Vacant Home Tax (VHT)

A Vacant Home Tax (VHT) is a municipal tax applied to the assessed value of vacant homes. On April 29, 2024, City Council directed staff to implement a VHT in Sault Ste. Marie, which will start 2025.

The intent of the VHT is to encourage the efficient use of housing and alleviate the strain on the local housing market by:

Decreasing the number of empty rental units in the City - a VHT will motivate property owners to rent out or occupy their empty units. Similarly, a VHT will encourage property owners who do not intend to rent or occupy their vacant units to sell them to someone who will.
Increasing affordable housing options within the City - a VHT is meant to increase rental housing supply which may have a downward pressure on rental prices within the City.

The City proposes to use a "complaint-based approach" where residents can notify the City of any suspected vacant properties. The City will then require the property owner to complete a declaration of occupancy form for the respective property. If it is determined that the property is subject to a VHT, the tax will be calculated as a percentage of the assessed value of the property (assessed values are determined by the Municipal Property Assessment Corporation - MPAC).

The focus of the VHT is on taxing properties that persistently remain vacant and neglected for a period of more than six months in a year. The VHT is not meant to levy taxes on properties that serve as primary residences or may temporarily become unoccupied due to travel or unforeseen circumstances.

Please have a look at the draft VHT Framework by clicking on the link below. This draft framework lists the recommended definition of Vacant Homes, who would be eligible and ineligible to be issued the tax, as well as recommended exemptions to the tax.

Please download and read the Draft VHT Framework (3-page PDF)

Vacant Home Tax (VHT)

Vacant Home Tax (VHT)

* Do you live in or own residential property in Sault Ste. Marie?

What is your age?

* Do you support the idea of a Vacant Home Tax (VHT)?

Do you agree that the number of vacant homes in Sault Ste. Marie is negatively affecting the supply of affordable housing?

* The City is currently considering a "complaint-based approach", where the City would be able to identify a home as vacant if notified through a tip or complaint. Do you support this approach?

* If the City was to implement a Vacant Home Tax (VHT), what rate of tax should be applied? (For illustration purposes, assume a property with a $200,000 assessment value).

The City may grant exemptions for vacant properties if they meet specific criteria. Select all exemptions to the Vacant Home Tax (VHT) that you support:

If a property owner submits a deliberately false or misleading declaration of occupancy status in order to avoid the Vacant Home Tax (VHT), what amount should they be fined?

Is there anything else you would like to tell us about a Vacant Home Tax (VHT) in Sault Ste. Marie?

Draft Guidelines and Framework

Community Consultation

Develop VHT based on Community Input

Council Approval and Implementation

Documents

Vacant Home Tax (VHT)

Vacant Home Tax (VHT)

Question title

* Do you live in or own residential property in Sault Ste. Marie?

Question title

What is your age?

Question title

* Do you support the idea of a Vacant Home Tax (VHT)?

Question title

Do you agree that the number of vacant homes in Sault Ste. Marie is negatively affecting the supply of affordable housing?

Question title

* The City is currently considering a "complaint-based approach", where the City would be able to identify a home as vacant if notified through a tip or complaint. Do you support this approach?

Question title

* If the City was to implement a Vacant Home Tax (VHT), what rate of tax should be applied? (For illustration purposes, assume a property with a $200,000 assessment value).

Question title

The City may grant exemptions for vacant properties if they meet specific criteria. Select all exemptions to the Vacant Home Tax (VHT) that you support:

Question title

If a property owner submits a deliberately false or misleading declaration of occupancy status in order to avoid the Vacant Home Tax (VHT), what amount should they be fined?

Question title

Is there anything else you would like to tell us about a Vacant Home Tax (VHT) in Sault Ste. Marie?

Draft Guidelines and Framework

Community Consultation

Develop VHT based on Community Input

Council Approval and Implementation

Documents