Condos for sale in toronto under 250k . Toronto vacant housing tax implementation plan. People with vacant homes in Toronto may be subject to a new tax to help cool the housing market.
On Tuesday, the city council’s executive committee approved a tax design and implementation plan for vacant homes in Toronto starting in 2022.
“the purpose of the tax is to change the behavior of owners of vacant houses and encourage them to sell or rent their houses, thereby increasing the supply of housing,” the municipal government said in a press release.
If approved by the city council, the rules supporting the tax will come into effect on January 1, 2022, which will also be the beginning of the first tax reference year.
According to the city, the proposed initial tax rate is 1% of the present value of the property (CVA) in the year in which the house is vacant.
The city government says it doesn’t know how many houses are currently vacant in Toronto, but using Vancouver’s tax targets, the new law could generate 55 million to 66 million yuan a year.
The municipal government said that the tax reference year is the year in which to decide whether to pay taxes or not. The tax will be paid for the first time in early 2023 based on occupancy in the previous reference year.
The city said the house was considered vacant if it had not been occupied for more than six months in the previous calendar year.
Some exemptions in this regard include the death of the owner, the owner is receiving medical care, or the house is being renovated.
As part of the tax design, property owners will be required to declare the status of their homes every year. The city government said that some properties may be selected randomly or according to specific criteria for audit.
If approved, the final report and rules will be ready for parliamentary review by the end of 2021.
Mayor John Tory said in a press release: “the vacancy housing tax will lead to an urgent increase in Toronto’s housing supply, so I am glad to see it approved today.” We simply can’t afford thousands of vacant houses. “