Land tax could be extended

by John Tenpenny28 Oct 2015
For agents outside the city limits of Toronto who have watched colleagues lose deals over the city’s land transfer tax, news that the provincial Liberal government may be set to give all municipalities the same powers has rocked the real industry to the core.

According to news reports, the Liberal government may be set to give all municipalities the right to set the amount of municipal land transfer tax you are required to pay when buying a new property, something that currently only the city of Toronto is allowed to do.

“Ontario home buyers are already charged a provincial land transfer tax, so by adding a municipal tax, they’re essentially doubling the tax burden on Ontario families,” said Patricia Verge, president of OREA, in a statement. “If the Ontario Liberals follow through with this plan, homebuyers will be forced to pay $10,000 in total land transfer taxes on the average priced home in Ontario, starting as early as next year.”

OREA also warned that if all municipalities province-wide were allowed to set their own tax rates, it will result is lost economic activity and lost jobs with the association. They accused the Wynne Liberals of breaking an election promise.

They say that a letter received last year during the election said that Liberals “had no plans” to extend these powers beyond Toronto.

The minister of municipal affairs and housing denied any decision has been made to extend the taxing power.

“In 2014 at the AMO conference, I was asked whether I would consider looking at municipal revenue tools as part of the Municipal Act review. I gave the shortest answer possible, ‘yes.’ We are currently reviewing the Municipal Act. No decisions have been made,” said Ted McMeekin.

COMMENTS

  • by Fred 10/28/2015 10:03:11 AM

    This news really annoys me! We bought our condo and then sold it 6 years later. The city of Toronto got the transfer tax on both ends of the transaction. Honestly, why do they not call it a TITLE TRANSFER tax or something. If it is really a LAND TRANSFER tax then my 1,100 square foot condo sat on a VERY TINY portion of land - and that portion of land should have been divided 17 ways (17 storey building).

    When housing prices are already higher than most folks can afford, what is the point of adding to the problem of AFFORDABLE HOUSING. The issue here is not really the tax, but the INABILITY OF GOVERNMENTS TO CONTROL SPENDING.

    Frankly, there should be NO TAX on food, shelter, or clothing...the three necessities of life. Or, the land transfer tax should be capped at some low, reasonable level, like a transaction tax of sorts, not a percentage tax.

  • by Steven L 10/28/2015 12:50:15 PM

    If you voted Liberal than stop complaining. In 4 years time your head will be spinning so fast at the increased tax burden the middle class will be liable for it wont be funny. Don't blame Wynne. It was just an election promise, meant to be broken, and totally meaningless. Justin has already allocated 10 million for Sussex Dr reno"s and he hasn't even begun as your Prime Minister. Look out Canadians, its spend, spend, spend.

  • by Ed 10/28/2015 12:53:06 PM

    Totally agree Fred. This is just another broken Liberal promise. Federally they claim they want to create more affordable housing and on the Provincial level they are far from that. Rob Ford wanted to eliminate the municipal tax and I wish he did. John Tory has no intention of even trying. Too much money coming in to spend. Two taxes for a home buyer is just wrong. I hope the people of Ontario rise against this absurdity. The tax grab has to stop.

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