As a Toronto homeowner, you must be aware that the Vacant Home Tax (VHT) is now in effect and all residential property owners are required to report on their occupancy status annually – even if they live there. It’s essential to get this done by February 2nd so make sure it’s marked on your calendar!
The Vacant Homes Tax (VHT) seeks to motivate property owners to make their properties available for purchase or rent, thus encouraging the growth of housing in Toronto. But what do we consider a “vacant” property? The City of Toronto states that if it was unutilized as a primary residence by any owner(s) or permitted tenants during the previous year and remained empty for six months total within that time frame, then such land is considered vacant. Moreover, when an owner fails to declare occupancy status related to such premises, they can be deemed ‘vacant’.
The Vacant Home Tax is a fee of one percent based on the Current Value Assessment (CVA) of your property. For instance, if the CVA is assessed at $1,000,000 then you will owe an amount of $10,000 ($1% x $1M). It’s crucial to remember that this tax amounts are calculated for last years occupancy status- so if it was vacant in 2022 by 2023 you’ll have to pay up.
Are you wondering how to declare the status of your property? It’s quite straightforward. All that is required for this process are two numbers – a 21-digit assessment roll number and customer number, both found on your property tax bill or account statement. Declaring occupancy status must be done through the City’s secure online declaration portal.
All residential property owners in Toronto must now be mindful of the Vacant Home Tax. Don’t forget to declare your occupancy status annually; you can do this via the City’s secure online declaration portal, with a deadline of February 2nd! Remember to take note on your calendar-the tax is calculated at one percent of the Current Value Assessment for each property.
How Can I Avoid Paying Vacancy Tax?
Property owners can escape the vacancy tax if they allow themselves or a tenant to occupy the property for at least six months of every year.
Are you able to submit a Notice of Complaint?
If you’re unhappy with your Vacancy Tax Notice or Supplementary Assessment, take action and submit a Notice of Complaint within 10 business days of April for the Vacancy Tax Notice or 90 days after receiving the Supplementary Notice. Don’t let this opportunity to dispute your assessment pass by; make sure to act quickly!
Is Toronto Imposing a Tax on Unoccupied Properties?
The Toronto City Council is requiring 1% to be charged on all vacant or underused residences in the city. Homeowners must adhere to the Ontario housing tax regulations when declaring any empty homes they own within Toronto.
Have you been wondering what the difference is between an Empty Home Tax and a Speculation Tax? Let’s take a closer look at how these two taxes differ from one another.
Empty home taxes are levied by either the federal or provincial government and speculation tax is imposed at a municipal level. Both of these taxes have been designed to ensure that vacant properties remain occupied for an appropriate period throughout each year.