REALTORS® Call For Home Buying Tax Relief for Everyone as Toronto Budget Committee Wraps-Up Review of 2014 Budget

Posted by: Toronto Real Estate Admin / Category: Toronto Realtor


 

 


REALTORS Call For Home Buying Tax Relief for Everyone as Toronto Budget Committee Wraps-Up Review of 2014 Budget

 

 

TORONTO, January 7, 2014 With the City of Toronto Budget
Committee wrapping-up its review of the City’s 2014 Budget today, the Toronto
Real Estate Board (TREB) is calling for City Council to move forward with
providing relief from the Toronto Home Buying Tax (Land Transfer Tax) for all
home buyers, and to continue providing dedicated relief for first-time home
buyers.  TREB’s views are being echoed by
thousands of Torontonians who have been contacting City Councillors by email
and other means. 

 

“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,” said Dianne Usher, President, Toronto Real
Estate Board.

 

The City’s Budget Committee will be considering a motion to
almost eliminate the Land Transfer Tax on the first $250,000 value of a
property, for all home buyers, but to also eliminate the existing rebate that
provides relief for first-time home buyers on the amount of Land Transfer Tax
payable up to a $400,000 home.   If
implemented, such a proposal would mean that repeat home buyers would pay about
$2,000 less Land Transfer Tax, which TREB believes is a good step in the right
direction.  However, the proposal would
also result in first-time home buyers paying an additional $1,695 in Land
Transfer Tax.  TREB has spoken out
against the proposal to make first-time home buyers pay more Land Transfer Tax,
telling the Budget Committee that all home buyers, including first-time buyers,
deserve relief from the Land Transfer Tax.  In addition, TREB pointed out that first-time home buyers deserve more
relief, not less, because the current first-time buyer rebate caps out on a
$400,000 home, but the current average price of a Toronto home is approximately
$570,000 and rising.

 

“Even first-time home buyers purchasing below average–priced
properties are currently being forced to pay thousands of dollars in Toronto
Home Buying Tax.  Any proposal to
eliminate the first-time buyer rebate would make this situation worse.
First-time home buyers deserve more relief, not less,” said Von Palmer, TREB’s
Chief Government and Public Affairs Officer.

 

TREB has also pointed out to the City’s Budget Committee
that the current tax rates of the Home Buying Tax are regressive because they
force people purchasing below-average priced homes to pay the highest tax
rate.  Currently, the highest Land
Transfer Tax rate kicks in on homes priced over $400,000 for ALL home buyers,
considerably lower than the City’s current average price of approximately
$570,000 and rising.

 

“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,” said Palmer.

 

TREB is encouraging the public to visit www.LetsGetThisRightToronto.ca to tell City Council to do the right thing and phase out the Home Buying
Tax.  Thousands of Torontonians have
already done so

Media Inquiries:

Mary Gallagher,
Senior Manager Public Affairs (416) 443-8158 maryg@trebnet.com

 

 

 

 

 

 
 

 

 

 
 
 
 

 

 

 
 

For information about Buyer Representation Agreements
(BRA) visit www.BRAFirst.ca

For Media/Public Inquiries: Mary Gallagher, Senior
Manager Media Relations.

Toronto
Real Estate Board 1400 Don Mills Road Toronto, ON M3B 3N1, Office: (416)
443-8158, Email:maryg@trebnet.com

 

 

Greater Toronto REALTORS are passionate about their work.
They adhere to a strict Code of Ethics and share a state-of-the-art Multiple
Listing Service. Serving over 37,000 Members in the Greater Toronto Area,
the Toronto Real Estate Board is Canadas largest real estate board. Greater
Toronto Area open house listings are available on www.TorontoRealEstateBoard.com

 

 

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2013/nr_ltt_010714.htm

Tags:

Leave a Reply