Written by: Evan Prendergast
Outside of any existing appeals, there may be an additional opportunity for property holders in Ontario to achieve a rebate for the 2021 tax year. Property tax rebates may be available if a property has experienced a significant change in value over the course of a year due to specific events. These events include:
- Demolition: A property may be eligible for a rebate if it, or any part of it, was demolished during 2021.
- Damage because of fire or other causes: A property may be eligible for a rebate if it was damaged by fire, demolition, or other causes such as flooding, storm damage, or other “Acts of God.” To qualify, the property, or a portion of the property, must have been substantially unusable for the purposes for which it was used immediately prior to the damage.
- Repairs or renovations: A property may be eligible for a rebate if it was undergoing repairs or renovations for at least 90 consecutive days or more during the 2021 calendar year. The repairs or renovations must have been extensive enough to prevent the normal use of the property, or a portion of the property, for a period of three months or more.
- Change in property use: A change in property use may result in a change in tax classification and potential benefit.
- Vacancy: For commercial and industrial space in certain municipalities only, there is a rebate for vacant periods of at least 90 consecutive days or more during 2021. A property is generally not eligible for this rebate if a lease was in place. Many municipalities have eliminated or modified the requirements to participate in their vacancy rebate programs.
If any of the significant events noted above occurred at a property in your portfolio during 2021, please contact DMA’s experts no later than Thursday, February 18, 2022, to confirm eligibility, as applications for rebates of municipal property tax paid in 2021 must be filed by the legislated deadline of February 28, 2022.