Rally for the Mansion Tax

Jean Swanson presents Chip Wilson with new Mansion Tax assessment

Today, Jean Swanson, independent City Council candidate in Vancouver’s by-election, joined
dozens of supporters outside Lululemon’s Chip Wilson’s estate to call for a Mansion Tax for
homes worth over $5 million.

Both the provincial and federal government have the power to tax income and the tax rates are
often set progressively so that those with higher incomes are taxed at a higher rate. The City
has the power to tax property, but it has always been a flat tax rate rather than a progressive
property tax.

“Chip Wilson pays the same tax rate of 0.26% for his $75 million home as does a family with a
$750 thousand home,” says Swanson. “That’s outrageous. Vancouver needs to tax the rich with
a Mansion Tax now.”

Swanson is calling for two new tax brackets. There will be an extra 1% tax on the value between
$5- and $10-million, and a 2% tax on the value over $10 million. Swanson identified 420
one/two-family homes worth over $10 million, which will bring in $112,000,000 in revenues
every year. There are an additional 4,532 one/two/multi-family properties worth $5-$10 million,
which will bring in an additional $62,000,000 annually.

“With the Mansion Tax, Vancouver will take in an extra $174 million mansion tax each year”
says Swanson. “The money to make this a truly liveable city for the majority of residents is
there.”

Those with homes valued under $5 million will not be affected, according to Swanson. The
Mansion Tax is progressive and does not affect the first $5 million of any property, homes
valued slightly over $5 million will not see significant increases either, she says.

Swanson intends to direct the Mansion Tax toward three initiatives.

First, she’ll immediately work to build 2,138 modular homes, one for each homeless person
counted in Vancouver. Each modular home costs only $75,000 so ending homelessness will
cost $160 million - less than one year of Mansion Tax revenues. “It actually saves $23,000 a
year to house a homeless person instead of keeping them on the street, so the units could pay
for themselves in less than four years,” says Swanson.

Second, the Mansion Tax will be used to help build social and cooperative housing to meet the
need of 18,000 Vancouverites currently spending over 50% of their income on rent. This will
cost about $360 million per year. The Mansion Tax alone will cover about half this cost. The City
reserves another $70 million per year for affordable housing with Community Amenity
Contributions (CACs) and Development Cost Levies (DCLs). Swanson will also push higher
levels of government to match the City’s efforts.

Third, a key part of Swanson’s plan will be to put substance into reconciliation. “ Tomorrow is the
reconciliation walk,” says Swanson. “We can use some of the money to put teeth in
reconciliation, for housing and land for indigenous people. For example, with this policy the
threat of condo desecration at the Musqueam midden could have been stopped right away and
the City could buy the land and return it to its rightful owners.”