This week, we officially launched the new-and-improved declaration process for the Vacant Home Tax. Now, those words may send a shiver down some of your spines. I know that last year’s process was very challenging for residents across the city. Hundreds of Don Valley Northerners contacted my office after receiving Vacant Home Tax bills in error, and I want to thank every person who did. Each and every one of you has contributed to improving the process for the upcoming year.
For the past six months, Finance and Revenue Services staff have been hard at work making sure the new process is straightforward, easy to use, and that it’s communicated well across the city. I’m very thankful for your patience as staff worked to create this system, and I know Mayor Chow is as well. We’re also thankful to every Council member who sat down to discuss what they heard from their constituents. We wanted to make sure these changes were directly informed by all of your experiences last year.
Today, I want to explain the changes that are in place for the 2025 Vacant Home Tax process. I’m also going to explain the reasons why the Vacant Home Tax will continue, as I know in the frustration of last year some folks wanted us to do away with it entirely.
#1: Why we’re keeping the Vacant Home Tax
Toronto is sticking with the Vacant Home Tax program. It is designed to incentivize the renting or selling of fully built units of housing that are sitting empty long-term. There are up to 10,000 vacant homes in Toronto. Putting them back onto the housing market could put a real dent in our housing crisis and help make life more affordable for all Torontonians.
We know we need more housing supply in Toronto. While every municipality is working hard to create new homes, building new housing is expensive. We must make every effort to fully utilize the homes we already have. Building 10,000 new homes would cost about $5 billion. The Vacant Home Tax, on the other hand, is entirely self-funded by the taxes it collects. It can put 10,000 existing houses and condos back on the market for zero property tax dollars. We also know this program is effective—Vancouver has reduced its vacant homes by 54% after having the program in place for five years.
#2: The need for annual declarations of occupancy
We are continuing to use an annual declaration system, but with much improvement. Many homeowners who did not declare by the deadline last year asked “Why do we have to do this every year? Can’t you just check my utility bill to see that my house is occupied?” Unfortunately, it turns out that it’s not that simple.
Revenue Services staff and City Legal staff spent many hours looking into this and it is not a possibility. Using utility data would only work for about 50% of homeowners. Condo owners are often not on a distinct utility billing account on the City of Toronto’s side. We would need to design a separate system for these owners, and explaining two systems is never a recipe for success. We learned last year that if we want this program to work, we have to keep the process consistent and straightforward for everyone.
#3: Better communication
This year, you can expect much better communication about the Vacant Home Tax and the declaration process. All property tax ratepayers will receive a notice in the mail as of November 1st explaining the need to declare and the steps they need to take. The letter will include your customer number, your tax roll number, and all of the information you need to make the declaration. The letter will even have a QR code so you can declare immediately on your cellphone while the info is in your hand.
There will also be an ad campaign running across a number of platforms to remind you about the need to declare. You’ll see ads on transit shelters, in newspapers, on the radio, and even on condo elevator screens. The City will also run ads across social media platforms and elsewhere online. There will also be follow up letters in the mail until you complete your declaration. Only declaring will make those notices stop.
#4: Making it easier to declare
This year, declaring will be as easy as making a phone call or online shopping on your phone. We are introducing the ability to declare by calling 311. Not only can you call in to declare, anytime you call 311 for any reason between November 1st, 2024 and April 1st, 2025, the operator will ask you if you need to declare. If your answer is yes, your call can be forwarded to complete your declaration directly on the phone and in multiple languages. If you provide your email address, the operator will send you a confirmation email that your declaration is complete.
If you use the website to declare this year, you’ll notice that the questions asked are much more direct and simpler to answer. Just like when you online shop, the online declaration will display a progress tracker that shows you how far along you are in the process. When you’re complete, it will show you a downloadable confirmation page. A big focus of the revamped program is ensuring we provide confirmation of receipt no matter how you declare.
Together, these changes aim to make sure everyone in Toronto knows about the need to file a Vacant Home Tax declaration and that it’s easy to do. While it is a bit of extra work, it will go a very long way in helping make more housing available in our city—something we desperately need if we want our kids and grandkids to be able call Toronto home long-term.
I know that even with all of these changes and improvements, you may still have questions as you go to file your Vacant Home Tax declaration. As you know, my office is always here to support you. Every Councillor will be prepared with a toolkit to answer your questions, and it doesn’t stop there. Revenue Services will have a dedicated customer care team available at Civic Centre service counters and via 311 to address any tricky questions or unique ownership scenarios.
Declaration portals and services open on November 1st and run until April 1st. At my house, my husband Sandy and I will complete it in the quiet time between Christmas and New Years. It will become our end-of-year tradition, and we’re happy to do it if it helps one more house become someone’s home.