City Council is set to consider implementing a new tax on vacant homes in Windsor.
Homes left empty for over half of the year would be impacted under the new vacant home tax program, if it's approved by council during Monday's meeting.
The proposal would see a three per cent tax added to properites unoccupied for more than 183 days in a taxation year.
Under the proposed program, when a property has been declared or deemed to have been vacant, a bill will be issued to the property owner. The bill will be payable in one instalment within 90 days of the issue date of the bill. Any amount outstanding after the due date will be added to property taxes and will be subject to penalties and interest accordingly.
There will be a path for a property owner to dispute the declaration but administration is recommending that if it is determined a false declaration has been deliberately made to avoid the tax, a penalty of $2,500 be charged in addition to the tax for that year.
The tax was proposed in 2019 as part of a question raised by Ward 2 Councillor Fabio Costante as a way to battle the affordable housing crisis.
Costante says the intent behind the vacant home tax is to activate homes that are not being used by property owners or land speculators.
"This is not your primary residence. These aren't homes that you leave for a few months if you're going to Florida or doing things such as vacations, etc. These are properties that individuals or corporations may own and, for whatever reason, are leaving vacant in the midst of a housing crisis," he says.
Costante says we need to look at this as a tool to encourage property owners with vacant home to do something with them.
"If they're already doing something with them, they're in the process of selling the house or they're getting work done to the house, then that's why they would fall under these exceptions," he says. "Except for those narrow exceptions, we're trying to encourage the activation of these homes because we're in the midst of a housing crisis and we want to see people housed."
Exemptions to the definition of vacant would include the following:
- Principal Residences
- Residential units that are considered to be under construction, renovation, or redevelopment as supported by permits issued by the City’s building department
- Residential units that are vacant for a period of up to 2 years following the death of the registered owner in the year
-Residential units that are vacant for a period of up to 2 years following due to the registered owner being admitted to care (hospitalization, long-term care)
- Residential units that are listed for lease or sale for a period of up to 1 year
- Transfer of ownership of property during the year
- Residential units that are vacant due to Court order/proceedings
- Multi-residential properties (more than 6 units)
- Residential units that are managed or considered social or affordable housing and are in receipt of funding from the city
Costante says it's incumbent on us to explore and exhaust any and all options that are available to combat the housing crisis.
"The vacant home tax is just one piece of the puzzle, it's not going to solve the crisis but it certainly moves the needle forward and helps encourage these property owners to activate those properties," he adds.
If the tax is approved by council, a request will be sent to Ontario's Ministry of Finance for authorization to begin the program in 2024.
Toronto, Ottawa and Hamilton have already been approved to operate a vacant home tax program.
The city would launch an education campaign before any measures under the program were used.
Windsor City Council meets at 4 p.m. on Monday, Nov. 27 at Windsor City Hall.