Hamilton’s beleaguered vacant unit taxed finally passed with a vote of nine to six.
This means that starting next year, anyone who keeps a home vacant for more than 183 days will have to pay an extra one percent on their property taxes.
This won’t apply if the home is your primary residence — meaning snowbirds have nothing to worry about.
Exemptions also apply to people who are in long-term care or when the owner has passed away.
The city says they will be notifying owners of how they can declare a vacant unit.
The plan is to first rely on voluntary compliance with a smaller tax, before moving on to enforcement and increasing the rate.
READ MORE: Hamilton set to vote on vacant housing tax bylaw
The tax is a way to discourage properties from being left vacant for over half a year to address Hamilton’s ongoing affordable housing crisis.
City staff estimated there were over 1,000 vacant units, which, with the one percent tax, would generate revenue of about $4 million in the first year.
For example, if your property value is $1 million, you would be charged $10,000 per year.