City of Ottawa opening 2023 vacant unit tax declarations early

A tablet showing the vacant unit tax declaration page on the city of Ottawa's website. (Leah Larocque/CTV News Ottawa)

Residents of Ottawa who want to get their vacant unit tax declarations out of the way before the new year will be able to do so as of today.

The City of Ottawa says it plans to open the declaration portal by the end of the day Thursday, just over two weeks before the formal declaration period begins in the new year. An exact time for the portal's opening has not been specified. It will also be made available through your MyServiceOttawa account.

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The deadline to declare that a home you own is occupied, vacant, or exempt is March 21, 2024. Unlike the first year of the tax, a late fee of $250 will apply to anyone who declares after the deadline. Late declarations are allowed until April 30. If no declaration is received by April 30, your home will be deemed vacant and you will be charged an additional 1 per cent of your home's assessed value on your property tax bill.

The City said about 4 per cent of eligible homeowners did not submit by the March deadline this year, but late fees were waived. More than 3,200 homes were declared vacant in the 2022 tax year, while the city deemed another 2,800 vacant because no declaration was received. More than 1,900 notices of complaint were filed in response to the tax and more than 1,500 properties were audited. There are approximately 330,000 homeowners in Ottawa who must declare their homes' occupancy status each year.

Under the tax, a home is considered vacant if it is unoccupied for at least 184 days in a calendar year.

Some user friendliness changes have been made to the online declaration form this year, staff said, including changing the order of some questions to reduce errors, eliminating drop-down menus, making the questions easier to understand and improving integration with MyServiceOttawa.

In August, city council directed staff to make improvements to the process in 2024. An attempt to eliminate the tax failed a council vote.

In the new year, the City also plans to allow residents to declare in-person at client service centres. Notices reminding residents to declare will be distributed in January, and the city will roll out videos promoting the purpose and benefits of the tax.

Council implemented the VUT in 2022 to encourage homeowners to occupy or rent their properties to address the affordable housing crisis. Revenue from the tax goes into the city's funds for more affordable housing.