Toronto’s vacant home tax is getting a “complete redesign” for the 2024 tax season after last year’s botched rollout led to a flood of complaints.
City officials unveiled the proposed changes to the vacant home tax (VHT) during a media briefing on Tuesday.
Stephen Conforti, chief financial officer and treasurer, told reporters staff zeroed in on four “key” areas that needed changing: process and timelines, ease of declaration, communication, and customer interface.
“It’s estimated that there’s up to 10,000 vacant homes in the city that could be unlocked for immediate occupancy through the VHT program,” he said.
“While we’re asking property owners to support this program, it’s imperative that city staff design a program that makes it as easy and as accessible as possible for everyone to make their annual declarations, with a program redesign that addresses the significant challenges experienced this past year.”
What’s new?
Officials vowed change following the botched rollout for the 2023 tax season, which saw many property owners erroneously billed. In the spring, officials voted in favour of an overhaul, and the city not only waived late fees related to it, but apologized for its implementation.
The city’s VHT was brought in at the end of 2021 to try and push investors to either sell empty homes or put them on the rental market. If their home was deemed vacant, they would face an extra tax.
Administering last time around ran into issues. The city extended the declaration deadline from its original Feb. 29 date after only 63 per cent of homes filled in the paperwork.
Many residents said they didn’t understand that the city required them to make a declaration every year, while others said they were billed even after making one.
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The chaos that followed included tens of thousands of complaints filed to the city within a short period of time. A communications package obtained by Global News in the summer offered a snapshot of a chaotic scene as public servants tried to navigate the crisis.
On Tuesday, officials said the 2024 VHT will have a longer declaration period – from Nov. 1 to April 30, 2025.
Conforti said staff wanted to ensure enough notice for taxpayers who may head south for the winter, adding the April 30, 2025 deadline lines up with the end of income tax filing season.
The 2024 program will also see the deadline for the issuance of VHT tax bills shift to June 1, or the following business day should June 1 fall on a weekend.
Also, the payment due dates will now become Sept. 15, Oct. 15 and Nov. 15 rather than May 15, June 15 and July 15 as previously done.
“Staff reported to council on these challenges last April and committed to a complete redesign of the program,” Conforti said.
In a news release, the city said Conforti will have the power to delay sending bills if the overall declaration rate falls short of expectations. It added the late declaration fee remains waived, though it may be reinstated in future years as the city evaluates its redesign.
‘We're going to keep nudging you’
One of the major issues plaguing last year’s rollout was both communication and customer interface, which staff acknowledged will be fixed going forward.
Starting Nov. 1, a “revamped, user-friendly” online portal will launch for property owners to submit their VHT declaration, the city said. At the same time, the city will introduce a multi-language customer care centre, allowing homeowners to declare by phone through 311.
Property owners will also have the option to submit their declarations in person at Tax and Utility counters at city hall and civic centres.
If filing online, property owners can provide their email to receive a confirmation of their declaration. If no email address is provided, they can print or save the confirmation page, which now includes a confirmation number, the city said.
Those declaring by phone will also receive a confirmation number. Property owners who declare by phone, or those without access to a printer, can call 311 to request a printed confirmation, which will be mailed to them.
Beth Waldman, interim chief communications officer, told reporters staff are going back to the “communication basics” for the proposed 2024 rollout.
“We are proposing a strategy that includes direct communications with letters and notices, with follow-ups such as robo calls and email notifications. Once you declare, you won’t hear from us again, but if you don’t declare, we’re going to keep nudging you,” she said.
“We’re going to keep communicating with you so that homeowners have the information they need to perform the action we need them to take, which is declare before the deadline.”
The proposals unveiled Tuesday will be considered by the executive committee on Oct. 1.
— with files from Matthew Bingley
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