It seems that Christmas came early for prospective home buyers in Ontario! The 444 municipalities in Ontario will not be imposing a municipal land transfer tax, contrary to what was reported a few weeks ago.
Very Good News Indeed!
Municipal Affairs Minister Ted McMeekin announced in late November that the Liberal government will not allow cities and towns to impose their own land transfer tax in addition to the existing land transfer tax that home buyers are already paying for the province – a move that surprised the Opposition at the question period. McMeekin adds that no one was asking for the additional land transfer tax and that there is no existing legislation that allows it’s implementation. He also said that just to clarify, the municipal land transfer tax will solely be a home buyer’s responsibility in Toronto and nowhere else.
Political Issues and Debates
Progressive conservatives greeted McMeekin’s surprise announcement with a raised eyebrows, hinting that the Liberals could only be using the issue of the land transfer tax as some sort of trial balloon, but they celebrated and welcomed the good news as well.
Deputy PC leader Steve Clark shares that he’s glad about the minister making the right decision, adding that the decision recognizes the concerns the municipalities are having.
The municipal land transfer tax has already cost Toronto an estimated 15,000 jobs and $2.31 billion in lost revenue, as claimed by the Tories, although this claim doesn’t seem to be reflected in the city’s still-hot real estate market.
McMeekin shares that he does not agree with the Tories’ claim and said that the data shared was engineered to scare people about the possible effects that having to pay a municipal land transfer tax will have on home sales. With that said, he quickly added that the province is not going to impose the tax, just to clarify things. He suggested that municipal governments that are in need of extra cash and are looking into other sources of revenue may impose development charges (like Toronto) instead of the MLTT. He adds that sources of revenue such as his suggestion are just one of the tools that many municipal governments can make use of but are not using fully.
The Opposition then counters that McMeekin should come up with sold ideas that local governments can make use of to increase their income. Deputy PC leader Steve Clark says that a meaningful consultation should be done with the municipalities and that the minister should just stop with all the ‘trial balloons’ being floated to the municipalities. He adds that Liberals only backed down on the MLTT because of an upcoming debate and would have continued had he not made everything public.
Don’t Tax My Dream Success
As for the Ontario Real Estate Association’s Don’t Tax My Dream campaign, it is a huge success! OREA also said that McMeekin’s announcement is a huge win for Ontarians who dream of having their own home. OREA president Patricia Verge says that this decision reaffirms that implementing a municipal land transfer tax is a bad tool for generating revenue for municipalities. The politicians can’t agree more.
Here at Goodalemillerteam, we believe in every Canadian’s dream of owning a home.Contact us, talk to us, and we’ll see how we can help you achieve owning yourOakville dream home.