According to research conducted by the Ontario Real Estate Association, cities outside of Toronto would lose a significant amount of jobs and economic activity if they were to implement a municipal land transfer tax similar to that in Toronto.
Costa Poulopoulos, the president of the Ontario Real Estate Association, said that, “Municipalities across Ontario are looking to the province for new revenue tools or taxes. One of the tools being considered is a second (municipal) land transfer tax on home buyers, similar to toe tax imposed by the City of Toronto. This tax carries a huge cost – no Ontario city can afford the kind of job losses Toronto has experienced because of the municipal land transfer tax. The housing market in our province creates jobs and drives local economies. Our municipal leaders should be focusing their attention on ideas that will attract people and investment to their cities, not taxes that will hurt their economies.”
The cities include Thunder Bay, Ottawa, Hamilton, Mississauga and London. The combined effect of a municipal land transfer tax in each city would be a loss of over 10,000 jobs and $1 billion in economic activity.
For example, Ottawa alone would lose more than $184 million in wages and salaries, 3,558 jobs and $543 million in economic activity. The Ontario Real Estate Association’s campaign against the municipal land transfer tax will highlight the negative effects of the tax, and runs through to election day on October 27.