Should Vacant Residential Land Be Taxed to Encourage Housing Development?
Official title: Consultations on the Taxation of Vacant Lands
Why This Matters
Trying to buy a home? This could affect how many get built in your area. The idea is simple: tax empty lots so landowners actually build on them. More homes could mean more options and potentially lower prices for buyers and renters alike.
What Could Change
A new federal tax on vacant residential land could be introduced. Provinces, territories, and municipalities might also create their own vacant land taxes with federal funding support. Landowners sitting on empty lots in residential zones would face financial pressure to develop or sell.
Key Issues
- Should the federal government introduce a tax on residentially zoned vacant land?
- How should such a tax be designed to address regional differences across Canada?
- Should provinces, territories, and municipalities introduce their own vacant land taxes with federal funding?
How to Participate
- Review the Consultation Paper: Taxation of Vacant Lands to understand the proposal.
- While the formal consultation has closed, you can still share your ideas with the Department of Finance.
What Happened
The consultation ran from October 8, 2024 to December 31, 2024. The government thanked all participants for their input. While the formal consultation has concluded, the Department of Finance continues to welcome ideas and comments from Canadians.