Torontonians continue to disapprove of city’s land transfer tax
The poll conducted on behalf of the Toronto Real Estate Board (TREB) between May 10, 2013 and May 22, 2013, and found that:
– Two-thirds (65%) of Torontonians support plans to eliminate the Toronto Land Transfer Tax;
– Support for eliminating the land transfer tax with a gradual phase-out approach, as suggested by Mayor Ford, is strong (65%);
– 90% of recent home buyers feel that they received little or no added value in municipal services for the Land Transfer Tax that they paid to the City;
– 4% of home buyers in Toronto and the Greater Toronto Area say they are more likely to purchase a home outside of Toronto specifically because of the Toronto Land Transfer Tax;
– 65% of home buyers who currently live in Toronto say they are more likely to leave Toronto, when they purchase their next home, specifically because of the Toronto Land Transfer Tax.
Previous research proved that the tax slows down the market, hurts local economy and makes municipalities less attractive places to live.
As a result of Toronto’s LTT, average home buyers pay close to $12,000 in land transfer taxes, about half to the provincial government and half to the city. A recent study by the C.D. Howe Institute demonstrated that LTT dampened home sales by 16 per cent in Toronto resulting in 3,500 fewer transactions. Moreover, the city lost on $140 million in spin off revenue resulting from the new homeowners renovating and spending on various services.
While the city of Toronto is the only municipality in Ontario with the power to levy the municipal LTT, OREA is keeping a close eye on any signs of spreading the tax to other parts of the province. In order to draw attention to the importance of the issue, OREA made it a focus of the 2013 budget consultation process, which included a formal written submission, presentation in front of the Standing Committee on Finance and Economic Affairs as well as meetings with dozens of provincial MPPs and Ministers, including the Minister of Finance.
OREA is continuing its active work on the file in order to prevent Ontario municipalities from receiving the ability to levy the second LTT.
For more information on this or any other Real Estate/Mortgage matter, please feel free to contact Kyle Bouchard anytime at 647-287-8744 or email@example.com