City introduces vacant home tax to take effect next year

The City of Sault Ste. Marie says it is implementing a Vacant Home Tax (VHT) as a measure to address increased housing availability and affordability.

Vacant properties are contributing to the scarcity of available housing options for residents, the City said in a release. 

By introducing this measure, the City says it seeks to encourage efficient use of housing and alleviate the strain on the local housing market.  

“The decision to implement the VHT reflects the City’s commitment to address the housing needs of our community,” says Peter Tonazzo, director of planning. “Encouraging the occupancy of vacant properties creates a more inclusive and sustainable housing market to meet the needs of residents.”

Over the past two years, SooToday has written extensively about the scourge of vacant properties in Sault Ste. Marie, many of them owned by out-of-town landlords who have been the target of increased scrutiny in recent months.

Last December, two people died in a fire at a boarded-up house on Huron Street.

Once the program begins, residents can notify the City of any suspected vacant properties, prompting the completion of a declaration form for the respective property.

The City said the aim is not to levy taxes on properties that serve as primary residences or may temporarily become unoccupied due to travel or unforeseen circumstances.

Rather, the focus is on taxing properties that persistently remain vacant and neglected, in which case, if a property remains unoccupied for more than six months, owners will be subject to an annual tax, with the specific rate yet to be determined.

The new tax will take effect on Jan. 1, 2025, based on the 2024 vacancies.

The City said a public open house will be held at a later date to solicit community input on the VHT, determine the tax rate that should be applied, and identify potential exemptions.  

For more information, visit www.saultstemarie.ca.