Laneway Suites and Garden Suites: Property Tax Implications and Benefits of ARUs
Imagine having an Additional Residential Unit (ARU) on your property. This could be a laneway suite, garden suite, or basement apartment. ARUs can provide a number of benefits, including generating additional income, housing extended family members, or creating a space for adult children to live independently.
However, there are also some potential property tax implications to consider when building an ARU. In this blog post, we will discuss the property tax implications of building a laneway suite or garden suite in Brampton and Toronto, and how Evalanes can help you design and construct your ARU.
Property Tax Implications of Building an ARU
When you build an ARU on your property, the value of your property will increase. This means that you will pay higher property taxes. However, there are a number of property tax exemptions and rebates available to offset the increased property taxes.
Property Tax Exemptions
In Brampton and Toronto, there are a number of property tax exemptions available for ARUs. For example, in Brampton, there is a 100% property tax exemption for the first five years for new ARUs. In Toronto, there is a 50% property tax exemption for the first 10 years for new ARUs.
Property Tax Rebates
In addition to property tax exemptions, there are also a number of property tax rebates available for ARUs. For example, in Brampton, there is a property tax rebate of up to $500 per year for ARUs that are rented out to low-income tenants. In Toronto, there is a property tax rebate of up to $1,000 per year for ARUs that are rented out to low-income tenants.
Benefits of Building an ARU
Despite the potential property tax implications, there are a number of benefits to building an ARU. Some of the benefits include:
Generating additional income: ARUs can be rented out to generate additional income for the homeowner.
Housing extended family members: ARUs can provide a place for extended family members to live, such as aging parents or adult children.
Creating a space for independent living: ARUs can be created as a space for adult children to live independently, while still being close to their family.
Increasing property value: ARUs can increase the property value of a home.
How Evalanes Can Help
Evalanes is a leading designer and builder of ARUs in the GTA. We have a team of experienced professionals who can help you with every step of the process, from design to construction.
We can help you ensure that your ARU meets all of the applicable laws and regulations, and that you are able to take advantage of all of the available property tax exemptions and rebates.
Conclusion
Building an ARU can be a great way to generate additional income, house extended family members, or create a space for adult children to live independently. However, it is important to be aware of the potential property tax implications.
If you are considering building an ARU, be sure to consult with a qualified professional, such as Evalanes. We can help you design and construct your ARU, and ensure that you are able to take advantage of all of the available property tax exemptions and rebates.
Here are links to the City of Brampton and City of Toronto websites that discuss property tax rebates for ARUs:
City of Brampton: Property Tax Rebates for Additional Residential Units / https://www.brampton.ca/EN/residents/Taxes-Assessment/taxation/Pages/tax-adjustments-rebates.aspx
City of Toronto: Property Tax Rebates for Additional Residential Units / https://www.toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-water-solid-waste-relief-and-rebate-programs/property-tax-and-utility-relief-program/