The Mississauga Real estate Board will appear before city councillors on Monday in an attempt to head off the idea of the land transfer tax that Mayor Hazel McCallion is pushing.
MREB President Fawzi Matter and Government Relations Chair Linda Pinnizzotto will briefly outline the local real estate industry’s objections to the tax, which they say would add considerably to the financial imposition of buying a property and put a damper on the local economy. That could add $74 million yearly to City coffers.
With ratepayers facing a suggested 7.8 per cent property tax increase, McCallion has been lobbying her comrades to support a land transfer tax, similar to one already in effect in Toronto.
Considering the increasing cost of maintaining and making improvements to the city’s infrastructure in future years, politicians trying to find different sources of income beside property taxes.
A land transfer tax is a one time fee that’s charged when property, including land and buildings, is transferred from one owner to another.
The MREB claims arrival of the tax could put the brakes on a local home market that has already fell in a lengthened economic downturn. Generally the amount is a percentage of the purchase price and is paid by the client.
The board has started an internet campaign to mount opposition to such a tax.
“A Land Transfer Tax will dampen Mississauga home sales,” the MREB says in a message to members.
A recent study concluded that Toronto home sales dropped 16 % on account of the tax there.
It “would mean lost jobs for Mississauga’s economy due to reduced consumer expenditure on renovations, movers, furniture, etc.,” the board says.
The MREB will present its deputation to councillors at budget dialogues that resume Monday at 1 p.m.