ELIMINATION OF THE VACANT UNIT REBATE
In 2017, the Province announced that it would give municipalities greater flexibility in administering the existing vacant unit rebate program, with a view to limiting or even eliminating the rebate program altogether. Many, if not most, municipalities have taken advantage of this flexibility, with the following examples:
City of Toronto:
From July 1, 2017 through to June 30, 2018, the vacant unit rebate for properties in the Commercial class will be reduced from 30% to 15%. The Industrial class percentage of 35% will not change.
Effective July 1, 2018, the vacant unit rebate program will be discontinued. Applications for vacancies occurring between January 1, 2018 and June 30, 2018 must be filed by
September 28, 2018.
Region of Peel:
A property / unit / delineated area will no longer be eligible if a vacant unit rebate has been provided in any previous three or more consecutive years.
For the 2017 tax year, the vacant unit rebate is 30% for both the Commercial and Industrial classes. For the 2018 tax year, the vacant unit rebate will decrease to 20%. For the 2019 tax year, the vacant will decrease to 10%. For the 2020 tax year, the rebate will be discontinued.
Commencing in 2018, the vacant unit rebate will be reduced for properties in the Commercial class from 30% to 15% and in the Industrial class from 35% to 20%.
The program will be discontinued in 2019.
The Region has t unit program in 2018.
NEW MULTI-RESIDENTIAL PROPERTY TAX
New Multi-Residential Property Tax Class
There will now be lower taxes for newly built apartment buildings across the Province!!
The New Multi-Residential Tax Class was established by a Regulation passed on July 5, 2017, and applies to all New Multi-Residential Properties in the Province if the building was converted or built pursuant to a building permit issued after April 20, 2017.
The Tax Rate for the New Multi-Residential Property Tax Class is to be within the range of 1 to 1.1 times the Residential Tax Rate. The tax class applies for 35 years. As this new Regulation was passed in July 2017 and will only apply to properties built or converted pursuant to a building permit issued on or before April 20, 2017, it is unlikely you will see properties assessed in this new tax class until 2018.
- File a Request for Reconsideration no later than the deadline date shown on your Property Assessment Notice.
- If the matter is not resolved to your satisfaction through the Reconsideration process, file an appeal to the ARB by the deadline date set out in MPAC's letter of decision.
- Try to negotiate a settlement before the hearing. Otherwise, be prepared for your hearing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.