TORONTO, March 20, 2013 — In light of a suggestion to cap the Toronto Land Transfer Tax, being considered by the City of Toronto’s Executive Committee today, the Toronto Real Estate Board is restating its robust belief this tax should be phased-out.
"The Toronto Land Transfer Tax should be scrapped, not capped. Under this scenario, home buyers could be artificially inspired to obstruct home purchases, thus interfering with the natural operation of the real estate market. We are inspired the Executive Board is considering action on the Land Transfer Tax, but, not only is capping not sufficient to correct the issues this tax is making for our City, it could make this bad tax even worse," claimed Ann Hannah, President of the Toronto Property Board. This concern has also been articulated by renowned borough finance expert, Enid Slack of the University of Toronto, who was recently quoted by the media as saying "If you need to scale back the land transfer tax, why would you not just cut back the tax rate, and say the tax levels are going down, so there is some certainty for taxpayers going forward? With this method ( capping ), they are not going to know what the tax rate is next year."
"The best path is a phased elimination of this tax. The only real way to truly provide a solution to the problems that this tax is making for our City is to get shot of it ; and with a predictable phase-out plan, home purchasers could make sensible choices and City Council could set a fair schedule, which would make market distortions not likely," announced Von Palmer, TREB’s Chief Government and Public Affairs Officer. The C.D. This poll also discovered that virtually seven in 10 Torontonians, 68 percent, support plans to eliminate the Toronto Land Transfer Tax. Howe Institute lately released an appraisal of the Toronto Land Transfer Tax, which shows this tax has hurt Toronto’s economy by dampening home sales by Sixteen per cent.
"Capping equals keeping. The public has continually made it clear that they need the Land Transfer Tax scrapped," asserted Palmer.