Ottawa’s new vacant-unit tax what to know.

Jan 11, 2023 | News, Rental Property

What to Know About Ottawa’s New Vacant-Unit Tax.

A new annual tax will be placed on all vacant property at the beginning of 2023, called the Vacant Unit Tax (VUT). Vacant properties will be subject to a tax of 1% of the property’s assessed value. In addition, all eligible residential property owners must complete an annual declaration notifying the City of their property's occupancy, even if the property is a principal residence.

If you own more than one property, you must submit a declaration for each. The City has sent preliminary notices to affected property owners to prepare for the declaration period. An additional reminder will be sent in January. This notice does not mean you will be billed. City staff estimate that around 330,000 residents will need to declare their vacancy status, three steps to ensure you understand your reporting and filing obligation.

Learn about the Vacant Unit Tax

The Vacant Unit Tax is a tax on residential units which are not principal residences and are vacant for more than six months. Meaning if the home is vacant in 2022, the tax will become payable in 2023. The Vacant Unit Tax will be added to the Final Tax bill, due in June. Every residential homeowner must declare to the city if their home is occupied or vacant to determine if the tax is payable. If one of these situations applies to your property. The Vacant Unit Tax will
not apply. Principal residence homeowner, Principal Residence Permitted occupant, Tenanted Property.

Prepare Information for the Declaration

During the declaration, you will be required to provide your name and contact information. Additional information may be needed for the declaration time or requested during an audit. A False property status or failure to provide information when requested may result in fines up to $10,000, in addition to paying the tax. Completing your declaration takes less than 5 minutes using your MyServiceOttawa account. Your MyServiceOttawa account is already
registered with your property tax bill.

Complete your declaration

All eligible property owners are required to submit a property status declaration starting in January 2023. Declarations open in January 2023 and must be completed by March 16, 2023. If no declaration is submitted, the property will be deemed vacant, and the Vacant Unit Tax will be applied.

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