Canadian businesses that own commercial or industrial property, partially or entirely vacant, may be eligible for a rebate of Provincial Land Tax for the period of the vacancy. The Provincial Land Tax is a property tax imposed on land located in the unincorporated territories of Ontario, which do not have municipal representation. These taxes are collected through this Canadian government funding program and aid in the costs of provincial services in these areas.
Eligibility Factors: Land Vacancy Tax Credit
You can qualify if you are an owner of a property, a building or portion of a building that satisfies the following conditions:
- If buildings are entirely vacant, a whole commercial or industrial building will be eligible for a rebate if the entire building was unused for at least 90 consecutive days
- For buildings that are partially vacant, a suit or unit within a commercial building will be eligible for a rebate if it was at least 90 consecutive days unused, either capable o being leased for immediate occupation or not able to do so due to repairs or renovations and clearly delineated or physically separated from the used portions of the building.
- Seasonal property: businesses that operate on a seasonal basis
- Leased property: buildings or portion of buildings that are vacant but are leased to someone
- Vacant land sub-class: buildings that are included in vacant land sub-class are not eligible for a rebate
Ineligible Costs: Small Business Funding for Land Vacancy
Companies are encouraged to complete an application for this program each year. The deadline to submit an application is February 28th of each year following the taxation year to which the application relates. The applicant must agree to provide further information requested by the Provincial Land Tax Office or the Municipal Property Assessment Corporation to demonstrate that eligibility requirements have been met.
Canadian Government Funding Application
To apply for this tax credit you should follow these steps:
- Property owner or authorized representative submits an application to the Provincial Land Tax Office
- The Provincial Land Tax Office forwards a copy of the application to MPAC
- MPAC will then determine the assessed value that is attributable to the vacant area
- MPAC notifies the Provincial Land Tax Office of the value of the eligible vacant property
- The Provincial Land Tax Office calculates the rebate and notifies the owner of the property. It could be issued as a credit against any outstanding tax liability or through direct payment to the property owner
If you would like additional Canadian government funding advice, be sure to contact one of our Canadian Government Funding Experts, or subscribe to Mentor Works’ Weekly Small Business Funding E-Newsletter. Additionally, you can receive current updates on government funding mechanisms by following us on LinkedIn or Twitter.