“Relying on an unpredictable revenue source like the Land Transfer Tax, which fluctuates with the City’s real estate market, poses risks. The proposed budget that City Council will be debating relies on this unpredictable revenue more than ever before. Torontonians deserve better than that and City Council should be focusing on predictable budgeting options and cutting the Land Transfer Tax, instead,” said Dianne Usher, President, Toronto Real Estate Board.
“Potential growth in home sales resulting from a Land Transfer Tax rate reduction could help offset the impact to the City’s budget. Research by the C.D. Howe Institute has shown that the Land Transfer Tax has dampened home sales in Toronto by 16 percent annually. If a Land Transfer Tax rate reduction helps to reduce or reverse this effect, the resulting extra home sales, which may not have occurred otherwise, could generate new off-setting revenue for the City, while bringing more balance into the market,” said Usher.
TREB is encouraging the public to visit www.LetsGetThisRightToronto.ca to tell City Council to do the right thing and phase out the Home Buying Tax. Thousands of Torontonians have already done so.