The city of Toronto starts taxing vacant homes

The city of Toronto City Council approved the implementation of a vacant home tax.

A bylaw supporting this tax becomes into effect on Saturday, January 1, 2022. 

 

Here’s how it works:

• All property owners will be required to self-declare the status of their residential home each year. This will determine the home’s occupancy status and whether the vacant home tax is payable. Nothing further is required of property owners living in their own homes.
• If a property owner declares their home vacant, they will be required to pay a tax at one per cent of their home’s Current Assessed Value (CVA).
• The tax is based on the property status from the year before – meaning if the home is vacant in 2022, the tax will become payable in 2023.

 

A unit is considered vacant if it has been unoccupied for more than six months during the previous calendar year, and the unit is not the owner's principal residence, or it is deemed vacant under the by-law. 

 

Some exemptions may include homes undergoing renovation, rental restriction or prohibition that prevents the unit from being occupied, and if the homeowner is in medical care or passes away. 

 

A final report and tax bylaw outlining audits process, fees and penalties will be prepared for Council’s review by the end of 2021.

Times

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