The Vacant Home Tax in Toronto: A Game-Changer for Real Estate?

Get ready folks, because the Vacant Home Tax in Toronto is back and bigger than ever for the second year running! This real estate plot twist aims to free up some living space in the city and everyone's favorite day February 29th, is the last chance to declare your property's occupancy status and dodge the increased rate. Here are the juicy details:

• The deadline is looming, like that giant asteroid in a disaster movie. Property owners must declare whether their residential property has been occupied for more than six months in the previous year by February 29, 2023. Better get your skates on!

• Hop online, because that’s where all the action is happening. Like a virtual paper airplane, you can send your occupancy status flying to the City of Toronto through their handy dandy online portal.

• Beware of the audit beast lurking in the shadows. If your declaration raises an eyebrow or two, be prepared to provide further evidence to back up your claim. No alternative facts allowed here!

• Don’t miss the deadline or face a late fee. Everyone hates late fees, whether it's for a library book or home declaration. There's a $21.24 penalty for late declarants, and $250 for a missed declaration. Untruthful? That will cost you a whopping $10,000.

• Exemptions do exist, but there aren't unlimited tickets. Certain situations like a property undergoing renovations, the principal owner in hospital, or a legal ownership transfer, can make you exempt from the Vacant Home Tax.

• Pay your tax on time, or it’s time to play catchup. And nobody really enjoys that. Payments are due in three equal instalments made throughout May, June, and July 2024. Delayed payments will accrue interest at a rate of 1.25% per month.

In the world of real estate, there's more drama than a soap opera, and the Vacant Home Tax is no different. This plot twist is designed to shake things up and Christian Grey-style, add a little pain for pleasure. But unlike Mr. Grey’s exploits, this money’s being put to good use, funnelling into affordable housing initiatives. So, prepare to get your declarations in, or be prepared to pay up, folks! Toronto is getting real about real estate, and this might just be a game-changer!

Source: Storeys