What should I do if I receive the tax form for vacant houses? Don't worry! Teach you how to fill it out and avoid paying extra taxes!

Recently, Mr. Li, a resident of Toronto, received a headache inducing yellow envelope - the vacant property tax form from the city government. He opened the envelope and found that he needed to fill out a form to confirm the usage status of the house in the previous year. Mr. Li felt helpless: 'The house has always been occupied, and it's really troublesome to fill out so many documents to prove it!' he complained. This not only made him feel cumbersome, but also made him wonder why he had to submit this information for the property he had worked hard to manage?

There are many Toronto residents who share the same confusion as Mr. Li. Although the original intention of the vacant house tax policy is to increase housing supply and reduce the number of vacant houses, filling out this form is unnecessary and inconvenient for residents who actually live in their own houses. However, in order to avoid being assumed as vacant and incurring additional taxes, Mr. Li still decided to fill it out carefully.

So, what exactly is this vacant property tax form? How to fill it out to avoid unnecessary trouble?

1. What is vacant property tax?

The vacant property tax is a tax introduced by the Toronto City government to address housing shortages. Any residential property that has been identified as continuously vacant for more than six months in the previous year is typically subject to a tax equivalent to 1% of the assessed value of the property, aimed at encouraging homeowners to rent or sell the property instead of leaving it idle.

How to handle the vacant property tax form in the yellow envelope?

After receiving the vacant property tax form, the homeowner needs to truthfully fill in the occupancy status of the property for the municipal government to verify. The following are the basic steps for processing:

Reading instructions: The envelope contains instructions on the declaration process, deadline, and related consequences. Please read them carefully.

Confirmation of submission deadline: The form usually needs to be submitted within one month after receiving the envelope. Failure to do so may result in it being considered vacant and subject to taxation.

Prepare relevant supporting documents: If your property has been rented, sold, or used for other purposes in the previous year, prepare lease contracts, utility bills, and other documents for inspection.

How to fill out the vacant property tax form?

After receiving the vacant property tax form from the Toronto City Government, you can follow the detailed steps below to file online:

Step 1: Prepare the required information

Local tax invoice: Find your local tax invoice and obtain the following information:

Assessment Roll Number: 21 digits.

Customer Number: 6 to 9 digits.

Step 2: Visit the declaration website

https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/

Step 3: Start declaring

On the page, click the "Submit Declaration" button to enter the declaration page.

Step 4: Read and agree to the terms

Select Unified Next Step

Read the disclaimer and relevant information collection terms on the page.

Check 'I have read and agreed to the above statements' and click' Proceed 'to continue.

Step 5: Enter property information

Enter your 21 digit Assessment Roll Number and 6-9 digit Customer Number.

After confirming that the information is correct, click "Next" to continue.

Step 6: Fill in the applicant's information

Choose the identity of the declarant:

If you are the homeowner, select 'Registered Owner'.

If you are declaring on behalf of the homeowner, select 'On Behalf of the Registered Owner'.

Fill in the name, phone number, and email address of the applicant (phone number is required, email is optional).

If it is an agent declaration, relevant information of the homeowner needs to be filled in.

Step 7: Fill in the occupancy status of the house

Answer 'Is this property occupied as your primary residence?':

If so, select 'Yes' and click' Next 'to continue.

If not, select 'No' and click 'Next' to continue.

Step 8: Fill in resident information (if applicable)

If the house is occupied by someone else, choose the specific situation of the resident:

Residing by family members, friends, etc.

Residing by tenants.

According to the selection, fill in the name and contact information of the resident.

Step 9: Apply for exemption (if applicable)

If your property meets the conditions for exemption from vacancy tax, select the corresponding exemption option and upload the required supporting documents.

Common exemptions include:

The owner passed away.

The property is undergoing maintenance or renovation.

The main residents are in hospitals or long-term care institutions.

Legal transfer of ownership.

The main residence is located outside the Greater Toronto Area and is required for full-time employment.

Effective court orders prohibit occupation.

Step 10: Confirm and submit the declaration

Carefully check all the information filled in to ensure accuracy and correctness.

Check 'I declare that the information provided is true and accurate'.

Click on 'Declare' to submit the declaration.

Step 11: Obtain confirmation information

After submission, the page will display confirmation information that the declaration has been completed and inform you whether you need to pay vacancy tax.

Suggest saving or printing the confirmation page for future reference.

matters needing attention:

Declaration deadline: Please pay attention to the annual declaration deadline to ensure that the declaration is completed before the deadline.

Fines: Failure to declare on time or false declarations may result in fines ranging from CAD 250 to CAD 10000.

Exemption certificate: If applying for exemption, it is necessary to provide relevant supporting documents to avoid being regarded as vacant and subject to taxation.

By following the above steps, you can successfully complete the online declaration of vacant property tax in Toronto. If you have any questions, it is recommended to contact the Toronto City Government or visit their official website for more information.

4. Precautions after submission

After submission, the Toronto City Government may review the form information and request further proof if necessary. Please keep a copy of the form and all supporting documents.

5. Consequences of failure to declare as required

Failure to submit or provide false information on time may result in the municipal government assuming the property is vacant and imposing a vacancy tax. Therefore, submitting forms on time and accurately can avoid unnecessary fines and disputes.

Receiving the vacant property tax form from the municipal government does not necessarily mean that you have to pay the vacant property tax, but rather is a procedure used by the municipal government to confirm the usage status of the property. Just fill in truthfully and submit as required, usually no additional taxes will be incurred. If you have any questions, you can contact the vacant property tax hotline of the municipal government or seek professional assistance.

Easy Media Journal: Written by Shengji Lin