Vacant Unit Tax

The Vacant Unit Tax (VUT) was approved in May 2022 during the previous term of council. The intent of the VUT is to increase available housing stock across the city. If a residential unit has been vacant for more than 184 days, the city would add a 1 percent tax based on the assessed value of the home. For example, a homeowner or landlord with a residential unit with assessed value of $300,000 which has been vacant for more than 184 days would see an additional tax of $3,000 added to their final tax bill.

Councillor Brown takes issue with forcing hundreds of thousands of property owners to declare that they are either living in or renting out their properties. The VUT program will cost taxpayers $3.5 million in the first two years to operate the program, with an annual cost of $1.3 million each year following its implementation.

The city estimates that the program will raise $6.6 million in 2023 with revenue being earmarked to cover the cost of the program and use the additional funds to build affordable housing stock.

Councillor Brown has met with City staff who are responsible for administering the program and has asked to review the program in the first few months of 2024 to examine the results of the program, which they agreed to.

Our hope is that after the first year, if there are no changes in a person’s living situation (for example, they still reside in their current home) there would be no need to continue to declare that their home is not vacant.

We will continue to keep you updated on the progress of the program and any changes that arise from it.