Underused Housing Tax Act — U-0.5 6
Meaning of qualifying occupancy period 6 (1) In this section, qualifying occupancy period , in respect of a residential property in relation to an owner of the residential property, means a period of at least one month in a calendar year during which one of the following individuals (other than an individual that is an excluded individual pursuant to paragraph (10)(b) or a prescribed individual) has continuous occupancy of a dwelling unit that is part of the residential property: (a) an individual who deals at arm’s length with the owner and with any spouse or common-law partner of the owner and who is given continuous occupancy of the dwelling unit under an agreement evidenced in writing; (b) an individual who does not deal at arm’s length with the owner or with any spouse or common-law partner of the owner and who is given continuous occupancy of the dwelling unit under an agreement evidenced in writing and for consideration that is not below the fair rent for the residential property, prorated for the period; (c) an individual who is the owner or the owner’s spouse or common-law partner, who is in Canada for the purpose of pursuing authorized work under a Canadian work permit and who occupies the dwelling unit in relation to that purpose; (d) an individual who is a spouse, common-law partner, parent or child of the owner and who is a citizen or permanent resident; or (e) a prescribed individual. Exclusion — qualifying occupancy period (2) Despite subsection (1), a qualifying occupancy period does not include a period that is a calendar month during which the only individuals who have continuous occupancy of a dwelling unit are the owner or a spouse, common-law partner, parent or child of the owner, if each of those individuals resides or lodges at a place other than the residential property for an equal or greater number of days than the number of days that they reside or lodge at the residential property. Tax payable (3) Subject to this Act, every person that, on December 31 of a calendar year, is an owner of a residential property (other than an excluded owner of the residential property) must pay to His Majesty in right of Canada tax in respect of the residential property for the calendar year in the amount determined by the formula A × B × C where A is 1%; B is (a) if the person has filed an election made under subsection (4) in respect of the residential property for the calendar year, the fair market value of the residential property, or (b) in any other case, the taxable value in respect of the residential property; and C is the ownership percentage in respect of the person in respect of the residential property for the calendar year. Election for fair market value (4) For the purpose of determining the tax under subsection (3) in respect of a residential property for a calendar year, a person may elect to use the fair market value of the residential property, as determined in a manner satisfactory to the Minister, at any time on or after January 1 of the calendar year and on or before April 30 of the following calendar year. Form and manner of filing (5) An election under subsection (4) in respect of a residential property for a calendar year is to be made in prescribed form containing prescribed information and is to be filed with the Minister in prescribed manner on or before (a) April 30 of the following calendar year; or (b) any later day that the Minister may allow. When tax required to be paid (6) The tax payable by a person under subsection (3) in respect of a residential property for a calendar year must be paid by the person to the Receiver General on or before April 30 of the following calendar year. Tax not payable (7) No tax is payable under subsection (3) by a person in respect of a residential property (other than a prescribed residential property) for a calendar year if (a) [Repealed, 2024, c. 17, s. 138] (b) [Repealed, 2024, c. 17, s. 138] (c) the residential property is not suitable for year-round u