Homeowners’ frustration and anger at Toronto’s flawed vacant-home tax system boiled over into city offices Thursday as people lined up, massive bills in hand, desperate to get them cancelled.
In mid-afternoon at city hall, about 20 people, many seniors, expressed shock, fear and confusion, saying they never saw a white piece of paper in their property tax bill demanding they declare every year that their homes are occupied to avoid big charges for keeping a vacant home.
“It’s nuts,” said a man clutching a city demand for more than $9,000, waiting to speak to people at a special inquiry desk set up by city staffers who were urging people to not pay if their home was occupied, despite the tax bill demanding an initial payment by May 15.
City councillors reported similar scenes of angst at civic centres in former suburbs across Toronto. Coun. Paula Fletcher (Toronto-Danforth) said she got reports of people in tears at the East York hub, adding: “When you get a bill from the city for $3,000, $4,000, $10,000, that makes you quake in your boots. Something’s wrong and not being able to fix it quickly is so unsettling, especially for seniors.”
Fletcher also said city communication materials emphasizing homeowners declare their occupancy via the vacant home tax web portal, with less emphasis on the mail-in option, “shows that, once again, we’ve forgotten all those people in this city who don’t have computer access or simply don’t know how to use it.”
Those who queued at city offices got guidance but not instant relief. One of many quirks in the system is that people who missed the May 15 deadline to declare occupancy for 2023 can do so now — in a complaint to get the bill cancelled — but only through the online portal or by mail, not by simply telling the city staff who greeted the residents. The city says complaints registered by some of the 125,000 homeowners who received bills after failing to declare occupancy will trigger notices — now being expedited — telling people they are off the hook.
The city imposed the tax in 2022 to discourage property speculators from keeping homes empty during Toronto’s tight housing market. Council voted in October to triple the rate in 2024 to 3 per cent of a home’s assessed value. Residents were first told to declare occupancy last year, via a yellow piece of paper in their property tax bill.
This spring it became apparent that many residents did not realize they needed to register again this year. Others declared their homes were occupied before the city deadline but told the Star they still received a hefty tax bill.
Mayor Olivia Chow, speaking after a housing announcement, apologized to residents, appealed for calm and said nobody who occupied their home for more than half of last year will have to pay the vacant home tax.
“We’re cleaning up this mess, I apologize,” Chow told reporters. “By the time I arrived, the system was already set. I’m seeing the impact of it. It is not acceptable the way we rolled out this system … (it) wasn’t meant to harass regular homeowners,” she said.
Chow said she is working with city staff to fix the immediate problems and ensure the system is fully revamped for next year.
Everyone who got a mailed tax bill is being charged a $21.24 late fee. There is no option in the city portal to appeal that surcharge.
Steve Conforti, the city’s chief financial officer, told the Star that his staff are working on a way in which people who declared occupancy before the May 15 deadline, but still got tax bills, can get the late fee waived by attesting to the city that they made the declaration.
There are no plans at the moment, however, to waive late fees for homeowners who did not realize they needed to declare occupancy again. City staff said that would require a decision of city council, who last month directed staff to take steps including revamping the flawed system for 2025.
The deadline to appeal payment for the 2022 tax year is April 15. The deadline to appeal payment for the 2023 tax year is Dec. 31.
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