Here's what you need to know about the vacant unit tax letter from the city of Ottawa
A letter from the city of Ottawa arrived in tens of thousands of mailboxes this week, asking homeowners to declare whether any of their properties are vacant.
It is all part of the new city of Ottawa's vacant unit tax, designed to discourage homeowners with multiple properties from leaving them vacant.
"We have thousands of units across the city that are vacant, that could be used for housing," Coun. Jeff Leiper tells CTV News Ottawa.
"We need those houses to be in the city’s rental stock, we need people to be able to live in those houses. The city of Ottawa has declared a housing crisis - we know that we need more supply."
Ottawa city council voted in March to impose a 1 per cent tax on vacant units in the city starting in 2023. Property owners will be required to submit annual declarations indicating the occupancy status of every home they own. Any property that has been vacant for more than 184 days in each calendar year will be taxed an extra 1 per cent.
Declarations must be filed between January and March 16, 2023. Property owners must provide some basic information on the occupancy of their property, including if it is their principal residence.
"I think it’s putting the burden on homeowners," says Hintonburg resident Jeanna Chan, who lives next door to a vacant home. "I do see a value in a vacant unit tax for sure. I mean, as you can see, just on our block alone we’ve got four vacant houses."
Cheryl Parrott, who is chair of the security committee with the Hintonburg Community Association, has lived in Hintonburg for 42 years, where there are several vacant homes.
"And some of these buildings have been empty and boarded for years as development slowly progresses, or the time becomes right for development."
In 2020, Parrott and the Hintonburg Community Association brought forward the idea of a vacancy tax to council, when the Tom Brown Arena opened as a Respite Centre.
"It just struck us as neighbours all the empty boarded up buildings that we have within one block of Tom Brown Arena - where you’ve got homeless people going, and some of these buildings have been empty and boarded for years."
There are exceptions to ensure homes are not taxed unfairly. The vacant unit tax does not apply to primary residences. Other exemptions include:
- Death of a registered owner
- Property owner was in a hospital or long-term care facility
- Arm’s length sale of the property
- Specific court orders prohibiting occupancy, sale, or rental of the property
- Extended renovations or construction
- Was used as a cottage rental with a valid permit for at least 100 days
City staff estimate 330,000 residential property owners would need to declare their vacancy status annually.
Declaration letters and emails will be sent out with information on how to file the required occupancy status declaration for the 2022 calendar year.
The city says vacant unit tax revenues will help fund affordable housing initiatives. City staff estimate the tax could raise approximately $25 million over five years. The tax is also meant to encourage occupancy in empty buildings to increase available housing stock.
For more information, visit ottawa.ca.
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.