New study says high-priced Vancouer homes aren’t paying their fair share in taxes

Good morning,

No you weren’t imaging it, there was something weird with Friday’s newsletter. And no it wasn’t a secret code to crack. Sometimes online systems fail! I’ve been told it won’t happen again but you never know with technology.

Today’s newsletter breaks down some new findings on property taxes, an update on Vanouver’s restaurant patio program and some events happening this week.

Let’s get at it.

- Geoff Sharpe

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Weather Report

Monday: 3 🌡️ 1 | 🌦

Tuesday: 4 🌡️ 2 | ⛅

Wednesday: 6 🌡️ 4 | 🌧

WEEKLY LOOKOUT

SRO fire funding: A recent spate of fires in SROs has the city considering a proposal this week to fund $110,000 towards a pilot project to help reduce the number of structural fires. [CTV]

Tech city: Council will meet tomorrow to discuss a number of motions, one of which is to ask staff to look at creating tech hubs and clusters on industrial land or other areas. A breakdown of what it means can be found here from Urbanized.

TAXES

New study says high-priced Vancouver homes aren’t paying their fair share in taxes

You’d expect bigger, more expensive homes would pay more as a percentage in taxes right? Well, you’d be wrong according to a new study by UBC.

What’s happening: Canada’s tax system is progressive, meaning taxes rise along with someone’s wealth. But this is not the case for housing in Vancouver, where higher value homes pay progressively less in property taxes than more affordable ones. Or at least, affordable in Vancouver…

The numbers: If you aren’t a homeowner, or own a less expensive home, get ready to be angry:

• The top five percent of home values, with an average home price of $3.7 million, pay on average 0.42 percent of the home’s value.

• By contrast, a home worth $984,000 pays 1.35 percent of the home’s value in taxes.

Before thinking this is a Canada-wide issue, the authors point out Toronto home prices don’t follow the same pattern. The top five percent of home values at $1.8 million pay 1.69 percent in property taxes. That’s a difference of 1.27 percent.

The reason: The study says “most luxury homes in Greater Vancouver appear to be purchased with wealth derived from sources other than earnings taxed in Canada.” In other words, Canadian income is not a good barometer of taxation.

How to fix it: One solution the study’s co-author suggests is a minimum income tax based on property value, with his suggestion of one percent of the property value. The tax would be relatively small compared to the owner’s wealth and could generate $750 million. That number is based on just one-half of the top five percent of properties.

Analysis: Housing continues to be a differentiator in who has wealth in Canada. A report by TD last year showed the average wealth of homeowners born between 1955 and 1964 is $1.4 million, more than six times as much as non-home owners. Average homeowners and non-home owners alike should be concerned that a certain population segment isn't paying their fair share.

VANCOUVER NUMBERS

$230 million: The amount of tax that’s expected to be generated over the next seven years from a 2.5 percent tax increase on short-term accommodations. The funding will help pay for the FIFA World Cup in 2026. [Global News]

3,634: The number of people experiencing homelessness in the last Metro Vancouver Homeless Count in 2020. The number is expected to rise during this year’s count. While not exact, the count provides a 24-hour snapshot of homelessness, but may miss out on other less visible groups. This year’s count will happen on March 8. [CTV]

33,654: The number of 911 overdose calls last year in BC, down five percent from the previous year. This is the first time the number has gone down. Vancouver fell by 22 percent, while Victoria, Kelowna and Abbotsford increased by four, 15 and 20 percent respectively. [CTV]

BUSINESS

The good and bad of Vancouver’s patio expansion

What’s happening: On Feb. 14, residents will have the opportunity to provide feedback on Vancouver’s patio expansion program before it goes into effect, according to the Vancouver Sun.

Background: Remember summer life without all those patios? Neither do we. Brought in during the COVID pandemic in 2020 to encourage safe restaurant visits, the program proved incredibly popular, and helped keep many businesses open.

In a predictable bureaucratic nightmare, proposals were made by the city in 2022 to change the program, which created unnecessary headaches for business owners, including requiring architectural drawings that would’ve cost businesses $5,000 for a six-square meter space according to CityNews.

• These were eventually scrapped after strong criticism from the business community.

Not all rosy: Widely acknowledged as a net positive for vibrant city life, patios do pose accessibility issues for people with wheelchairs, according to a report by the city, as reported by the Vancouver Sun. Privatization of public spaces was also a concern.

Thought bubble: Having lived in Toronto for a number of years, patios are a significant part of what made the city so much fun in the summer. It took Vancouver a while to get here, but there’s no going back. With Mayor Ken Sim’s promise that an ABC team would triple the number of parks that allow drinking, according to CityNews, the city of no fun might be slowly shedding that label.

• Listicles aren’t normally our thing, but if you own a dog like myself, this list will be very popular in the summer.

NEW JOBS

Find your new dream job in Vancouver:

• President and CEO at Business Council of British Columbia

• Lead lifecycle marketing manager at Course Hero

• Director, digital product management at Summit Search Group

• Senior manager, corporate development at Dropbox

• Senior employee relations advisor at ICBC

QUICK HITS

🚓 The Vancouver General Hospital psychiatrist explained the reason they didn’t keep Const. Nicole Chan, who committed suicide after being released from the hospital, was because they believed her mental health episode had passed. [Vancouver is Awesome]

🏒 Tough news for the Canucks. Forward Ilya Mikheyev will undergo season-ending knee surgery a month after his injury. [CTV]

🚌 A five-foot pole was thrown at a TransLink bus. No one was injured. Police are investigating a similar incident, but it’s unclear if they’re related. [Vancouver Sun]

👮 A mother is raising concern after her 12-year-old boy was handcuffed and pinned to the floor by police at a Vancouver hospital, after an incident of violence on the Skytrain. The police say it was necessary after the child became violent. [CBC]

🏢 Two large tower proposals could see hundreds of much-needed new rental units in the West End. The locations are at 1065 Pacific St. and 1055 Harwood St. [CTV]

👷 Lululemon, BC Hydro and the Keg were some of the Metro Vancouver businesses that topped the list of Canada’s top employers. There were a total of 22 that made the list. [Daily Hive]

🛑 The Dr. Sun Yat-Sen monument in Chinatown was recently vandalized with graffiti. [CityNews

COMMUNITY HIGHLIGHTS

• Our food editor Jamie shares his latest recommendation on where to dine. The restaurant offers a unique approach to sharing plates you’ll want to try.

• Yellowjackets, The Flash and many other TV shows are slated to film in Vancouver this year. [Vancouver is Awesome]

• Ever wondered what’s the big deal with meal kits and meal prep? We interviewed a local meal prep founder to learn more about the phenomenon.

• A Reddit user discovered some tools this morning in Gastown. If you’re missing them, reach out. [Reddit]

• Check out this cool open-source map that tracks current and past bars, nightclubs and other art venues. [CBC]

• Dine Out is happening right now and our food editor has some suggestions to make it better, and some places to check out.

• If you’re looking for a cheap flight to the Philippines from Vancouver, you’ll like this deal. [Vancouver is Awesome]

• Want to promote your business or organization for free in the newsletter? Reply to this email with your announcement.

PHOTO OF THE DAY

Reddit user RupertTheReign posted this photo, dubbed the Cambie Climb. It might not be the Grouse Grind, but just like the Grind, people are likely climbing it Crocs.

GAME TIME

Congrats to everyone who got Friday’s Wordle. The answer was CUPS, as in the $0.25 cup fee that the city is ending this summer.

Today’s quiz question - when did the city bring in the restaurant patio program? Reply with the answer and your name.