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Question Subject to tax?

If an owner lives in their residential property for more than 6 months, but the property is not their principal residence, will the property be subject to the Empty Homes Tax?

  Yes. A second home that is used by the owner, or their family members or guests, but is not a principal residence and is not occupied by a tenant or subtenant at least 6 months of the year, is considered vacant and subject to the tax unless a specific exemption applies.   

Are tenants required to be principal residents for the property to be exempt from the tax?

 

No. For a rented property to be exempt from the tax, it must be occupied by an arm's length tenant or subtenant for residential purposes for at least 6 months of the year (in periods of 30 or more consecutive days), but the property is not required to be the principal residence of that tenant or subtenant.

 

Can a married or common law couple have two principal residences that are exempt from the tax?

 

Yes. Spouses (whether married or common law) can have different principal residences for the purposes of the Empty Homes Tax so long as that is where each individual lives, makes his or her home and conducts his or her daily affairs.

If spouses declare different principal residences, they must be able to provide information or evidence that demonstrates that each property was used in accordance with the by-law’s definition for at least 6 months of the applicable tax year.

False declarations will result in fines of up to $10,000 per day of the continuing offense, in addition to payment of the tax.

 

If a property is an owner’s principal residence but they spend more than 6 months of the year living elsewhere or travelling, will the property be subject to the tax?

 

No. If a residential property is an owner’s principal residence then it is exempt from the Empty Homes Tax.

The by-law definition of principal residence allows owners to leave their properties for extended periods of time and not be subject to the tax.

To be exempt from the tax, the owner is not required to physically occupy the property for any specific period of time, as long as the property is their principal residence.

If an owner declares the property as their principal residence, they must be able to provide information or evidence that demonstrates that the property was used in accordance with the by-law’s definition for at least 6 months of the applicable tax year.