Toronto is making significant changes to its Vacant Home Tax (VHT) program following a controversial rollout that saw over 160,000 homeowners mistakenly charged while living in occupied homes. The Vacant Home Tax was originally introduced as a policy tool to help increase housing supply by encouraging residential property owners to rent or sell unoccupied properties.
In response to widespread backlash and a complex refund process for more than 100,000 erroneous charges, the city has announced a series of updates aimed at improving the system.
Key changes include extending the declaration period from November 1st to April 30th, 2025, allowing residents more time to submit their occupancy declarations. A new user-friendly online portal will launch on November 1, 2024, streamlining the declaration process. To address previous communication issues, the city will also offer confirmation options via email, phone, and printed numbers for those with limited access to technology. A dedicated customer care center will assist residents who prefer to declare by phone or in person.
Additionally, late declaration fees for 2023 will be waived, giving homeowners relief while the city evaluates the program’s effectiveness. Moving forward, Toronto plans to adopt a more data-driven approach to issuing VHT bills, with the Chief Financial Officer empowered to delay bills if declaration rates fall short.
As the city works to rectify its earlier mistakes, the success of these changes will be assessed with the next bill mailout scheduled for June 1, 2025. Critics, including some city councillors, have raised concerns about the efficiency of the VHT and suggested finding better methods to identify vacant homes.
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