Starting in 2025, the City of Hamilton will introduce a Vacant Unit Tax (VUT) aimed at reducing the number of unoccupied residential properties. Similar to programs in cities like Vancouver, Toronto, and Ottawa, this initiative seeks to address housing shortages and fund essential housing programs.

What is the Vacant Unit Tax?

The VUT requires all residential property owners in Hamilton to submit an annual occupancy declaration, beginning in January 2025. This declaration determines whether a property has been vacant for more than 183 days during the previous calendar year.

Properties identified as vacant without qualifying for an exemption will be subject to a tax equal to 1% of the property’s assessed value. For instance, a home valued at $500,000 would incur a $5,000 tax if it remained unoccupied for most of the year.

Failing to submit the occupancy declaration by the March 31, 2025 deadline will result in the property being classified as vacant, and the tax will automatically apply. Additionally, late submissions will incur a $250 late fee, along with penalties of 1.25% on the first day of default and 1.25% monthly interest on unpaid taxes.

Exemptions to the Vacant Unit Tax

Certain circumstances allow for exemptions to the VUT, including:

1. Deceased Owners: Properties owned by someone who passed away are exempt for the year of death and the following year.

2. Major Renovations: If a property is uninhabitable for more than 183 days in a year due to approved renovations, it qualifies for an exemption.

3. Property Sales: Homes sold during the year to unrelated buyers are exempt.

4. Institutionalization: Properties owned by individuals residing in long-term care facilities or other institutions for extended periods are exempt.

5. Court Orders: Properties under court orders prohibiting occupancy are exempt.

6. Non-Profit Housing: Units owned and operated by designated non-profit housing organizations are not subject to the tax.

Ensuring Compliance: Annual Audits

To ensure accuracy and compliance, the City of Hamilton will conduct annual audits. These audits will target:

• Properties claiming exemptions.

• Those with changes in occupancy status.

• Properties flagged through complaints or selected for random checks.

If a property is deemed vacant after an audit, the tax will apply retroactively.

How the Tax Will Be Collected

The Vacant Unit Tax will be added to the Final Property Tax Bill, issued in June each year. For 2025, the tax will reflect the occupancy status of properties in 2024.

Property owners will need to pay in two installments:

• First installment deadline: June 30, 2025.

• Second installment deadline: September 30, 2025.

Revenue generated from the VUT will support housing initiatives such as building affordable housing units, assisting non-profit housing organizations, funding rent subsidies, and providing homelessness outreach programs.

Key Dates to Remember

• December 2024: Property owners receive declaration instructions.

• March 31, 2025: Deadline to submit occupancy declarations.

• April 2025: Late declarations accepted with fees.

• June 2025: Vacant Unit Tax charges added to property tax bills.

By implementing this tax, Hamilton joins other cities in tackling housing shortages and supporting a more sustainable housing market. Property owners are encouraged to familiarize themselves with the requirements and exemptions to ensure compliance and avoid unnecessary charges.

Canada’s central bank has cut interest rates for the fifth consecutive time as the country’s economy continues to grow at a slower pace than anticipated. The Bank of Canada announced a 50-basis-point reduction, citing subdued economic performance and rising unemployment as key factors influencing the decision.

Canada’s economy expanded by just 1 per cent in the third quarter of 2024, and early indications suggest that growth in the fourth quarter will be even weaker. “Monetary policy no longer needs to be clearly in restrictive territory,” said Bank of Canada Governor Tiff Macklem in a statement. He emphasized that the lower interest rates have already begun to stimulate consumer spending and housing activity.

Economic Pressures and Rising Unemployment

One of the central bank’s primary concerns is the labor market. Canada’s unemployment rate rose to 6.8 per cent in November, as the number of people seeking work outpaced the creation of new jobs. “It has been especially hard for young people and newcomers to Canada to find work,” Macklem noted.

Economists are forecasting further increases in unemployment. A recent analysis by BMO’s chief economist, Douglas Porter, predicts that the jobless rate will likely average 7 per cent in the first quarter of 2025 before gradually declining.

