VACANT UNIT TAX

• By David Buckingham
• Posted Monday, Jul 24, 2023 12:55 pm

VACANT UNIT TAX

The City is instituting a vacant unit tax as one of the measures to address the City’s housing crisis. By creating a disincentive to have units remain vacant, the City aims to bring more housing online for those who need it. The City will be charging an additional one per cent tax on any home vacant for more than 183 days in a year, and that revenue generated from the tax can be re-invested into City programs.

The City has numerous other tools and programs to help make more housing available, including investments in affordable housing units, support for non-profit housing providers, rent subsidy programs, and investments in homelessness outreach and emergency shelters. Hamilton joins the cities of Vancouver, Toronto and Ottawa to implement a vacant unit tax.

The Vacant Unit Tax (VUT) is an annual tax payable by the owner of an eligible property that has been vacant for more than 183 days in the previous calendar year. All owners of eligible properties must submit an annual mandatory declaration on the status of their property. If a mandatory declaration is not submitted the property will be considered vacant and VUT will be charged.

A principal residence will not be subject to the VUT but it is still required to submit a mandatory declaration.

A residential unit may be considered vacant by the City and subject to the tax if the owner:

• failed to make a mandatory declaration by the prescribed deadline;
• made a false mandatory declaration;
• failed to provide information or to submit any evidence required by the City;
• provides false information or submits false evidence to the City; or
• if at least one unit within the eligible property is unoccupied.

The VUT will be added to the tax roll and collected in the same manner as property taxes....[READ MORE]