The Peel District has launched an online survey to ask for public input on the new tax plan.
In a press release, the district said the tax could “encourage incomplete property owners to either sell or rent out their units, thus boosting the supply of housing.”
The online survey will be available until May 16. The district will also hold a couple of public consultations virtually.
“Residence tax is a tool that can be used in fast-growing urban centers facing housing-related challenges, such as rapidly rising housing prices (at a rate higher than income growth) or low availability of housing to sale or rent. “, The announcement notes. “The tax generally applies to homes that are vacant for at least six months in a calendar year.”
The city of Toronto plans to start taxing property owners who remain vacant for more than six months a year at a rate of 2023.
The tax rate will be set at one percent of a home’s estimated value and is expected to generate $ 55 million to $ 60 million in new tax revenue each year, with that money then going to affordable housing initiatives.
The Peel District did not say what form the vacant home tax would take, but suggested that the measure could eventually “improve the affordability of housing” locally.
The latest figures from the Toronto District Real Estate Council suggest that the average sale price for all types of housing in Area 905 in March was $ 1.35 million. This represents an increase of 27 percent from March 2021.