Adding to these challenges, a recent shift in federal immigration policy has moderated population growth. While this change may relieve some pressures on housing and services, private sector economists warn it could contribute to higher unemployment rates in the near term.

External Risks and Trade Uncertainty

Global factors are also shaping Canada’s economic outlook. The central bank highlighted potential risks stemming from the incoming U.S. administration, including the threat of 25 per cent tariffs on Canadian exports. “No one knows how this will play out in the months ahead – whether tariffs will be imposed, whether exemptions get agreed, or whether retaliatory measures will be put in place,” Macklem said.

Inflation and Government Policy

Despite these challenges, the Bank of Canada expects inflation to remain near its 2 per cent target over the next two years. Shelter price inflation and goods price inflation have eased, though the bank warned that “elevated wage increases combined with weak productivity could push inflation up.”

Recent federal government measures are also influencing inflation dynamics. A two-month GST holiday on a broad range of consumer goods is expected to temporarily lower inflation to around 1.5 per cent in January. However, this effect will dissipate once the GST break ends in mid-February. Additionally, proposed one-time payments of $250 for working Canadians earning less than $150,000 annually, and changes to mortgage rules, are expected to impact demand and inflation trends.

Looking Ahead

The central bank is taking a cautious approach to future rate decisions, forecasting a more “gradual approach” to monetary policy adjustments. It is also monitoring potential new federal spending on border security measures. This spending could be announced in the Fall Economic Statement, which Finance Minister Chrystia Freeland is set to present on December 16.

The Bank of Canada’s next scheduled announcement on the overnight rate target is January 29, 2025.

As temperatures drop and winter draws near, preparing your house for the colder months is crucial. Proper winterization not only keeps your home warm and cozy but also helps reduce energy costs and prevents potential damage from harsh weather conditions. This guide covers all the essential steps to ensure your house is ready to withstand winter's challenges.

1. Seal Leaks and Improve Insulation

Drafts can significantly increase heating costs and reduce comfort during winter. Identifying and sealing leaks, as well as boosting insulation, are vital steps in winterizing your home.

• Inspect for Drafts: Check windows, doors, electrical outlets, and baseboards for cold air leaks. Light a candle or incense stick and move it around these areas; if the flame or smoke wavers, there's a draft.

• Use Weatherstripping and Caulk: Apply weatherstripping to doors and windows and use caulk to seal cracks in walls or around window frames.

• Upgrade Insulation: Add insulation in attics, walls, and basements. A well-insulated attic prevents heat from escaping, saving energy and reducing heating costs.

• Install Door Sweeps: Attach sweeps to the bottom of exterior doors to block cold air from entering.

2. Prepare Your Heating System

Your heating system is the backbone of your home during winter, so it’s essential to ensure it’s in top condition.

• Schedule a Furnace Tune-Up: Have a professional inspect and service your furnace to ensure it operates efficiently and safely.

• Replace Filters: Dirty filters restrict airflow, making your heating system work harder. Replace them monthly during the heating season.

• Test Your Thermostat: Check that your thermostat is functioning correctly. Consider upgrading to a programmable or smart thermostat to optimize energy use.

• Clean Ductwork and Vents: Remove dust and debris from ducts and vents to improve airflow and indoor air quality.

• Inspect Alternative Heating Sources: If you use space heaters, fireplaces, or wood stoves, ensure they are clean and in good working order.

3. Protect Your Plumbing

Frozen pipes are a common winter problem that can cause significant water damage. Taking preventive measures will save you from costly repairs.

• Insulate Pipes: Wrap exposed pipes in unheated areas, such as basements, attics, and crawl spaces, with foam pipe insulation.

• Seal Gaps: Close gaps around pipes that allow cold air to reach them.

• Let Faucets Drip: During extreme cold, allow faucets to drip slightly to prevent pipes from freezing.

• Disconnect Outdoor Hoses: Remove and store garden hoses, and shut off and drain outdoor faucets to prevent freezing.

• Install a Water Heater Blanket: Insulating your water heater reduces energy consumption and ensures a steady supply of hot water.

4. Check Windows and Doors

Windows and doors are common sources of heat loss. Addressing these areas can make a noticeable difference in energy efficiency.

