Toronto Real Estate Board Asks City Council To Lower Toronto Land Transfer Tax
The Toronto Real Estate Board has published another press release calling on Toronto City Council to lower the Toronto Land Transfer Tax, a tax that can add thousands of dollars to the cost of buying a home, could be pricing first-time buyers out of the market and has the potential to cause home buyers to look outside of the city to buy a home.
“Even first-time home buyers purchasing below average-priced properties are currently being forced to pay thousands of dollars in Toronto Home Buying Tax, because the City’s first-time home buyer rebate has not kept pace with inflation,” said the Toronto Real Estate Board’s Chief Government and Public Affairs Officer.
He continued, “The Home Buying Tax has become more and more regressive as home prices have increased, because its tax rates have not been adjusted with inflation. Someone purchasing a home priced below the City’s average price is being charged the highest tax rate. That’s not right.”
According to Dianne Usher, the president of the Toronto Real Estate Board, “The home buying Tax hurts people when they can least afford it. It penalizes people like growing families or retirees. City Council should do its part in keeping Toronto affordable by providing relief from the Home Buying Tax for all home buyers. Potential growth in home sales resulting from a Land Transfer Tax rate reduction could help offset the impact to the City’s budget. Research by the C.D. Howe Institute has shown that the Land Transfer Tax has dampened home sale sin Toronto by 16 per cent annually. If a Land Transfer Tax rate reduction helps to reduce or reverse this effect, the resulting extra home sales, which may not have occurred otherwise, could generate new off-setting revenue for the City, while bringing more balance into the market.”
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