Jul 03, 2013
By Jane Brown
Toronto Mayor Rob Ford campaigned 3 years ago on a promise to eliminate the controversial land transfer tax. Today, his executive committee members will consider a proposal to cut the tax on home purchases by 10 percent. Right now, the city land transfer tax on a $500,000 home for people other than first time buyers is $5,725. A 10 percent cut would save most buyers somewhere in the hundreds of dollars. It would also force the city to find a way to fill an estimated $34-million budget hole. Revenue from the land transfer tax has grown every year.
The province’s 2006 City of Toronto Act gave the city the power to impose the tax, the billboard tax, and the vehicle tax that council scrapped at Mayor Ford’s request 2 and a half years ago.
Executive committee members will also be looking at a report which recommends doubling development charges, which the construction industry says will increase the price of new homes and condos. A report recommending options for the BIXI bike sharing program and an update on the proposed Porter Airlines expansion at Billy Bishop Airport are also scheduled to be reviewed.