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.
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
The residential unit is undergoing major repairs or renovations as defined in Section 1 of this By-law, and the following conditions have been met:
i. Occupation and normal use of the residential property is prevented by the construction, alteration, repair, or demolition work for at least 183 days of the Taxation Year claimed as the dwelling lacks one or more essential
facilities or conditions required for lawful and safe occupancy;
ii. All requisite building permits under the Ontario Building Code Act were issued by the City before or during the Taxation Year claimed, and any other applicable permits were issued by different authorities, such as
Electrical Safety Authority or the Sault Ste. Marie Conservation Authority; and,
iii. The major repairs or renovations are being actively and diligently carried out without unreasonable and unnecessary delay for the majority of the Taxation Year claimed. This exemption can only be claimed for one taxation year within every five consecutive taxation years, and the property owner is required to provide supporting documentation, which may include valid and active building permits, permits from different authorities, and evidence of work being conducted, including photographs, inspection reports, work orders, or contractor receipts and invoices.
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);
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.