Unraveling the Mystery: When Does a House Become 'Uninhabitable'?
The Debate Over Uninhabitable Homes
In the city of Sault Ste. Marie, a heated debate has emerged regarding the definition of an 'uninhabitable' home. A city working group has recently concluded that the current vacant home tax bylaw inadvertently encourages homeowners to neglect their properties. The bylaw, which imposes a four percent tax on vacant homes, has a loophole that allows homeowners to claim their properties are 'uninhabitable for reasons beyond the owner’s control'.
Jenna Ricard from the city's legal department believes this exemption is too broad and functions as a loophole rather than a safeguard. She argues that the term 'uninhabitable' is vague and subjective, and that the exemption encourages neglect and allows property owners to avoid the tax without returning the home to an occupiable state. The working group, which includes representatives from the city's tax, legal, building, and planning departments, has determined that this exemption is difficult and costly to enforce.
The Controversial Exemption
The exemption in question is a recommended one, not a mandatory one, and it is not included in the bylaws of other Ontario municipalities. However, the City of Ottawa and the City of Hamilton have included a hazardous property exemption, which is more restrictive and defined as a property that has become uninhabitable due to hazardous conditions or substantial damage from a disaster outside of the control of the property owner.
The Request for Change
Ricard will ask the city council on Monday to remove the word 'uninhabitable' from the Sault's vacant home tax bylaw and to make several additions. These include:
- 'Major repairs or renovations' are defined as construction, alteration, repair, or demolition work that requires building permits and renders the residential property unoccupiable and unfit for normal use for at least 183 days of the taxation year.
- Routine maintenance, cosmetic improvements, or any work that could reasonably be carried out while the dwelling remains lawfully occupied will not constitute major repairs or renovations.
- Major repairs or renovations are being actively and diligently carried out without unreasonable and unnecessary delay for the majority of the taxation year claimed.
- The exemption may only be claimed for one taxation year within every five consecutive taxation years.
- Property owners will be required to provide supporting documentation, including valid and active building permits, permits from different authorities, and evidence of work being conducted.
The Future of the Bylaw
The amendments to the bylaw will apply to any future vacant home tax declarations, including the declaration of occupancy status forms submitted for the taxation year of 2025. The city council meeting on Monday will be livestreamed on SooToday starting at 5 p.m., allowing the public to follow the discussion and voice their opinions on the proposed changes.
A Call for Discussion
The debate over the definition of an 'uninhabitable' home is a complex one, and it is important to consider the perspectives of both homeowners and the city. What do you think? Do you agree with the working group's conclusion that the exemption encourages neglect? Or do you believe that the current definition is sufficient and that the exemption should remain in place? Share your thoughts in the comments below!
