Latest news with #vacancyTax
CTV News
07-07-2025
- Business
- CTV News
Developers want Alberta government to intervene on Canmore vacancy tax
Mt. Rundle rises behind homes being constructed in Canmore, Alta., in April 2023. An Alberta property developer association wants the province to review Canmore's vacant home tax. (The Canadian Press/Jeff McIntosh) The Building Industry and Land Development (BILD) Alberta Association is asking the Government of Alberta to review Canmore's vacancy tax bylaw , citing concerns about the precedent it would establish, according to the provincial lobbying registry. The Town of Canmore passed a bylaw in August 2024 that divided residential properties into five sub-classes and allows the administration to set different tax rates for primary residences, tourist homes and vacant properties. This is the first time a municipality has used its power to establish a higher tax bracket for vacant homes. In April, a Court of King's Bench judge ruled the bylaw was valid after it was challenged by a group of individuals and real estate management companies. Located about 20 minutes east of Banff National Park, Canmore's housing crisis is very different from other Alberta municipalities, and the administration required an equally unique solution, according to Mayor Sean Krausert. 'Like many mountain destinations before us, our limited footprint combined with global desirability leads to housing prices that are out of reach of the average person, and certainly beyond the means of many people who will need to make a living in the community,' Krausert told the IJF. The town has estimated that about 26 per cent of properties in Canmore are second homes that are not occupied by full-time residents. It's aiming to collect $12 million from these vacant properties through the Livability Tax Program. All revenue from the additional tax will be used to support the development of 2,000 non-market housing units. BILD Alberta is also lobbying the province for 'clearer definitions of municipal taxation authorities' and to consider intervention if a municipality's use of its powers 'deviates from their intended purpose.' Krausert said the province encourages municipalities to address their own respective issues where possible, and that 'given the great need and unique circumstances in Canmore, which will not be satisfied in another manner, I have significant concern with potential intervention by the province on our Livability Tax Program.' BILD Alberta did not respond to a request for comment by the time of publication.
Free Malaysia Today
29-06-2025
- Business
- Free Malaysia Today
Experts call for tax on vacant and unsold homes
More than 22,600 completed houses remained unsold for more than nine months in 2024, according to the national property information centre. PETALING JAYA : Housing experts have called for a vacancy tax to help tackle the rise of vacant and unsold homes and lower property prices by discouraging speculation. They said many 'affordable' housing units are being held empty by owners or investors, making it harder for real buyers to find homes. Research associate K Theebalakshmi said a vacancy tax can prevent speculation and push developers to build homes that meet actual needs, reducing oversupply and supporting more balanced housing development Theebalakshmi, who is with Khazanah Research Institute, said housing prices in Malaysia rose by 5.8% a year between 2010 and 2022, well above the healthy growth range of 3% to 4%. K Theebalakshmi. 'While some fear falling home prices or rents, this kind of market correction (vacancy tax) may be just what we need to make housing more fair and stable,' she told FMT. 'In highly urbanised states where vacancy and overhang rates are high, a vacancy tax would help stop people from holding on to homes for quick profit.' Figures from the statistics department show that nearly 20% of homes in Selangor and Penang were vacant in 2020. More than 53,000 units were unoccupied in Penang, often waiting to be sold or rented out. In Selangor, 343,562 homes were reported vacant, with about 197,065 of them either newly completed or pending occupancy. As of mid-2024, there were 22,642 completed homes that remained unsold for more than nine months, according to the national property information centre. These unsold homes, also known as overhang units, were worth a total of RM14.24 billion. Theebalakshmi noted that countries like Canada, Australia and Singapore have vacancy or higher property taxes on empty or non-owner-occupied homes, ranging from 1% to 3% of the property's value. A 3% tax applies to homes left empty for more than six months in Vancouver, Canada, while a sliding scale is used in Melbourne, Australia, starting at 1% in the first year of vacancy and increasing in later years. In Singapore, higher property tax rates are imposed on non-owner-occupied homes. Azree Othuman Mydin. Azree Othuman Mydin, the dean of Universiti Sains Malaysia's housing, building and planning school, said a vacancy tax would reduce flipping and hoarding, especially for properties in the RM300,000 to RM500,000 range. Azree also proposed raising the real property gains tax for those who sell their units too early, saying this would make quick resale less attractive and help curb flipping. Apart from a ban on renting or leasing affordable units during the minimum tenancy period unless permitted or approved by local authorities, he suggested that buyers who leave affordable units vacant without a valid reason may be prevented from purchasing future government housing units. 'If we want housing to go to those who need it most, we must stop treating homes as trading tools,' he said.
