Vacant Spaces: Challenges In The Economic Climate

In the challenges facing landlords in the current economic and market conditions, the municipal tax treatment of vacant space is not to be forgotten as some relief available for the carrying costs of vacant space. The Municipal Act, 2001 and the City of Toronto Act, 2006 both require vacancy rebates to be provided for eligible commercial and industrial premises. Provided eligibility requirements are met, rebates of 30% of commercial class taxes, and 35% of industrial class taxes, are available upon application for a period of vacancy that exceeds 90 days. For a property to be eligible, the premises must not be used (except for heating, cooling, lighting or cleaning, or construction, repairs or renovation) for at least 90 days, and in the case of commercial premises, be capable of being leased (except for immediate occupation in the event of renovations) or unfit for occupation. For industrial properties, the vacant portions of the premises must be clearly delineated or