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)

The City of Sault Ste. Marie welcomes your participation and feedback in the development process of a Vacant Home Tax (VHT). Please consider attending the public open house and/or filling out the survey below.

Thank you to those who attended the in-person at an Open House (come and go):

Date: Monday, September 23, 2024
Time: 4pm to 7pm
Location: Main Lobby, Civic Centre, 99 Foster Drive
Download the Presentation Panels.

Fill out the short VHT Survey:

The VHT survey is now closed. Thank you for your participation!

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

Yes

91%

Closed to responses | 473 Responses

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

Yes

87%

Unsure

Closed to responses | 472 Responses

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

Agree

77%

Somewhat Agree

13%

Disagree

Somewhat Disagree

Unsure

Closed to responses | 471 Responses

* 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?

I support this approach

73%

Unsure

16%

I do not support this approach

11%

Closed to responses | 464 Responses

* 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).

4% or more of their current value ($8,000+ for a home assessed at $200,000)

58%

3% of their current value ($6,000 for a home assessed at $200,000)

14%

2% of their current value ($4,000 for a home assessed at $200,000)

12%

None, I don't think the City should tax vacant homes

1% of their current value ($2,000 for a home assessed at $200,000)

Closed to responses | 453 Responses

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:

A residential property that is vacant because the occupant was residing in a healthcare facility for medical care

83%

A residential property that is vacant due to the death of the owner(s)

76%

A residential property that is undergoing renovations and has the appropriate building permits

71%

The property is classified as seasonal (like a cottage or a camp)

64%

A residential property that is vacant because it is under a court order prohibiting the owner from selling, occupying, or renting the property

56%

A residential property that has been listed for sale and unoccupied during this time

51%

A residential property that has been listed for rent and unoccupied during this time

38%

Other

I don't think the city should tax vacant homes

There should be no exemptions to the VHT

Closed to responses | 417 Responses

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?

They should be fined up to $10,000 in addition to the payment of tax (this is the approach taken by the City of Toronto and the City of Ottawa)

54%

They should be fined $3,500 in addition to the payment of the tax (this is the approach taken by the City of Windsor)

18%

They should be fined an amount equal to their Vacant Home Tax

11%

They should not be fined

They should be fined $1,000 in addition to the payment of the tax

Other

Closed to responses | 432 Responses

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

Closed for Comments

Project Timeline

complete

Draft Guidelines and Framework

The Vacant Home Tax Working Group (WG) will undertake a scan of the programs implemented in other Ontario municipalities. The WG will determine commonalities and best practices that can be utilized for the Sault Ste. Marie VHT.

live

Community Consultation

Engage the public to gather feedback on the tax rate to be used, the conditions of vacancy that will make a unit subject to the tax, exemptions, etc.

live

Develop VHT based on Community Input

Refine the proposed VHT methodology and criteria based on feedback gathered through the public consultation process.

planned

Council Approval and Implementation

Present the recommended VHT to City Council for approval and, if approved, implement the tax in January 2025 for 2024 vacancies.

Who's Listening?

Steve Zuppa
Junior Planner, City of Sault Ste. Marie
Email: s.zuppa@cityssm.on.ca
Phone: 705-759-5279

Lisa Petrocco
Manager of Taxation, City of Sault Ste. Marie
Email: l.petrocco@cityssm.on.ca
Phone: 705-541-7065

Documents

Draft VHT Framework - August 2024.pdf SSM Vacant Home Tax - Council Report - April 29, 2024.pdf Vacant Home Tax - Sept 2024 - Open House Presentation Panels.pdf

This is hidden text that lets us know when google translate runs.

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