Toronto’s dreaded Municipal Land Transfer Tax could soon be a province-wide reality.
In a release posted on its website, the Ontario Real Estate Association (OREA) says the government is poised to allow municipalities across Ontario to implement their own respective versions of the tax.
“The Ontario Ministry of Municipal Affairs and Housing has indicated that they are going to make buying a home even harder by giving every municipality province-wide the power to charge a Municipal Land Transfer Tax, a change that will double the land transfer taxes consumers have to pay on their next home,” OREA stated.
The city of Toronto implemented the tax in 2008. It works out to an extra $10,000 to $15,000 on a home priced at about $450,000, with half of the revenue going to the province and the other half going to the city. The city pulls in about $300 million annually from the tax.
OREA urges Ontario residents to visit www.donttaxmydream.ca to learn more about the perils of the tax spreading province-wide.
The group’s president, Patricia Verge, said the move would break an election promise and place an unbearable financial strain on families.
“The Ontario Liberals wrote to us in May 2014, during the election, stating that ‘they had no plans to extend these powers to municipalities.’ ”
“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,” Verge said in the release.
“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 priced home in Ontario, starting as early as next year.”
The province’s minister of municipal affairs and housing told the Financial Post a final decision hasn’t been made, despite OREA’s insistence.
“We are currently reviewing the Municipal Act. No decisions have been made,” said Ted McMeekin, who added that public consultations on the matter are still ongoing until Oct. 31.
Source: 680 News Posted Oct 27, 2015 4:12 pm EDT