Vacant Unit Tax

If the residential property has been declared vacant for more than 183 days in the previous calendar year and does not meet one of the exceptions outlined below, the VUT will be applied. The first year the tax will be payable is 2024, based on the status of the property in 2023. 

The tax will be calculated at a rate of 1% of the property's assessed value, and the tax will be included in the Final Property Tax Bill mailed out in June.

A property may be left vacant and be exempt from the Vacant Unit Tax if one of the following criteria is met:

Death of an owner: the exemption applies to the year of death, plus one subsequent year only.

Major renovations: major renovations or redevelopment make occupation of a unit impossible for more than 183 days in the same calendar year, provided a building permit has been issued. 

Sale of the property: the VUT will not apply in the year of the sale if the transfer is to an unrelated individual or corporation.

Principal resident in care, institutionalized or hospitalized: the period of time when the principal resident resides in a hospital, long-term or a supportive care facility.

Court order: if a court order prohibiting occupancy of the residential property is in effect.

Late Mandatory Declaration Fee: $250

Penalties and Interest:  Penalty of 1.25% on the first day of default, plus 1.25% interest per month.

Other offences will be set in the following cases:

• Making a false mandatory occupancy declaration 
• Providing insufficient or false information or evidence 
• Failing to provide information or evidence requested
• Violating the by-law containing the provisions of the VUT
   

The City will audit mandatory occupancy declarations for accuracy on an annual basis.  Audits will be conducted in the following scenarios: 

• Properties that report an exemption
• Properties declared occupied that were vacant the previous year 
• A complaint or tip
• Random selection  
• Targeted audit campaigns
• Properties reported vacant in the Vacant Building Registry (registered and unregistered) 

If as a result of an audit the property is considered vacant, the VUT will be charged.

A property owner that has been charged the VUT may submit a notice of complaint if: 

• The City made an error or omission that resulted in the imposition of the VUT; or 
• The Owner made an error or omission in completing the property mandatory declaration that resulted in the imposition of the VUT. 

A property owner who believes they have been charged the VUT in error will have 60 days after the tax bill or the audit determination notice has been received to submit a notice of complaint. 

If the complaint is successful, the VUT, including any penalties and interest, will be cancelled. 

If the complaint is denied, the property owner can appeal the decision within 60 days of the denial of the notice of complaint by submitting an appeal. A decision taken under appeal will be final.