When Mayor Miller implemented the T.O. Land Transfer Tax on top of the already existing Ontario land transfer tax, the city of Toronto remained silent. There were no strikes, no yelling at the City Hall, not even a serious combined effort from the TREB or any of us, the Realtors, to fight it. The reason for this quiet acceptance of an unfair tax was lack of information. The public was not made aware of this vital chunk of money that was being diverted from them, to the Toronto government savings account. This secrecy, following strategies from dictatorial regimes around the world is new for Torontonians. We trust in our government and in our taxation systems. It is so unbelievable that a tax will be added to our lives and not be in the news with a full explanation of where are the funds going, that we just didn't register this change: until the moment we as home owner, buyer, sellers had to pay it.
All your hard working dollars from the proceeds of the sale of your home will be going to the City Hall if you were to purchase again in Toronto. But if you purchase outside T.O., in the so called suburbs, without a subway, far from Lake Ontario, far from the CN Tower, miles away from Little Italy, Chinatown, Kensigton Market and all that Toronto has to offer, then there is no tax. The T.O. tax is a discriminatory tax just applying to the GTA.
A negative impact of the tax is it’s driving homeowners out of the Toronto market and into the 905 regions. This translates into lost jobs and income that often accompany the purchase of a new home — furniture, appliances and renovations.
Toronto also has the unfair distinction of being the only municipality in Canada that punishes homeowners with both a municipal land transfer tax and a provincial land transfer tax.