Toronto city council approves changes to vacant home tax

Toronto city council decided on Thursday to proceed with its revamp of the vacant home tax, despite attempts by two councillors to scrap or pause the tax.

Council voted in favour of making changes to the tax after a disastrous rollout last year.

The online portal to make a declaration of occupancy status will open on Nov. 1. And thedeadline to make a declaration will be extended from the last day of March to the end of April.

Mayor Olivia Chow said the tax is important and the city won'tabandon it.

"We're in the middle of a housing crisis.We need this program," Chow said. "We have said yes to this program for several years now. It generates funds that build affordable housing or purchase housing. It's worth the effort."

The tax, adopted in 2021, is meant to increase housing supply in Toronto by discouraging homeowners from leaving residential properties unoccupied.

Earlier, Coun. Stephen Holyday, who represents Etobicoke Centre, moved that council cancel the tax effective immediately. His motion was defeated four to 19.

Coun. Brad Bradford, who represents Beaches-East York, moved that council pause the tax this year and direct staff to makerecommendations foran alternative program that would place the onus on the city and/or owners of vacant properties to identify vacant homes. His motion was voted down five to 18.

City staff told council that 8,700 Toronto homes were determined to be vacant in 2023, a drop from the 10,200 declared vacant the previous year.

Of the 8,700 that were vacant, just fewer than1,500 were declared vacant by property owners, while 7,200 were deemed vacant by city staff.

Majority of homes deemedvacant last year were condos

Stephen Conforti, the city's chief financial officer, said the majority of homes determined to be vacant were condos, but city staff do not have an exact number.

In the new year, city staff said they plan to conduct a survey to ask property owners of vacant homes why they have left their homes vacant.

This year, city staff said they will conducta communications blitz to make homeowners aware of the vacant home tax. They will alsosimplify the declaration process both online and over the phone. Adedicated team will alsobe created to help people complete the forms.