Complete your Vacant Unit Tax for Ottawa by March 21, 2024!

Complete your Vacant Unit Tax for Ottawa by March 21, 2024!

 

–> Click Here to Declare Your Property Status

 

If you declare after March 21 you will be fined $250.  And if you don’t file by April 30, the city will add 1% of the assessed property value to your tax bill (they’ll assume that it was vacant unless you declare otherwise)!  For example, that would be $5,000 on a $500,000 property.

The 1% tax is the amount that Ottawa will charge for properties that are vacant for more than 184 days in the previous calendar year (2023).

 

A summary based on the City’s website:  (details at Vacant Unit Tax )

All residential property owners will be required to register the status of their property during the previous year; if no declaration is made, the property will be deemed vacant and will be subject to the tax.

The tax does not apply to, but a declaration is still required for:
• Principal Residence
• Tenanted properties
• Properties occupied by a family member, friend, or other resident using it as their principal residence
• Properties qualifying for one of the available exemptions

Definition of a vacant unit
A residential unit is considered vacant if it has been unoccupied for an aggregate of more than 184 days during the previous calendar year.

A unit will be considered vacant if it was not used as a principal residence and has been unoccupied for more than 184 days in the previous calendar year. The tax applies only to properties in the residential tax class (excludes commercial, industrial, and multi-residential properties).

Eligible properties are determined using the property code assigned by the Municipal Property Assessment Corporation (MPAC). The property code can be found on the back of the bill of your most recent Final Tax Bill.

The majority of residential property codes are required to submit a declaration. Condos, townhomes, multi-units, and single-family will all most likely require a declaration. (Better to submit it even if unnecessary than be fined!) Review the list of eligible properties outlined in the by-law.

All residential property owners are required to submit an annual property declaration, even if you are using the property as your principal residence. If you own more than one property, you must submit a declaration for each. Note that you must declare the status of every unit in a multi-unit property individually. Eligible property owners will receive reminders to declare each year.

Tax amount
If the residential property has been declared or deemed vacant for more than 184 days in the previous calendar year and does not meet one of the exceptions outlined below, then the Vacant Unit Tax will be applied to your property.

The tax will be payable is 2024, based on the status of the property in 2023. The tax will be calculated at a rate of 1% of the property’s assessed value, and the tax will be applied to the Final Tax Bill, which is due on the third Thursday of June.

 

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