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According to Mayor Rob Ford, our city councillors are addicted to the money Toronto’s land transfer tax generates. During the course of a 17-minute speech, Ford requested the help of Toronto realtors in reducing the city’s land transfer tax by 10%. This first step towards eliminating land transfer tax all together is an important political move for Ford, as this is an aspect of his 2010 election’s platform still unfulfilled. Alongside abrogating vehicle registration tax, Ford promised to abolish land transfer tax, but has been hindered by these alleged tax”addicts” until now.
Removing land transfer tax could positively impact Toronto’s economy for two reasons: (1) the real estate market could improve and (2) increased spending habits could spawn more jobs in the city . To understand this reasoning, one must consider a few things. On average, the land transfer tax on the purchase of a home is $10,000. Land transfer tax revenues amassed to $344.5-million in 2012 –$56.2-million higher than initially projected. Although 2012’s real estate market oversold in comparison to expectation, a recent Ipsos Reid poll revealed that 74% of Toronto home buyers are now more likely to purchase outside of the GTA because of the tax. In fact, Toronto is the only Ontario city with a municipality land transfer tax piled on top of a provincial.
If less money was spent on land transfer tax, more money would hypothetically be spent on other amenities, thus boosting the economy, creating more jobs. Agreeably this would be ideal, however, could this be too optimistic? A 10% reduction would equate to a $34-million loss; that is money generally used to fund libraries and community centres all over the city. Without this money, would Toronto’s community life suffer, impacting the economy negatively? To answer this question, officials have been bantering back and forth over whether or not Toronto has the financial security to compensate a lower (eventually non-existent) land transfer tax. A definitive decision has yet to surface.
As Rob Ford suggested in his speech: “Ask yourself: who do I trust with my hard-earned tax dollars? You’re going to have a decision to make Oct. 27, 2014.” Well, now it’s time for Toronto citizens to reflect and voice their opinions. If you have a suggestion or a stance, please visit http://www.letsgetthisrighttoronto.ca/and leave a comment.
Ford made a promise in the last municipal election to eliminate the Toronto Land Transfer Tax. Promise not kept. Despite the fact that the majority of Torontonians in every poll taken on this tax have overwhelmingly said they want this unfair tax eliminated. What is the purpose of electing politicians to represent your interests if hey are not listening to their constituents? The answer, run candidates in the municipal election who are committed to eliminating this unfair tax and who listen to their constituents on the issues. The Toronto Land Transfer Coalition is doing just that.The organizer, Toronto realtor Robert McDermott, said he is confident that he can get the support from the TLTC to get the Toronto Land TransferTax eliminated. He will get my support on this issue.