December 16, 2021 by Arian
City of Toronto Approves Implementation of Vacant Home Tax
On December 16 2021, City Council approved implementation of a vacant home tax in Toronto starting in January 2022.
How The City of Toronto will Define a Vacant Home
The city of Toronto will consider the home vacant if it has been unoccupied for more than six months during the previous calendar year.
Exemptions apply:
- death of the owner
- homes under renovation
- snow birds
- or if owner is in medical care
Warning: Insurance Companies Have Different Definitions
It is important not to get confused with what your insurance company considers a house to be vacant!
always ask your home insurance company at what point the consider your house to be vacant
Usually insurance companies will consider a house vacant after 30 days, but it can actually be much sooner and can start from the moment you or someone moves out of the property.
Also, when vacancy is granted by insurance companies, usually some coverage are suspended such as water damage, vandalism.
Going Forward
The new tax is expected to bring in at least $50 million in tax revenue annually. Property owners will be required to declare the status of their residential home each year. To ensure compliance, the City of Toronto will conduct audits and their will be provisions for penalties, fines and a dispute resolution process.
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