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Vacant home tax not worth the cost says TBM council

Resident letter aimed to reopen 2023 debate on extra taxes for vacant homes
Town Hall
The Blue Mountains Town Hall

The Blue Mountains council continues to have no interest in pursuing a vacant home tax.

At its meeting on Sept. 9, council once again ruled out the possibility of pursuing the implementation of a vacant home tax.

Council recently received a letter from local resident Mike Dougall suggesting the town consider such a tax measure.

“I am writing to bring to your attention the growing concern of abandoned buildings within the Town of The Blue Mountains. These vacant dwellings not only detract from the beauty and vitality of our community but also represent untapped potential that could be harnessed to address pressing social needs,” Dougall said in the letter. “I would like to propose the introduction of a "Vacant Home Tax" on these abandoned properties. The revenue generated from this tax could be allocated towards funding assisted living initiatives within our town.”

The letter was on agenda for council’s consideration at the meeting and Deputy Mayor Peter Bordignon said the town had considered such a tax initiative in recent years during its annual budget process.”

“We did look at this a few years and it was deemed not financially viable,” said Bordignon.

In 2023, the town explored the possibility of establishing a vacant home tax.

The province allows such a measure as a revenue-raising tool for municipalities and to encourage the owners of investment properties to rent out their homes.

The tax, however, is not widely used in smaller municipalities. It has been put in place in larger cities such as Toronto, Ottawa and Hamilton.

To implement such a tax, the town would have to get the permission of both Grey County and the provincial ministry of finance to proceed. The town would be responsible for establishing its definition of a vacant home, the rates it would charge, criteria for exemptions and the establishment of an adjudication and appeal process for homeowners who disagreed with the town’s assessment of their property.

Coun. Shawn McKinlay said the matter had been investigated in the past and the town had ruled it would be an administrative burden to go down that path. McKinlay said there would be issues with “implementation and execution” were TBM to add a tax for vacant homes.

“Enforcement after that point was going to be very difficult,” he said.


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About the Author: Chris Fell, Local Journalism Initiative reporter

Chris Fell covers The Blue Mountains and Grey Highlands under the Local Journalism Initiative, which is funded by the Government of Canada
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