Unlike the city's light rail transit system, the anti-empty home measure is doing what it's supposed to do. The city should double down on it as its housing crisis grows.
You might also want to have a look at Land Value Tax (LVT). It separates the value of land and buildings for purposes of municipal taxes, and taxes the land portion at a much higher rate. In effect, it also become a vacancy tax on unused, or underutilized land.
The idea has been around for well over 100 years, but probably got labeled as more of a crank idea when first suggested because it was purported then to replace all other taxes too.
There’s a fair bit of info out there, and it has actually been in use in several Pennsylvania municipalities for decades, although it seems to be falling somewhat out of favour due more to political shenanigans than problems with the idea itself.
However, I’ve not been able to find much practical info on the mechanics of how assessors actually arrive at how to split a property value into land and improvement components. Also, the idea of zoning and/or different rates based on zoning doesn’t seem to be discussed (its effect on value, or whether LVT would only work, or work better in its absence). This may be because zoning seems to be a significantly lesser force in the U.S. (from my observation).
I should have clarified that in its original conception, ONLY the land value would be taxed. Improvements would (theoretically) have no effect on the land value or the tax.
We have one in Hamilton, kicked in last year I think. I see more "cranes in the sky" right now than I've seen in my entire time living here. Granted there are other precipitating factors, but still.
I resent having to fill out a form every year (with a late penalty) only to declare that "I live in my house".
While I don't object to having owners of empty houses pay some type of tax, I feel that the city, by imposing yet another administrative burden on the 99% of folks who live in their homes, is the wrong way to do it. Don't tell me "oh, it's a small administrative burden". With that attitude, the city, the province, the federal government will keep on imposing new admin burdens... we have enough already.
Are we asked by police to declare that we don't speed on the highways? Same concept.
𝗣𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝘃𝗶𝗿𝘁𝘂𝗲 𝘀𝗶𝗴𝗻𝗮𝗹𝗶𝗻𝗴 - just add $15 to each property tax bill and you get the same $5M for affordable housing / year.
This tax is just another bureaucratic burden imposed on the 98.2% of Ottawa homeowners who live in their homes at least 6 months a year. Another "𝒐𝒉, 𝒊𝒕'𝒔 𝒆𝒂𝒔𝒚 𝒕𝒐 𝒇𝒊𝒍𝒍 𝒐𝒖𝒕" form imposed on tax payers. A scheme that will encourage snitching, distrust and resentment between neighbours. Another situation that has resulted in thousands of homeowners getting inadvertently caught up in a Kafkaesque bureaucratic nightmare simply because they may have forgotten to fill out the paperwork.
All this to raise $5million / year. There are 330,000 residential properties in Ottawa. Why not save us all the trouble, avoid having to hire another army of bureaucrats at city hall, and just bump up our property taxes by $15 / year, and you'll get your $5,000,000? How many millions of taxpayer dollars has the city already spent just devising this new tax?
This tax looks more like political virtue signaling - showing voters that the politicians are sticking it to those who don't live in their houses more than 6 months a year. There are a lot more effective and elegant ways of raising $5M / year.
I look forward to seeing a full and detailed report on this tax. How much was spent to administer it, how many folks got caught up by it, and how much it really brought in.... and most importantly, how much more housing has it generated in Ottawa.....
You should properly report on Dudas' statements regarding the VUT so that your readers can make a more-informed decision. She raises some great points that you've either not touched on or glossed over completely. As it stands, Ottawa's VUT needs to be cancelled and replaced with one that actually works without harming vulnerable homeowners.
Just adding $15 tax on the 330,000 residential properties in Ottawa will bring in the same $5million / year. Why go though all the bureaucratic gymnastics? How many bureaucrats do we have to hire to manage this tax? This tax is little more than political virtue signaling.
You might also want to have a look at Land Value Tax (LVT). It separates the value of land and buildings for purposes of municipal taxes, and taxes the land portion at a much higher rate. In effect, it also become a vacancy tax on unused, or underutilized land.
