York Region is shelving taxes on vacant homes despite pleas from local housing advocates.
Regional council confirmed it would defer the concept for now, despite a year of work to study it and pass a bylaw this year. This came as a result of staff concerns that the housing market might mean it generates less revenue than consultants have estimated.
But Affordable Housing Coalition of York Region co-chair Yvonne Kelly said in the wake of a housing crisis, the delay is a mistake and represents a lack of political will.
“In a crisis, you put all options on the table, knowing many measures may be necessary,” Kelly said. “With residents facing the growing housing instability, displacement and homelessness, passing a vacant homes tax can be one of the most immediate solutions.”
Regional staff cited concern that the province is planning to examine vacant homes taxes itself, which could make pre-empting the provincial government an issue. They also told council earlier this month that with the City of Toronto not getting as many immediate vacant home confirmations in its tax efforts, they are concerned that it may be more costly than estimated to implement.
CAO Bruce Macgregor said the revenue might end up being $2 million annually, with administration costs of more than $3 million.
“It’s a very complicated subject,” Macgregor said. “It’s to our collective benefit to watch and see what happens.”
Advocacy group Ontario For All disagreed, with representative Sean Meagher telling council there will always be some uncertainty in the political environment.
“We can’t really anticipate a time where everything is calm, everything is stable, and we’re making choices in a total, change-free environment,” he said. “Address the housing crisis in York Region, even as the environment changes around it.”
He added that the possible benefit of getting about 1,600 homes on the rental market that should not cost the region much is significant.
The idea has proven popular in polling. Consultant KPMG found 71.5 per cent of survey respondents supported a vacant housing tax.
Newmarket Mayor John Taylor, who also voiced opposition to delaying the tax, asked that the resolution confirm that staff would report back on the file this fall. He also said that increasing the tax, from the currently proposed one per cent to 1.5 per cent, could balance out the cost concerns.
The tax could also help reduce a driver of homelessness, Kelly said.
“The (tax) can discourage the type of speculation that is driving people out of their homes and keeping homes off the market,” she said. “Even if it does not initially yield high returns on investment, it will no doubt yield investment and cost savings on the homelessness and community programs side of this equation.”
