Toronto's 2% Home Tax Draws Ire
Toronto seems intent on passing a land transfer tax of up to 2% by mid-July, much to the fury of its residents. That would give Toronto the highest rate in Canada, and 2nd highest in North America.
The tax equates to $4244 on the typical $380,000 Toronto home.
The tax will start in January if passed. If so, expect a lot of Toronto home closings in the last week of December.
The Real Property Association of Canada issued a press release with eight reasons why the tax is ill advised. Bob Finnigan, from the Building Industry and Land Development Association, implied that the measure is a simple "cash grab." Toronto Star Story
I'm thinking this might be a good negotiation tool over the next 6 months. Tell sellers that if they don't sell by the end of the year, its going to be harder to find a buyer with the increased transfer tax...
Posted by: Mr. Cheap | June 26, 2007 at 10:14 AM
What a rip!
Mind you compared to the ripoff real estate fees, the land transfer tax is not as big a deal.
Mike
Posted by: FourPillars | June 26, 2007 at 11:10 AM
Very true. We'll delve into home buying costs further in a new story tomorrow.
As a side note, the land transfer tax was the most hated of all Toronto tax proposals according to a recent Decima poll.
From politicians' standpoints, it's simply tough medicine for tough budget problems.
At least Toronto's suburbs will be happy, given their new competitive advantage in home affordability.
Have a wonderful evening!
Posted by: Melanie | June 26, 2007 at 03:56 PM