Vacant unit tax vote ended in tie, halting implementation

Hamilton City Councillors are at odds following the voting process for the final stage of implementation for the Vacant Unit Tax bylaw, expected to this winter

Amidst the ongoing housing crisis, the Hamilton's city council have been working on the implementation of a vacant unit tax by-law. The vacant unit tax is a one per cent tax increase when a residential unit is noted to be vacant for over 183 days, about six to seven months.

In a communication update released on the city of Hamilton website's dedicated VUT update page, the city expressed their hope is that the tax will discourage Hamilton landlords to leave residential units empty, resulting in more living spaces become available.

The original idea was proposed in 2019 as the vacant home tax, with tangible goals introduced in 2021. These goals included research to understand the implications for such a tax in Hamilton and to consult with those who would be impacted. Through 2022 and 2023 research was undertaken by city of Hamilton staff to inform the proper implementation process that was expected to follow. This initiatve expected to be implemented this winter, by beginning to disseminate declaration forms to the residents of Hamilton. 

On Nov. 22, 2023, however, the final vote held to officially approve the bylaw resulted in a tie. The voting for this bylaw was done separately to it’s original scheduled time, as requested by Councillor Tom Jackson, who initially voted against VUT bylaw. The tie has caused VUT to become invalid and the bylaw's implementation plan halted. 

The voting process for this bylaw has being criticized by some city councillors, as at the time of voting three councillors were not present, and two of them indicating they were unaware of the separation of the VUT from the rest of items part of the voting. Councillor Nrinder Nann and Councillor Cameron Kroetsch have both publicly voiced their disappointment with the final stage of voting.

"These bylaws could also be put forward in such a way that if a member of Council wanted to vote against them, that member would have to ask for a reconsideration vote. That’s what should have happened yesterday as the enabling bylaw was already the result of a Council decision," said Councillor Kroetsch in statement through X, formerly Twitter.

Currently, the VUT bylaw may still be reconsidered by the city.

On X, Kroetsch also stated he believes there will be one or more votes about the entire situation regarding the VUT tax. More information on the future directions of the VUT bylaw may be disclosed on Dec 13, 2023.

This is an ongoing story.