Wednesday, February 20, 2013

Toronto Real Estate Board To WorK On Phasing Out Land Transfer Tax

Toronto Downtown Condos
Toronto Downtown Condos

The Toronto Land Transfer Tax Opposed By Torontonians

The Toronto Real Estate Board is looking forward to working with the new City of Toronto Budget Chief on phasing out the Toronto Land Transfer Tax.

The Mayor of Toronto has a strong commitment to begin phasing out the unpopular Land Transfer Tax (LTT).

A recent poll by Ipsos Reid found the following results in a public polling:

  • 76 per cent of Torontonians who recently paid the LTT feel they received little or no added value in municipal services for the amount they paid.
  • 72 per cent oppose municipal land transfer taxes even if it was dedicated for spending on transit and infrastructure.
  • 77 per cent of GTA residents planning to purchase a home in the next two years are more likely to purchase outside Toronto to avoid paying the Toronto Land Transfer Tax.
  • 68 per cent of Torontonians  support plans to eliminate the Toronto land Transfer Tax, up from 65 per cent a year ago
The municipal land transfer tax amounts to $10,000  on the average detached home in Toronto.

The C.D. Howe Institute recently released a report on the Toronto Land Transfer Tax showing this tax has dampened home sales by 16 per cent.

Indirectly the LTT affects the local economy with home buyers spending much less on appliances and renovations resulting in fewer Toronto jobs.

Iris Li is a ReMax Condos Realtor specializing in Toronto Downtown Condos, Condominiums, Town homes and Lofts.