Item - 2021.EX28.2

Tracking Status

  • City Council adopted this item on December 15, 2021 with amendments.
  • This item was considered by Executive Committee on December 7, 2021 and was adopted with amendments. It will be considered by City Council on December 15, 2021.
  • See also By-law 97-2022

EX28.2 - Final Tax Design and Steps to Implement a Vacant Home Tax in Toronto

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on December 15, 16 and 17, 2021, adopted the following:

 

1.  City Council approve the implementation of a Vacant Home Tax of one percent tax of the current value assessment of the residential property on which the vacant unit is located, effective for the 2022 taxation year collectible in the following year, and adopt the final tax design features for the Vacant Home Tax as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat, as amended by Part 2, below.

 

2.  City Council amend Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat by deleting Part d. under Section 3.0, Proposed Exemptions.

 

3.  City Council appoint the Director, Revenue Services to administer the complaint process, and to receive and make decisions on complaints with respect to the Vacant Home Tax as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat.

 

4.  City Council appoint the Controller to the role of Appellate Authority as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat, and to receive, hear and make decisions on appeals with respect to the Vacant Home Tax as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat.

 

5.  City Council direct the Chief Financial Officer and Treasurer to allocate net Vacant Home Tax revenues (after deduction of program operating expenditures) towards affordable housing initiatives through the annual operating and capital budget approval process.

 

6.  City Council direct the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat to:

 

a. promote public awareness of the Vacant Home Tax during 2022; and

 

b. report back during the fourth quarter of 2023 with the findings from the first year of tax collections as part of an annual reporting requirement. 

 

7.  City Council authorize the City Solicitor to introduce the necessary Bill to give effect to the Vacant Home Tax at the next City Council meeting in January, 2022, and to amend the City of Toronto Municipal Code to add the Vacant Home Tax by-law as Chapter 778.

 

8. City Council direct the Chief Financial Officer and Treasurer to report to the Executive Committee by the second quarter of 2022 with updates on the implementation and projected revenues from the Vacant Home Tax.

 

9.  As previously directed by City Council on November 9, 10 and 12, 2021 in Item PH28.3,  City Council direct the Chief Financial Officer and Treasurer, in consultation with the Executive Director, Housing Secretariat, to report on the feasibility of allocating a portion of revenues to be received by the City from the future Vacant Homes Tax to the Multi-Unit Residential Acquisition Program.

 

10.  City Council direct the Chief Financial Officer and Treasurer, for the City's 2023 Budget, to prioritize and include the Multi-Unit Residential Acquisition program ongoing annual funding of no less than $10 million in the City's annual budget while continuing to work with other orders of Government for additional funding. 

 

11.  City Council direct the Chief Financial Officer and Treasurer to report annually through the budget process on all the projects financed and/or funded through the revenue secured though the Vacant Homes Tax.

 

12.  City Council direct the Chief Financial Officer and Treasurer to contact Statistics Canada regarding the Federal Canadian Housing Statistics Program to determine what data can be shared in their analysis of property assessments, land registry data, and tax filings for the City of Toronto.

Background Information (Committee)

(November 23, 2021) Report from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat on Final Tax Design and Steps to Implement a Vacant Home Tax in Toronto
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-173763.pdf
Attachment 1 - Final Recommended Tax Design Features
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-173764.pdf

Communications (Committee)

(December 5, 2021) E-mail from Jane Rowan (EX.Supp)

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor Paul Ainslie (Carried)

That:

 

1. City Council direct the Chief Financial Officer and Treasurer to contact Statistics Canada regarding the Federal Canadian Housing Statistics Program to determine what data can be shared in their analysis of property assessments, land registry data, and tax filings for the City of Toronto.

Vote (Amend Item (Additional)) Dec-16-2021 2:37 PM

Result: Carried Majority Required - EX28.2 - Ainslie - motion 1
Total members that voted Yes: 24 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Stephen Holyday, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), Gord Perks, Jaye Robinson, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are James Pasternak
Total members that were Absent: 1 Members that were absent are Anthony Perruzza

2 - Motion to Amend Item moved by Councillor Kristyn Wong-Tam (Carried)

That City Council amend Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat by deleting Part d. under Section 3.0, Proposed Exemptions:

 

Part to be deleted

 

d. Residential Unit is subject to a restriction or prohibition on rental – i.e., a condominium or co-ownership building with restrictions on allowing individual units to be made available for rental;

Vote (Amend Item) Dec-16-2021 2:36 PM

Result: Carried Majority Required - EX28.2 - Wong-Tam - motion 2
Total members that voted Yes: 23 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), Gord Perks, Jaye Robinson, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Stephen Holyday, James Pasternak
Total members that were Absent: 1 Members that were absent are Anthony Perruzza

3 - Motion to Amend Item (Additional) moved by Councillor Ana Bail„o (Carried)

That:

 

1. As previously directed by City Council on November 9, 10 and 12, 2021 [PH28.3],  City Council direct the Chief Financial Officer and Treasurer in consultation with the Executive Director, Housing Secretariat, to report on the feasibility of allocating a portion of revenues to be received by the City from the future Vacant Homes Tax to the Multi-Unit Residential Acquisition Program.

