A vacant home tax similar to one already in effect in Toronto could soon be introduced in at least one neighbouring municipality.
The Region of Peel has launched an online survey to solicit public input on the design of the new tax.
In a news release, the region said that the tax may “may be able to encourage owners of vacant properties to either sell or rent out their units,” thus boosting the supply of housing.
The online survey will be available until May 16. The region will also be holding a pair of public consultations virtually.
“A vacant home tax is a tool that can be used in rapidly growing urban centres which face challenges related to housing such as rapidly rising house prices (at a rate higher than the growth of income) or low availability of homes for sale or rent,” the release notes. “The tax is generally applied to homes that are vacant for at least six months in a calendar year.”
The City of Toronto plans to begin taxing the owners of properties that sit vacant for more than six months of the year at a rate in 2023.
The tax rate will be set at one per cent of a home’s assessed value and is expected to bring in $55 to $60 million in new tax revenue each year, with that money then being directed towards affordable housing initiatives.
The Region of Peel has not said what form a vacant home tax would take within its boundaries but has suggested that the measure could ultimately “improve the affordability of housing” locally.
The latest data from the Toronto Region Real Estate Board suggests that the average selling price across all dwelling types in the 905 region in March was $1.35 million. That represents a 27 per cent increase from March, 2021.
