What is Vacant Tax?
People with vacant homes in Toronto could be hit with new tax to help cool the housing market.
The city council's executive committee approved a tax design and implementation plan on vacant Toronto homes starting in 2022.
If approved by city council, a bylaw supporting the tax would come into effect on January 1, 2022, and that date would also become the state of the first tax reference year.
According to the city, the initial tax rate being recommended is 1% of the property's CVA for the year in which the home is vacant.
The tax would become payable for the first time in early 2023, and a home is considered vacant if it has been unoccupied for more than six months during the previous calendar year.
As part of the tax design, property owners will be required to declare the status of their residential home each year, also certain properties may be selected for audit on a random or specific criteria basis.
So if you have a property in Toronto that is vacant, let's get it up for lease soon so you won't have to pay that vacant tax!
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