Homeowners to receive vacant unit tax info this week ahead of first declaration season

A vacant building in Ottawa. (Shaun Vardon/CTV News Ottawa)

Homeowners in Ottawa will be getting notices this week to declare whether any of the properties they own are vacant.

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.

City staff estimate 330,000 residential property owners would need to declare their vacancy status annually.

Declaration letters and emails are going out this week with information on how to file the required occupancy status declaration for the 2022 calendar year.

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.

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

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.