Toronto Extends Deadline for Vacant Home Tax Declarations
Toronto homeowners have received a bit of breathing room when it comes to the city’s Vacant Home Tax (VHT). The original deadline for 2023 occupancy status declarations has been extended to March 15th, 2024. This provides property owners additional time to submit their declarations and helps those who may have missed the earlier deadline.
What is the Vacant Home Tax?
The Vacant Home Tax (VHT) is a measure implemented by the City of Toronto to address the issue of vacant residential properties. Here’s a breakdown of what it is and how it works:
Purpose
The primary goal of the VHT is to increase the supply of available housing in Toronto. By taxing vacant properties, the city aims to discourage owners from leaving homes unoccupied for extended periods and encourage them to either live in their properties, rent them out, or sell them – thus putting the properties to use in the housing market.
How it Works
Owners of residential properties in Toronto are required to submit an annual declaration stating the occupancy status of their property for the previous year. If a home is declared vacant for more than six months in a calendar year, it is subject to the tax.
Tax Rate
The tax rate for 2023 is 1% of the property’s Current Value Assessment (CVA). For instance, if a property has a CVA of $1 million, the VHT would amount to $10,000. In 2024, the tax rate will increase to 3% of the CVA.
Exemptions
There are certain exemptions to the VHT. Properties are not subject to the tax if they are:
- The principal residence of the owner or a permitted occupant
- Occupied by tenants
- Eligible for specific exemptions (e.g., due to renovations, legal issues, owner’s death, etc.). You can find the full list on the City of Toronto website.
Who Needs to File a Declaration for?
All owners of residential properties in the City of Toronto are required to file an annual declaration regarding their property’s occupancy status, regardless of whether the property is vacant or not. This includes:
- Owners of Single-Family Homes: Individuals who own detached, semi-detached, or townhouses.
- Condo Owners: Owners of individual condominium units.
- Owners of Multiple Properties: People who own more than one residential property within Toronto.
- Corporations: If a corporation owns residential property in Toronto, it must also file a declaration.
Why Does Everyone Need to Declare?
The declaration process enables the city to track and identify properties that meet the criteria for the Vacant Home Tax. Here’s why this universal declaration approach is necessary:
- Determining Principal Residences: The only way to determine that a property is someone’s principal residence is by having them declare it.
- Identifying Potential Vacancies: Declarations help identify properties that might be vacant for extended periods. These properties are then subject to further investigation to determine if they meet the VHT criteria.
- Ensuring Fairness: Requiring all property owners to declare ensures fairness and transparency in the application of the tax.
Important Note: Even if you are certain your property is not subject to the VHT (for example, because it’s your primary residence), it’s crucial to file your declaration on time. This indicates compliance and avoids potential penalties for non-filing.
How to File Your Declaration
The City of Toronto offers two primary ways to file your Vacant Home Tax declaration:
1. Online Declaration
- Preferred Method: The city encourages the use of their online portal for its speed and convenience.
- Visit the Website: Navigate to the Vacant Home Tax section of the City of Toronto’s website: https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/
- Create an Account (if needed): If you’ve never filed online before, you might need to create an account on the tax portal.
- Follow the Instructions: The online portal will guide you through the process.
2. Paper Declaration
- Alternative Method: If you prefer or need to submit a physical form, you can get one in a few ways:
- Download and Print: Find it on the City of Toronto’s VHT website.
- Pick Up In-Person: Visit City Hall or a Civic Centre.
- Request by Phone: Call 311 to have a form mailed to you.
- Complete Thoroughly: Ensure all sections are filled out accurately and that you sign the form.
- Submit: Mail your completed form to the address provided or drop it off in person.
Important Information You’ll Need
Regardless of the filing method you choose, have the following information ready:
- Assessment Roll Number: This number is unique to your property.
- Customer Number: Both of these numbers can be found on your property tax bill.
What If I Need Help with Vacant Home Tax in Toronto?
If you have questions or need assistance with your declaration, simply reach out to me on the contact page. Alternatively the City of Toronto has resources available. You can visit their website or call 311 for support. If you find the process challenging or have questions, the City of Toronto offers help:
- Website Resources: The Vacant Home Tax page includes FAQs, guides, and information.
- Phone Support: Call 311 for direct assistance.
Key Takeaways : Vacant Home Tax in Toronto
- The deadline for 2023 Vacant Home Tax declarations is now March 15th, 2024.
- Don’t risk having your property deemed vacant – file your declaration as soon as possible.
- The goal of the VHT is to increase the availability of housing in Toronto.
Remember, while the deadline has been extended, it’s wise to file your declaration promptly to avoid added stress or potential penalties.