As part of Budget 2024, the Federal Government announced that it is considering a tax on residentially zoned vacant land. It is currently exploring a model that would provide support to provinces, territories, and municipalities for the implementation of provincial, territorial, and municipal-level tax measures designed to apply to lands that could be considered suitable for housing development. 

The Federal Government is undertaking this consultation to: 

• Hear views from all stakeholders on the potential application of vacant land taxes, including feedback on their potential design and impacts; and, 
• Gauge interest from provinces, territories, and municipalities on the potential introduction of vacant land taxes at the provincial, territorial, and municipal levels, with federal funding to support their implementation. 

The consultation paper provides a general description of a vacant land tax base, such as lands to which such taxes could apply, followed by questions for all stakeholders and provinces, territories, and municipalities. 

To meet shared objectives, federal support is envisioned for provincial, territorial, and municipal tax measures structured around a core tax base of land that is: 

• Vacant; 
• Residentially (or mixed-use) zoned; 
• Serviceable by municipal infrastructure (e.g., roads, water, sewage, and electricity); and, 
• Physically developable (e.g., appropriate lot size, no site contamination).  

Submissions for this consultation will be open from October 8, 2024, until December 31, 2024. UDI has submitted a letter as part of the consultation. If you have any additional comments or feedback, it can be shared at VLT-TTV@fin.gc.ca.