issued to registered owners regularly as part of the tax administration process. When a property transfers to a new owner, a new access code will be issued and the previous owner’s access code will expire.
The access code for a Vacancy Tax account and property tax are the same. To avoid possible delays with mailing, new owners can contact 3-1-1 to setup an online property services account and sign up for eBilling to receive the notification by email.
When a property sale has occurred, which owner can make a declaration, provide audit submissions, submit a complaint or request a review?
Only the current registered owner has the ability to provide submissions related to the Vacancy Tax Bylaw. The current owner is the registered owner - on title, on the property tax roll and has a valid access code with the City of Vancouver.
Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.
Is a property status declaration still required if the property is sold?
All owners of residential property in the City of Vancouver are required to make a property status declaration to determine if the property is subject to the tax. If legal ownership of the property changed, a property status declaration is still required and the registered owner can claim the title transfer exemption.
Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.
For example, if the property is selected for audit, the City may request evidence including a title search proving that a new title number was issued and legal ownership of the property changed during the reference period.
Does the transfer of property exemption apply when an owner submits an address or name change as a transfer at the Land Title Office?
The exemption applies when there is a title transfer resulting in a new title number being issued. The use of “transfer” is based on the definition of “transfer” in the Land Title Act, being a conveyance, a grant and an assignment.
Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.
If a property sale is completed after the declaration period has opened, who is responsible for making a property status declaration?
Property status declarations are to be made by the seller prior to the transfer of the property.
The City is working with the real estate industry on a standard set of conveyancing forms and practices to deal with the Empty Homes Tax and this information will be updated as soon as it is available. At this point, buyers should consider requesting the following to be included into the Contract of Purchase and Sale terms:
- That the seller of the property provide a copy of the completed and filed property status declaration;
- That the seller provide a statutory declaration at closing confirming the filed property status declaration is true and correct;
- An express representation and warranty confirming that the property has not been vacant (as defined by the Vacancy Tax Bylaw) for more than six months during the current or prior year;
- Providing that the City has not yet determined if a property is subject to the tax or not, provide for a holdback of the potential tax pending the City’s determination;
- Where the property is clearly subject to the Vacancy Tax, provide that an adjustment be carried out by the Buyer’s conveyancer and the Vacancy Tax will be borne solely by the seller.
What if a property is sold and the previous owner did not make a property status declaration?
If the legal ownership of the property transferred prior to December 31 and the City has issued an access code to the current owner, the current owner can make a property status declaration for a transfer of property and can claim the title transfer exemption.
Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.
If the property is selected for audit, the City may request evidence including a title search proving that a new title number was issued and legal ownership of the property changed during the vacancy reference period.
If the legal ownership of the property transferred after January 1 of the following year, the current owner may have difficulty making a property status declaration because they were not responsible for occupying the property for at least six months of the vacancy reference period nor did the ownership of the property change during that period.
If the seller does not make a property status declaration, it is recommended that the buyer submits the declaration on behalf of the seller and requests a statutory declaration from the seller at closing that confirms the status of the property is true and correct.
If no property status declaration is made, the property will be deemed vacant and subject to the tax. The current owner will be held responsible for the payment of the Vacancy Tax as the tax is attached to the property account.
If the City has not yet determined if a property is subject to the tax, it is recommended that the contract provide for a holdback of the potential tax pending the City’s determination, or where the property is clearly subject to the tax, provide that an adjustment be carried out by the buyer’s conveyancer and the Vacancy Tax will be borne solely by the seller.
What is meant when a status is either “deemed”, “declared”, or “determined”?
A property is deemed vacant when an owner fails to make a property status declaration. A property status is declared per each property status declaration. A property status is determined to be either taxable or not taxable by the Collector of Taxes on a review of the property status declaration or through the audit process. A determination can also be made by the Vacancy Tax Review Officer on review of a notice of complaint, or the Vacancy Tax Review Panel, in considering a review request.