What will Landlords in Ottawa think about this new tax?
If you own any multifamily buildings in Ottawa, or if you are looking to buy any type of investment property, you should be aware of this new tax that is coming in 2023.
The City of Ottawa Vacant Unit Tax By-law 2022-135 will be implemented in 2023. This new tax serves as an incentive to ensure secondary or other residential investment properties – which are not the owner’s principal residence – remain occupied either through renting or placing them on the real estate market.
Between January and March 2023, all property owners will be required to complete a mandatory declaration online on ottawa.ca/VUT or through MyServiceOttawa. The declaration will take less than five minutes to complete and will be based on their property occupancy status during the 2022 calendar year. This declaration will be an annual requirement.
- You own a fourplex with 4 units.
- Your building is assessed at $1,000,000.
Using this example, the new tax will be 1% of the assessed value divided by the number of apartments in the building. In this case, the owner of this building would pay $2500 due to this new tax.
1% of $1 Million divided by 4 apartments = $2500.
Get more information about the new tax at the link below.
The link below gives you further information about buying and selling a building.
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