Toronto vacant house tax returns are due at the end of February

Toronto's vacant home tax is in its second year and the deadline for homeowners to declare their property's occupancy status is fast approaching. Homes that are vacant for more than six months in a calendar year are considered vacant and subject to a tax that has increased from 1% in 2022 to 3% in 2023.

According to City of Toronto regulations, homeowners have until Thursday, February 29, to declare the 2023 occupancy status of their residences and are encouraged to submit their declarations through the city's online portal.

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The purpose of the vacant house tax is to free up the city's housing supply by discouraging homeowners from becoming homeless. All proceeds from the tax go toward affordable housing initiatives.

Declaration of residence status:

Residential owners in Toronto are now required to declare their occupancy status annually and the declaration must be made by the property owner or someone acting on behalf of the property owner. The quickest way to file a return is through the city's online declaration portal as mentioned above, however this year the city is offering several drop-in sessions for property owners who want help filing their returns. When and where these sessions are held can be found here.

All returns require the property owner's 21 digit assessment roll number and customer number from the tax bill or property tax bill statement. For housing providers, the declaration requires information about tenants and/or permitted residents.

Homeowners should also note that any information provided in the declaration may be subject to an audit based on random or specific criteria, in which case additional information may be required to substantiate a housing claim.

Late or false statements:

Starting January 1, 2024, a fee of $21.24 will be charged to those who do not submit a declaration of residency status by the deadline. Fines can be as high as $250 for non-existent declarations and up to $10,000 for false declarations.

In addition, if the declaration is not submitted within the prescribed period, the property is considered vacant and vacant house tax is imposed. The tax is based on the property's occupancy status in the previous year, so if a home is declared vacant in 2023, the tax will be due in 2024 and added to the property's tax bill.

Exemption from vacant house tax:

It should be noted that there are several exemptions for the vacant house tax:

• In case of death of the main owner of the property;
• If repairs or renovations are made to the property that interfere with its use and normal use, all necessary permits for the repairs and renovations have been obtained and the city's chief building official agrees that the repairs or renovations are being unnecessarily actively carried out. delay;
• If the principal owner of the property is in hospital or in long-term or assisted living;
• In case of change of legal ownership, except for name change, addition of second owner and removal of second owner;
• If the property is vacant for employment;
• In the event of a court decision prohibiting residence.

Exemption applicants must provide supporting documentation that varies depending on the nature of the exemption.

Paying or disputing vacant house tax:

Vacant taxable properties, including those for which a return has not been filed, will receive a notice of assessment by mail in late March. At that time, property owners have the option to file a Notice of Appeal to reconsider the decision. The complaint can be submitted through the city's online portal from the beginning of April.

For those who do not appeal their notice of assessment, vacant house tax payments will be made in three equal installments on May 15, June 17 and July 15, 2024. The fastest way to pay is online through MyToronto Pay or your financial institution's online banking portal. .

If taxes or charges are not paid on late payments, interest will be charged at the rate of 1.25% on the first day of default and on the first day of each month thereafter.

More information on the vacant house tax can be found at the City of Toronto website.