By now, every owner of a residential property in Toronto has
received a YELLOW Notice from the City of Toronto regarding the
Vacant Home Tax (the “VHT”). Here are some things you
should know.
Why is Toronto imposing a VHT?
The VHT is a policy tool to address the lack of rental housing
in the City. The main goal of the VHT is to increase housing
availability by reducing the number of residential properties that
are left vacant.
As stated on the City of Toronto's website: “The
desired effect of the tax is that homeowners either continue to
occupy their homes, or change their behaviour by renting out the
unit or selling it in order to avoid incurring the tax.” A
secondary goal of the VHT is to generate revenue for the City to be
used to fund additional housing initiatives.
