Land Transfer Tax

The City of Toronto is proposing to charge a second land transfer tax to start in January 2008. The vote is scheduled for October 22, 2007. If passed, it will mean a 100% increase of the land transfer tax for home buyers. With the city of Toronto looking for additional money to help its budget shortfall, it will use the money for public transit and improving poor neighborhoods and perhaps other general municipal services.

Many are opposed to the second land transfer tax that would earn the city $300 million a year, saying it could impact on Toronto's real estate market and economy and would encourage home buying outside the city limits, such as in Mississauga, Oakville, Brampton and Milton and other near-by GTA communities. It would give Toronto the highest land transfer taxes in Canada and second highest in North America. So many are watching the vote closely to see the outcome.

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* Update: October 25, 2007 - City of Toronto has recently approved the second land transfer tax. Dispite efforts in Toronto communities to suggest other alternatives and indicate that wouldn't be the best solution to Toronto's financial challenges, these were ignored and the second land transfer tax was passed. This Toronto Real Estate Blog will keep its readers updated regarding impact of the Real Estate Market in future months.