The Government of Ontario has indicated that they could give power to every municipality in Ontario to instate a municipal land transfer tax, similar to what we already have in Toronto.
“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 the president of the Ontario Real Estate Association, Patricia Verge. “If the Ontario Liberals follow through with this plan, home buyers will be forced to pay $10,000 in total land transfer taxes on the average prices home in Ontario, starting as early as next year.”
According to the Ontario Real Estate Association, it is estimated that over a period of five years almost 40,000 home buying transactions did not happen in Toronto because of the tax, resulting in a loss of $2.3 billion in economic activity.
A recent poll has also shown that 89 per cent of Ontario residents outside of Toronto would oppose a municipal land transfer tax, and that 75 per cent of them would have to delay purchasing a home if there were a tax instated.
“Verge continued, The Ontario Liberals wrote to us in May 2014, during the election, stating they had no plans to extend these powers to municipalities. On behalf of home buyers, we want them to remain good on this election promise and that means Ontarians need to send a strong message that the government must rethink its plan to double the land transfer tax burden on home buyers.”
The period for comment is open until October 31.