Municipal Land Transfer Tax - Don't Tax My Dream

[Promagstyle]

From what I've heard on CBC that the Government is thinking about allowing individual cities to add their own Land Transfer Tax, as if we consumers don`t get taxed enough already. The Liberals broke a promise saying that they will not adjust this or change this in any other way or form, but it looks like a Tax Grab method.

What I understand from a Real Estate Agent, is that within Toronto you pay twice of the Land Transfer Tax, but if you are outside of Toronto; lets say Aurora, you pay the Land Transfer Tax once. Please correct me if I`m wrong.

The price of an average semi-detached two story house is about $600,000. This price is going to increase due to down payment in order to get a conventional mortgage (20%) of the purchase price. Although there are bidding wars as well in the Real Estate Market. Then add on top this Tax Grab MLTT, its going to screw over first time home buyers and make it less affordable for consumers just like you and me.

There`s a petition online that is circulating supported by OREA. Ontario Real Estate Association
- There`s facts and basic FAQ section about why this MLTT is unfair and not needed at all.

Please visit the website below and make sure you sign the Petition and let you`re City Councilor know that this is unfair for consumers.

http://www.donttaxmydream.ca/

 

[rbt]

If your concern is high prices of homes then you should be strongly in favour of the taxes. Toronto developers have a very strong incentive to provide homes under the $400k mark.

Also diversification of revenue sources is something municipalities in Ontario could use; a sales tax would be preferred but Land Transfer Tax is appropriate as it encourages infrastructure investment to support intensification. If you want no taxes other than property taxes, try moving to Houston but be warned $1000+/month property tax bill is normal.

Land Transfer Taxes don't (In Ontario or Toronto) apply to first time buyers who are purchasing a modest starter home. If you can afford an extravagant starter home, you are right that you do not get a subsidy.


All that said, with rent and house prices where they are in the GTA, more people should seriously consider renting and investing the savings from renting into their retirement accounts.

 

[Migos]

If your concern is high prices of homes then you should be strongly in favour of the taxes. Toronto developers have a very strong incentive to provide homes under the $400k mark.

They also have a strong incentive to make profit. They will not be the ones bearing the cost of the tax. It will either be passed onto the consumer or they will reduce the cost (read: quality) of housing to get it under the $400k mark. There is no free lunch.

Also diversification of revenue sources is something municipalities in Ontario could use; a sales tax would be preferred but Land Transfer Tax is appropriate as it encourages infrastructure investment to support intensification. If you want no taxes other than property taxes, try moving to Houston but be warned $1000+/month property tax bill is normal.

Diversification of revenue sources? The government already makes more off many people's labour than they themselves make!

Land Transfer Taxes don't (In Ontario or Toronto) apply to first time buyers who are purchasing a modest starter home. If you can afford an extravagant starter home, you are right that you do not get a subsidy.

Existing home owners are the ones who are being subsidized. There are already HUGE development fees on housing in Ontario. Those costs are passed directly onto the consumer. New home buyers already pay a disproportionate share of taxes through development fees.

Read: http://www.thestar.com/life/homes/2...es-add-100000-to-price-of-a-new-gta-home.html

More than $100,000 of your new home purchase in Toronto is government-imposed charges. In Simcoe County, the come in at more than $82,000; in Durham Region they are over $92,000; and in Brampton they are over $133,000 — 25 per cent of the purchase price of your new home.

Read: http://www.thestar.com/life/homes/2014/08/29/new_neighbours_pay_growing_share_of_fees_charges.html

A study conducted by the Toronto-based real estate consulting company Altus Group — and released by BILD in June, 2013 — showed that on average, government fees and charges amount to more than one-fifth of the cost of new home. The biggest part of that is development charges, which have increased between 143 and 357 per cent since 2004 across the GTA.

 

[W. K. Lis]

First time buyers don't pay the Toronto Land Transfer Tax.

 

[Tewder]

I'd like to see our government come up with some constructive ways to increase revenue rather than falling back on implementing new taxes. I don't know, how about stimulating the economy and creating more jobs/tax payers?? A novel concept I know.

