Toronto to retain vacant home tax despite errors resulting in numerous incorrect invoices

Toronto’s city council has voted to keep the vacant home tax despite concerns over the program “fiasco” where thousands of bills were wrongfully issued.

With the program in its second year, thousands of homeowners—some of whom live in their homes—received a vacant home tax bill even though the property was occupied.

“The design of the program was approved December 2021 and is clearly flawed. This has caused hardship, especially for seniors who can’t access online tools or those who cannot read English. How we administer the Vacant Home Tax program must be rebuilt from scratch,” Ms. Chow said.

“The Vacant Homes Tax needs to be administered in a simple, fair way. People need to know now that if their home was occupied last year, there is no need to pay. The charges will be canceled with no late fee.”

The Canadian Taxpayer’s Federation (CTF) said the tax needed to be scrapped and called on Ms. Chow to get rid of it.

CTF said that about 167,000 vacant home tax bills were sent out, representing about 20 percent of homes in Toronto.

Councillor Vincent Crisanti made a motion to cancel the tax, which was voted down 18–5, something he called “disappointing” in a post on social media.

“It is clear that the vacant home tax rollout has touched property owners in a very emotional way and stirred up deep rooted anger,” he added.

Mr. Crisanti said the vacant home tax was not a “housing solution policy” but an “unfair and unnecessary burden.”

Ms. Chow said the program needed “major changes” and signaled the entire process would be reformed next year.

“As mayor, I am committed to making sure this tool to tackle the housing crisis achieves its goals,” Ms. Chow added.

Vancouver brought in a similar tax, called the Empty Homes Tax, in 2018, which now sits at 3 percent.