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January 12, 2026
THE CORPORATION OF THE CITY OF SAULT STE. MARIE
BY-LAW 2024-168
MUNICIPAL VACANT HOME TAX: Being a by-law to establish a vacant home tax in the
City of Sault Ste. Marie.
WHEREAS pursuant to the provisions of subsection 338.2(1) of the Municipal Act, 2001,
as amended, (the "Act"), Council may, by by-law passed in the year to which it relates,
impose a tax in the municipality on the assessed value, as determined under the
Assessment Act, of vacant units that are classified in the residential property class and
that are taxable under the Act for municipal purposes;
AND WHEREAS section 338.2(2) of the Act provides that a by-law established by a
designated municipality to impose a vacancy tax shall satisfy the criteria contained within
that section;
AND WHEREAS section 338.2(3) of the Act further provides that a by-law established by
a designated municipality to impose a vacancy tax may establish additional requirements
as Council considers appropriate;
AND WHEREAS on March 27, 2024, O. Reg 458/22 was amended to designate every
single-tier municipality as being able to impose a vacant tax against vacant units that are
classified in the residential property class in accordance with Part IX.1 of the Act.
AND WHEREAS Section 425 of the Act authorizes a municipality to pass by-laws
providing that a person who contravenes a by-law of the municipality passed under the
Act is guilty of an offence;
AND WHEREAS Section 429 of the Act authorizes a municipality establish a system of
fines for offences under a by-law passed under the Act;
AND WHEREAS on March 20, 2023 Council passed a resolution directing the Affordable
Housing Task Force review and report back to Council on the feasibility and benefit of
implementing a Vacant Property Tax;
AND WHEREAS on April 29, 2024, following receipt of a report from the Director of
Planning and Chief Financial Officer, Council passed a resolution that a Vacant Property
Tax be implemented in 2025 for 2024 vacancies;
AND WHEREAS Council of the City deems it appropriate to enact this bylaw for the
purpose of establishing a municipal vacant home tax on the unoccupied units that are
classified in the residential property class in the City of Sault Ste. Marie;
NOW THEREFORE the Council of the City hereby enacts as follows:
Page 2 of 7
DEFINITIONS:
1. In this by-law (the "By-law"):
"Audit Determination Notice" shall have the meaning set out in subsection 12 (2);
"Current Value Assessment " or "CVA" means the current value of a Residential Unit as
determined by the Municipal Property Assessment Corporation as of the Billing Date;
"Billing Date" means the date of the Tax Notice;
"City" means The Corporation of the City of Sault Ste. Marie;
"Treasurer" means the Treasurer of the City as appointed by Council;
"Council" means the Council of the City;
"Chief Building Official" means Chief Building official of the City as appointed by Council;
"Declaration of Occupancy Status Form" means the form to be filled out by the Owner of
a Residential Unit;
"Declaration Due Date" means the date specified on the on the request for Declaration of
Occupancy Status Form from the City;
"Deemed Vacant Home" shall have the meaning set out in section 6;
"Major Repairs or Renovations" means construction, alteration, repair, or demolition work
that requires building permits to be issued by the City and this work renders the residential
property unoccupiable and unfit for normal use for at least 183 days of the Taxation Year
as the dwelling lacks one or more essential facilities or conditions required for lawful and
safe occupancy including sanitary facilities; kitchen or food-preparation area; electrical,
plumbing, heating, or mechanical systems, structural integrity, fire separation or
weatherproofing; or safe and unobstructed access to and egress from the dwelling.
Routine maintenance, cosmetic improvements, or any work that could reasonably be
carried out while the dwelling remains lawfully occupied does not constitute major repairs
or renovations; [enacted by By-law 2026-6]
"Occupied" means a Residential Unit that was the Principal Residence of any of the
following for at least 183 days in any Taxation Year;
(a) An Owner; or
(b) An individual who has entered into a formal residential lease or rental agreement under
a term of no less than 183 days.