 

2. City Council direct the Chief Financial Officer and Treasurer, for the City's 2023 Budget, to prioritize and include the Multi-Unit Residential Acquisition program ongoing annual funding of no less than $10 million in the City's annual budget while continuing to work with other orders of Government for additional funding.

 

3. City Council direct the Chief Financial Officer and Treasurer to report annually through the budget process on all the projects financed and/or funded through the revenue secured though the Vacant Homes Tax.

Vote (Amend Item (Additional)) Dec-16-2021 2:39 PM

Result: Carried Majority Required - EX28.2 - Bail„o - motion 3
Total members that voted Yes: 24 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Stephen Holyday, Denzil Minnan-Wong
Total members that were Absent: 0 Members that were absent are

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Dec-16-2021 2:40 PM

Result: Carried Majority Required - EX28.2 - Adopt the Item as amended
Total members that voted Yes: 25 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are Stephen Holyday
Total members that were Absent: 0 Members that were absent are

Point of Order by Councillor Gord Perks

Councillor Perks, on a Point of Order, stated that Deputy Mayor Minnan-Wong is asking questions of Councillor Bailão that are not relevant to her motion.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Order and ruled that Deputy Mayor Minnan-Wong should ask questions for clarification of Councillor Bail„o's motion.

EX28.2 - Final Tax Design and Steps to Implement a Vacant Home Tax in Toronto

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1. City Council approve the implementation of a Vacant Home Tax of one percent tax of the current value assessment of the residential property on which the vacant unit is located, effective for the 2022 taxation year collectible in the following year, and adopt the final tax design features for the Vacant Home Tax as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat.

 

2. City Council appoint the Director, Revenue Services to administer the complaint process, and to receive and make decisions on complaints with respect to the Vacant Home Tax as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat.

 

3. City Council appoint the Controller to the role of Appellate Authority as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat, and to receive, hear and make decisions on appeals with respect to the Vacant Home Tax as set out in Attachment 1 to the report (November 23, 2021) from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat.

 

4. City Council direct the Chief Financial Officer and Treasurer to allocate net Vacant Home Tax revenues (after deduction of program operating expenditures) towards affordable housing initiatives through the annual operating and capital budget approval process.

 

5. City Council direct the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat to:

 

a. promote public awareness of the Vacant Home Tax during 2022; and

 

b. report back during the fourth quarter of 2023 with the findings from the first year of tax collections as part of an annual reporting requirement. 

 

6. City Council authorize the City Solicitor to introduce the necessary Bill to give effect to the Vacant Home Tax at the next City Council meeting in January, 2022, and to amend the City of Toronto Municipal Code to add the Vacant Home Tax by-law as Chapter 778.

 

7. City Council direct the Chief Financial Officer and Treasurer to report to the Executive Committee by the second quarter of 2022 with updates on the implementation and projected revenues from the Vacant Home Tax.

Origin

(November 23, 2021) Report from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat

Summary

City Council, at its meeting of July 14-16, 2021, considered the report

EX25.3: Recommended Tax Design and Steps to Implement a Vacant Home Tax in Toronto, which provided recommended tax program design elements to be considered as part of a future tax by-law, including annual declaration responsibility of all homeowners, key definitions of vacant homes, principal residence exemptions, other exempting conditions, administrative matters, tax rate, and general information regarding audit and enforcement functions, complaints and appeals process, offences and penalties and annual reporting requirements.

 

The subsequent direction from City Council was to undertake public consultation and receive written feedback and advice from stakeholders on the development of the proposed tax program; and to report back during Q4 2021 with the findings from the consultations and any modifications to a finalized tax design and an enabling tax by-law for Council consideration for implementation on January 1, 2022.

 

This report responds to Council's direction by providing the findings of a public consultation effort conducted in October 2021. Approximately 5,000 residential tenants and property owners responded to a survey seeking feedback on the design of the Vacant Home Tax.  This input affirmed many of the features of the tax proposed in July 2021, and informed other details which are together presented in this report as the final recommended tax design for the Vacant Home Tax. To comply with the City of Toronto Act, 2006 (COTA), the by-law will be presented to City Council for adoption in January 2022 to adopt the recommended Vacant Home Tax.

 

The proposed by-law would become effective on January 1, 2022, with the first annual property declarations in respect of the 2022 taxation being due in 2023.

Background Information

(November 23, 2021) Report from the Chief Financial Officer and Treasurer and the Executive Director, Housing Secretariat on Final Tax Design and Steps to Implement a Vacant Home Tax in Toronto
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-173763.pdf
Attachment 1 - Final Recommended Tax Design Features
https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-173764.pdf

Communications

(December 5, 2021) E-mail from Jane Rowan (EX.Supp)

Motions

1 - Motion to Amend Item (Additional) moved by Mayor John Tory (Carried)

That City Council direct the Chief Financial Officer and Treasurer to report to the Executive Committee by the second quarter of 2022 with updates on the implementation and projected revenues from the Vacant Home Tax.


Motion to Adopt Item as Amended moved by Mayor John Tory (Carried)
Source: Toronto City Clerk at www.toronto.ca/council