BILL 143 PROPOSES TO REMOVE THE CHARITABLE PROPERTY TAX EXEMPTION FOR RENTAL HOUSING IN 2027
Article written by Kate Schoffer
On October 29, 2026, the provincial government introduced Bill 143, Plan to Protect Ontario Act (Budget Measures), 2026 (No. 2). Bill 143 proposes changes to various legislation. Of particular importance to affordable housing providers is a proposed amendment to the Assessment Act, 1990 that would make residential units used as rental premises ineligible for the property tax exemption under paragraph 12 (iii) of subsection 3 (1) for the 2027 taxation year, subject to certain provisions with respect to rental housing that has already received an exemption before October 29, 2026.
The most immediate concern for affordable and non-market housing providers is a possible loss of an exemption for the 2027 taxation year and potentially future taxation years. Paragraph 12 (iii) of subsection 3 (1) of the Assessment Act provides an exemption for qualifying charitable, non-profit philanthropic corporations organized for the relief of the poor, and supported in part by public funds. Bill 143 would generally exclude residential units used, or intended to be used, as rental premises from that exemption for 2027.
The proposed restriction is expressly limited to 2027. A property that otherwise meets the exemption requirements could therefore be determined to be exempt in November or December 2026 for the 2026 taxation year, taxable for the 2027 taxation year, and then potentially exempt again in 2028, subject to the applicable law and any further amendments. Providers should not assume either that relief is permanently lost or that it will be available again for affordable housing properties in 2028 and beyond.
Bill 143 is also not yet in force and further amendments may be made before passage of Bill 143.
The current proposal contains protections for certain housing providers that have already received property tax exemptions. The new restriction on exemption eligibility would not apply where the property appeared on the tax roll as exempt immediately before October 29, 2026, or where a court order under section 46, made before that date, established an exemption for 2026, provided ownership and use remain unchanged. Additional exceptions could be prescribed by the Minister of Finance.
Affordable housing providers should review their property tax status, monitor the progress of Bill 143 and consider how the proposed restriction will affect their 2027 and future budgets. As of November 10, 2026, the Bill has passed second reading and been referred to committee. Its proposed amendments are not yet enacted law. If you require assistance reviewing an exemption, assessing a potential tax exposure or understanding how these developments may affect your rental housing operations, please do not hesitate to contact us.
Information about and a copy of Bill 143 can be found here: Bill 143, Plan to Protect Ontario Act (Budget Measures), 2026 (No. 2) – Legislative Assembly of Ontario.