February 02, 2023
Real Estate News
RYPM
The City of Toronto jump-started the year with a new Vacant
Home Tax, under which an annual tax will be levied on residences unoccupied for
more than six months of the taxation year. Residential property owners began
receiving City-issued Vacant Home Tax Property Status Declaration forms late
last year, directing them to file occupancy status with the City by February 2,
2023.
And now that time has come. All property owners must declare
the occupancy status of their properties by today, or risk facing a hefty fine.
The City has specified that late declarations could be
subject to a fine of $250. Making a false declaration could result in a fine as
high as $10,000.
The declaration must be made by either the property owner or
someone acting on behalf of the property owner, and the fastest way to do so is
through the City’s online declaration portal.
All declarations require the property owner’s 21-digit
assessment roll number and customer number from a tax bill or property tax
account statement. For housing providers specifically, the declaration requires
information about tenants and/or permitted occupants.
Failure to make a declaration will result in the property
being considered vacant, and therefore, subject to the tax. Those deemed
subject to the tax will be issued a Vacant Home Tax Notice in March or April,
and the payment will be due on May 1.
Homeowners will have the opportunity to appeal the City’s
decision, however. Doing so will require filing a Notice of Complaint through
the City’s online portal — but it must be received on or before the 10th
business day of April in the year following the date on which the tax itself was
due.
Homeowners should also be aware that any information
submitted in the declaration could be subject to an audit on a random or
specific criteria basis, at which time additional information may be required
to substantiate an occupancy claim.
More information on the Vacant Home Tax, including how to declare occupancy status and any exemptions to the tax, can be found on the City of Toronto’s website.
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