Sault council looks at options for vacant home tax
Meeting next week, city council in Sault Ste. Marie will get an overview of what to expect if it decides to implement a new tax on empty homes in the city.
The proposed tax is part of the city’s strategy to combat the housing crisis, with the idea that homes should not be left empty when there is a shortage of housing.
While sounding logical in theory, the practicalities of implementing the tax is more complicated in practice.
For example, exactly how would the city determine when a residence is vacant?
Some municipalities deem a property vacant when it is unoccupied for six months, the report said.
Under that standard, “the City of Sault Ste Marie has 27,420 properties in the residential class, 89 of which, are estimated to be vacant,” the report said.
Other communities tax empty homes between one and three per cent of the property’s value. So a vacant home valued at $100,000 would be taxed at a rate of $1,000 to $3,000 a year.
Another consideration is exactly how a home would be declared vacant. The city could require all property owners to declare each year whether their property is vacant.
But that puts a new onus on all homeowners to make the declaration every year – and the potential for a home to be declared vacant if the owner fails to respond.
Toronto tried this method for its tax, the staff report said, with “disastrous” results because of billing errors and the declaration process.
In the Sault, it would create “significant staff administration costs to review, audit, enforce, track and bill the tax,” and could end up costing the city money.
Another approach would be to require only the owners of vacant properties to make the declaration. The problem, the report said, is there is no motive for vacant property owners to step forward and volunteer to pay the new tax.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
The final – and recommended – approach is one based on complaints from the public.
“A complaint-based enforcement is being implemented by the City of Windsor in 2024,” the report said.
“After a review of the Windsor program and the administrative requirements to manage it, staff recommend that this would be an effective and efficient program for the city.”
In terms of costs, while staff estimated there are 90 vacant homes in the Sault, roughly half would likely qualify for the new tax. In order to break even, the tax would have to be at least two per cent to cover the roughly $100,000 it will take to administer the new bylaw.
If council moves ahead with the plan, the goal would be to implement the tax in 2025.
City council meets Monday. Read the full report here.
CTVNews.ca Top Stories
'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
'Sophisticated' cyberattacks detected on B.C. government networks, premier says
There has been a "sophisticated" cybersecurity breach detected on B.C. government networks, Premier David Eby confirmed Wednesday evening.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Biden says he will stop sending bombs and artillery shells to Israel if they launch major invasion of Rafah
U.S. President Joe Biden said for the first time Wednesday he would halt shipments of American weapons to Israel, which he acknowledged have been used to kill civilians in Gaza, if Prime Minister Benjamin Netanyahu orders a major invasion of the city of Rafah.
Rookie goalie Arturs Silovs to start for Canucks in Game 1 vs. Oilers
Rookie goalie Arturs Silovs will start in net for the Canucks as Vancouver kicks off a second-round series against the Edmonton Oilers Wednesday night.
Nijjar murder suspect says he had Canadian study permit in immigration firm's video
One of the Indian nationals accused of murdering British Columbia Sikh activist Hardeep Singh Nijjar says in a social media video that he received a Canadian study permit with the help of an Indian immigration consultancy.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Quebec premier defends new museum on Quebecois nation after Indigenous criticism
Quebec Premier Francois Legault is defending his comments about a new history museum after he was accused by a prominent First Nations group of trying to erase their history.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.