Owners of vacant homes in Ottawa could soon face a new tax
The city of Ottawa's finance and economic development committee has approved a tax on homes that are vacant for at least half of the year.
The vacant unit tax has been in the works since last year, when council approved a framework for the fee. The plan is to impose a one per cent tax on vacant properties.
"Beginning in 2023, property owners assessed in the residential tax class will be required to declare annually if their property was vacant for over 184 days in the prior year (2022)," a report prepared for FEDCo said. The extra tax would come out to one per cent of the property's MPAC assessment value.
The move is meant to increase housing stock in the city, rather than be a revenue generator, but city staff say it could still bring in approximately $25 million over five years, which would go toward affordable housing.
Staff estimate 330,000 residential property owners would need to declare their vacancy status annually. The tax would be billed on the final property tax bill in May, with a due date in June.
The program must still be approved by city council before coming into effect.
"Once approved, staff will engage the Province to request that Ottawa be designated as a municipality in Ontario that can levy the Vacant Unit Tax. Once the required provincial designation is in place, staff will place the final by-law on Council's agenda for approval," the report states.
If approved, the first vacancy declaration period would open on Jan. 1, 2023, for the 2022 reference year. Residents who have not declared their vacancy status by the end of April will automatically be deemed vacant, and the tax will apply.
There will be several exceptions to ensure homes are not taxed unfairly. Principal among these is that the vacant unit tax does not apply to primary residences. Exemptions would also be available for owners in care, death of an owner, significant renovations, sale of the property, court order, and cottage rentals in rural areas.
CTVNews.ca Top Stories
BREAKING Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.