• Install Storm Windows and Doors: Adding storm windows and doors creates an extra barrier against cold air.

• Use Thermal Curtains: Heavy or insulated curtains help retain heat inside the home.

• Apply Window Film: Clear, plastic window film is a cost-effective way to reduce heat loss through windows.

• Replace Old Windows: If your budget allows, consider replacing single-pane windows with energy-efficient double- or triple-pane options.

5. Maintain Your Roof and Gutters

A sturdy roof and clear gutters are essential for handling snow and ice during winter.

• Inspect Your Roof: Look for damaged, loose, or missing shingles and have them repaired. A solid roof prevents water leaks and heat loss.

• Clean Gutters: Remove leaves and debris from gutters and downspouts to prevent ice dams, which can cause water damage.

• Install Gutter Guards: These keep debris out of gutters, reducing maintenance and preventing blockages.

• Trim Overhanging Branches: Ice and snow can weigh down branches, causing them to break and damage your roof.

6. Prepare for Snow and Ice

Snow and ice can create safety hazards and damage your home. Take proactive steps to minimize risks.

• Stock Up on Supplies: Keep a shovel, snow blower, and ice melt handy. Choose pet-safe ice melt to protect your furry friends.

• Mark Driveways and Walkways: Use stakes or markers to identify paths and driveways, making it easier to clear snow without damaging landscaping.

• Install Heat Cables: In areas prone to heavy snow, consider installing heat cables on your roof to prevent ice dams.

• Service Your Snow Removal Equipment: Check that your snow blower or plow is in good working condition before the first snowfall.

7. Prepare Your Yard and Exterior

Your home's exterior and yard need attention to withstand winter conditions.

• Protect Outdoor Furniture: Cover or store patio furniture to prevent weather damage.

• Shut Down Sprinkler Systems: Drain and winterize irrigation systems to prevent frozen pipes.

• Mulch Flower Beds: Add mulch to flower beds to protect plants and retain soil moisture.

• Inspect Your Foundation: Seal any cracks in your foundation to prevent cold air and pests from entering.

8. Test Safety Equipment

Winter often brings an increased risk of fires and carbon monoxide poisoning due to higher heating system usage.

• Check Smoke and Carbon Monoxide Detectors: Test detectors and replace batteries if necessary. Install additional detectors if needed.

• Inspect Fire Extinguishers: Ensure your fire extinguishers are fully charged and accessible.

• Clean Your Chimney: If you use a fireplace, have the chimney professionally cleaned to remove creosote buildup, which can cause chimney fires.

• Practice Fire Safety: Avoid overloading electrical outlets and keep flammable items away from heat sources.

9. Boost Energy Efficiency

Energy efficiency saves money and reduces your environmental impact.

• Use Ceiling Fans: Set ceiling fans to run clockwise at a low speed to circulate warm air.

• Install a Draft Stopper: Place draft stoppers at the base of doors to block cold air.

• Unplug Idle Electronics: Even when turned off, electronics can draw power. Unplug them or use a power strip.

• Lower Water Heater Temperature: Set your water heater to 120°F to save energy without compromising comfort.

10. Prepare an Emergency Kit

Winter storms can cause power outages and other emergencies. Being prepared ensures your family’s safety and comfort.

• Stock Essential Supplies: Include flashlights, batteries, blankets, non-perishable food, bottled water, and a first-aid kit in your emergency stash.

• Invest in a Generator: A portable generator can provide backup power during outages. Ensure it is properly installed and vented.

• Keep Sand or Kitty Litter: These materials can provide traction on icy surfaces.

11. Conduct a Pre-Winter Checklist

Before winter sets in, run through a checklist to ensure nothing is overlooked.

• Test your heating system and thermostat.

• Inspect and clean gutters.

• Stock up on snow removal tools and supplies.

• Check your home’s insulation and seal any gaps.

• Confirm that safety equipment is functional.

Conclusion

Winterizing your home is an investment in comfort, safety, and energy efficiency. By following these steps, you can protect your house from the challenges of winter weather while enjoying a warm, cozy, and cost-efficient season. Start early, address potential problems proactively, and embrace the peace of mind that comes with a well-prepared home.