As 2025 begins, Ottawa homeowners are reminded to complete their Vacant Unit Tax (VUT) declaration for all residential properties they own by March 20, 2025. Failing to meet the deadline will result in a $250 late fee for declarations submitted afterward.
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What is the Vacant Unit Tax (VUT)?
Introduced in 2022, the VUT aims to address Ottawa’s rising housing costs. By encouraging homeowners to make unoccupied rental units or vacant homes available, the tax helps increase the housing supply and stabilize prices. In its first year, the VUT contributed to a 28% increase in housing inventory, according to city estimates.
How Does the Tax Work?
- Residences vacant for 184 days or more within a calendar year are subject to a 1% tax unless they qualify for an exemption.
- Exemptions include:
- Legal restrictions preventing occupancy
- Illness or hospitalization
- Significant renovations
- For properties that remain vacant for consecutive years, the tax rate increases by 1% annually, up to a maximum of 5%.
Revenue and Community Investments
In 2022, the City of Ottawa collected $12.6 million in VUT revenue. After covering $2.28 million in administrative costs, the remaining funds were invested in affordable and supportive housing projects, including:
- 56 Capilano Drive (Ward 9): 54 supportive housing units by Salus
- 1 Dunbar Court (Ward 8): 31 affordable rental units by Nepean Housing
- 1245 Kilborn Place (Ward 18): Acquisition for redevelopment into supportive housing and a community hub
- 665 Albert Street (Ward 14): 133 affordable units through Multifaith Housing Initiative in partnership with Dream (247 affordable and 354 market units)
- 822 Gladstone Avenue (Ward 14): 273 affordable units as part of Ottawa Community Housing’s Rochester Heights Phase 2 project
Appeals Process for Homeowners
Homeowners who believe they’ve been charged the VUT in error can appeal through a Notice of Complaint (NOC). If the NOC is denied, a second level of appeal is available. In 2022, 6,348 homeowners were charged VUT. Of the 3,357 appeals filed, 86.6% were successful.
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How to Complete Your VUT Declaration
To avoid penalties, ensure you declare your occupancy status by the March 20 deadline. Here are the available methods:
Online
- navigate to the Property Tax and Vacant Unit Tax section.
Phone
- Call 613-580-2444 (option 3) for assistance. Agents are available Monday to Friday, 8 a.m. to 4:30 p.m.
Video Relay Service
- Call 613-580-2400 to access Canada Video Relay Service during the same hours.
In-person
- Visit any City Client Service Centre. Find locations and hours
Key Takeaways
- Submit your VUT declaration by March 20, 2025, to avoid a $250 late fee.
- Properties vacant for more than 184 days may incur a 1% tax unless exemptions apply.
- VUT revenues support affordable housing initiatives across Ottawa.
- Appeals are available for homeowners charged in error.
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