News release: April 28, 2023
Peel Region seeks Vacant Homes Tax authority to help increase housing supply
Brampton, ON (April 28, 2023) – Yesterday, Council authorized Peel Region staff to submit a proposal to the Minister of Finance requesting designated authority to implement a Vacant Home Tax (VHT) in Peel. A VHT in Peel would only be applied to homes that are vacant for more than 184 days in a calendar year and are not exempt.
In April 2022, Peel launched community consultation activities for the public to provide input into the development of a potential VHT program in Peel to increase housing supply. Ernst & Young LLP (EY) used those findings to complete their study, recommend a VHT program framework and develop a program delivery model. EY’s findings and recommendations were presented to Council yesterday.
A VHT is designed to encourage vacant homeowners to sell or rent vacant units to the market, which in turn may help increase housing supply and optimize existing housing stock. The EY study recommends that a VHT would be a feasible housing policy tool and revenue positive tool for implementation in Peel Region to help address affordable housing challenges. EY’s financial analysis was based on an estimation of residential properties in Peel that could be vacant and subject to the VHT; and that a VHT could be a policy lever to encourage these vacant units to return back to market.
EY has recommended a Peel VHT Framework that includes an initial tax rate of 1%, a VHT declaration and application process, and seven categories of exemption which is consistent with other municipalities that have implemented a VHT.
In order for Peel to move forward, a proposal will be submitted to the Province requesting designated authority to implement the VHT.
VHT has been used in other cities to improve housing supply and affordability, is consistent with Council's advocacy for ensuring the use of housing for homes and relates to the fourth pillar of the Region’s Housing and Homelessness Plan to optimize existing housing stock.
The final launch of the VHT program in Peel is not anticipated until at least 2025.
Additional information:
- Report to Council April 27, 2023 - "Vacant Home Tax – Public Consultation and Program Design"
- Presentation by Ernst and Young to Council April 27, 2023 - "Region of Peel Vacant Home Tax – Stakeholder Engagement Summary and Final Program Design"
- Vacant Home Tax Final Report Prepared by Ernst and Young
- Region of Peel's Vacant Home Tax Program Design – Submission to the Province of Ontario
- Report to Council January 27, 2022 - "Vacant Home Tax Feasibility Study"
- Presentation by Ernst and Young to Council January 27, 2022 - "Region of Peel Feasibility Assessment for Vacant Homes Tax"
- Vacant Home Tax in Peel
- Housing in the Region of Peel
- The Region of Peel's advocacy priorities
Media contact
Genevieve Ricciardella
Communication Specialist
Region of Peel
About Peel Region
Peel Region works with residents and partners to create a healthy, safe and connected Community for Life for approximately 1.5 million people and over 175,000 businesses in the cities of Brampton and Mississauga and the Town of Caledon. Peel's services touch the lives of residents every day. For more information about the Region of Peel, explore peelregion.ca and follow us on Twitter @regionofpeel and Instagram @peelregion.ca.
