REALTORS® Look Forward to Joining Torontonians in Speaking Out against Home Buying Tax during Municipal Election Campaign

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


 

 


REALTORS Look Forward to Joining Torontonians in Speaking Out against Home Buying Tax during Municipal Election Campaign

 

TORONTO, February 5, 2014 — On the heels of Toronto City Council’s recent decision not to cut
the Toronto Home Buying Tax (Land Transfer Tax) in its 2014 Budget, Toronto’s
REALTORS® are looking forward to joining Torontonians in speaking out about
this issue during the upcoming municipal election.  REALTORS® are also calling on municipal
election candidates to support home buyers and owners by committing to provide
relief from the Land Transfer Tax.

 

“Torontonians have made it clear that they want the Land
Transfer Tax cut, but, unfortunately, City Council chose not to.  This was a central issue for Torontonians in
the last municipal election and they gave City Council a strong mandate to cut
this tax. Torontonians continue to feel strongly about this unfair and hurtful
tax and thousands of them made their voices heard to City Council, in recent
months, during the City’s budget debates.  REALTORS® look forward to continuing to raise this issue, along with the
public, during the municipal election campaign.  We believe that Torontonians will, once again, expect City Council to
take action on this issue,” said Dianne Usher, President, Toronto Real Estate Board.

 

A recent poll, conducted by Ipsos Reid, found that 69% of
Torontonians support a phase-out of the Toronto Land Transfer Tax.

 

“It’s no surprise that a strong majority of Torontonians
want the Home Buying Tax cut.  They believe
that this is the wrong way for City Council to fund City services because this
tax hurts people when they can least afford it. It penalizes people like
growing families, down-sizing retirees, and even first-time home buyers saving
for a down payment,” said Usher.

 

In addition to hurting people when they are most vulnerable,
REALTORS® have pointed out numerous other concerns with the Toronto Land
Transfer Tax.  In particular, REALTORS®,
and the public, have told
City Council that this tax:

 

·        

has become more and more regressive as time has
gone by because its rebate for first-time home buyers and its tax rates have
not been adjusted with inflation, resulting in about 40% of first-time home buyers
paying some LTT to City Hall and the highest land transfer tax rate being
levied on home buyers purchasing below average-priced homes;

 

·        

makes Toronto less affordable by significantly
increasing upfront costs for home buyers ($12,000 for the purchaser of an
average detached home, in addition to a similar amount for the provincial land
transfer tax);

 

·        

impacts the economy by dampening home sales by
16% annually, according to a study by the C.D. Howe Institute, thereby risking
jobs that depend on spin-off spending (averages approximately $53,000 for every
re-sale housing transaction, according to a study conducted by the Altus Group)
generated when people move;

 

·        

makes Toronto less competitive, as the only
municipality in Ontario with two land transfer taxes;

 

·        

poses risks for funding City services because
the revenue that it generates fluctuates with the City’s real estate market,
and is unpredictable; and,

 

·        

is unfair because it
forces people who have to move, like downsizing seniors or growing families, to
pay thousands of dollars more than their fair share, for the same level of
municipal services as those who don’t move.

 

Home ownership is a worthy goal, which benefits our City in
many ways. City Council should not be making home ownership more difficult to
achieve, and it should be focused on eliminating risks to Toronto’s economy and
competitiveness, funding services in a predictable way,
and fair taxation policies,” said Von Palmer, Chief Government and Public
Affairs Officer. “TREB has consistently, and loudly, spoken out on this issue
and we will continue to do so during the municipal election campaign because it
is the right thing to do.”

 

 

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/news2014/nr_ltt_election_issue_020514.htm

Tags:

Leave a Reply