The City of Sault Ste. Marie is working to improve the supply of affordable housing by ensuring that all available living spaces are occupied or contributing through the Vacant Home Tax. Revenue from this program will support local Community Housing Initiatives.
On December 2, 2024, City Council passed the Vacant Home Tax (VHT) By-law, adding a tax on vacant residential properties. Many of these properties are in the downtown core, where affordable housing is urgently needed. The VHT program follows a Provincial Policy Framework that allows municipalities to introduce such a tax.
Learn more about Ontario’s Municipal Vacant Home Tax.
Our Vacant Home Tax Program
The program is complaint-based. Owners of suspected vacant homes will complete a Declaration of Occupancy Status form. Anyone who suspects a home is vacant may submit a tip for the City to investigate. To avoid potential penalties, owners of a vacant property can self-declare by submitting the Declaration of Occupancy Status form to the Tax Office. The City Building and By-law Departments have also identified vacant homes as part of other City processes.
The VHT applies to a residential property that is unoccupied for more than 183 days in a Taxation Year and does not meet an exemption.
A tax of 4% of the property’s assessment value in the Vacancy Reference Year, as determined by the Municipal Property Assessment Corporation (MPAC), will be billed.
2024 vacancies will be billed and payable in 2025. Going forward, billings will be issued as complaints are received throughout the taxation year.
For example, a vacant property assessed at $150,000 would be subject to a VHT of $6,000 ($150,000 * 4%) in addition to the annual property tax.
Definition of an Occupied Residential Property
Exemptions
- Occupied – Residential Units that are Occupied;
- Major Repairs – In the judgement of the Chief Building Official, the Residential Unit(s) are undergoing active and ongoing major repairs, and the occupant is unable to continue to reside within the unit during the major repair, and of which there is an open and active building permit(s) issued by the City;
- Uninhabitable – In the judgement of the Chief Building Official, the unit is otherwise uninhabitable for reasons beyond the Owner’s control;
- Property Transfer (Sale/Purchase) – A Residential Unit that has changed ownership in whole by way of an arm’s length transaction, shall not be subject to a VHT levy for the taxation year during which the transaction occurred;
- Owner in Care – A Residential Unit that is not Occupied for a period of up to two (2) years following the date the registered owner was admitted to care (hospitalization, long-term care);
- Death of Owner – A Residential Unit whose owner has died will be exempt from a VHT levy for up to twenty-four (24) months beginning the month after the owner(s)’ death, provided the Residential Unit was Occupied at the time of death. Applies to the legal estate or heir without any extension to the exemption period (24 months);
- Short-Term Rental – A Residential Unit used exclusively as a Short-Term Rental if registered with the City in accordance with the City’s Short-Term Licensing By-law and occupied for a minimum of 100 days in the taxation year;
- Seasonal Property – The property is classified as seasonal (including properties that are classified by Municipal Property Assessment Corporation as falling under property codes 363, 364, 385, 391, 392, and 395);
- Court Order on Property – A Residential Unit with a court order preventing occupancy during the Taxation Year, unless the court order is conditional on an action of the owner, or the state and condition of the Residential Unit and the owner has not made reasonable efforts to remedy the circumstances that led to the court order;
- Multi-Residential Property – Multi-residential properties (more than 6 units);
- Non-Profit / Social Housing – Units owned/managed by not-for-profit organizations and social housing; or
- Vacant New Inventory – A newly constructed unit classified in the residential property class that has not been on the assessment roll for a full calendar year and has been continuously listed for sale or lease.