The idea has been around for well over 100 years, but probably got labeled as more of a crank idea when first suggested because it was purported then to replace all other taxes too.
There’s a fair bit of info out there, and it has actually been in use in several Pennsylvania municipalities for decades, although it seems to be falling somewhat out of favour due more to political shenanigans than problems with the idea itself.
However, I’ve not been able to find much practical info on the mechanics of how assessors actually arrive at how to split a property value into land and improvement components. Also, the idea of zoning and/or different rates based on zoning doesn’t seem to be discussed (its effect on value, or whether LVT would only work, or work better in its absence). This may be because zoning seems to be a significantly lesser force in the U.S. (from my observation).
I should have clarified that in its original conception, ONLY the land value would be taxed. Improvements would (theoretically) have no effect on the land value or the tax.
Thanks for writing this David. In the end, Council decided not to end the VUT. It will continue in 2024 and beyond, with some administrative tweaks: https://www.glengower.ca/notebook/notebook-my-motion-to-tweak-the-vacant-unit-tax/
This is fantastic news, thank you! And thanks for your work.
We have one in Hamilton, kicked in last year I think. I see more "cranes in the sky" right now than I've seen in my entire time living here. Granted there are other precipitating factors, but still.
Seems like a no-brainer to me.
H'mmm. Wonder if Poilievre owns any vacant homes in her ward?
I resent having to fill out a form every year (with a late penalty) only to declare that "I live in my house".
While I don't object to having owners of empty houses pay some type of tax, I feel that the city, by imposing yet another administrative burden on the 99% of folks who live in their homes, is the wrong way to do it. Don't tell me "oh, it's a small administrative burden". With that attitude, the city, the province, the federal government will keep on imposing new admin burdens... we have enough already.
Are we asked by police to declare that we don't speed on the highways? Same concept.
𝗣𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝘃𝗶𝗿𝘁𝘂𝗲 𝘀𝗶𝗴𝗻𝗮𝗹𝗶𝗻𝗴 - just add $15 to each property tax bill and you get the same $5M for affordable housing / year.
This tax is just another bureaucratic burden imposed on the 98.2% of Ottawa homeowners who live in their homes at least 6 months a year. Another "𝒐𝒉, 𝒊𝒕'𝒔 𝒆𝒂𝒔𝒚 𝒕𝒐 𝒇𝒊𝒍𝒍 𝒐𝒖𝒕" form imposed on tax payers. A scheme that will encourage snitching, distrust and resentment between neighbours. Another situation that has resulted in thousands of homeowners getting inadvertently caught up in a Kafkaesque bureaucratic nightmare simply because they may have forgotten to fill out the paperwork.
All this to raise $5million / year. There are 330,000 residential properties in Ottawa. Why not save us all the trouble, avoid having to hire another army of bureaucrats at city hall, and just bump up our property taxes by $15 / year, and you'll get your $5,000,000? How many millions of taxpayer dollars has the city already spent just devising this new tax?
This tax looks more like political virtue signaling - showing voters that the politicians are sticking it to those who don't live in their houses more than 6 months a year. There are a lot more effective and elegant ways of raising $5M / year.
I look forward to seeing a full and detailed report on this tax. How much was spent to administer it, how many folks got caught up by it, and how much it really brought in.... and most importantly, how much more housing has it generated in Ottawa.....
You should properly report on Dudas' statements regarding the VUT so that your readers can make a more-informed decision. She raises some great points that you've either not touched on or glossed over completely. As it stands, Ottawa's VUT needs to be cancelled and replaced with one that actually works without harming vulnerable homeowners.
Just adding $15 tax on the 330,000 residential properties in Ottawa will bring in the same $5million / year. Why go though all the bureaucratic gymnastics? How many bureaucrats do we have to hire to manage this tax? This tax is little more than political virtue signaling.