"Owner" means the registered legal owner of the Residential Unit or the Owner's family
member(s);
Page 3 of 7
"Payment Due Date" means the date upon which the VHT is due and payable as set out
in the Tax Notice;
"Principal Residence" means a person's legal/official place of residence regardless of how
many days they were physically present at the property;
"Residential Unit" means a room or suite of rooms in a building used or designed to be
used by one (1) or more individuals as an independent and separate housekeeping unit;
"Tax Rate" means the percentage rate of taxation that will be applied to the CVA of a
Residential Unit to determine the amount of VHT payable. The Tax Rate approved by
Council for 2024 and future years is 4%;
"Vacant Home Tax" or "VHT" means a tax levied against a Vacant Home or Deemed
Vacant Home in accordance with the provisions of this By-law. The VHT is calculated by
multiplying the Tax Rate by the CVA;
"Tax Notice" shall have the meaning set out in subsection 7(1);
"Taxation Year" means the calendar year to which the VHT applies;
"Vacant Home" means any Residential Unit not Occupied for more than 183 days in any
Taxation Year;
INTERPRETATION BULLETINS AND GUIDELINES
2. In administering this By-law, the Treasurer, or their designate, may issue such
interpretation bulletins, guidelines, procedures and policies as they, from time to time,
determines necessary or advisable.
FORMS
3. The Treasurer, or their designate, may approve the use and format of forms for any
purpose of this By-law and the forms may require the provision of such information as
they deem necessary for the enforcement and proper administration of this By-law.
REPORTING OF OCCUPANCY STATUS
4. The City, by means of the Treasurer or their designate, as delegated to do so, may
request an Owner to complete and submit a Declaration of Occupancy Status Form.
Where such a request has been made, the Owner shall complete and submit a
Declaration of Occupancy Status Form to the City for each Residential Unit of which they
are the Owner, in respect of the Taxation Year, by the Declaration Due Date.
EXEMPTIONS
5.
The VHT imposed under this By-law does not apply to,
(a)
Residential Units that are Occupied;
Page 4 of 7
(b)
The residential unit is undergoing major repairs or renovations as defined in
Section 1 of this By-law and the following conditions have been met:
i.
Occupation and normal use of the residential property is prevented by the
construction, alternation, repair, or demolition work for at least 183 days of
the Taxation Year claimed as the dwelling lacks one or more essential
facilities or conditions required for lawful and safe occupancy;
ii.
All requisite building permits under the Ontario Building Code Act were
issued by the City before or during the Taxation Year claimed and any
other applicable permits were issued by different authorities such as
Electrical Safety Authority or the Sault Ste. Marie Conservation Authority;
and,
iii.
The major repairs or renovations are being actively and diligently carried
out without unreasonable and unnecessary delay for the majority of the
Taxation Year claimed.
This exemption can only be claimed for one taxation year within every five
consecutive taxation years and the property owner is required to provide
supporting documentation which may include valid and active building
permits, permits from different authorities, and evidence of work being
conducted including photographs, inspection reports, work orders, or
contractor receipts and invoices. [amended by By-law 2026-6]
(c)
In the judgement of the Chief Building Official, the unit is otherwise uninhabitable
for reasons beyond the Owner's control; [deleted by By-law 2026-6]
(d)
A Residential Unit that has changed ownership in whole by way of an arm's length
transaction, shall not be subject to a VHT levy for the taxation year during which
the transaction occurred;
(e)
A Residential Unit that is not Occupied for a period of up to two (2) years following
the date the registered owner was admitted to care (hospitalization, long-term
care);
(f)
A Residential Unit whose owner has died will be exempt from a VHT levy in the
period of up to twenty-four (24) months beginning the month after the owner(s)'
death, provided the Residential Unit was Occupied at the time of death. Applies
to the legal estate or heir without any extension to the exemption period (24
months);
(g)
A Residential Unit used exclusively as a Short-Term Rental if registered with the
City in accordance with the City's Short-Term Licensing By-law and occupied for a
minimum of 100-days in the taxation year;
Page 5 of 7
(h)
The property is classified as seasonal (including properties that are classified by
Municipal Property Assessment Corporation as falling under property codes 363,
364, 385, 391, 392, and 395);
(i)
A Residential Unit with a court order preventing occupancy during the Taxation
Year, unless the court order is conditional on an action of the owner, or the state
and condition of the Residential Unit and the owner has not made reasonable
efforts to remedy the circumstances that led to the court order;
(j)
Multi-residential properties (more than 6 units);
(k)
Units owned/managed by not-for-profit organizations and social housing; or
(l)
A newly constructed unit classified in the residential property class that has not
been on the assessment roll for a full calendar year and has been continuously
listed for sale or lease.
DEEMED VACANT HOME
6. The Treasurer, or their designate, may deem a Residential Unit to be a Vacant Home
if the Owner fails to submit the Declaration of Occupancy Status Form to the Treasurer,
or their designate, for each Residential Unit of which they are the Owner, in respect of
the Taxation Year, by the Declaration Due Date, or fails to provide the information required
pursuant to section 10.
