In the last year, the Provincial Government moved forward with a plan to tax properties valued at over $3 million to fund local schools. We think it’s a good start for Vancouver, but we don’t think it’s enough.
OneCity proposes that an additional progressive property tax be allowed by the Provincial Government, with revenues going to the City of Vancouver, to fund city-owned housing. Deferral of payment will be an option for seniors and people with disabilities.
OneCity’s 4 The City Tax will apply to homes valued at over 4 million dollars, which will generate $262 million a year. We will use this revenue to build thousands of guaranteed affordable city-owned homes per year. Residential properties valued at over $4 million will be taxed an additional 1% and residential properties valued at over 8 million will be taxed an additional 2%. We will earmark part of the first year’s revenue to build close to 2,200 modular homes in order to respond to the homelessness crisis.
Together with OneCity’s Land Value Capture Tax, and the already-existing Empty Homes Tax, we'd like to build up to 25,000 guaranteed affordable city-owned units over 5 years and ensure rents are fixed at no more than 30% of tenants’ income in all these newly created City-owned rentals, forever.
In addition, if combined with innovative zoning and/or a rental exemption, such as allowing 4 to 6 unit co-housing strata or affordable rental units within “single-family zones”, our 4 the City tax will create an incentive for high-end single-family homes to be converted or re-built into more affordable units.
ONECITY'S PLAN FOR A 4 THE CITY TAX:
- Call on the Provincial Government to amend the Vancouver Charter, allowing the City to levy a progressive property tax on homes over $4 million to fund publicly owned housing
- Tax houses worth over $4 million and direct the revenue towards building modular and city-owned housing
- Earmark part of the revenue from the first year of implementation to build urgently needed modular housing to respond to the homelessness crisis.