People with vacant homes in Toronto could be hit with new tax to help cool housing market
People with a vacant home in Toronto could be hit with a new tax designed to help cool the housing market.
On Tuesday, city council's executive committee approved a tax design and implementation plan on vacant Toronto homes starting in 2022.
"The goal of the tax is to change the behaviours of vacant home homeowners, encouraging them to sell or rent out the homes, thereby increasing the housing supply," the city said in a news release.
If approved by city council, a bylaw supporting the tax would come into effect on January 1, 2022, and that date would also become the start of the first tax reference year.
According to the city, the initial tax rate being recommended is one per cent of the property's current value assessment (CVA) for the year in which the home is vacant.
The city said they don’t know how many homes in Toronto are currently vacant, but using Vancouver’s tax metrics, the new law could bring in $55 to $66 million per year.
The tax reference year is the year that determines whether the tax is payable, the city says. The tax would become payable for the first time in early 2023, based on the occupancy status during the prior reference year.
The city said a home is considered vacant if it has been unoccupied for more than six months during the previous calendar year.
Some exemptions to this include death of the owner, the homeowner is under medical care, or the home is undergoing renovation.
As part of the tax design, property owners will be required to declare the status of their residential home each year.
Certain properties may be selected for audit on a random or specific criteria basis, the city says.
If approved, a final report and bylaw will be prepared for council’s review by the end of 2021.
"A vacant home tax will result in a much needed increase to Toronto's housing supply, so I’m happy to see it approved today," Mayor John Tory said in a news release. "We simply can't afford to have housing for thousands of homes sitting empty."
CTVNews.ca Top Stories
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
AstraZeneca says it will withdraw COVID-19 vaccine globally as demand dips
AstraZeneca said on Tuesday it had initiated the worldwide withdrawal of its COVID-19 vaccine due to a 'surplus of available updated vaccines' since the pandemic.
'Summer of discontent': Federal unions vow to fight new 3-day a week office mandate
Federal unions are launching legal challenges and encouraging public sector workers to file "tens of thousands" of grievances over the new mandate requiring federal workers to return to the office at least three days a week in the fall.
Toronto police seek suspect vehicle after security guard shot outside Drake's mansion
Toronto police are seeking help from the public as they continue to investigate a shooting that seriously injured a security guard outside rapper Drake's mansion.
'Ozempic babies': Reports of surprise pregnancies raise new questions about weight loss drugs
Numerous women have shared stories of 'Ozempic babies' on social media. But the joy some experience in discovering pregnancies may come with anxiety about the unknowns.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
Seafood, eat food: Calgary Stampede releases Midway menu
The Calgary Stampede has released its menu of sweet, salty and spicy treats available on the Midway for the Greatest Outdoor Show on Earth.
Boy Scouts of America is rebranding. Here's why they've changed their name
After more than a century, Boy Scouts of America is rebranding as Scouting America, another major shakeup for an organization that once proudly resisted change.