We get what we deserve though. We seem to love corrupt legacy governments in Ontario and keep voting them in, somehow shocked that nothing changes.... isn't this the definition of stupidity?? These liberal lunkheads need a time out. We need change and reform in Ontario, seemed to work in Ottawa!

 

[CDL.TO]

I'd like to see our government come up with some constructive ways to increase revenue rather than falling back on implementing new taxes. I don't know, how about stimulating the economy and creating more jobs/tax payers?? A novel concept I know.

I hope you don't actually think that you're having an original thought.

 

[Tewder]

Wow, did i hurt your feelings?

 

[CDL.TO]

Why would my feelings be hurt by someone reciting hackneyed talking points?

 

[salsa]

We get what we deserve though. We seem to love corrupt legacy governments in Ontario and keep voting them in, somehow shocked that nothing changes.... isn't this the definition of stupidity?? These liberal lunkheads need a time out. We need change and reform in Ontario, seemed to work in Ottawa!

Still smarting over Tim Hudak's defeat?

 

[rbt]

I'd like to see our government come up with some constructive ways to increase revenue rather than falling back on implementing new taxes. I don't know, how about stimulating the economy and creating more jobs/tax payers?? A novel concept I know.

That's exactly the reason to give Toronto a cut of sales tax. Properties taxes do not grow or shrink with the economy or job count, so there is little incentive for city accountants to encourage growth related investment and plenty of reasons for them to discourage it.

About the only actual new money comes from new buildings which also come with substantial new costs, everything else just changes the split of who pays what amount.

Development fees cover a small amount of new infrastructure investment.

 

[Adjei]

I'd like to see our government come up with some constructive ways to increase revenue rather than falling back on implementing new taxes. I don't know, how about stimulating the economy and creating more jobs/tax payers?? A novel concept I know.

We get what we deserve though. We seem to love corrupt legacy governments in Ontario and keep voting them in, somehow shocked that nothing changes.... isn't this the definition of stupidity?? These liberal lunkheads need a time out. We need change and reform in Ontario, seemed to work in Ottawa!

Well I guess the public have decided the other parties are worse. Maybe if they can come up with some policies which actually make sense, they will get voted in. Stephen Harper got booted out because we had better alternatives. Wonder why the geniuses at the provincial parties aren't figuring that out.

 

[Migos]

That's exactly the reason to give Toronto a cut of sales tax. Properties taxes do not grow or shrink with the economy or job count, so there is little incentive for city accountants to encourage growth related investment and plenty of reasons for them to discourage it.

About the only actual new money comes from new buildings which also come with substantial new costs, everything else just changes the split of who pays what amount.

Development fees cover a small amount of new infrastructure investment.

Ummm...property taxes DO grow with the economy. More workers mean more factories, offices, commercial real estate, etc. All of those are taxed. It also means higher house prices which means more residential tax per household. Plus, a growing economy will attract more workers which means more development a further increase to tax revenue.

 

[Adjei]

I hope you don't actually think that you're having an original thought.

Besides, how much is government really responsible for the economy? Governments really love to take credit for the economy when it's good but as soon as times are bad, it's somebody else's fault. Governments play a role in the economy but that role is overstated by governments and also the public. Government policies may have more of a long term effect on the economy instead of a short term effect. Expecting governments to just push some button and we create all these jobs and economy starts growing is nonsense.

 

[yin_yang]

I'd like to see our government come up with some constructive ways to increase revenue rather than falling back on implementing new taxes. I don't know, how about stimulating the economy and creating more jobs/tax payers?? A novel concept I know.

We get what we deserve though. We seem to love corrupt legacy governments in Ontario and keep voting them in, somehow shocked that nothing changes.... isn't this the definition of stupidity?? These liberal lunkheads need a time out. We need change and reform in Ontario, seemed to work in Ottawa!

search job sites and you will find that there are many jobs available. 50,000+ jobs on just one site i looked at. that's not to mention jobs that aren't posted online like signs in windows and on private company websites. there are more than enough jobs. i don't understand people that think there is a lack of jobs. there are so many!

 

[Promagstyle]

Thanks for the replies.