A Message from Your Councillor's Office about the Vacant Unit Tax
We understand that navigating new property regulations can sometimes be confusing. That's why we've put together this comprehensive guide to help you understand Hamilton's Vacant Unit Tax (VUT). Our goal is to provide clear and accurate information, so you can feel confident and informed about this new bylaw.
What is the Vacant Unit Tax?
The VUT is a tax aimed at encouraging property owners to keep their residential units occupied. It applies to residential properties in Hamilton that are vacant for more than 183 days in a calendar year.
Key Points to Remember:
You Don't Pay Unless Property Vacant for 183+ Days: The most important thing to remember is that the VUT only applies if your property is vacant for more than half the year. If you're living in your home, renting it out, or using it for other permitted purposes, you won't be subject to this tax.
Purpose: The VUT is designed to increase the availability of affordable housing in Hamilton. By encouraging property owners to keep their units occupied, we can help ensure that everyone has a place to call home.
Exemptions: There are certain exemptions to the VUT, such as properties undergoing major renovations, properties owned by individuals who are deceased or resides in hospital, long-term or supportive care facilities, and properties that are subject to certain legal proceedings.
Declaration is Mandatory: A principal residence will not be subject to the VUT, but it is still required to submit a mandatory declaration. A residential unit may be considered vacant and subject to the tax if the owner:
failed to make a mandatory declaration by the prescribed deadline
failed to provide information or to submit any evidence required by the City
Multi-Unit properties:
"Granny" suites are exempt from the VUT.
Multi-unit buildings require a separate declaration for each unit. This applies to duplexes, triplexes, apartment buildings, and any property where each unit has its own MPAC property code.
Each unit with its own MPAC code must be declared individually. This helps the city track vacancy rates and ensure compliance with the bylaw.
If you're unsure whether your property requires a VUT declaration, contact our office. We're here to provide guidance and answer your questions.
Declaration opens: January 2025
Mandatory Declaration Deadline: March 31, 2025.
How Does the VUT Work?
Every year, property owners must declare the occupancy status of their residential unit(s) to the City of Hamilton (this includes primary residences). This is done through a simple online declaration form. A printable form will be available upon request. Options to declare over the phone or in person will also be available. If your property is deemed vacant for more than 183 days, you will be required to pay the VUT.
Calculating the Tax:
The VUT is calculated as a percentage of your property's Current Value Assessment (CVA). The current rate for 2024 is 1% of the CVA.
Key Dates
December 2024: Letter with declaration instructions will be mailed to property owners
January 2025: Declaration period begins with form now available.
March 31, 2025: Mandatory declaration deadline
April 1 to April 30, 2025: Late mandatory declarations will be accepted with a fee
First week of June 2025: VUT charges will be included in the final property tax bill
June 30, 2025: First VUT payment due
July 2, 2025: Complaint period begins
September 30, 2025: Second VUT payment due
Need More Information?
We encourage you to visit the City of Hamilton's Vacant Unit Tax website for the most up-to-date information on the VUT. You can also contact our office if you have any questions or concerns. We're here to help!
Remember: The VUT is just one part of our city's ongoing efforts to address the housing crisis. By working together, we can create a more affordable and inclusive Hamilton for everyone.
Stay Connected:
Visit our website: MarkTadeson.ca
Email us: Ward11@hamilton.ca
We hope this guide has been helpful. Please don't hesitate to reach out if you have any questions.
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