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
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels will take the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
BREAKING Sheldon Keefe out as head coach of Toronto Maple Leafs
The Toronto Maple Leafs have fired head coach Sheldon Keefe. The team made the announcement Thursday after the Original Six franchise lost to the Boston Bruins in seven games in the first round of the Stanley Cup playoffs.
Bank of Canada says financial system is stable, but risks remain
The Bank of Canada says the Canadian financial system is stable, but risks remain due to debt servicing costs among households and businesses and stretched valuations of financial assets.
Why these immigrants to Canada say they're thinking about leaving, or have already moved on
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
Torchbearers in Marseille kick off the Olympic flame's journey across France
Torchbearers carried the Olympic flame through the streets of France's southern port city of Marseille on Thursday, a day after it arrived on a majestic three-mast ship for a welcoming ceremony.
Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Court to hear about search for remains as Winnipeg murder trial enters second day
A courtroom in Winnipeg is expected to hear testimony today about the search for the remains of the four victims of Jeremy Skibicki.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.