Toronto City Council voted Wednesday to create an implementation plan for a vacant homes tax in the city.
The tax would encourage owners to sell or rent out their vacant properties, which would increase housing supply, the City of Toronto said in a news release. Those who don’t would need to pay the tax, and proceeds would go toward building new housing supply.
“This will help open up the housing and rental market,” Mayor John Tory said. “The vast majority of Toronto residents will not pay this tax but our entire city will benefit from more housing and more affordable housing.”
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City staff will look at how to implement the tax and report back to council in 2021. They’ll consider things such as what percentage of a home’s assessed value the tax will charge, and how homes will be deemed vacant.
The forthcoming empty homes tax is planned to take effect sometime in 2022.
— City of Toronto (@cityoftoronto) December 16, 2020