ASSESSMENT AND NOTICE OF TAX
7.(1) Following the Declaration Due Date the Treasurer, or their designate, shall review
each Declaration of Occupancy Status Form, assess the VHT payable in respect of each
Vacant Home and each Deemed Vacant Home, and issue a Tax Notice to the Owner
setting out the amount of VHT payable and the Payment Due Date.
7.(2) In the event of a conviction under section 14 of this By-law, the Treasurer, or their
designate, may assess or reassess any Owner for any VHT payable by an Owner under
this By-law for a Vacant Home or Deemed Vacant Home, at any time and for any period
that the City Treasurer, or their designate, considers reasonable.
CALCULATING THE VACANT HOME TAX
8.(1) VHT shall be calculated by multiplying the CVA by the Tax Rate. VHT shall not be
prorated for any time the Vacant Home or Deemed Vacant Home was Occupied in the
Taxation Year.
8.(2) The VHT is payable by the Payment Due Date regardless of whether a complaint or
appeal from the VHT is made or taken.
8.(3) Every Owner of a Vacant Home and every Owner of a Deemed Vacant Home shall
pay the VHT.
Page 6 of 7
TAX ROLL
9. The VHT shall be added to the property tax account of the Vacant Home or Deemed
Vacant Home, and shall be payable in one instalment on the Payment Due Date. Interest
at the rate of 15% per annum, calculated at the rate of 1.25% monthly shall be charged
on the amount of any VHT payable under this By-law on the business day following the
Payment Due Date and on the first day of each month thereafter.
COMPLIANCE AND AUDIT
10.
By virtue of this By-law, the City is authorized to request evidentiary documentation
from property owners to determine occupancy status of a Residential Unit.
11.
Administration is authorized to take any and all action that is deemed necessary
to enforce compliance, and to undertake audits and inspections as necessary relative to
the collection and remittance of the VHT.
APPEALS AND DISPUTE RESOLUTION
12.(1) An Owner may file a Notice of Complaint form if they choose to dispute their VHT
Tax Notice. The form, along with supporting documentation, must be filed with the City's
Taxation Department within 30 days of the date of on the VHT Tax Notice.
12.(2) The Notice of Complaint from the Owner will be reviewed by the City's Taxation
Department and the results will be provided in a VHT Audit Determination Notice.
12.(3) Within 30 days of the date of the Audit Determination Notice, the Owner may appeal
by filing a Request for Review with the Treasurer. The Request for Review will be
reviewed by the Treasurer, whose decision shall be final.
RECOVERY OF VHT
13. The Treasurer, or their designate, shall add the unpaid amount of VHT under this By-
law to the property tax account for the Vacant Home and the unpaid amount shall be
collected in the same manner as property taxes.
PENALTIES AND OFFENCES
14. (1) The City's By-law enforcement shall be responsible to enforce any offence under
this By-law.
14.(2) No Person shall make a false declaration or submit fraudulent documents in
relation to this By-law.
14. (3) Any Person contravening any provision of this By-law is guilty of an offence and
on conviction is liable to such fine as is provided for under the Provincial Offences Act,
R.S.O. 1990, Chapter P.33, as amended from time to time.
14. (4) Any Person contravening section 14. (2) of this By-law may be subject to a
minimum penalty of $500, but not a penalty more than $10,000.00.
Page 7 of 7
ANNUAL REPORTING
15. The Treasurer, or their designate, will include the results VHT program annually
through the year end reporting process.
GENERAL
16.
The Treasurer, or their designate, shall be responsible for the administration this
By-law and may delegate the performance of any one or more of their functions under
this By-law to one or more persons from time to time as the occasion requires and may
impose conditions upon such delegation and may revoke such delegation and may
continue to exercise any function delegated during the delegation.
17.
If any section or portion of this By-law is found to be invalid by a court of competent
jurisdiction, all remaining sections and portions of the By-law continue in full force and
effect.
18.
This By-law may be referred to as the "Vacant Home Tax By-law".
EFECTIVE DATE
19.
This by-law takes effect on the date of its final passing with vacant units being
assessed in the same year of the passing of this By-law.
PASSED in open Council this 2nd day of December, 2024.
______________________________
MAYOR - MATTHEW SHOEMAKER
______________________________
CITY CLERK - RACHEL TYCZINSKI
tm\\citydata\LegalDept\Legal\Staff\COUNCIL\BY-LAWS\2024\2024-168 Vacant Home Tax By-law.docx
"Matthew Shoemaker"
"Rachel Tyczinski"