Article 6AKQX ‘Stumbling, fumbling, bumbling’: Vacant unit tax flyer sparks calls to Hamilton councillors

‘Stumbling, fumbling, bumbling’: Vacant unit tax flyer sparks calls to Hamilton councillors

by
Teviah Moro - Spectator Reporter
from on (#6AKQX)
homes.jpg

City staff say they'll ramp up an information campaign about Hamilton's upcoming vacant unit tax after councillors say an initial flyer mailed to residents flooded their offices with queries.

There have been reports on the new tax, but staff should have told councillors ahead of time that the flyer was to arrive in mailboxes earlier this week, city manager Janette Smith says.

Staff typically give a heads-up" before such announcements are made to allow councillors to respond to queries with key messages," Smith said Wednesday.

And that did not happen this time, and so we own that as staff."

The vacant unit tax, under discussion at city hall since 2019, is meant to coax empty homes onto the market for rent or purchase in an effort to help ease Hamilton's housing crunch.

In January, the new council voted 10-5 to direct staff to prepare the new tax program that sees the owners of vacant properties pay a one per cent tax on assessed value starting in 2024.

The tax targets properties of six units or less that were vacant for more than 183 days in the previous calendar year.

Some scenarios - such as deaths or hospitalizations, major renovations or court orders - exempt owners from the tax.

Earlier this week, flyers arrived in mailboxes to introduce residents to the upcoming vacant unit tax, including the initiative's mandatory occupancy declaration."

All residential property owners must make this declaration each year starting in 2024 so the city can determine which addresses are subject to the vacant unit tax (VUT).

If an occupancy declaration is not submitted, the property will be considered vacant and the VUT will be charged," the flyer advises.

The flyer directs readers to the city's website (hamilton.ca/VacantUnitTax) for more information. The webpage notes a letter explaining how to make mandatory declarations will be mailed to residents in mid-December.

Forms are to be available for online submission or printed off and filled out. The deadline to make declarations is March 31, 2024.

Finance staff have said they don't know exactly how many homes in Hamilton could be considered under the new tax. But they estimate 1,135 properties could meet the definition.

On Wednesday, Coun. Tammy Hwang said her office had fielded calls from at minimum 30 people" the day before asking about the new tax program.

It's a significant amount considering there was nothing beforehand," the new Ward 4 councillor said.

Indeed, the delivery of 177,000 flyers would trigger many calls to councillor offices, added Mike Zegarac, general manager of finance and corporate services.

So I apologize for not providing advance warning to you and your staff."

In the coming months, staff will roll out a sustained campaign of awareness raising" that will include the website, mail-outs and social media, said Matthew Grant, director of communications and strategic initiatives.

The publicity effort will eventually shift from a focus on raising awareness about the new tax to a call to action" about making the declarations, Grant said.

The budding initiative is a levy with a purpose" to help address homelessness and the housing crisis, Coun. Maureen Wilson said.

If units are vacant, we want them on the market, whether for purchase or for rent," the second-term Ward 1 councillor added.

That will be emphasized as the communication strategy unfolds, Grant said. We didn't do a good job in telling people why we're doing this and what we hope to achieve by it."

Coun. Tom Jackson, who opposed the new tax, said his office had heard from nothing but angry, unhappy" residents since the flyer was mailed out.

They see it as a form of reverse billing because it says you must fill out this occupancy declaration form, and if you don't, watch out next year."

Moreover, some residents are likely to just toss the flyers in the recycling bin thinking the new tax doesn't apply to them but will be charged later, the veteran east Mountain councillor added.

To me, this is stumbling, fumbling, bumbling out of the gate," said Jackson, adding, it's been a while since I've seen this kind of reaction" over a city flyer.

Mandatory declarations are the only tool" the city has to identify vacant units in the city, Coun. Nrinder Nann said, pointing out other data sources don't necessarily provide addresses.

And I got that really clearly through the staff reports over the years," said the Ward 3 councillor, who, since 2019, pushed for the new tax.

We knew that this was going to come, and to frame it as reverse billing, I appreciate the concern from residents that are being flagged here."

Coun. Jeff Beattie, echoing Jackson's experience, said his office had fielded zero positive feedback on this whatsoever" since the flyers were sent to lower Stoney Creek homes.

As a new councillor, he obviously did misunderstand how this was to be rolled out," Beattie added. And I have to wear that. I have to own that and I do."

But the sky's not falling on this subject," said Coun. Cameron Kroetsch, adding it was really clear" what the 10-5 January vote approved.

Could communication have been better? It seems like everyone thinks so. Lots of opportunities for further communication. I hope we can move on."

Vancouver is the only city in Canada to have implemented a vacant unit tax, but Ottawa and Toronto, like Hamilton, are getting their programs ready.

Staff have estimated the cost of implementing Hamilton's vacant unit tax is $2.6 million and pegged the annual operating expense at $2.2 million.

The estimated gross revenue in the first year is $4.3 million.

Teviah Moro is a reporter at The Spectator. tmoro@thespec.com

Vacant unit tax 2024 rollout

Mid-December 2023: letters about mandatory declaration mailed

March 31: mandatory declaration deadline

April 1 to 30: late mandatory declarations accepted with a fee

First week of June: bills mailed out with final property tax bills

June 30: first payment due

July 2: complaint/appeal period begins

Sept. 30: second payment due

Source: City of Hamilton

External Content
Source RSS or Atom Feed
Feed Location https://www.thespec.com/rss/article?category=news
Feed Title
Feed Link https://www.thespec.com/
Reply 0 comments