Maintain Empty Homes Tax Rate

Summary

• Staff reviewed options for a graduated Empty Homes Tax (EHT) rate targeting repeat vacant properties, as directed by Council in May 2023.
• Internal and external consultations (including Ernst and Young) found the current 3% flat rate is effective, simple to administer, and producing a steady decline in vacant properties.
• Concerns raised that a lower first-year rate could increase vacancies, while a higher rate could increase tax avoidance and reduce revenue.
• Recommendation accepted: maintain the 3% rate on all vacant properties and allow time to observe the impact of six new or amended exemptions approved in May 2023.
• A minor administrative amendment was also approved, adjusting the late declaration deadline to the second business day of July in the fifth year following the vacancy reference period (to avoid conflict with property tax sale redemption timelines).

Vote