- Tax Overview: Homes in Windsor left unoccupied for more than 183 days in a calendar year will face a new three per cent tax based on the property’s assessed value. The measure is aimed at incentivizing property owners to put vacant homes back into use to increase housing supply and reduce vacancy rates.
- Objective: The city’s vacant home tax aims to address Windsor’s housing crisis, exacerbated by its rapid growth. Mayor Drew Dilkens emphasized the council’s commitment to finding local solutions to ensure housing availability matches demand.
- Local Response: Mayor Dilkens stated, “As we continue to experience an incredible growth trajectory in Windsor, council remains focused on innovative local solutions to the housing crisis.” The introduction of this tax is part of a broader strategy to manage housing affordability and availability in the city.
- Estimated Impact: According to early estimates provided by the city, between 250 to 500 homes may meet the criteria to be subject to the vacant home tax. This tax is intended to encourage property owners to either occupy or rent out their properties, thereby increasing housing occupancy rates.
- Reporting Process: The tax enforcement is complaint-driven, starting with identifying homes that were vacant in 2023. Residents who suspect a property is vacant can report it to Windsor’s municipal 311 service. Mayor Dilkens emphasized the importance of community involvement in identifying and addressing vacant properties.
- Annual Implementation: The vacant home tax will be implemented on an annual basis, with any net revenue generated being allocated towards Windsor’s housing initiatives. This includes funding programs aimed at affordable housing development and support services for vulnerable populations.
- Provincial Approval and Implementation Challenges: Windsor’s finance commissioner, Janice Guthrie, acknowledged the challenges faced in obtaining provincial approval for the tax. She highlighted lessons learned from other municipalities, emphasizing Windsor’s approach to selectively require occupancy declarations rather than imposing them city-wide.
- Declaration Requirement and Penalties: Property owners suspected of holding vacant properties are required to complete a declaration of occupancy status. Failure to comply or deliberate falsification of information could result in fines up to $3,500, as warned by the city in a recent news release.
- Exemptions and Scope: The vacant home tax legislation applies exclusively to residential properties and does not encompass commercial properties. This distinction aims to target residential vacancy rates specifically without impacting commercial property owners.
- Conclusion: Windsor’s introduction of the vacant home tax reflects a measured approach to addressing housing challenges amidst rapid urban growth. By focusing on vacant residential properties and implementing a complaint-driven enforcement strategy, the city aims to optimize housing supply and occupancy rates while learning from past implementation experiences in other regions.
