In an effort to curb the parking of foriegn money in properties that lay vacant in Toronto’s real estate market, the City of Toronto has finally decided to follow suite from other major cities like Paris and Vancouver, and introduce a vacancy tax.
The rate is expected to start at 1% of the vacant homes’ assessed value. However Q2 this year will bring shed some more light on the details surrounding the tax.
Critics agree vacancy may lend itself to Toronto’s inventory shortage, however are urging the city to consider exemptions such as principal residences, snowbirds, difficulties in securing a lease due to market conditions and properties potentially going through special circumstances such as court proceedings or lengthy renovations.