Canadian Prime Minister Justin Trudeau has proposed a new tax on vacant land that is currently zoned for residential development, including mixed-use residential development, according to the Department of Finance’s announcement. The government’s intent is to spur development of new housing on privately owned vacant land, discourage “speculative holding of land,” and generate a new source of revenue for the government.

The Finance Department is looking for input from private sector stakeholders on the effectiveness of the proposed tax in spurring new housing development, including any “drawbacks or unintended consequences.” Stakeholders have until Dec. 31 to respond and comment on the proposed tax.

NAIOP’s four Canadian chapters will submit a joint letter in response to the proposal. The letter will outline the negative impact of a vacant land tax, along with recommendations for consideration in more effectively meeting Canada’s housing needs.