A new municipal land transfer tax would add around $15,000 to the cost of an average priced home in the York region of Ontario – and that is exactly what politicians want according to real estate bodies.
The Ontario Real Estate Association (OREA) and Toronto Real Estate Board (TREB) say that officials are demanding the new powers from the provincial government, which could set a dangerous precedent for housing affordability.
The two bodies have joined forces to urge MPP candidates to vote against another tax on the region’s homebuyers, which they say does nothing to address the supply issues.
“It’s no secret that municipalities across Ontario have been asking the provincial government for new taxing powers,” said Tim Syrianos, President of TREB. “York Region home buyers are already charged a provincial land transfer tax, so by adding a municipal tax, the Region will double the tax burden on local families. If local councillors get their way, home buyers will be forced to pay $15,000 more in land transfer taxes on the average priced home in York Region.”
The City of Toronto implemented the MLTT in 2008 and in 2015 Realtors and residents urged policy makers not to expand the tax to other parts of the province.
“We’ve been down this road before, with municipalities asking for new taxing powers and the provincial government considering their requests,” said David Reid, President of OREA. “Each time, Realtors have stood up for young families and opposed a tax. Home buyers need relief, not new taxes.”