ABOVE: Doug Ford rails against the “unfair” municipal land transfer tax
TORONTO – Councillor Doug Ford promises to phase out a portion of the city’s municipal land transfer tax by 15 per cent every year for four years if elected mayor of Toronto.
“This is an unfair tax. It hits people buying cheaper homes the hardest,” Ford told reporters following a meeting with members of the Toronto Real Estate Board (TREB) Wednesday morning.
“We slam average, everyday, hard-working residents with a tax on top of a tax. This has to stop.”
Toronto is the only municipality in Canada to charge an additional land transfer tax on top of the provincial one, which is estimated to pull in nearly $350 million every year.
Ford said he will offset the lost revenue of $52.5 million from the 15 per cent tax cut by proposing to outsource garbage east of Yonge Street and consolidating purchasing among city divisions.
But his plan to phase out the tax was derided by both of his main competitors.
John Tory said the tax “can’t be cut right now” because the revenue is paying for much-needed services.
And Olivia Chow suggested again Wednesday the tax should be increased.
“I do not [plan on] phasing out the land transfer tax,” she told reporters at city hall.
“I believe it should be even more progressive and that those that are buying homes and condos that are $2 million or more, should pay one per cent more so we can start building the downtown relief line.”
She also claimed phasing out the land transfer tax would inevitably lead to increased property taxes.
WATCH: Ford campaign declares war on the property transfer tax
Ford promised that his first order of business if elected mayor would be to bring the land transfer tax debate to council for a vote.
However, a decision to pass the tax cut would have to be agreed upon by a majority of council members.
Ford’s brother Rob also campaigned in 2010 to abolish the tax, but failed.
“It’s the right thing to do,” said TREB Chief Government and Public Affairs Officer Von Palmer.
“It’s an unfair tax. On the average price of property in Toronto which is around $600,000, people are paying $6,000 to city hall up front in cash. It’s a back-breaking tax. Now, there’s an additional $8,000 you pay to the province.”
Last winter, Mayor Ford failed to gain support from council on a motion to eliminate the land transfer tax by 5 per cent, which would amount to approximately $17 million.
Councillors have repeated the call that the tax is necessary to fund much-needed programs and services.
Comments