Municipalities in Ontario are gearing up to force the Province to grant them authority to charge a municipal land transfer (LTT) on home buyers.
Currently allowed only in Toronto, the land transfer tax, potentially may spread to other areas of Ontario. It threatens to increase the cost of home ownership province wide. According to a recent study by the C.D.Howe Institute, this tax has resulted in a 16% drop in the volume of residential sales in Toronto. It has meant that home buyers pay and average of $15,000 up front every time they move due to the municipal tax above and beyond the provincial land transfer tax. The spread of this tax to other regions in Ontario will increase the cost of home ownership across the province. Extending the power to levy the municipal LTT to other municipalities in the province will lower home values by adding thousands of dollars to the cost of a residential real estate transaction. In addition, the LTT would price many low-middle income Ontarians out of the market entirely.