The following is a statement released by the City of Toronto regarding the postponement of the recent short term rental by-law changes:
On December 7, 2017, and January 31, 2018, Council approved the regulation of short-term rentals in Toronto. The new rules, which require short-term rental companies to obtain a licence and short-term rental operators to register with the City and pay a Municipal Accommodation Tax of 4% were set to come into effect on June 1, 2018.
However, the City’s zoning bylaw amendments to permit short-term rentals as a use have been appealed to the Ontario Municipal Board (OMB). They are therefore not in force. The OMB has scheduled a two-day hearing on August 30 and 31, 2018. The City does not expect to receive a decision from the OMB for at least eight weeks after the hearing.
Therefore, the regulations for short-term rentals will not come into force on June 1, 2018.
If the City receives a positive decision at the OMB, the short-term rental regulations will come into effect. Individuals will be given a period of time to submit applications for a licence or registration and the 4% tax will be implemented. More information on what is required to collect and remit the tax will be available at that time.
If residents would like to receive updates about the OMB decision, they should contact mlsfeedback@toronto.ca to be added to the mailing list.
For more information, see the decisions made by City Council to adopt a new zoning bylaw permitting short-term rentals and a registration and licensing program for short-term rentals.
