On March 23, 2022, the Residential Vacant Unit Tax (VUT) was approved. The VUT will go into effect for the 2023 tax year and apply to non-principal dwellings that were vacant for at least 184 days in 2022.
Every year, residential property owners must declare the occupancy of their homes.
The tax does not apply to, but a declaration is still required for:
Is my property eligible for exemption?
The Municipal Property Assessment Corporation (MPAC) property code is used to identify eligible properties. Not every residential property code requires a declaration to be submitted. The by-law specifies the list of eligible properties. Please go to your most recent Final Tax Bill for your property code information. The reverse of the bill has the property code.
For a full list of exemptions see Vacant Unit Tax (By-law No. 2022-135).
Beginning in January 2023, even those who use their residential property as their primary residence must submit an annual property declaration.
You need to file a declaration for every property you own. Property owners who qualify will get annual reminders to declare.
What is a vacant unit?
If a unit was not utilized as a primary residence and was vacant for more than 184 days in the previous calendar year, it will be deemed vacant. Only properties in the residential tax class are subject to the tax (excludes commercial, industrial, and multi-residential properties).
How much will I have to pay if my residence is vacant?
The VUT will be applied to your property if the residential property was declared or deemed empty for more than 184 days in the preceding calendar year and does not fall under one of the exceptions. Your final tax bill, which is due on the third Thursday of June, will be charged with the tax at a rate of 1% of the property's assessed value (June 15 in 2023).
Please submit your property occupancy declaration for 2022 right away.
The declaration deadline is March 16, 2023.
Important dates:
Declaration deadline: March 16, 2023 (Interim Tax due date)
Late declaration deadline: April 30, 2023
Published by TAAG Corporation
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