The city has approved a prorated tax forgiveness for derelict property owners.
The move is being billed as an incentive for owners to clean up their properties and comes after the establishment of a derelict residential subclass last fall.
Under the new subclass, properties assessed as derelict are charged at a tax rate approximately three times higher than the general residential tax rate.
With the new policy, owners could apply for a refund of the derelict property tax for the portion of the year that their property was cleaned up.
The city says cleaning up derelict properties is a priority because they have a negative impact on neighbourhoods and cost the city more in services like fire rescue response and bylaw enforcement.
“We’ve seen great progress from our residential derelict tax subclass in only one year, and this is another positive step,” said Cate Watt of the city in a news release.
“Incentivizing property owners to clean up their derelict properties more quickly has a positive impact on community safety and vibrancy.”
The new policy takes effect immediately, which will allow any property owners who have abated their properties this year to apply for reimbursement of additional taxes.
The city says more than 200 properties have been assessed as derelict in 2024 and 24 have been demolished to date.