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Toronto city council is discussing a proposed hike to its vacant home tax, backed by Mayor Olivia Chow as a way to help battle a housing crunch.
Chow says raising the tax by one to three per cent will encourage the transformation of vacant homes into rental units, and otherwise bring in millions of extra dollars to pay for much-needed affordable housing and shelter initiatives.
A staff report up for discussion at city hall says a three per cent vacant home tax rate could bring in an estimated $105 million in 2025, about double the expected 2024 revenue at one per cent, declining in subsequent years as homes are filled.
The report says 2,161 homes were reported vacant by the owners and another 17,437 homes had been deemed vacant by the city as of August after notices went unchallenged.
Staff say the number of homes deemed vacant will come down as those homeowners file complaints or exemptions ahead of an April deadline, but the report still estimates about $55 million in projected 2024 revenue.
Toronto brought in the tax in 2021 borrowing from Vancouver’s own empty home tax, which has also since been used as a model in Ottawa.
© 2023 The Canadian Press
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