Toronto residents, it’s time to take notice. As of January 1st, 2023, the City of Toronto will implement the Vacant Home Tax for vacant properties for more than 6 months during the previous year.
Homeowners are required to declare the status of their property by February 2nd, 2023, whether the property is vacant or not, and can be done either online or by mail. But the deadline has now been extended to February 28th.
The tax, one percent of the home’s current value assessment (CVA), will be charged to all eligible properties in 2023.
A tax notice will arrive in the mail in March or April, with payment due on May 1st. Exceptions to the tax include cases of death of the owner, repairs/renovations, residency in a care facility, full-time employment outside the GTA, transfer of legal ownership, or court order.
Vacant Home Tax Penalties for non-compliance range from $250 to $10,000
The City may conduct audits to verify compliance, and a Notice of Complaint process is available for owners who disagree with their assessment.
When making a declaration, homeowners must provide their 21-digit assessment roll number and customer number from their property tax bill or property tax account statement. You can find the required documents for the tax exemptions on the City of Toronto’s website.
In the case of an audit, owners may be required to submit information or documentation about tenants or permitted occupants to confirm occupancy during the taxation period. The new tax will form a lien on the property, and any unpaid taxes will become the responsibility of the property’s future purchaser.
If a closing occurs between January 1st and February 2nd, the vendor must complete the declaration before the closing. If the closing occurs after February 3rd to December 31st, the purchaser must submit a declaration in the following year. Vendors should provide the purchaser a copy of the statutory declaration at closing and the completed and filed property status declaration.
It’s important for all Toronto homeowners to be aware of the new Vacant Home Tax and declare their property’s status by February 2nd, 2023. Failure to do so could result in penalties and fines.
Has the city gone too far with this new tax? Let us know in the comments below.
