On November 2, 2023, Mme Andrée Laforest, Minister of Municipal Affairs, tabled Bill 39, An Act to amend the Act respecting municipal taxation and other legislative provisions.
This Bill touches on several aspects related to the municipal domain and several laws will have to be reviewed, including those relating to the powers granted to municipalities. Among the provisions of the Bill that specifically affect landlords is the one about granting municipalities the power to impose a property value-based tax on buildings containing vacant or underused residential units, subject to certain conditions.
The Association des Propriétaires du Québec (APQ) understands the Minister’s intention to make as many housing units as possible available to the public. Indeed, there is currently a historically low vacancy rate in Quebec of 1.7%. However, the Association des Propriétaires du Québec (APQ) notes with dismay that, once again, an attempt is being made to dictate to owners what to do with their building. Rather than being an incentive to make housing available on the long-term rental housing market, this measure dictates what the landlord should do with their property, under penalty of a disguised fine. It is unfortunate to see this financial burden being placed on the shoulders of rental housing owners at a particular time when real-estate investment is needed.
After explanations in the brief submitted, the Association des Propriétaires du Québec (APQ) recommended that this Bill be amended as follows:
• That the sections of the bill dealing with the taxation of so-called vacant or underused housing be removed in order to maintain the current status quo.
• If the above paragraphs cannot be removed, take a cue from Canada’s Underused Housing Tax Act, which primarily taxes non-residents of Canada.
• A dwelling that is rented as a general tourist accommodation of the “tourist residence” type for a minimum of 180 days per year shall be considered not to be vacant or underutilized.
You can read all the details in the brief at the following link: https://www.apq.org/medias/revendications-recentes/
The APQ submits its recommendations concerning Bill 39
