Toronto's new Vacancy Home Tax is cracking down on residences left unoccupied for long periods of time to increase the supply of housing in the city. 

All residential property owners will receive a notice in the mail regarding the tax, and no, it's not a scam. In fact, if you fail to make your property status declaration, you could face a fine of $250. 

The goal of the vacancy tax is to "increase the supply of housing by discouraging owners from leaving their residential properties unoccupied," the City said. "Homeowners who choose to keep their properties vacant will be subject to this tax." 

Revenues collected from the Vacant Home Tax will be allocated towards affordable housing initiatives. 

A vacant home tax has been approved in Toronto. Homeowners who choose to keep their properties vacant, rather than opening them up to the rental or real estate market are subject to a tax. We want to hear from you on the elements of this tax. Visit https://t.co/uwFjbbE9v6 pic.twitter.com/qSeaINmCuU

— City of Toronto (@cityoftoronto) October 17, 2021

All residential property owners in Toronto will be required to declare the status of their property(s) annually, even if they live there. Residential properties that are declared vacant for six months or more during the taxation year and without an eligible exemption will be required to pay the tax. 

A tax of one per cent of the Current Value Assessment (CVA) will be imposed on all Toronto residences that are declared/deemed/determined vacant for more than six months during the previous year. 

For example, if the CVA of your property is $1 million, the tax amount billed will be $10,000.

A property may be left vacant and exempt from the tax only if one of the following criteria is met: 

• Death of registered owner 
• Repairs or renovations 
• Principal resident in care 
• Transfer of legal ownership 
• Occupancy for full-time employment 
• Court order 

Declarations of occupancy status can be made through the City's online declaration portal that will open up in mid-December 2022. 

You'll have until Feb. 2, 2023 to make your property status declaration, otherwise a fine of $250 will be issued. 

Owners of properties subject to the tax will be issued a notice in March/April and payment will be due on May 1. Failure to declare or making a false declaration can result in a fine of $250 to $10,000.