The tax is meant to encourage owners to rent out or sell their empty properties, thus increasing the housing supply to combat rising home prices and rental rates. However, in November there was a procedural vote to confirm the bylaw that would put the vacant unit tax in place, but that failed unexpectedly 6-6 at council. Photo Credit: The Canadian Press/Sean Kilpatrick.
In a 10-5 vote back in January 2023, Hamilton City Council voted to have municipal staff officially prepare and implement a new vacant home tax.
Meant to start in 2024, the bylaw would have required vacant property owners to pay a one per cent tax.
The tax was meant to be specific to properties that have six units or fewer and are vacant for more than 183 days of the calendar year.
The city had discussed the new tax for quite some time and had even sent thousands of flyers to homes across Hamilton informing residents that it would be coming.
The tax is meant to encourage owners to rent out or sell their empty properties, thus increasing the housing supply to combat rising home prices and rental rates.
However, in November there was a procedural vote to confirm the bylaw that would put the vacant unit tax in place, but that failed unexpectedly 6-6 at council.
Property owners in Hamilton would reportedly have to fill out declaration forms confirming that their home is occupied.
As such, some councillors have expressed concerns that residents will be taxed accidentally.
There were also concerns about the cost of the program’s implementation.
But ultimately, the difference in outcome between the January vote and the November vote was due to two factors.
First, three councillors that supported the vacant home tax in the original January 2023 vote were absent from the November vote.
Councillors Cameron Kroetsch (Ward 2 – Downtown Hamilton), Nrinder Nann (Ward 3 – East Hamilton Centre), Ted McMeekin (Ward 15 – East Flamborough-Waterdown) were all absent at the time of the final bylaw approval vote.
It appears that they were not aware of the importance of the vote.
Kroetsch later tweeted that he had “assumed [the vote] was a formality.”
Second, Councillor Jeff Beattie (Ward 10 – Stoney Creek-Fruitland-Winona), who previously supported the vacant home tax, changed sides.
Hamilton Mayor Andrea Horwath abstained from both the January 2023 vote and the November vote due to a conflict of interest since she said she currently owns a unit that is vacant.
The vote can still be reconsidered, but would require two-thirds support in order for that to happen.
Given that Horwath still appears unable to vote on the matter, the vacant home tax is likely dead unless 10 councillors approve a reconsideration motion.
Councillors in support of the vacant home tax are somewhat reluctant to call for a reconsideration of the tax because if that vote fails then it cannot be brought up again.
In other words, they get one chance. At this point in time, there appear to only be nine supporters.
As such, in December, Nann, who is one of the main proponents of the vacant unit tax, brought forward a motion to direct staff to report back to council clarifying some further details regarding the tax.
She specifically wanted staff to report back on the “implications” of not moving forward with the decision after so much work had already been completed.
Whether or not that staff report convinces opponents of the tax to support its reconsideration remains to be seen.
November 2023 Vacant Home Tax Bylaw Vote
IN FAVOUR (6): Maureen Wilson (Ward 1 – Chedoke-Cootes-Westdale), Tammy Hwang (Ward 4 – Hamilton East), John-Paul Danko (Ward 8 – West/Central Mountain), Mark Tadeson (Glanbrook-Binbrook-Mount Hope), Craig Cassar (Ward 12 – Ancaster-West Flamborough)
AGAINST (6): Matt Francis (Ward 5 – Hamilton East-Stoney Creek), Tom Jackson (Ward 6 – East Mountain), Esther Pauls (Ward 7 – Central Mountain), Brad Clark (Ward 9 – Upper Stoney Creek), Jeff Beattie (Ward 10 – Stoney Creek-Fruitland-Winona), Mike Spadafora (Ward 14 – West Mountain)
ABSENT (3): Cameron Kroetsch (Ward 2 – Downtown Hamilton), Nrinder Nann (Ward 3 – East Hamilton Centre), Ted McMeekin (Ward 15 – East Flamborough-Waterdown)
ABSTAINED (1): Mayor Andrea Horwath
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
