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April 21, 2023
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Published by: Geoff Smith April 21, 2023
Vacant Home Tax (VHT)
A vacant homes tax is an additional tax on unoccupied homes. It could encourage owners to sell or rent them out, helping to increase the number of homes available in Halton. This type of tax is commonly implemented in communities with high housing prices and a low supply of homes for sale or rent. A property is considered vacant if it was not used as the principal residence by the owner(s) or any permitted occupant(s), or was not occupied by tenants for a total of six months or more during the previous calendar year. Properties may also be deemed (or considered to be) vacant if an owner fails to make a declaration of occupancy status as outlined in the bylaw.
In Halton, Niagara at this time the tax is still in the proposal stages but in Toronto it came into effect this year 2023 and in Hamilton it comes into effect starting in January 2024 and all residential property owners must submit a mandatory occupancy declaration to determine if their property is subject to this tax. If an occupancy declaration is not submitted the property will be considered vacant and the tax will be levied.
Principal residences will not be subject to the tax but you are still required to file the declaration annually. The tax rate to be assessed it to be 1% of the property's assessed value so if your home is assessed at $700,000 then an additional $7000 on top of your property tax bill.
Though all homeowners are required to submit a declaration of occupancy status, the tax does not apply to properties that are the principal residence of the owner, properties that are the principal residence of a permitted occupant or tenant or properties that qualify for an exemption.
Revenues collected from the Vacant Home Tax will be allocated towards affordable housing initiatives. The Vacant Home Tax is intended to help create more affordable housing in the city by encouraging owners to rent or sell off vacant spaces. For more info go to: Hamilton.ca/VacantUnitTax.
Key dates for Hamilton: Mid December 2023 – Declarations will be mailed to all homes March 31 2024 – Mandatory Declaration Deadline
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