The Ontario Real Estate Association has released a new research report titled the Economic Implications of the Municipal Land Transfer Tax in Toronto, outlining economic losses in the city caused by the Toronto Land Transfer Tax.
These losses include:
38,378 resale home transactions
$2.3 billion in economic activity
$1.2 billion in GDP
14,934 full-time jobs
$772 million in wages and salaries
“The MLTT is bad for our economy,” said the president of the Ontario Real Estate Association, Costa Poulopoulos. “For one, it kills jobs. With an unemployment rate worse than the national rate and even that of the province as a whole, the City of Toronto could have used those jobs. It also adds to the household debt and pushes the dream of home ownership even further away.”
The main issue is that when someone buys a resale home in Toronto, there is much more involved than just buying a home. The transaction also incorporates surveyors, lawyers, real estate agents and appraisers, while also generating fees and taxes for the government. There are also purchases of appliances and the cost of renovations to consider.
“This research proves that the MLTT is doing more harm than good where our economy is concerned”, continued Poulopoulos. “It gets in the way of the economic spin-off that occurs when homes are purchased and sold. It should be repealed in Toronto and it should never be endorsed by the provincial government for any other municipality in this province.”
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