It’s that time of year again.
It’s time to declare the status of your residential properties.
If you’re catching up, beginning last year the City of Toronto required all residential property owners to make an annual declaration on the status of their properties.
This year the deadline is February 29th. You can declare the status of your properties by visiting the City of Toronto website and filling out the forms in the secure online portal. Failure to file on time may result in a $250 fine. And if you make a false filing, you could face a penalty of up to $10K, plus applicable taxes.
Why Was it Instituted?
The tax was created as a method to increase the housing supply by deterring owners from leaving residential housing unoccupied. If homeowners choose to leave any properties without any residents, they are subject to this tax.
Where Does the Money Go?
Revenue from the collection of this tax goes to affordable housing initiatives. This includes programs such as the Multi-Unit Residential Acquisition Program (MURA).
How Much is the Tax?
For 2022 and 2023, the tax is 1% of the Current Value Assessment (CVA) of the vacant property. For 2024, that tax increases to 3%. Note that the CVA and occupancy apply to the previous year. So, in 2024, the value and occupancy of 2023 are applied, payable in 2024.
Exemptions
There are classifications and exemptions, so be certain that you are aware of your requirements as a property owner. For example, if one of your properties is left vacant for six months or longer, you will need an exemption. Without it, you are subject to the Vacant Home Tax.
For this particular case, an exemption can be obtained if any of the following conditions exist:
- Death (proven with certificate).
- You are an owner in care (with a signed letter from a healthcare facility).
- If you 100% sell a property to a third party (land deed transfer needed).
- Employment purposes (employer letter needed).
- A court ruling that prevents occupancy (court order given).
- Renovations and repairs that make the home uninhabitable (The City Chief Building Officer must sign off).
- This assumes that permits are issued promptly.
You do not have to declare and submit the status of your property if:
- A property assessment hasn’t yet been completed.
- Your property is classified as commercial, industrial, or multi-residential
- MPAC has been categorized as a parking space, vacant land, or a condominium locker
Do you have further questions about this tax or other real estate concerns? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
